For Immediate Release

Press Inquiries:
Michelle Knoop +1 415 904 7070
Access Communications
mknoop@accesspr.com

Investor Inquiries:
Don Markley +1 415 986 1591
The Financial Relations Board, Inc.
dxm@sf.frbd.com

http://www.genmagic.com

Microsoft Invests in General Magic
General Magic Licenses Technology to Microsoft

REDMOND, Wash., and SUNNYVALE, Calif. - (March 4, 1998) - Microsoft Corp.
and General Magic Inc. (Nasdaq "GMGC") today announced that Microsoft has
made a minority investment in General Magic. Agreements between the two
companies include an equity investment as well as the licensing of certain
General Magic technologies. Terms of the agreements include a payment to
General Magic of $6 million.

General Magic is developing integrated voice and data applications, a key
to bringing the next generation of information technologies into the
mainstream. The company's upcoming network service, code-named "Serengeti,"
is a second generation virtual assistant for mobile professionals that goes
beyond offering only voice mail to integrating e-mail, faxes, address book,
calendar, news and stock quote information, all accessible via telephone
using a proprietary Voice User Interface (VUI) or via a Web browser.

Designed to perform and synchronize with several Microsoft applications,
including the Outlook messaging and collaboration client, Schedule + and
Microsoft Internet Explorer, as well as Windows CE-based devices and the
WebTV service, Serengeti is expected to be available by mid-1998. In
addition to its support of Microsoft products, General Magic built its
first Network Operations Center to run exclusively on the WindowsNT
operating system. Chosen for its scalability, robustness and developer
base, WindowsNT was the preferred choice for managing the high volume of
subscribers expected to utilize the Serengeti service over time.

"General Magic continues to develop innovative technologies and
applications," said Nathan Myhrvold, chief technology officer at Microsoft.
"A natural language voice user interface, such as Serengeti's, is a
powerful and flexible way to access information that we think will be
pervasive. Products like Serengeti can provide users with worldwide access
to much of their important information. We are pleased to see General
Magic's integration of Serengeti with Microsoft applications such as
Outlook and Internet Explorer, and General Magic's exclusive use of Windows
NT-based servers in its first Network Operations Center."

"We believe this transaction with Microsoft shows increasing acceptance of
General Magic's products and technologies," said Steve Markman, chairman,
CEO and president of General Magic. "General Magic is all about simplifying
the way people access and control the information they need to be
successful. Our goal is to make Serengeti the preferred service for people
who need access to their information at any time from any location. We hope
to make this technology accessible in a wide range of applications and
devices, and we've taken an important step in that direction."

In accordance with U.S. securities law, General Magic notes that this press
release contains forward-looking statements. There are risks that may cause
actual results to vary materially. These risks include, but are not limited
to, reliance on key technical and management personnel, potential schedule
changes, competitive pressures and emerging Internet standards. Additional
risk factors are detailed in General Magic's 1996 10-K and its third
quarter 1997 10-Q filed with the Securities and Exchange Commission.

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with the
mission of making it easier and more enjoyable for people to take advantage
of the full power of personal computing every day.

General Magic offers products and services that integrate voice and data
technologies making communication and access to information easy and
convenient for people, no matter where they are. The company's development
efforts are founded on its patented agent technology, innovative
user-interface and communication-centric designs to provide simple, yet
effective ways for people to keep in touch with the information they need
to be successful. The company is headquartered in Sunnyvale, California.
For more information on General Magic, please visit the company's Web site
at http://www.genmagic.com.