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  Be Incorporated Reports Revenue Growth of 27% For The Six Months Ended June 30, 1999

  For more information, contact:

Be, Inc.
Wesley S. Saia
+1 (650) 462-4100
investors@be.com

Be Incorporated Reports Revenue Growth of 27% For The Six Months Ended June 30, 1999

MENLO PARK, CA, August 16, 1999 - Be ® Incorporated (Nasdaq: BEOS) today reported financial results for the quarter and six months ended June 30, 1999.

Net revenues for the second quarter of 1999 were $537,000, an increase of 74% from $309,000 reported for the first quarter of 1999, and a decrease of 11% from $602,000 in the same period in 1998. For the six months ended June 30, 1999, the Company reported revenue of $846,000, an increase of 27% from $666,000 reported in the first half of 1998.

Excluding non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, the Company reported a net loss for the second quarter of $4.7 million, or $1.11 per share, as compared to a net loss of $4.5 million, or $1.47 per share, for the same period in 1998, and a net loss of $4.2 million, or $1.08 per share in the first quarter of 1999. Including non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, net loss for the second quarter of 1999 was $6.6 million, or $1.54 per share compared to $5.7 million or $1.86 per share for the same period in 1998 and $6.0 million or $1.54 per share for the first quarter of 1999.

Excluding non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, the Company reported a net loss for the first half of 1999 of $8.9 million, or $2.18 per share, as compared to a net loss of $6.9 million or $2.37 per share for the first half of 1998. Including non-cash expenses associated with the amortization of deferred compensation and preferred stock accretion, net loss for the first half of 1999 was $12.6 million, or $3.07 per share as compared to a net loss of $8.6 million or $2.99 per share reported in the first half of 1998.

"This is the first time we are reporting financial results as a public company, and we are pleased to have posted revenue growth" commented Jean-Louis Gassée, president and chief executive officer. He added, "In mid-June, we released version R4.5 of our operating system. This milestone release includes software developments and increased hardware support to further enhance the broadband digital media experience of our users."

"With the emergence of digital media - from digital video cameras, and DVD players to MP3 - the need for desktops and Internet appliances to handle multiple, simultaneous streams of digital media is increasing. The new release of BeOSâ increases Be’s technology leadership in providing these platforms with enhanced support for multi-stream audio and video," said Roy Graham, senior vice president and chief marketing officer at Be. "In this context, Be announced new OEM relationships with AST and iDOT during the quarter. These follow previously announced relationships with Hitachi in Japan and Fujitsu in Europe."

"In conjunction with the new release of BeOS, a number of key application vendors also announced their commitment to BeOS. These include BeatWare, EventLoop, Human Touch, Lost Marble, Nichimen, Virtual DSP, MetaCreations and Opera Software, covering audio, video, games, graphics and browser applications" concluded Roy Graham.

In July 1999, Be Incorporated completed an initial public offering of 6.0 million shares. Net proceeds to Be Incorporated from the offering totaled approximately $32.4 million.

# # #

Forward Looking Statements

The statements contained in this Press Release may contain "forward-looking statements." Actual events or results may differ materially as a result of risks facing Be Incorporated or actual results differing from the assumptions underlying such statements. Such risks and assumptions include, but are not limited to, risks related to competition and market acceptance of BeOS, ability to establish and maintain strategic relationships, availability of third party applications that operate on BeOS, and ability to increase sales and market awareness for BeOS. All forward-looking statements are expressly qualified in their entirety by the "Risk Factors" and other cautionary statements included in the Company's prospectus filed pursuant to Rule 424(b) of the Securities Act of 1933, with the Securities and Exchange Commission on July 20, 1999 (Commission File No. 333- 77855).

About Be®

Be Incorporated offers the BeOS® operating system, an operating system designed for digital media applications and Internet appliances. BeOS is capable of providing faster and more predictable processing times for digital media applications than traditional desktop operating systems. BeOS can run on a wide range of devices including Internet appliances, desktop PCs and high-performance multiprocessor workstations. BeOS is promoted through relationships with OEMs, applications developers, consumer electronic manufacturers and Internet service and content providers. Be Incorporated was founded in 1990, is headquartered in Menlo Park, California and has offices in Asia and in Europe. Be is publicly traded on Nasdaq under the symbol BEOS and can be reached at (650) 462-4100 or http://www.be.com/.


                          BE INCORPORATED
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (in thousands, except per share amounts)
                              (Unaudited)

                                Three Months Ended   Six Months Ended
                                     June 30,            June 30,
                                 1999      1998       1999      1998

 Net revenues                  $   537   $   602    $   846   $   666
 Cost of revenues                  239     1,620        324     1,763
                               -------   -------    -------   -------
 Gross profit (loss)               298    (1,018)       522    (1,097)

 Operating expenses:
  Research and development       1,783     1,951      3,670     3,026
  Sales and marketing            2,587     1,027      4,341     1,883
  General and administrative       694       678      1,559     1,129
  Amortization of deferred
   stock compensation            1,713     1,078      3,378     1,615
                               -------    ------    -------   -------
 Total operating expenses        6,777     4,734     12,948     7,653
                               -------    ------    -------   -------
 Loss from operations           (6,479)   (5,752)   (12,426)   (8,750)

 Other income, net                  32       195        133       269
                               -------    ------    -------   -------
 Net Loss                      $(6,447)  $(5,557)  $(12,293)  $(8,481)
                               =======   =======    =======   ======
 Net loss attributable to 
  common stockholders          $(6,578)  $(5,654)  $(12,557)  $(8,644)
                               =======    =======    =======    ======
 Basic and diluted net
 loss per share                $ (1.54)    (1.86)   $ (3.07)  $ (2.99)
                               =======    =======     ======    ======
 Shares used to compute
  basic and diluted net
  loss per share                 4,266      3,046      4,090     2,893
                                =======    =======     ======   ======
 Net loss per share excluding
  amortization of deferred
  compensation and preferred
  stock accretion             $ (1.11)    $ (1.47)   $ (2.18)  $ (2.37)
                               =======     =======    =======   =======
                               

                          BE INCORPORATED
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)
                             

                                        (Unaudited)       (Audited)
                                        June 30,       December 31,
ASSETS                                    1999             1998
                                          ----             ----
Current assets:
 Cash and cash equivalents             $  3,653         $ 11,648
 Accounts receivable, net                   242              477
 Prepaid expenses and other                 259              327
                                      -------------    -------------
Total current assets                      4,154           12,452

Property and equipment, net                 578              403
Other assets                              1,669              779
                                      -------------    -------------

Total Assets                           $  6,401         $ 13,634
                                      =============    =============

LIABILITIES MANDATORILY REDEEMABLE 
PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current Liabilities:
 Accounts payable                       $ 1,098          $   576
 Accrued Expenses                         1,826            1,094
 Technology license obligations             723              688
 Deferred revenue                           566              392
                                       -------------    -------------
Total current liabilities                 4,213            2,750        
Technology license obligations              446              779
Mandatorily redeemable preferred stock   38,268           38,005
Total stockholders' equity              (36,526)         (27,900)
                                       -------------    -------------

Total Liabilities, Mandatorily
 Redeemable Preferred Stock and 
 Stockholders' Deficit                  $  6,401         $ 13,634
                                       =============    =============



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