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Kristen Garrigus
A&R Partners for 3Com Corporation
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FOR IMMEDIATE RELEASE

3Com Delivers Palm VII™ Organizer Nationwide with New Pricing, Service Plans

Revolutionary handheld organizer offers out-of-the box wireless Internet access, e-commerce applications from Amazon.com, Fidelity Investments

Santa Clara, Calif., October 4, 1999 - Palm Computing, Inc., a 3Com company (Nasdaq:COMS), today announced nationwide availability of its highly-anticipated Palm VII™ connected organizer at a new low estimated street price of U.S. $499. A revolutionary addition to 3Com's lineup of world-leading handheld products based on the Palm Computing® platform, the Palm VII organizer uses a wireless connection and the Palm.Net™ service to enable users to easily obtain information from the Internet, conduct e-commerce transactions and send and receive messages. 3Com also unveiled a new, expanded Palm.Net monthly service plan for heavy users, plus third-party solutions that enable users to connect to a variety of email systems via their Palm VII organizers. New web clipping applications from Amazon.com and Fidelity Investments deliver enhanced e-commerce transaction capabilities for the Palm VII organizer.

The Palm VII organizer uses 3Com's innovative web clipping technology to access specific information from the Internet quickly and simply. An alternative to traditional browsing, which has proven slow and cumbersome in the handheld form factor, the web clipping technology is designed to optimize user experience in the handheld category and requires very low volumes of wireless data transmissions to provide quick response times, increased battery life and affordable service costs. Palm VII users now have three service plans to choose from when they subscribe to the Palm.Net service, including a new Volume Plan that will accommodate heavy users, who may download approximately 900 screens of information per month.

"Our initial Palm VII customers have been thrilled with the product's unprecedented ability to deliver wireless information access and e-commerce in one integrated device that is elegant and easy-to-use," said Alan Kessler, president of Palm Computing. "For those users who see the Palm VII organizer as the ultimate information appliance, we're pleased to deliver at our national rollout new high-volume usage plans and new third-party solutions that allow people to access a wide variety of email accounts. 3Com will continue leading the growth of this industry by listening to our customers and by delivering innovative products that delight them."

Palm VII Organizer Features
Introduced earlier this year in the New York metropolitan tri-state area, the Palm VII organizer is ideal for consumers, travelers and mobile professionals. For an estimated street price of $499, reduced from the product's initial pricing of $599, it is the first integrated wireless handheld organizer of its kind, offering quick, easy access to information on the Internet. Straight out of the box, Palm VII organizer users can activate the Palm.Net service, and within a matter of minutes, monitor and trade stocks, conduct personal banking, order theater tickets, locate the nearest recommended restaurant, find driving directions, receive breaking news, sports scores and weather forecasts, and send and receive brief messages.

Built into the Palm VII organizer are all the features of the award-winning Palm III™ organizer, including Palm Computing's renowned commitment to simplicity, compact size and elegant user experience. The product features a similar form factor to the Palm III product family and achieves weeks of use on two AAA batteries. Additional details on the Palm VII organizer technology are available in a technical white paper located at http://www.palm.com/company/pr/palmvii/7whitepaper.pdf.

E-commerce and Internet Content via Palm VII Organizer
New web clipping applications from Amazon.com, eBay and Fidelity Investments allow e-commerce transactions and stock trades anytime, anywhere. Right out of the box, information from 23 leading Internet content providers is available for web clipping directly from the Palm VII organizer, including ABCNEWS.com, Bank of America, ESPN.com, Etak, E*TRADE, Fidelity Investments, Fodor's, Frommer's, MapQuest.com, MasterCard, Merriam-Webster, Moviefone.com, OAG, TheStreet.com, Ticketmaster, Travelocity.com, UPS, USATODAY.com, U.S. West Dex, Visa International, The Wall Street Journal Interactive Edition, The Weather Channel and Yahoo!

"Our customers have told us they want to be able to shop at Amazon.com anytime, anywhere," said Jeff Bezos, founder and CEO of Amazon.com. "The Palm VII platform is an exciting step in remote wireless Internet access that enables Amazon.com customers to have a new level of shopping convenience."

More than 100 additional content providers have delivered web content and e-commerce capabilities for Palm VII users. Available for download at www.palm.net are web clipping applications from Amazon.com, Bloomberg L.P., eBay, Excite, GoNetwork, Infoseek, mySimon, Prudential, Starbucks, United Airlines and many more.

Palm.Net Service
Internet access for the Palm VII organizer is provided through 3Com's Palm.Net service, which allows customers to activate wireless service directly from the device in minutes. The Palm VII organizer is the first wireless device to offer unassisted self-activation: first-time users easily activate the built-in Palm.Net service by entering billing and credit card or corporate purchase order information into the registration screen that appears upon raising the Palm VII organizer antenna. Within minutes the device is ready to access the Internet. New Palm VII users pay a $9.99 one-time set-up fee upon activation and are billed on the designated credit card monthly.

