SAN FRANCISCO, CA -- December 2, 1999 -- Magically, Inc., creators of the award winning MagicalDesk (www.magicaldesk.com) virtual desktop product line, today announced a deal with TeleNova (www.telenova.net), the leading provider of Internet-based services to corporations and communities in Latin America. Through an exclusive licensing agreement, TeleNova will offer a Spanish and Portuguese language version of MagicalDesk in Argentina, Brazil, Mexico, Spain, Portugal, and other European countries, as well as to the Spanish-speaking community in the United States. The product will be available in beta on TeleNova's site in early December. TeleNova expects a full launch in February, 2000 and will bundle their version of MagicalDesk with the company's NovaPhone, an Internet-based system that includes voice communications, fax communications and messaging through voice/fax mailboxes.

The companies also announced that TeleNova has made an equity investment in Magically.

MagicalDesk best exemplifies the advantages provided by the emerging application service provider (ASP) market: a suite of personal information management and collaboration tools, available to users anytime, anywhere through the Internet. The free service combines a customizable desktop system that stores and synchronizes documents, online calendar, address book, email, task list, and Internet bookmarks.

"This partnership continues our global strategy to offer custom collaboration tools via the web," said Erwin Huang, chief executive officer for Magically, Inc. "With the global epidemic of Internet growth among non-English speaking communities, MagicalDesk is the ideal tool to break down language barriers by providing virtual access to an integrated desktop."

According to industry estimates, the Latin Internet market is growing at a rate of 30 percent per year and currently hosts 15 million Internet users in Spanish and Portuguese speaking countries. Of the five strategic languages as defined by Microsoft, three are Latin languages (Portuguese, Spanish and French). It is expected that much of the future growth of the Internet will be in Latin languages. TeleNova plans to market MagicalDesk to it's current base of corporate clients and various community and affinity groups, in addition to making it available to the mainstream consumer. "The addition of the MagicalDesk technology to our platform of services will let our customers take full advantage of the convergence of computing and telecommunications," said Hiran Marques, chief executive officer of TeleNova. "Our partnership with Magically allows us to offer Spanish and Portuguese-speaking Internet users a suite of productivity and collaboration tools that will enable them to use the Internet as a computing vehicle. This is consistent with our strategy of moving in the direction of helping change the paradigm from browsing the web to computing on the web for Latin users."

MagicalDesk provides web-based access to personal productivity applications that can be tailored for personal use. Integrated support for common document file formats empowers the user to work from most any PC, Mac, Unix, or Web-TV with an Internet connection. Through an enhancement called the MagicalViewer, MagicalDesk offers access to more than 250 file formats, including Microsoft Word, Microsoft Excel, PowerPoint, WordPerfect, and Lotus 1-2-3, without requiring the user to have the supporting application on their local hard disk.

The MagicalDesk desktop layout and features are easily customizable. Users can personalize their desktop with their favorite Internet search engines like Yahoo and Excite, personal book finder from Amazon.com, or work calendar. Users can also write their own HTML codes to create new tools for their environment.

The free MagicalDesk service includes a personal file system; synchronization feature to ensure that files and Internet bookmarks are consistent on whatever machine that is used; calendar system that can be kept private or shared with others; address book; to-do list; Internet bookmarks, five megabytes of storage space and one POP email account. Premium services include additional storage space (20MB for $5.00 per month; 50MB for $10.00 per month); the MagicalViewer which translates more than 250 file formats into HTML code so that users can view documents, even when they don't have the right application on the computer that they are using ($5.00 per month/3-month free trial period); and five additional POP email accounts ($10 per month).

About TeleNova
TeleNova is the pioneer and leading provider of Internet-based services to Spanish- and Portuguese-speaking corporations, companies, businesses and communities in Latin America, Hispanic North America, Portugal and Spain. Its platform of services, which focus on the enterprise by providing Internet-based, zero-install, integrated services to businesses communicating in Spanish and Portuguese, is particularly attractive to small and mid-size corporations as it brings fast, cost-effective and productivity-oriented solutions to companies seeking to enter the Internet age. Under the brand name NovaPhone, TeleNova is deploying a state-of-the-art, Internet-based communications network with points of presence in ten cities extending from Canada to Argentina. Currently, it has over 1,000 corporate customers. In order to allow worldwide reach to its customers, TeleNova has an exclusive Mercosur joint-venture with ITXC Corp (www.itxc.com), the leading provider of Internet telephony services to service providers. TeleNova headquarters and Network Operations Center are both located in Miami, Florida.

About Magically, Inc.
Based in Redwood City, California, Magically, Inc., is privately owned and operated. The company produces web-based technology for mobile professionals that enables users to work virtually anywhere. MagicalDesk, Magically's flagship product, is a virtual desktop offering universal access to file documents, email, calendar, Internet bookmarks, address book and a personal to-do list. The system offers integrated support for common file document formats that is secure, simple to customize, and easy to access.

More information about Magically and MagicalDesk is available at www.magically.com.

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