BITSource First to Electronically Distribute Novell Licenses to Channel Partners Via Internet; Reduces License Delivery Time from Days to Minutes

Business Wire, August 30, 1999

SUNNYVALE, Calif. and PROVO, Utah--(BUSINESS WIRE)--Aug. 30, 1999--

BITSource, Inc., a leader in electronic software licensing, delivery and management, today signed an e-commerce electronic distribution agreement with Novell, Inc. (NASDAQ: NOVL), the world's leading provider of directory-enabled networking software.

As a Novell electronic distributor, BITSource will be the first to electronically deliver volume licenses to corporate customers in North America through Novell resellers, reducing delivery time from days to minutes. A Novell electronic distributor has the ability to perform both electronic software and license distribution with Novell authorized resellers and customers. This initiative is designed to increase service and satisfaction to the extensive Novell global community.

The BITSource SmartLicense (SM) technology helps automate the license approval and delivery process and reduces the total cost of ownership (TCO) of software by reducing: delivery time; the cost of labor-intensive processing; and the risk of license configuration and data entry errors. SmartLicense also greatly improves compliance tracking.

After a reseller purchases a Novell volume software license from BITSource, customers can receive these licenses electronically via email. These licenses can be delivered within minutes via the Internet, eliminating the multiple-day wait typically needed to create and deliver traditional paper-based volume licenses.

According to Kan Choi, Purchasing Manager at SoftChoice Corporation, "I am very excited that Novell products are being electronically distributed by BITSource. BITSource's exceptional service and ability to fulfill volume license orders in minutes, rather than weeks, has created a significant competitive advantage for SoftChoice."

"BITSource has proven itself as a leader in the exploding business-to-business e-commerce market space," said Chuck Meister, vice president of field and channel sales, Novell Inc. "As the Internet directory leader, Novell is constantly seeking innovative ways to meet the growing demands of customers for streamlining business on the Web. BITSource not only enables us to deliver licenses to the channel more quickly and efficiently, it also provides unique electronic services to our resellers."

According to David Rubin, president of BITSource, "We are delighted to be chosen as Novell's first electronic volume licensing partner. With their leadership in the networking space, and our SmartLicense technology, we are a compelling combination of products and services that will significantly change and improve the way networking software is sold, delivered and managed in the channel."

About BITSource, Inc:

BITSource, Inc., specializes in business-to-business electronic commerce, and is a leading provider of Internet-based systems enabling customers to streamline the licensing, procurement and management of software.

For more information about the company, visit www.bitsource.com, or call 1-888-456-BITS.

BITSource and SmartLicense are trademarks and registered trademarks of BITSource, Inc.

Novell is a registered trademark of Novell, Inc., in the U.S. and other countries.

All other trademarks and service marks are properties of their respective owners.