Novell’s Registration Statement

Novell, Inc. Announces Effectiveness of Previously Filed Registration Statement for Resale of 0.50% Convertible Senior Debentures

WALTHAM, Mass. — Dec. 23, 2004 — Novell, Inc. (NASDAQ: NOVL) announced today that the Securities and Exchange Commission has declared effective Novell’s Registration Statement on Form S-3 relating to the resale of its 0.50% Convertible Senior Debentures due 2024 and the common stock issuable upon conversion of these debentures.

As previously announced, Novell issued $600,000,000 aggregate principal amount of the debentures in a private placement on July 2, 2004. At that time, Novell had agreed to register the debentures and underlying shares of common stock for resale. Today’s announcement completes this process. Novell will not receive any of the proceeds from any resale of the debentures or underlying shares of common stock that may be made under the registration statement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such states.