PRESS RELEASE

Microsoft Corporation and Be Incorporated Reach Agreement to Settle Litigation

MOUNTAIN  VIEW,  Calif.  & REDMOND,  Wash.--(BUSINESS  WIRE)--Sept.  5, 2003--Be
Incorporated (Nasdaq:BEOS)(OTC:BEOSZ.PK) and Microsoft Corporation (Nasdaq:MSFT)
today  announced  that the parties have reached a mutually  acceptable  mediated
settlement of an antitrust  lawsuit filed by Be  Incorporated  in February 2002,
which is currently  pending in the United States District Court for the District
of  Maryland in  Baltimore.  Be will  receive a payment  from  Microsoft,  after
attorney's  fees, in the amount of  $23,250,000  to end further  litigation  and
Microsoft  admits no wrongdoing.  All other terms of the settlement  will remain
confidential.  Both parties are satisfied with the Agreement and believe that it
is fair and reasonable.  This is the second private  antitrust lawsuit Microsoft
has  settled  this  year.

Be is currently in the process of  completing  its  dissolution  pursuant to the
plan  of  dissolution  approved  by  Be's  stockholders  in  November  2001.  In
accordance with that plan and upon completion of its dissolution,  Be's net cash
will be distributed to shareholders of record as of March 15, 2002 after payment
of any taxes, officers' and directors' compensation, and other expenses, and the
satisfaction of any and all of Be's remaining liabilities.

PRESS RELEASE

For more information contact:

Dan Johnston
Be Incorporated
650/965-4842
danj@beincorporated.com