While technically listed as a 'hesitation' lock because of a delaying cam which has some theoretical tendency to slow down the opening of the breech, in actual practice it functions as an unlocked pistol.

[clarification needed][1] According to the Steyr factory records this arm, patented in 1898, was originally introduced as the "Model 1900" and used a special 8 mm cartridge.

A spiral recoil spring is positioned horizontally, directly below the barrel between the parallel guides of the receiver and rails of the breechblock.

When the pistol is discharged, as the breechblock moves to the rear and the slide rails travel back in the receiver guides, the cross-beam at the forward end serves to compress the recoil spring against the frame.

The sear nose engages in a notch in the left fork of the hammer (which is external) to provide a smooth trigger pull that is very unusual in an automatic pistol.

Its greater arm (lower) engages a notch in the right fork of the hammer to drive it forward when released by the sear.

Its lesser arm (upper) continuously presses a cam upward that engages a slot in the under-surface of the breechblock slide when the action is closed.

To load the pistol, the breechblock is grasped on the serrated gripping surfaces on the sides, and is pulled straight to the rear.

The magazine follower rises to hold the action open, while the cross beam at the forward end of the slide compresses the recoil spring.

However, drawing back slightly on the breechblock will ride it over the cam, and releasing it will permit the recoil spring to close the action.

As the breechblock goes forward, the extractor mounted in the top of the block will snap over the extracting groove of the cartridge as it is chambered.

Embellished pistols were presented to German Emperor Kaiser Wilhelm, and to Ottoman Sultan Abdul Hamid II, but production of the M1898 and M1899 was less than 350, following which the design was improved to the M1901, with its slide-mounted, hammer-blocking safety, and convenient lever lock for easier disassembly.