Be Announces Software Licensing Agreement with Compaq

Be Incorporated (Nasdaq: BEOS) today announced that it has entered into a licensing agreement with Compaq Computer Corporation (NYSE: CPQ) that allows Compaq to pre-install and distribute Stinger, the code name for Be's software platform for Internet appliances, on future Internet Appliance computing devices under development
in Compaq's Consumer Products Division. The parties are currently working
together on joint development and sales initiatives in connection with this
licensing agreement. The agreement is not exclusive for either party and it
does not contain any minimum purchase commitments on the part of Compaq.

Stinger is Be's software solution designed for the creation of appliances
that deliver information and entertainment over the web. Based on BeOS, Stinger is fully customizable, offers a complete browser and supports popular streaming audio and video standards.

Founded in 1990, Be Incorporated creates software platforms that enable rich
media and web experiences on personal computers and Internet appliances.
Be's headquarters is in Menlo Park, California, with offices in Paris and
Tokyo. Be can be found on the Web at http://www.be.com.