On December 2, 1996, leading device software supplier Spyglass Inc. (Nasdaq: SPYG) rolled out a comprehensive product and services strategy that propelled the company into the burgeoning Internet device marketplace. Now, nine months later, at the Embedded Systems Conference and tradeshow, Spyglass is demonstrating some of the results of that strategy with products from a who's who list of television makers, telecommunications suppliers and leading device manufacturers.

In its booth (no. 1442) at Embedded Systems at the San Jose Convention Center opening here today and running through Thursday, October 2, Spyglass is demonstrating solutions that feature Spyglass' technology and services, including the world's largest maker of televisions, Thomson/RCA's set-top box; the world's largest maker of computers, IBM's network computer; PowerTV embedded operating system for televisions and cable set-top boxes, and Microsoft Windows CE devices. GTE and Geoworks recently licensed Spyglass' Prism, a dynamic content conversion solution.

"Our offerings at the Embedded Systems Show are just the beginning," said Doug Colbeth, Spyglass president and CEO. "The diversity of the solutions we are demonstrating at this show reflects the flexibility of the technologies and services Spyglass offers. We are clearly illustrating that successful solutions include not only state-of-the-art embedded browser and server technology, but also innovative infrastructure products and expert custom engineering services as well. Having an end-to-end solution will make the difference between products that are just 'connected to the Web', and those that truly 'work with the Web'."

At the Embedded Systems Show, Spyglass will be demonstrating a number of devices featuring its products and services:

Thomson/RCA Network Computer

The RCA Network Computer is a set-top box that allows conventional TV sets to send and receive e-mail and display Web content. The system offers an electronic program guide (EPG), which was developed by Spyglass Professional Services, that lets users direct-tune to TV shows from an on-screen information guide. Data for the grid is automatically downloaded and updated from the Internet and stored to flash memory in the terminal. In additional to the Professional Services work, SurfWatch parental control software is used by NetChannel, the service provider for the RCA Network Computer. RCA chose Spyglass Professional Services to reduce time to market, gaining immediate Internet expertise they did not have.

Microsoft Windows CE Devices

Spyglass is demonstrating how its proxy- based dynamic content conversion solution, Spyglass Prism, optimizes content delivery to Internet-enabled devices, such as the Philips Velo and Casio's Cassiopeia handheld personal computers. In this demo, two Windows CE-based Velos - one using Spyglass Prism and one not using the product - will be used to show performance improvements of up 4X using Prism. Spyglass Prism customers include the United States' second largest telephone company, GTE, and Geoworks, a leader in the telephone devices industry.

Spyglass MicroServer

Spyglass Microserver is a small footprint, scalable, embedded Web server that is standards-based, customizable and features dynamic content generation with multi-platform support. Spyglass MicroServer has been licensed by Xerox, a world leader in the office equipment market. In this demo, the Spyglass MicroServer is embedded inside a digital video camera. This allows users to control the movement and position of the camera from any desktop PC Web browser.

IBM Network Station

The IBM Network Station features Spyglass' Device Mosaic browser technology along with customization work by Spyglass' Professional Services. The IBM branded browser provided with its Network Station is based on Device Mosaic because Spyglass was able to meet IBM's memory footprint goal, and to deliver in time to meet their product rollout schedule. The Network Station, which is being demonstrated in the Spyglass booth, is a small, simple-to-use NC that delivers intranet and Internet access to desktop users in an easy-to-manage system. IBM's branded version of Device Mosaic features a small footprint, a scalable feature set, support for the latest Internet standards and a customized user interface.

PowerTV

PowerTV is demonstrating its browser that is embedded in its operating system which is based on Device Mosaic from Spyglass. It is designed to help TV viewers clearly view and easily navigate Web content. A leading provider of solutions for interactive entertainment, and partially owned by Scientific Atlanta, PowerTV's operating system is currently used in interactive networks deployed by BellSouth and Pacific Telesis. The

PowerTV OS is the only operating system designed specifically for advanced TV and is based on open, industry standards to meet the demands of the growing market. It is marked by a small memory footprint and hardware-independent design. The PowerTV OS creates a quality experience for viewers with anti- aliased fonts and crisp graphics.

In addition, Spyglass will be leading two courses being held at the show: Bringing the Web to the World: Adding Web functionality to Almost Anything by Brian Kowalski, director, systems engineering for Spyglass; and Embedding HTTP Functionality for Web-Based Configuration and Management of Devices by Steve Wingard, Spyglass senior software engineer.

About Spyglass Inc.

Spyglass is the leading provider of software and services to make non-PC devices work with the Web. Market leading device manufacturers that have licensed products and consulting services from Spyglass, include Xerox Corp. for a new line of copiers; GTE for a new line of Web screen phones; IBM Corp. for their line of network computers (NCs); and Thomson Consumer Electronics (owners of the RCA, ProScan and GE brands) for a new generation of RCA television set-top boxes. Spyglass headquarters are located at 1240 East Diehl Road, Naperville, Illinois 60563; telephone: 630-245-6500; fax: 630-245-6693; press email inquiries: rpitzer@spyglass.com