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:

OPENS NEW MARKETS FOR SPYGLASS AND STONEHAND TECHNOLOGY -- One of the
critical issues facing the Web today, particularly in the financial,
health care and government sectors, is document integrity (ensuring that
companies are delivering and receiving mission critical information,
intact, without alteration, on the Web). The combination of Spyglass and
Stonehand technology will facilitate the publishing of complex documents.

SYNERGY BETWEEN THE TWO PROFITABLE BUSINESSES -- A synergy between the
businesses will ensure success -- each is active in and support open
standards efforts; both have proven SGML/HTML, internationalization
expertise; both have long histories of profitability and a commitment to a
partner-based business model.

STRENGTHENS SPYGLASS CORE TECHNOLOGY -- Stonehand's HTML Viewer and
Composition Toolbox will enrich Spyglass core component technology,
particularly in text and presentation viewing features.

EXPANDS AND STRENGTHENS SPYGLASS R&D -- Stonehand's operations will become
a research and development facility for Spyglass concentrating on text
formatting including further developing SGML, HTML and Unicode
(internationalization features) tools for Spyglass products.

"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.

STONEHAND EMPLOYEES FORM THE CORE OF NEW EAST COAST R&D FACILITY -- Forming
the core of Spyglass' new R&D facility will be the 10 employees of
Stonehand who will report to Tim Krauskopf, Spyglass vice president of
Research and Development. They will concentrate on the development of text
processing technology that will be incorporated in Spyglass' core
offerings.

ADDS TEXT FORMATTING, OPEN STANDARDS EXPERTISE -- Stonehand employees are
leaders in core technologies including developing text formatting and
internationalization technologies, such as SGML, HTML, DSSSL and Unicode.
Stonehand personnel are very active in the open standards community and
Glenn Adams is a technical director of the Unicode Consortium, the
creators of Unicode which is the world- wide character encoding standard.

ADDS NEW PRODUCT LINE TO SPYGLASS; INCORPORATES NEW TECHNOLOGY INTO
SPYGLASS MOSAIC -- Spyglass will continue to sell on a standalone basis
the Stonehand Composition Toolbox, a platform-independent text formatting
library for desktop publishing or graphic arts applications. The toolbox
permits developers to add professional quality, multilingual, WYSIWYG
desktop features to their application, cutting precious in-house
development time. Stonehand HTML Viewer, an embeddable component
technology designed to be integrated into new or existing browser or
viewing applications, will be incorporated in Spyglass Mosaic core
technology.

STONEHAND CUSTOMERS TO BECOME SPYGLASS PARTNERS -- The Stonehand
acquisition will add many new significant customers to Spyglass' base of
56 OEMs. Among Stonehand's customers are Adobe Systems Inc., Broderbund
Software Inc., Compuserve Inc., Fujitsu Ltd. and Sumitomo Metal Industries
Ltd.

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.)
 
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