Silicon Graphics, Inc. (NYSE: SGI) and Netscape Communications Corporation (Nasdaq: NSCP) plan to converge on a combined VRML (Virtual Reality Modeling Language) 2.0 client for the Netscape platform, by collaborating to integrate Netscape Live3-d(TM) and Silicon Graphics Cosmo Player to create a next generation plug-in for the Netscape Communicator(TM) Internet client. Silicon Graphics plans to license Netscape's Live3D VRML client to combine with the Silicon Graphics Cosmo Player and Netscape plans to license and distribute the next-generation Silicon Graphics Cosmo Player as a default VRML 2.0 component of Netscape Communicator. The combined effort is expected to offer developers a cross-platform, high-performance VRML 2.0 client with a common user interface, common JavaScript scripting language, and common Java API (the External Authoring Interface, or EAI) across Windows, Macintosh and multiple UNIX operating systems.

"Netscape and Silicon Graphics' plans to converge on a combined VRML client are expected to bring the best of both worlds to Web developers and end users," said Rick Schell, senior vice president of the Client Product Division at Netscape. "Silicon Graphics brings undisputed leadership in 3D and its proven track record in high performance VRML software with the Cosmo product line. Netscape delivers its advanced user interface expertise and leadership in cross-platform software development and delivery. Together we plan to bring to market the best possible integrated VRML client for the large Internet and intranet market."

Netscape and Silicon Graphics plan to jointly market and distribute Silicon Graphics Cosmo Player, which is currently scheduled for release in the second quarter of 1997. Netscape plans to distribute Cosmo Player as a component of the standard download configuration of Netscape Communicator. Netscape Communicator, which is currently available in beta version on Netscape's Internet site, is Netscape's new open email, groupware and browser suite for communicating across intranets and the Internet. Netscape also plans to bundle Silicon Graphics Cosmo Player with Netscape Communicator Personal Edition and distribute Silicon Graphics Cosmo Player from the Netscape Internet site as a stand-alone plug-in.

"Working with Netscape should allow us to deliver the highest quality VRML 2.0 platform to content creators, application developers and the millions of end users of Netscape Navigator and Netscape Communicator," said Kai-Fu Lee, vice president and general manager, Web Products Division at Silicon Graphics. "The distribution of Silicon Graphics Cosmo Player merged with Netscape Live3D technology in Netscape Communicator should help us bring about our vision of a Web that more closely mirrors the real world."

Silicon Graphics and Netscape plan to standardize on a single VRML browser are expected to bring a wide variety of benefits to the ever-growing community of Web content and applications developers. By leveraging each others' strengths, Netscape and Silicon Graphics plan to deliver a best-of-breed, highly integrated and broadly distributed client with a number of features critical to developers. Support for the VRML External Authoring Interface brings an open Java API to VRML 2.0. Support for JavaScript as the default VRML scripting language in the next-generation Silicon Graphics Cosmo Player is expected to help developers use a universal method of scripting interaction across Windows, Macintosh and a wide variety of UNIX operating systems. Support for layering through Netscape Communicator is expected to enable the creation of a new class of applications which seamlessly blend two-dimensional and three-dimensional presentation.

The next-generation VRML platform will also be compatible with Silicon Graphics award-winning Cosmo Worlds authoring tool for developing interactive 3D virtual worlds that can be delivered over the Web to a wide variety of desktop computers.

VRML 2.0 is an open, platform-independent industry standard for dynamic interactive 3D environments and applications on the Internet. VRML 2.0 blends sensors, scripts and sounds with geometry to create a multimedia framework for executable content. Developers can create 3D worlds that are alive with behavior, react to user input and provide an intuitive interface to information on the Web. VRML 2.0 also leverages existing Web standards like JavaScript and Java. JavaScript allows scripted communication between different objects both inside and outside the 3D environment. Java is accessed through the EAI which turns VRML 2.0 into an extensible platform for application development. Using the EAI, programmers can link their VRML 2.0 worlds to databases, multi-user servers and commerce transactions. Additionally, plug-ins can be placed inside of 3D worlds to provide services ranging from streaming video to slide presentations.

The discussion in this news release of new products and technologies contains forward-looking statements that involve risks and uncertainties, including the timely release to manufacturing, the availability of components from suppliers, the impact of competitive products and pricing, the timely release of compatible third-party software and the other risks detailed from time to time in the company's SEC reports, including the reports on Form 10-K for the year ended June 30, 1996 and Form 10-Q for September 30, 1996. Actual results may vary materially.

Netscape Communications Corporation is a leading provider of open software for linking people and information over enterprise networks and the Internet. The company offers a full line of clients, servers, development tools and commercial applications to create a complete platform for next-generation, live online applications. Traded on Nasdaq under the symbol "NSCP," Netscape Communications Corporation is based in Mountain View, California.

Silicon Graphics, Inc. is a leading supplier of high-performance interactive computing systems. The company offers the broadest range of products in the industry -- from low-end desktop workstations to servers and high-end Cray(R) supercomputers. Silicon Graphics also markets MIPS(R) microprocessor designs, Alias|Wavefront(TM) entertainment and design software and other software products. The company's key markets include manufacturing, government, science and industries, telecommunications and entertainment sectors. Silicon Graphics and its subsidiaries have offices throughout the world and headquarters in Mountain View, California.