General Instrument and Spyglass® to Establish new Digital Cable Software Integration Center

Companies to Support Software and Content Developers in Bringing Innovative Applications to GI's Digital Cable Platform

Horsham, Pa. and Naperville, Ill. — Wednesday, October 21, 1998 — General Instrument (NYSE: GIC) and Spyglass (NASDAQ: SPYG) announced today a new strategic partnership that includes a minimum $20 million, three-year solutions agreement in which Spyglass will partner with General Instrument to develop and integrate new Internet cable services and technologies. Spyglass and General Instrument are establishing a Digital Software Integration Center for the development of new cable services and applications. This center will be jointly owned by Spyglass and General Instrument and will be an expansion of GI's existing Horizon's Developers Program.

In a related move, it was announced that General Instrument would also take a 5 percent equity position in Spyglass with an option to acquire another 5 percent. Both announcements are seen as further evidence of the increasing importance both General Instrument and the cable industry place on software. The new digital software integration center, which will be owned by Spyglass and General Instrument, will be a centralized location for third-party technology companies, as well as for General Instrument's partners and customers, to come together to build services and applications for General Instrument's digital cable platform.

"Our broadband network customers need us to deliver a platform that will be capable of enabling a wide-range of revenue-generating services and applications," said David Robinson, senior vice president and general manager for GI's Digital Network Systems group. "Advanced software is central to the success of the platform and Spyglass has the right mix of Internet expertise, software and services to assist us with the development of the next generation digital services."

This is a significant milestone for Spyglass, which officially launched a cable and satellite television consulting practice only late last year. Since that time, the company has worked to refine its own technologies to make them easier to adapt to television environments. Also, Spyglass has developed a deep expertise in related technologies such as PersonalJava and Windows CE that may eventually play key roles in the cable environment. Consequently, Spyglass will be able to work with anyone interested in building applications for General Instrument's platform, regardless of the technology or operating system that they plan to use.

"We are extremely pleased to partner with General Instrument on this important project," said Douglas Colbeth, Spyglass president and CEO. "Not only is General Instrument the leader in their industry, they also have a vision for the future of digital cable, embodied in the new integration center, that will make certain they maintain that leadership position."

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: [email protected]; Web site: http://www.spyglass.com.