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VM Labs Licenses Spyglass Device Mosaic for NUON(TM) Next-Generation DVD Technology

   SPYGLASS
SPYGLASS LOGO (PR NewsFoto)[ES]
NAPERVILLE, IL USA
   NUON Technology Enhances Movie Experience for Home Audiences by Enabling
                               Interactive DVD

    NAPERVILLE, Ill., Sept. 3 /PRNewswire/ -- Spyglass Inc. (Nasdaq: SPYG) and
VM Labs Inc. today announced an agreement that will help deliver dynamic
interactive features to DVD players.  VM Labs licensed Spyglass Device Mosaic
3.2, a small footprint, embedded Web browser for use with its NUON technology
that is designed for next-generation DVD players.  The addition of an
easy-to-use browser will enable DVD users to view interactive content written
in HTML that is designed by movie production studios to complement digital
movies.
    /Photo:  http://www.newscom.com/cgi-bin/prnh/19990203/CGW005 or
PR Newswire Photo Desk, 888-776-6555 or 201-369-3467 /
    NUON has already been endorsed by several of Hollywood's entertainment
studios.  The embedded technology transform DVD players into interactive
multimedia centers.  NUON-enhanced DVD titles will allow studios to present
their audiences with interactive browsing of movie script & storyboards,
information about the cast, and other special movie content, right on the
viewer's television.  The NUON high-speed media processor, along with its
associated firmware and operating system, provide a powerful platform for
supporting interactive content, enhanced DVD movies, games, and many other
applications.
    "With the addition of Spyglass Device Mosaic, our NUON technology will
bring user-friendly, interactive DVD into the living room," said Richard
Miller, VM Labs CEO.  "With NUON, Hollywood studios have the capability of
developing creative content to enhance their motion pictures, and bring
countless entertainment options to their audiences."
    With its inclusion in the NUON development toolkit, Spyglass Device Mosaic
enters into a new market.  Spyglass Device Mosaic has already been featured in
a number of information appliances, including televisions, mobile phones,
set-top boxes, and screenphones, among others.  The customizable browser
supports industry standard HTML and can be extended to include or exclude
certain Web browsing features to more accurately meet a device's requirements.
    "The new generation of DVD players with NUON technology will deliver
interactive options to the living room, eliminating the need to log on to the
Internet from your PC," said Anup Murarka, vice president of interactive
television solutions.  "That ability will bring home entertainment to an
entirely new, personal level.  The movies you watch will include the option to
view details about the story, cast and production.  Hollywood studios can also
create unique interactive content streams to deliver limitless information to
their audiences."
    VM Labs predicts that during the year 2000, NUON will become a de-facto
standard in DVD players worldwide.  Figures provided by DVD Magazine predict
sales of DVD players to top 4 million by the end of this year.  At the IFA
fair in Europe this week, analysts have said they believe DVD will take off in
Europe starting with an expected boom in sales during the winter holidays.

    About VM Labs
    VM Labs Inc., based in Mountain View, Calif., was founded in 1994.
NUON(TM) technology represents a new standard in interactive entertainment.
It provides casual and hardcore video gaming and interactive content, combined
with Internet access, delivered in tandem with mass-market movie and video
entertainment.  Analysts predict that digital video will replace the current
analog method over the next five to ten years.  VM Labs and their partners are
poised to achieve total market penetration for interactive entertainment with
NUON-enhanced digital video products, the same way televisions and VCRs are
now available in virtually every home in the nation.  NUON(TM) is a trademark
of VM Labs Inc.

    About Spyglass
    Internet pioneer Spyglass (Nasdaq: SPYG) provides solutions for the
emerging information appliance market.  The company provides expertise,
software, and services primarily to the interactive television and mobile data
segments.  Spyglass solutions are used by market-leading companies including:
GTE, General Instrument, Microsoft, Motorola, NEC, Nokia, Sony, Thomson
Consumer Electronics (RCA) and Xerox.  Spyglass is headquartered in
Naperville, Ill. and has regional offices in Lexington, Mass., Silicon Valley,
Calif., London and Tokyo.  Visit http://www.spyglass.com for more information.

    (September 1999)
    Spyglass and the Spyglass logo are trademarks or registered trademarks of
Spyglass, Inc., in the United States and other countries.  Mosaic is a
trademark of the University of Illinois.  (Other technologies and brand names
are trademarks or registered trademarks of their respective companies.)  This
release contains information about management's future expectations, plans and
prospects that constitute forward-looking statements for purposes of the safe
harbor provisions under The Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those indicated by these forward-
looking statements as a result of various important factors that are discussed
in the company's annual report on Form 10-K for the year ended September 30,
1998, which is on file with the SEC.


SOURCE Spyglass Inc.




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    or PR Newswire Photo Desk, 888-776-6555 or 201-369-3467
    CONTACT:
    Amanda Ingalls of Spyglass, 630-245-6512 or
    aingalls@spyglass.com; or Erica Herzbach,
    erica_herzbach@bhimpact.com, or Debra Gorov,
    debra_gorov@bhimpact.com, both of Bender-Helper Impact,
    310-473-4147