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Spyglass™ Announces First Acquisition; Stonehand Strengthens Spyglass SGML, HTML, Unicode Technology Offerings

Spyglass and Stonehand Combination Will Facilitate Mission Critical Information on the World-Wide Web; Expands Opportunities in Financial, Government and Healthcare Markets

Naperville, Ill. -- Wednesday, January 24, 1996 -- Spyglass Inc. (NASDAQ: SPYG) announced today the execution of a definitive agreement for the acquisition of Stonehand Inc., a privately-held company based in Cambridge, Mass. that develops and licenses high performance, embeddable text formatting tools for application and system software developers. Spyglass will pay $9.5 million in a stock pooling transaction in which Stonehand employees and operations will become the core of Spyglass' East Coast research & development organization.

Spyglass reported net revenues of $3.85 million for the quarter ended December 31, 1995, a 91% increase over net revenues of $2.02 million for the same period last year. Of the $2.02 million, $512,000 was revenue from the Spyglass data visualization products, which the company sold at the end of fiscal 1995. According to President and CEO Douglas Colbeth, when the quarters are compared in terms of Internet technology revenues the increased revenue growth was 155%.

Douglas Colbeth, Spyglass president and CEO, cited a number of reasons the acquisition fits in with the company's business strategy and long-term goals:

"This is a significant move for Spyglass because it is our first acquisition and sets the tone for future acquisitions," Colbeth said. "The companies have a lot in common, particularly a deep commitment to supporting open standards for the Web. There is a real synergy between us and we think that synergy will pay big dividends as we work together to build better technology to meet the needs of new customers interested in Web enabling their applications. We are pleased Stonehand agreed to become part of Spyglass."

"Spyglass and Stonehand have mutual goals," said Will Manis, president of Stonehand. "That was important to us when making the decision. We believe in keeping the Web open. Spyglass' open technology and open business model embodies that philosophy more than any other company involved in the Internet. The choice was pretty simple."

Combines the Strengths of Leading Web Technology Suppliers

According to Colbeth, the acquisition plays to the strengths of both companies and allows Spyglass to further strengthen its position as a leader in embedded Web component technology.

Spyglass Inc.

Spyglass Inc. (NASDAQ: SPYG) licenses World-Wide Web client and server technologies. Spyglass technology is currently licensed by 56 customers, including AT&T,, Digital Equipment Corp., IBM, Microsoft and Oracle. Spyglass technology has been licensed for use in over 145 Internet-based products and services. Spyglass' headquarters are located at 1230 E. Diehl Road, Naperville, Ill. 60563, with research and development facilities in Champaign, Ill., and Cambridge, Mass. and regional sales offices in Cambridge, Mass., Morristown N.J. and San Ramon, Calif. (Headquarters: telephone -- 708.505.1010, ext. 504; fax: 708.505.4944; press email inquiries: rpitzer@spyglass.com; Web server, Internet: www.spyglass.com; Stonehand's Web address is www.stonehand.com.)

(January 1996)

Mosaic is a trademark of the University of Illinois. Spyglass, the Spyglass logo and "Make The Net Work" are trademarks of Spyglass Inc. (Other products and brand names are trademarks or registered trademarks of their respective companies.)

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