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Press Release


U.S. Robotics Announces Two New Models of the Best Selling Pilot Connected Organizer

Pocket e-mail, Network HotSync and enhanced software among new features; easy upgrade path announced for current Pilot owners

Mountain View, Calif. -- March 10, 1997 -- U.S. Robotics (NASDAQ: USRX) today announced the PalmPilotTM Professional and the PalmPilot Personal, two new models of its market-leading Pilot connected organizer. The PalmPilot Professional model offers e-mail connectivity and the option to synchronize PalmPilot information with the users' desktop computer locally over TCP/IP networks or remotely via a portable snap-on modem. Both models feature new expense management software, a backlit screen, enhanced Personal Information Management (PIM) software applications, and new games.

The family of PalmPilot connected organizers, designed as companion products to personal computers, enable mobile users to manage their schedule, personal information, and e-mail on the road and at their desktops. PalmPilot's HotSyncTM technology enables users to synchronize all of their e-mail, contact, scheduling, and personal information on their PalmPilot with the information on their personal computer at the touch of a button.

"U.S. Robotics set a new standard for value in handheld computers when it introduced Pilot last year, and by adding the e-mail and network capabilities at a similar price point, the company has raised the bar yet again. U.S. Robotics has played an instrumental role in moving the handheld category into a mainstream consumer market," said Mike McGuire, mobile computing industry analyst for Dataquest.

The two new models maintain U.S. Robotics design objective of providing maximum functionality at compelling consumer price points. PalmPilot Professional edition includes e-mail connectivity software, expense tracking software, a backlit screen, enhanced PalmPilot PIM software, and 1MB of memory, and sells for $399. The PalmPilot Personal edition features the same expense management software, backlit screen, and enhanced PIM software, and includes 512K of memory, for the groundbreaking price of $299. The Personal edition is available immediately, and the Professional edition will be available at the end of March.

Pilot has won broad praise and numerous industry awards, including being named to Rolling Stone Magazines 1996 Hot List, a Popular Science "Best of What's New" award, PC/Computing Magazines Useability Achievement of the Year award and a "Five Stars" evaluation, Boot Magazine's "Kick-Ass Product" award, a Windows Sources "Stellar" award, and Business Weeks Best Products of 1996. In addition, Pilot, which is available in English, French, and German localized versions throughout the world, has won acclaim internationally. Pilot was recognized for BYTE Magazine's Best of CeBit award, the Australian Computer Association Award, and the Comdex Canada Best Handheld Computer award from the Computer Paper. PalmPilot will now also be offered in Spanish and Italian localized versions.

"While the first Pilot was targeted as a personal organizer, the introduction of the PalmPilot Professional and PalmPilot Personal demonstrates the wider degree of functionality that can be supported by our platform," said Ed Colligan, vice president of marketing of Palm Computing, Inc., the subsidiary of U.S. Robotics that designs and markets the handheld computers. "We've stayed in close contact with our customers to develop additional features that will help make them more productive and organized, while preserving the size, ease-of-use and value that make PalmPilot so appealing."

Owners of the Pilot 1000 and Pilot 5000 will be able to upgrade to the new software features of the PalmPilot Professional through a user-installable upgrade card and desktop software. Priced at $129, the upgrade includes the expense management and e-mail connectivity software, all the enhanced PIM software, and 1MB of memory. For a limited time, registered Pilot customers will be able to purchase the PalmPilot Professional 1MB Upgrade for $99.

New PalmPilot Features

E-mail

The PalmPilot e-mail software enables users of Microsoft Mail, Microsoft Exchange, Microsoft Outlook, and Lotus cc:mail to create new messages, reply to, or forward messages, and manage the contents of their desktop mailbox remotely. To send or receive new messages, users simply HotSync their PalmPilot, and the PalmPilots mailbox is intelligently synchronized with the desktop mailbox.

