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Press Release


Media contacts:
Kristen Garrigus
A&R Partners
(650)298-3932
kgarrigus@arpartners.com

Liz Brooking
3Com Corporation
(408)326-9106
Liz_Brooking@3Com.com

FOR IMMEDIATE RELEASE

3Com Reduces Prices of Industry-Leading Palm III™ and PalmPilot™ Professional Connected Organizers

Santa Clara, Calif., May 6, 1999 - Palm Computing, Inc., a 3Com company (Nasdaq: COMS), today announced a price reduction for two members of its market-leading family of handheld connected organizers. The versatile Palm III™ organizer is now available for a suggested retail price of U.S. $249, reduced from $299. The PalmPilot™ Professional Edition organizer is now listed at U.S. $149, down from $199. The prices of the recently announced ultra-slim Palm V™ organizer and the Palm IIIx™ organizer with expanded memory, remain at $449 and $369 respectively.

This pricing action is consistent with Palm Computing's commitment to price leadership and its dedication to growing the handheld computing market by offering customers industry-leading products at the most accessible price points.

"The hallmark of the Palm Computing product family is its tremendous value -- practical, intuitive and extensible solutions at easily affordable prices," said Pat McVeigh, vice president of sales for Palm Computing. "As our sales volumes continue to rise exponentially and volume purchases increase in corporate environments, we are able to offer our world-leading products at lower costs, making them even more attractive to a broader range of consumers and enterprise customers alike."

With well over three million units shipped since 1996 (IDC), Palm Computing products have won over 80 awards and has received broad industry recognition for its ease of use, versatility, shirt pocket-size and expandability. With the support of over 17,000 software developers and hundreds of companies creating hardware add-ons such as wireless modems, pager cards, telephony products, voice recognition modules and global positioning system (GPS) receivers, the Palm Computing® platform has become the defacto standard in the handheld computing industry. Palm Computing platform organizers represent a 72 percent share of the worldwide personal companion market (IDC).

About 3Com Corporation
With more than 200 million customers worldwide, 3Com Corporation connects more people to information in more ways than any other networking company. 3Com delivers innovative information access products and network system solutions to large, medium and small enterprises; carriers and network service providers; PC OEMs; and consumers. 3Com - More connected.™ For further information, visit 3Com's World Wide Web site at www.3com.com or the Palm Computing site at www.palm.com.

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3Com and Palm Computing are registered trademarks and More connected, PalmPilot and Palm III, Palm IIIx and Palm V are trademarks of 3Com Corporation or its subsidiaries. All other company and product names may be trademarks of the respective companies with which they are associated. None of the aforementioned products are manufactured by Pilot Corporation or Pilot Corporation of America, manufacturers and distributors of writing instruments.

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