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General Instrument to Purchase 5 Percent of Spyglass®

Worldwide Leader in Cable Television Technology Makes Initial $7.4 Million Investment with an Option to Acquire an Additional 5 Percent Through Warrants

Companies to Collaborate on Internet Cable Software for new Digital Set-top Terminals

Horsham, Pa. and Naperville, Ill. - Wednesday, October 21, 1998 - General Instrument (NYSE: GIC) and Spyglass (NASDAQ: SPYG) announced today that General Instrument has purchased 700,000 shares of Spyglass' common stock for $7.4 million, representing approximately 5 percent of the company's outstanding common shares. In addition, General Instrument has an option to acquire another 700,000 shares of Spyglass' common stock through the exercise of warrants at a premium to the price paid by General Instrument for the 700,000 shares purchased. The warrants are exercisable over the next several years.

General Instrument is the world's leading provider of systems and hardware, including headend equipment and interactive set-top terminals to the cable industry. This transaction is the latest indication of the strategic value General Instrument and the cable industry places on the software that will enable the next generation of digital cable services. In a related move, the two companies also announced plans to establish a new, jointly owned digital software integration center that will serve as a source for the creation of new applications and services for the cable industry.

"The establishment of the digital software integration center by Spyglass and General Instrument creates significant opportunities," said Richard C. Smith, executive vice president of General Instrument. "Our investment in Spyglass further strengthens the relationship between the two companies."

According to Spyglass President and CEO, Douglas Colbeth, General Instrument's equity investment in Spyglass further validates the Spyglass business model of providing very strategic solutions to the world's leading companies.

"We are extremely pleased to have General Instrument as a strategic partner and shareholder in Spyglass," said Colbeth. "We're delighted that our solutions focus is consistent with their desire to deliver state of the art products and services to their customers."

About General Instrument
GI's interactive digital cable systems offers a rich feature set including real-time RF return, MPEG-2 digital video, Dolby(R) AC3 Digital audio, and the ability to integrate seamlessly with embedded GI analog systems. With over 640 installed digital systems in North America, GI has unmatched experience and leadership in delivering interactive digital cable. With shipments of over 2.0 million digital interactive set-tops to date, GI's current generation digital interactive set-top, the DCT-1000/1200/2000, provides the industry with a powerful platform capable of delivering a wide range of applications such as VOD, Internet access, e-mail, community networking, electronic program guides and more. GI maintains a commitment through its Horizon Developers program, the pre-cursor to the new digital software center, to help advance the integration of new services onto GI's digital platform and enable operators to deploy an ever-increasing array of revenue-generating services on their GI digital platforms. General Instrument Corporation (NYSE: GIC) is a leading worldwide provider of integrated and interactive broadband access solutions, teaming with its business partners to lead the convergence of the Internet, telecommunications and video entertainment industries. http://www.gi.com/

About Spyglass
Spyglass (NASDAQ: SPYG) provides Internet expertise, software and services for making devices work with the Web. Particularly active in the cable and satellite television, wireless telecommunications, consumer electronics and office equipment markets, Spyglass solutions are used by market-leading companies including GTE, Motorola, NEC, Nokia, Thomson Consumer Electronics (RCA) and Xerox. Spyglass headquarters are located at 1240 East Diehl Rd., Naperville, Ill., 60563; phone: 630.245.6512; fax: 630.245.6693; press email inquiries: astokes@spyglass.com; Web site: http://www.spyglass.com.


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