Be Shifts Resources to Focus on Internet Appliance Market

Company to Distribute Desktop Operating System for Free Via the Internet
and Partnerships

MENLO PARK, Calif.–January 18, 2000–Be Incorporated (Nasdaq: BEOS) today
announced that it is shifting its resources to focus primarily on the
growing Internet appliance market. In order to maximize the visibility and
acceptance of Be technology, the upcoming version 5 of the BeOS desktop
operating system will be available for personal use at no charge beginning
later in the first quarter of 2000. At that time, individuals who register
with Be at http://free.be.com will be able to download BeOS 5 for free. Be
also intends to work with publishers and other partners to make commercial
versions of BeOS 5 available through retail channels.

“The post-PC revolution of Internet appliances has started,” said
Jean-Louis Gasse, chairman and chief executive officer of Be. “Our
customers and partners, such as Compaq, National Semiconductor,
RealNetworks and Qubit, have validated our belief that Be is well
positioned to play an important role in this emerging market. We want to do
everything in our power to make the best use of this opportunity. Making
the free version of BeOS 5 available through the Internet and other
channels allows us to aggressively promote our technology, maximize our
visibility and obtain valuable market feedback while aggressively pursuing
Internet appliance opportunities.”

As a result of this shift in resources and offering BeOS 5 for free, Be
will not realize the revenues previously anticipated from sales of the
desktop version of its operating system. First Call’s consensus estimate of
revenues for the year 2000 has been approximately $16,000,000. Analysts
estimated that desktop sales for 2000 would account for approximately 85
percent of revenues. This shift will negatively impact future revenues as
well.

Be’s product for the Internet appliance market is code-named Stinger, a
software solution for appliances that deliver information and entertainment
over the web. Based on BeOS, Stinger is fully customizable, offers a
complete browser and supports popular streaming audio and video standards.

BeOS 5 is the newest version of BeOS, an alternative desktop operating
system designed to deliver the most satisfying experience possible on a
personal computer. BeOS provides a high-performance robust platform for all
applications, excelling in the areas of audio and video manipulation. Users
will be able to download BeOS 5 via a web browser and store it as a file
within their existing operating system (such as Windows). No repartitioning
will be necessary, and launching BeOS 5 will be as simple as
double-clicking an icon on the desktop.

About Be Incorporated
Founded in 1990, Be Incorporated creates software platforms that enable
rich media and web experiences on personal computers and Internet
appliances. Be’s headquarters are in Menlo Park, California, with offices
in Paris and Tokyo. It is publicly traded on the Nasdaq National Market
under the symbol BEOS. Be can be found on the Web at http://www.be.com.
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Be Incorporated Announces Possible Public Offering

MENLO PARK, Calif.–January 18, 2000–Be Incorporated (Nasdaq: BEOS)
announced that it is contemplating the filing of a registration statement
with the Securities and Exchange Commission for a public offering of its
common stock. The timing and size of the offering are dependent on market
conditions and other factors.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities of Be Incorporated. The
offering will be made only by means of a prospectus contained in a
registration statement to be filed with the Securities and Exchange
Commission, and will be sold through underwriters engaged by the Company.