For more information, contact:
Daniela Sylvers
A&R Partners for Palm Computing
(650) 363-0982, ext. 224
dsylvers@arpartners.com

FOR IMMEDIATE RELEASE

3Com Delivers Palm III™ Functionality to Users of Industry-Leading PalmPilot™ and Pilot Connected Organizers

New Palm™ 2MB Upgrade includes infrared beaming capabilities and the Palm OS™ 3.0 software

SANTA CLARA, Calif., - June 1, 1998 -Palm Computing, Inc., a 3Com company (Nasdaq:COMS), today announced availability of the Palm™ 2MB Upgrade for its market-leading PalmPilot™ and Pilot connected organizers. With this upgrade, owners of the PalmPilot, Pilot 1000 and Pilot 5000 connected organizers have a quick and easy way to acquire the same power and features of the new Palm III™ connected organizer. These features include 2MB of memory for storing more data and applications, infrared (IR) beaming capabilities, and the Palm OS™ 3.0 software, the new generation of Palm Computing's highly efficient operating system. In addition, Pilot 1000 and Pilot 5000 users will receive Palm™ Mail and expense tracking applications and PalmPilot Personal users will receive Palm Mail. The 2MB upgrade card is available immediately for a suggested retail price of $129 U.S.

The user-installable Palm 2MB Upgrade card is equipped with an IR port that allows Palm III and Palm 2MB Upgrade users to share information wirelessly and includes a new memory door with an IR window. Onboard Flash Memory enables users to upgrade the system software in the future without replacing the memory card. With the IR capability, users can transfer a file or application to another Palm III or Palm 2MB Upgrade-equipped device instantly. The upgrade card also comes with an installation guide and application handbook for the Palm III organizer, a basic handbook for the Palm III organizer, and the Palm™ Desktop organizer software CD-ROM.

Included in the Palm OS 3.0 software is a new "file linking" feature that allows users to automatically import data from a file located on a remote server each time the organizer is synchronized with the desktop. In addition, a variety of font sizes improves the readability of data on the organizer screen, and enhanced HotSync® technology enables users to synchronize their data remotely, via networks or dial-in access or through an Internet connection.

"We are very committed to our installed base. The original Pilot 1000, Pilot 5000 and PalmPilot organizer customers are a loyal group, whose continued support has contributed enormously to the success of the Palm Computing platform," said Ed Colligan, vice president of marketing for 3Com Delivers 2MB Upgrade Card, p. 2 of 2 Palm Computing, Inc. "Offering an inexpensive and easy upgrade path to the latest technology is a great way for us to say thank you to our earliest supporters."

Fast and Easy Installation
Installation of the Palm 2MB Upgrade card and new system software is a quick and simple process that requires no tools. Users simply remove the original memory door and card from the organizer, then slip in the new 2MB upgrade card and replace the memory door with the new memory door containing the IR window. Installing the system software from the included CD ROM and synchronizing with the desktop PC is the final step to enabling the Palm III organizer functionality.

About the Palm III Connected Organizer
Built on the Palm Computing® platform, which holds 63 percent share of the standard handheld computing market worldwide (Dataquest), the Palm III organizer maintains compatibility with over 1,000 software applications and a wide array of hardware add-ons that are available from third-party vendors. With over 7,500 developers working on Palm Computing platform solutions and over 150 developers producing hardware add-ons, the Palm Computing platform offers the greatest number of handheld solutions available for both consumers and corporate customers. In addition, over one million handheld devices based on the Palm Computing platform have been sold, making it the fastest adopted handheld computing platform in history.

Pricing and Availability
The Palm 2MB Upgrade card is available immediately for a suggested retail price of $129 at leading computer, consumer electronics and office supply stores nationwide, including Best Buy, Circuit City, CompUSA, Computer City, Egghead, Fry's, The Good Guys, J&R Computer World, MicroCenter, Office Depot, OfficeMax, RCS, Service Merchandise, Staples, The Sharper Image and other fine regional retailers and computer catalogs.

International English and German versions of the Palm 2MB Upgrade card will be available in June, and a French version is expected to ship in the Fall.

About 3Com
3Com Corporation enables individuals and organizations worldwide to communicate and share information and resources at anytime from anywhere. As one of the world's preeminent suppliers of data, voice and video communications technology, 3Com has delivered networking solutions to more than 100 million customers worldwide. The company provides enterprises, network service providers and carriers, small businesses and consumers with comprehensive, innovative information access products and system solutions for building intelligent, reliable and high performance local and wide area networks. For further information, visit 3Com's World Wide Web site at http://www.3com.com, or the press site at http://www.3com.com/pressbox.

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3Com, Palm Computing, and HotSync are registered trademarks, and Palm, PalmPilot, Palm III, and Palm OS are trademarks of 3Com Corporation or its subsidiaries. This product is not manufactured by Pilot Corporation or Pilot Corporation of America, manufacturers and distributors of writing instruments.