WALTHAM, Massachusetts, August 20 /PRNewswire/ --

- Additional resources, training and investments to address growing 
customer demand.

Microsoft Corp and Novell Inc are announcing an incremental investment in
their relationship to meet accelerating customer demand for their business
model solution, which is designed to build a bridge between open source and
proprietary software to deliver interoperability and intellectual property
(IP) peace of mind for organisations operating mixed-source IT environments.

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The investment focuses on enhanced programmes from Novell to provide
tools, support, training and resources for customers seeking an
enterprise-class Linux* platform and specifically, the optimal
interoperability solution between Microsoft Windows Server and SUSE(R) Linux
Enterprise Server from Novell(R). It also includes Microsoft's commitment to
purchase up to US$100 million in certificates that those customers can redeem
for expanded support from Novell that includes SUSE Linux Enterprise Server
support and support for moving toward an enterprise-class Linux platform. The
investments will take effect 1 Nov 2008, and between now and then Microsoft
and Novell will solicit customer input and identify aspects of the support
programmes that will be most useful to organisations running mixed-source
environments.

Customer response to the Microsoft-Novell model has been significant
since it began in November 2006. As part of the initial five-year partnership
agreement, Microsoft purchased US$240 million of Novell certificates to sell
to customers. Within 18 months, Novell invoiced more than US$157 million in
certificate revenues, or 65 per cent of the original allotment. Customers who
have already taken advantage of this opportunity to seamlessly run both
Windows Server and SUSE Linux Enterprise Server include Wal-Mart Stores Inc,
HSBC Holdings, Renault, Southwest Airlines Co, BMW and many other leading
companies around the world.

"The collaboration between Microsoft and Novell has been built on our
desire to meet our customers' real-life IT requirements as well as give our
partners greater breadth in their solution offerings," said Kevin Turner,
chief operating officer at Microsoft. "Some customers have told us they want
to be able to run Windows Server and Linux together seamlessly, but in many
cases, they need help with the transition to SUSE Linux Enterprise Server
from other Linux environments. Our increased investment in the relationship
with Novell is intended to give these customers and partners the best
possible Windows-Linux interoperability solution, while also extending their
existing Windows Server investments and helping to give them IP peace of
mind."

"Cross-platform interoperability is something that we all want and need
to achieve. But it's difficult to accomplish this," said Ulrich Koch, Head of
License Management T-Systems Enterprise Services. "The pragmatic approach
Microsoft and Novell are taking to address this complex challenge, including
IP assurance, through engineering as well as offering tangible support and
training programmes, will make it easier for us to develop a path forward."

"The strategic partnership between our companies continues to attract
customers by building a bridge between proprietary and open source software,"
said Ron Hovsepian, president and CEO of Novell. "The interoperability
delivered by Microsoft and Novell has resulted in very high demand for SUSE
Linux Enterprise from customers and channel partners, further validating
Novell's Linux strategy."

With today's announcement of the enhanced relationship, customers will
continue to realise unprecedented choice and flexibility of running both SUSE
Linux Enterprise Server and Windows Server with the confidence that both
operating systems will work together seamlessly in the datacenter. Novell and
Microsoft, through their joint interoperability lab in Cambridge,
Massachusetts, and other initiatives, will continue their close technical
collaboration on a wide variety of solutions including virtualisation,
systems management, directory and identity federation, document format
compatibility, accessibility technology, and the Moonlight multimedia
framework.

More information about the Microsoft and Novell agreement can be found at
http://www.moreinterop.com.

About Novell

Novell, Inc (Nasdaq: NOVL) delivers the best engineered, most
interoperable Linux platform and a portfolio of integrated IT management
software that helps customers around the world reduce cost, complexity and
risk. With our infrastructure software and ecosystem of partnerships, Novell
harmoniously integrates mixed IT environments, allowing people and technology
to work as one. For more information, visit http://www.novell.com.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software, services and solutions that help people and businesses realise
their full potential.

About Microsoft EMEA (Europe, Middle East and Africa)

Microsoft has operated in EMEA since 1982. In the region Microsoft
employs more than 16,000 people in over 64 subsidiaries, delivering products
and services in more than 139 countries and territories.

This material is for informational purposes only. Microsoft Corp
disclaims all warranties and conditions with regard to use of the material
for other purposes. Microsoft Corp shall not, at any time, be liable for any
special, direct, indirect or consequential damages, whether in an action of
contract, negligence or other action arising out of or in connection with the
use or performance of the material. Nothing herein should be construed as
constituting any kind of warranty.

Novell and SUSE are registered trademarks of Novell Inc in the US and
other countries.

*Linux is a registered trademark of Linus Torvalds.

The names of actual companies and products mentioned herein may be the
trademarks of their respective owners.

Web site: http://www.microsoft.com
              http://www.novell.com