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MENLO PARK, Calif. -- Dec. 12, 2001 -- Be Incorporated today announced it has reduced the size of its board of directors from 7 to 3. Following the completion of the sale of Be's intellectual property assets to Palm, Inc., the board of directors determined a smaller board is more appropriate for guiding the company through the dissolution process, approved by stockholders at the November 12, 2001 special meeting, and the possible pursuit of potential legal claims still owned by the company. Effective December 10, 2001, the new board seats are now held by two prior directors: Andrei Manoliu and Barry Weinman; and a newly appointed director, P.C. Berndt. Also, as part of the dissolution process, the company today announces the departure of Mr. Berndt as Be's chief financial officer. Safe Harbor Statement This news release contains forward-looking statements that involve risks and uncertainties that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. These forward-looking statements are made only as of the date hereof, and Be undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Information about the potential factors that could affect the company's business and financial results is included in the company's annual, quarterly and special reports, proxy statements and other information, which are on file with the Securities and Exchange Commission.

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