Novell Expands Commitment to China

- New investments, R&D center, and key partnerships to help expand the
software ecosystem in China

BEIJING (LinuxWorld 2005) * Aug. 17, 2005 * Novell today announced new plans to expand investment in the China market, with plans to set up a research and development center in China, open new regional branches, develop a local technology support center, and strengthen ties with local partners. As a result, Novell will be better positioned both to promote Linux* development and adoption in China and to provide customers in China its enterprise-class infrastructure, open source, and security solutions.

"Novell is increasing its investment in China because we believe we can have an enormous positive impact on economic growth in the region," said Jack Messman, chairman and CEO of Novell, keynoting at LinuxWorld* Beijing. "Together with our Chinese partners, we are dedicated to promoting the development of Linux and open source in the local market, as well as accelerating the Chinese software industry more broadly."

By the end of 2005, Novell will establish a research and development center in Beijing as part of its global R&D infrastructure. The center will focus on Linux desktop research and development, Linux internationalization and localization, and high performance Linux, including carrier-grade Linux.

To further spur Chinese open source development, Novell is launching openSUSE.org.cn, a dedicated Chinese language site for the recently announced openSUSETM project. OpenSUSE.org.cn will enable Chinese users and developers to contribute to and leverage one of the most popular Linux distributions in the world*SUSETM Linux. (See separate announcement today for more details.)

In addition, Novell plans to develop and deliver solutions customized for the region by enhancing ties with local vendors, including the agreement recently announced with the China Standard Software Company (CS2C). Novell will also work closely with local telecommunications vendors to cooperatively develop and market carrier-grade Linux applications. Novell will continue to focus on establishing strategic alliances with local system integrators, distributors, and software vendors to create a vibrant ecosystem around Novell's Linux offerings in China.

Novell will establish a Novell® Authorized Support Center in Shenzhen to support its growing customer base in China. Novell will also, in conjunction with CS2C, launch a Novell Authorized Testing Center in Beijing, providing testing and education licensing services for Chinese hardware and software vendors.

Finally, Novell plans to increase its local coverage in the Chinese market by expanding its office presence beyond Beijing. Novell will be opening offices in Guangzhou and Shanghai. These new facilities will provide additional support to customers in the telecommunications, financial services, and government sectors.

"This expansion of our presence in China is a strong signal of our commitment to the region," said Rhonda O'Donnell, president, Novell Asia-Pacific. "Investing in the Chinese market is a key strategy for Novell. We are poised for a new era in China, ready to significantly contribute to China's development of its software industry."

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