Be Incorporated Files Suit Against Microsoft for Violations of Antitrust Laws

MENLO PARK, Calif.—February 19, 2001—Be Incorporated (Nasdaq: BEOS) announced today it has filed suit against Microsoft Corporation for the destruction of Be’s business resulting from the anticompetitive business practices of Microsoft.  The lawsuit alleges, among other claims, that Microsoft harmed Be through a series of illegal exclusionary and anticompetitive acts designed to maintain its monopoly in the Intel-compatible PC operating system market and created exclusive dealing arrangements with PC OEMs prohibiting the sale of PCs with multiple preinstalled operating systems. Be has retained the law firm of Susman Godfrey L.L.P. on a contingent fee basis to represent Be and to seek recovery of damages for the benefit of the company and its stockholders.  The suit has been filed in the United States District Court in San Francisco. A copy of the complaint will be made available on Be’s website.

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. The filing of the antitrust lawsuit or the engagement of legal counsel for that purpose does not guarantee that the outcome of the suit will be in Be’s favor.  While Susman Godfrey was hired by Be to represent the company and to seek a recovery for the benefit of stockholders, Susman Godfrey does not directly represent the stockholders themselves, either individually or as a class. Any forward-looking statements herein 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 activities and 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.