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myTalk Free E-mail Service Draws 30,000 Users, New Features Announced for Members, Sponsors.

SUNNYVALE, Calif.--(BUSINESS WIRE)--July 6, 1999--

General Magic Unveils More Advertiser Options, Broader

Marketing Initiatives, Availability of Pager Alert Feature

General Magic, Inc. (Nasdaq:GMGC) today announced new features for its myTalk(TM) free e-mail service(note a), which more than 30,000 people are now using to manage their e-mail messages over the telephone.

"The response to myTalk to date has been terrific, and members have given us great feedback on how the service fits in with their busy lifestyles," said Linda Hayes, senior vice president of Marketing at General Magic. "We're very pleased by the strong word-of-mouth following that has developed, and we intend to enhance myTalk to make it even more valuable for our members.

"At the same time," continued Hayes, "we're expanding our marketing programs to make the service more appealing to myTalk advertisers as well. The ad format we offer is unique in the industry, and in conjunction with the subscriber potential, we believe myTalk presents a very compelling business opportunity for partners and our company."

General Magic launched the myTalk service June 15. It gives people a convenient way to stay in touch with their e-mail when they can't easily get to a PC. Members sign up on the Web at http://www.myTalk.com, and through a toll-free number, can access and respond to e-mail from any telephone using their own spoken words. When a PC is available, members can use a keyboard to work with myTalk.

"I am an avid user of the Internet, spending many hours e-mailing, surfing and shopping, and I am very impressed with the myTalk service," said Scott Watkins, a user from Florida. "Not only is it very powerful, it is completely user friendly. I'm giving all my friends my new myTalk e-mail address, and I'll never go back to the other e-mail programs."

New Pager Notification Feature

A new pager notification feature is planned for release on July 16. myTalk members who use one of several popular e-mail paging services can receive an alert when new messages have arrived. To set up the feature, members sign in to the myTalk Web site, select the "Notification" option under "Setup", enter their pager number, and select one of the paging providers from the pull-down list. A planned enhancement for later this year will allow notification to be done through a telephone call as well.

Expanded Advertising Options

To provide the myTalk service to members for free, General Magic is enlisting advertising partners. Advertisers can sponsor Web banner ads, which appear on a myTalk user's e-mail screen, or audio ads, which play when a member is accessing e-mail over the phone. Thus far, ads from MCI, NetCard Internet Visa and ThirdAge are among those that have run on myTalk.

Audio ads are a new concept in Internet ad media. General Magic's goal is to ensure the experience is comfortable for myTalk users, while also giving sponsors the added value of an ad medium that eliminates "channel surfing". Two new types of audio ads are now being made available to sponsors, complementing the 6-8 second spots that are currently airing on myTalk.

The first new option lets users elect to hear more information on a topic by saying "Tell me more" when prompted to do so by the ad. This will lead to a more detailed audio spot, giving the user specifics on the item of interest. The second, more advanced level of advertising will allow a user to say "Connect me" after hearing more details. This will create a telephone link between the user and a representative from the sponsor company. This offers both parties the convenience of completing a purchase over the phone.

New Marketing Initiatives

To attract more members to myTalk, General Magic has entered a partnership with LinkShare, the leader in Web-based partnership marketing. LinkShare specializes in brokering affiliate programs between Web businesses, including Web link placements, to help them generate revenue for each other. Teaming with LinkShare provides the opportunity for greater awareness of the myTalk service and increased traffic to the myTalk.com Web site.

General Magic has also sponsored an "opt-in" e-mail program for myTalk. Several million people who have asked to receive new news about technology services are receiving e-mail messages advising them of the capabilities of myTalk.

About General Magic

General Magic offers voice-enabled services and technology that make communication and access to information easy and convenient. The company's innovative, patent-pending magicTalk(TM) voice interface lets people interact with information using their own words, as if they were talking to another person. For more information about General Magic, visit the company's Web site at http://www.generalmagic.com. Investors with questions may call Shareholder Communications at 877/245-6973.

General Magic notes that this press release contains forward-looking statements. There are risks and uncertainties that may cause actual results to vary materially. These risks and uncertainties include, but are not limited to, the challenges inherent in the development and delivery of complex technologies, including the capability of the Network Operations Center to handle increases in demand; the market acceptance of the company's services and technologies; the ability of the company's third-party technology partners to timely develop, license or support technology necessary for the company's services; the adequacy of the company's financial resources to execute its business plan; the company's ability to respond to competitive developments; and the company's reliance on attracting, retaining and motivating key technical, marketing and management personnel. These and other risk factors are detailed in General Magic's 1998 Form 10-K filed with the Securities and Exchange Commission and in the Registration Statement on Form S-3, filed on June 16, 1999.

General Magic, magicTalk and myTalk are trademarks of General Magic, Inc., which may be registered in some jurisdictions. All other brands, trademarks and service marks are the property of their respective owners.

(note a) The service is limited to the U.S., and users must have existing access to the Internet to set up myTalk.
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Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Jul 6, 1999
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