Network HotSync

PalmPilot users will have two new ways to synchronize remotely, both over networks and via dial-up access. Network HotSyncTM, the new TCP/IP-based network synchronization capability, is a next-generation version of PalmPilots HotSync capability that will enable users to synchronize with their desktop information across Local Area Networks and Wide Area Networks. Network HotSync will be offered for $69 per user, and corporate site licenses will be offered. Network HotSync will be available in June.

PalmPilot Modem

The new snap-on PalmPilot Modem, priced at $129, enables users to dial a modem at their desktop to synchronize remotely, or when used with Network HotSync, to synchronize remotely via dial-up access to the network. The PalmPilot Modem enables users to HotSync approximately 150 times on two AAA batteries, with each HotSync taking approximately 2 minutes.

Expense Management Software

The new expense management application included with PalmPilot enables users to electronically log expenditures, dates, and pertinent information, which can then be exported at a touch of the HotSync button to standard Microsoft Excel templates included with PalmPilot. Users can also easily customize their own Excel 5.0 expense report form.

Backlit Screen

The new PalmPilot backlit screen enables users to work in low-light environments, while having minimal effect on the devices battery life. Even with frequent use of the backlight, users can expect approximately two months of operation from two AAA batteries.

Enhanced PIM Applications

All of PalmPilots standard PIM applications the Date Book, Address Book, To-Do List, and Memo Pad have been enhanced to enable better useability, greater data linkage between applications, and more flexible screen views. Rather than entering data about an individual in multiple applications, using the new Look-up function, users can automatically transfer data about an individual from the address book into an entry in the date book or to-do list. In addition, the PalmPilot PIM now offers an enhanced week view and a new month view in the date book, and new organization and sorting functions for the note-taking application.

Broad Desktop Application Support

Many vendors continue to build "conduits," desktop links that enable one-button HotSync synchronization between PalmPilot and their PC-based software. These include links to Symantec Act!, Goldmine Softwares Goldmine, Lotus Notes, Microsoft Schedule+, NetManage ECCO, Now Software's Now-up-to-Date, Franklin Quest Ascend 97, Maximizer from Maximizer Technologies, and Internet Sidekick from Starfish Software. An optional conduit for Microsoft Outlook will be available by the second quarter of 1997. Optional links are sold separately, or provided by the software vendor.

The PalmPilot is based on the Palm Operating System (Palm OSTM), a handheld computer operating system platform that enables low-cost, low-power, small form-factor devices to integrate seamlessly with desktop personal computers. The Palm OS features highly efficient operating system software for the handheld, and HotSync, the desktop software that manages synchronization of the handheld and the PC. PalmPilot is distributed through leading consumer electronics and office supply stores nationwide, including Circuit City, CompUSA, Computer City, Egghead, Office Depot, OfficeMax, Staples, and other fine retailers. In addition, Franklin Quest offers the Franklin Electronic DayPlanner, which incorporates the PalmPilot with Ascend 97 software, and is available at Franklin Quest retail outlets and directly from Franklin Quest. U.S. Robotics is one of the worlds leading suppliers of products and systems that provide access to information. The company designs, manufactures, markets and supports remote access servers, LAN switching equipment, desktop/mobile client products and modems, telephony products, and handheld organizers. U.S. Robotics products connect computers and other equipment over analog, digital and switched cellular networks, enabling users to gain access to, manage and share data, fax and voice information. Its customers include Internet service providers, regional Bell operating companies and a wide range of other large corporations, businesses, institutions and individuals. The company's fiscal 1996 revenues were $1.97 billion. For further product information, customers can contact U.S. Robotics at 800-881-7256 or visit the PalmPilot web site at http://www.usr.com/palm.

U.S. Robotics, the U.S. Robotics logo, Palm Computing and Graffiti are registered trademarks of U.S. Robotics, and HotSync, PalmPilot, the Palm OS, and the PalmPilot logo are trademarks of U.S. Robotics and its subsidiaries. All other brands and product names are trademarks or registered trademarks of their respective holders.

Contact:

Robson Grieve
A&R Partners
(415) 363-0982, ext. 221
robson_grieve@arpartners.com



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