General Magic (fka GMGC)

[v-man]

SUNNYVALE, Calif.--(BUSINESS WIRE)--May 13, 2002--General Magic,
Inc. (Nasdaq:GMGC), a pioneer in voice application software and
services, today announced that it has received approval from The
Nasdaq Stock Market to transfer its listing from the National Market
to the SmallCap Market effective at the opening of business today. The
Company's securities will continue trading under its current symbol:
"GMGC".
"Listing on the Nasdaq SmallCap Market enables General Magic to
maintain a liquid trading profile on a well-regulated and transparent
market for the benefit of all General Magic stockholders," said David
Russian, chief financial officer of the Company. "We are pleased that
our application to transfer to the Nasdaq SmallCap Market has been
accepted, since this will provide the Company with additional time,
until August 13th, to execute our business plan and to comply with the
Nasdaq Stock Market's $1.00 minimum bid price requirement. In the
event we do not meet the minimum bid price requirement by the August
deadline, then Nasdaq can grant us an additional 180-day grace period,
or until February 10, 2003, to regain compliance, if we meet the
"core" initial listing requirements for the Nasdaq SmallCap Market as
of that date, principally, a $5 million stockholder's equity
requirement."
"We continue to evaluate all necessary alternative courses of
action to ensure our continued listing on the Nasdaq Stock Market."

About General Magic

General Magic is a leading voice infrastructure company that
provides software and supporting voice dialog design and hosting
services that enable companies to quickly and efficiently provide
anytime, anywhere access to information and services over the
telephone. General Magic's VoiceXML-based solutions enable businesses
to easily integrate voice access into enterprise applications using a
broad selection of speech recognition technologies and telephony
interfaces. These solutions help businesses improve customer
relations, deliver value-added service and provide unlimited access to
content. General Magic is headquartered in Sunnyvale, Calif. For
additional information, visit http://www.generalmagic.com.