Spyglass Inc. (Nasdaq: SPYG) today announced it expects to report revenue of approximately $4 million and an earnings per share loss in the range of $.10 to $.13 for the first quarter ended December 31, 1996. The company stated that it does not expect to recognize any revenue in the quarter from Microsoft in excess of the minimum quarterly payment due under the license agreement with Microsoft with respect to the licensed Spyglass software used in the Microsoft Internet Explorer product. The company stated that it is not able to determine the amount of royalties due from Microsoft in excess of the minimum payment because it has not received a royalty report with respect to the number of copies of Internet Explorer distributed by Microsoft. Under the terms of the agreement between Microsoft and Spyglass, Microsoft agreed to pay royalties to Spyglass based on its distribution of Internet Explorer software. The company also stated that it intends to exercise its contractual right to audit Microsoft's records to determine whether, and to what extent, additional royalties are owed to Spyglass.

About Spyglass Inc.

Spyglass Inc. (Nasdaq: SPYG) provides software and services to make devices work with the World Wide Web. Among Spyglass' OS device customers are Integrated Systems, Inc., Lynx Real-Time Systems, Inc., Microware Systems Corp. and QNX Software Systems, Ltd. Other customers include BellSouth, Computer Associates, Inc., Digital Equipment Corp., IBM Corp., Microsoft Corp., Oracle Corp. and WebTV. Spyglass headquarters are located at 1240 E. Diehl Road, Naperville, Ill. 60563

Spyglass is a registered trademark of Spyglass, Inc. The Spyglass logo and "Make the Net Work" are trademarks of Spyglass, Inc. in the United States and other countries. Mosaic is a trademark of the University of Illinois.

SOURCE Spyglass Inc.