General Magic Delivers First Phase of GM OnStar Virtual Advisor

Business Wire, July 24, 2000

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--July 24, 2000

General Magic, Inc. (Nasdaq:GMGC), a leading voice application service provider, today announced it has delivered the first phase of the OnStar Virtual Advisor application to General Motors' OnStar. OnStar selected General Magic, late last year, to develop the voice application behind Virtual Advisor, which will provide hands-free voice-activated access to web-based information services in vehicles. Internal testing of this initial phase by OnStar and General Magic is currently underway.

"Our strong partnership with General Magic will allow us to deliver voice-enabled access to web content and services to our subscribers," said Mike Peterson, director of virtual advisor and vehicle webpage at OnStar. "General Magic has made great progress on this project and we congratulate them."

"We are delighted to have delivered the first phase of the GM OnStar Virtual Advisor," said Kristin Anderson, vice president of professional services at General Magic. "This project is a great example of the power of General Magic's innovative magicTalk communications platform allowing us to develop and deploy the first phase of this sophisticated personality-rich voice solution."

The OnStar Virtual Advisor will give subscribers voice-access to e-mail, stock quotes, weather updates, and up-to-the-minute news content, including sports, financial, headline, business, and world news.

About General Magic

General Magic is a voice application service provider dedicated to delivering customized voice applications, hosting, and professional services to leading telecommunications, enterprise and Internet companies. With its award-winning VoiceXML-based magicTalk communications platform and years of experience, General Magic offers the premier voice user interface that combines language, personality, and logic, creating a natural conversation between people and information. General Magic creates value for its customers by building voice solutions that strengthen customer relations, deliver value-added services, and provide access to content anytime, anywhere. General Magic is headquartered in Sunnyvale, California. For additional information about General Magic, visit the company's web site at http://www.generalmagic.com.

General Magic notes that the forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause industry trends, or actual results, performance or achievements to be materially different from any future trends, results, performance or achievements expressed or implied by these statements. These include, among others, risks and uncertainties concerning the adequacy of the Company's financial resources to execute its business plan; market acceptance of the Company's technologies and services; the Company's ability to attract, retain and motivate key technical, marketing and management personnel; the ability of the Company to establish and maintain relationships with businesses that have high volume customer interactions, and to establish alliances with companies that offer technology solutions for such businesses; the challenges inherent in the development, delivery and implementation of complex technologies; the ability of the Company's third party technology partners to timely develop, license or support technology necessary to the Company's services; and the Company's ability to respond to competitive developments. These and other risks and uncertainties are detailed in General Magic's Registration Statement on Form S-3 filed with the Securities and Exchange Commission on May 26, 2000.

General Magic and magicTalk are trademarks of General Magic, Inc., which may be registered in some jurisdictions. Other trademarks are owned by their respective companies.