The wireless network for the Palm.Net service provides nationwide coverage to more than 260 of the most populated areas in the U.S with no additional roaming charges. To provide security for electronic commerce and payment transactions over the wireless network, 3Com has integrated security features at the device, network and Internet server levels.

Palm.Net Service Plans
The Palm.Net service plan structure offers three different options. Under the Basic Plan, a user pays $9.99 per month for approximately 80 transactions (50 kilobytes). Typical monthly usage under this plan might include a combination of 30 messages, 20 stock quotes, 10 sports scores, 10 traffic reports and 10 weather updates. Under the Expanded Plan, more frequent users pay $24.99 per month for approximately 240 transactions, or three times the number of transactions as under the Basic Plan (150 kilobytes). Overage charges on all service plans have been reduced by 33 percent to $0.20 per kilobyte, or about $0.13 per transaction.

With today's announcement, 3Com also introduced a new Volume Plan at $39.99, which covers twice the usage of the Expanded Plan, or approximately 480 transactions (300 kilobytes). Sample monthly usage under this plan might look like 180 messages, 120 stock quotes, 60 sports scores, 60 traffic reports and 60 weather updates. Under a special promotion, Palm VII users who sign up for the Palm.Net service under the Volume Plan before January 4, 2000 will receive approximately 1,600 transactions per month (1,000 kilobytes) for the first six months of service. During this promotional period, 3Com will provide customers with usage information to help the customer determine which of the three service plans best suits their needs.

iMessenger™ Software for Instant Wireless Messaging
Palm VII organizers come with the built-in iMessenger application for sending and receiving brief Internet messages wirelessly. The iMessenger application is designed to communicate short messages to anyone with an Internet e-mail address. To check for new messages received, the user simply raises the antenna and taps an icon on the screen, and all messages waiting in the queue appear.

Sending and Receiving Email via the Palm VII Organizer
3Com now offers access to third-party solutions via www.palm.net for those who plan to use the Palm VII organizer for sending, receiving and filtering messages from their Internet service provider (ISP), POP3, IMAP, or Internet-based e-mail provider. The Palm.Net web site provides links for these downloads plus detailed setup and instruction guides to provide for the best user experience possible. Current options for the following types of mail include:

1. ISP, POP3 and IMAP mail: The Thin Air Mail (www.thinairmail.com) web clipping application provides a direct window into these types of email accounts and can be downloaded at no charge. Alternatively, users may subscribe to Monkey Mail's service (www.monkeymail.com), which forwards ISP mail directly into the Palm VII iMessenger account.

2. Internet-based mail: Individual Internet-based mail providers Excite and Yahoo! currently are offering web clipping applications for direct mail account access via the Palm VII organizer. AOL is also developing a solution that is expected to be introduced and posted to www.palm.net by the end of the year.

3. Corporate mail: Corporate users who may choose use the Palm VII organizer to read and respond to mail received from their corporate mail systems may use Visto Briefcase (www.visto.com). This software resides on a desktop connected to the corporate network and automatically forwards mail to the Palm VII device.

Content Provider Support for Web Clipping
A growing number of the world's leading Internet content providers already have made Internet content available for web clipping directly from the Palm VII organizer. More than 1,000 Internet content developers have obtained the HTML development tools used to easily make Internet content accessible from the Palm VII organizer.

The information delivered from the Internet to the Palm VII device comes from the original content source - the only difference is in the presentation of the information. Using standard web authoring tools, any Internet content provider can easily make its content accessible to Palm VII users. As more content becomes available, users will be able to download new web clipping applications from www.palm.net or from the content source.

The Palm VII Organizer in the Corporate Environment
Businesses can also take advantage of the Palm VII organizer's wireless data capabilities for accessing enterprise data within corporate Intranets, as the product was created using standard Internet and data center technologies familiar to web and IT managers. Because it is standards-based, corporate IS departments can easily set up a server outside the firewall that gives Palm VII organizer users access to enterprise data sources such as a mainframe databases or enterprise resource planning (ERP) systems. Additionally, the Palm.Net service provides corporate summary billing for easy administration and payment remittance.

About 3Com Corp.
With approximately 300 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 enterprises, small businesses, carriers and network service providers, PC OEMs and consumers. 3Com - More connected. - For further information, visit 3Com's visit 3Com's World Wide Web site at http://www.3com.com, or the press site at http://www.3com.com/pressbox. or Palm Computing at www.palm.com.

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3Com and Palm Computing are registered trademarks and More Connected, Palm, Palm III, Palm VII, and iMessenger are trademarks and Palm.Net is a servicemark of 3Com Corporation or its subsidiaries. All other brands and product names may be trademarks of the respective companies with which they are associated.