Media Contacts:
Marlene Somsak, Palm, Inc.
408.326.7513
marlene_somsak@palm.com

Kristen Garrigus, A&R Partners for Palm, Inc.
650.762.2832
kgarrigus@arpartners.com

David Swaebe, AnyDay
978.468.5111 ext. 2155
dswaebe@Mullen.com

Investor Contact:
Bob Blair, Palm
408.326.8284
bob_blair@palm.com

PALM ACQUIRES INTERNET-CALENDAR LEADER ANYDAY.COM

Deal Fuels Palm's Leadership as a Wireless Internet Solutions Provider

"The time- and location-based view of the wireless world that Palm gives you will be one of the best ways to use the Internet" - Andrew Seybold

SANTA CLARA, Calif., May 31, 2000 - Palm, Inc. (Nasdaq: PALM) today took a large step toward implementing its vision to put the power of the Internet into the hands of mobile users. The company announced a definitive agreement to purchase AnyDay.com, a leader in dynamic, Internet-based calendar solutions. This acquisition - Palm's first as an independent company - will deliver up-to-the-minute personal services simply, anytime and anywhere to Palm-powered™ and other handhelds, freeing users from being tethered to their desktop PCs.

The proposed acquisition by the world's leading handheld maker is valued at about $80 million in cash and stock options.

"Combining AnyDay's leading Internet-based calendar with Palm's handheld solutions creates a solid cornerstone for our vision of putting the power of the Internet and wireless access into the hands of Palm™ handheld users," said Carl Yankowski, Palm's chief executive officer. "The Internet already is going mobile, and by linking mobile Internet-based services to your pocket calendar, we can drive this trend and deliver a powerful combination for busy professionals, parents and students alike. The possibilities are infinite, and they make the Palm experience even more valuable."

"In Palm, we have found a company that shares our vision of the future to bring new services and features online so that consumers and business people can enjoy anytime, anywhere access to the Internet," said Steve Watts, chief executive officer and co-founder of Cambridge, Mass-based AnyDay. "By becoming an integral part of Palm, we'll be far better able to develop new mobile services that delight consumers and business people, and help them conquer their schedules."

Personal mobile portal with time and location services
Palm will leverage its expertise in mobile- and wireless-based personal-information management with the exploding capabilities of the wireless Internet and wireless access. Palm also will develop a mobile portal of personal services with time- and location-based services at the core. These services will be available to Palm and Palm OS® users -- wireline or wirelessly, handheld or phone - and will build on the foundation of Palm's heritage of simplifying people's lives.

"Imagine having an active, dynamic calendar comprised of specific content you choose," said Barry Cottle, chief operating officer, Palm's Content and Access Business Unit, to whom Watts and AnyDay employees will report. "Think how much more productive you will be when your calendar automatically populates itself with the right information, makes arrangements on your behalf and keeps you posted when changes occur."

Cottle painted these pictures:

• You already can choose your flights from a Palm handheld, but imagine that this information is automatically incorporated into your calendar, that your handheld alerts you of flight delays, and that once you arrive, you automatically receive local and timely information of interest. You get directions to your hotel, tips on the best restaurants, information on local entertainment and sporting events and easily make reservations for them all at the tap of a stylus.
• Or perhaps you're a fan of Limp Bizkit, the Dave Mathews Band or Carlos Santana. Because you've signed up for notifications, your Palm handheld tells you that your favorite musicians are about to release a new CD and that you can receive it before it goes on sale at retail. Or, you see that a new tour schedule has just been released, and you can secure and pay for premium seats.
• Suppose you're a member of a soccer dads and moms' carpool. If one driver finds he or she can't drive as scheduled, a quick poll of other drivers -- via their dynamic calendars -- can be taken and new assignments made without ever making a phone call. The same efficiency can be applied to busy executives; a dynamic calendar can identify potential matches for a meeting among a half-dozen attendees.

"The services and applications possible from this pairing are stunning and inspiring," said Andrew Seybold, editor in chief of Andrew Seybold's Outlook, based in Boulder Creek, Calif. "Palm has significantly advanced its vision with the acquisition of AnyDay. The time- and location-based view of the wireless world that Palm gives you will be one of the best ways to use the Internet.

"Allowing handheld users real-time and wireless access to dynamic Internet-based calendars will enable an abundance of time-saving applications. From secure schedule-sharing to event notification, the value of handhelds will rise substantially for consumers and businesses," continued Seybold.

Benefits for AnyDay users
Registered users can store, access and update their information on AnyDay.com's web site via a desktop terminal, cradle or - soon -- wireless 0handhelds and phones. Current AnyDay.com users can do the following:

• Share calendar, contacts or notes with others in a defined group, including co-workers, family members or classmates;
• Schedule and reschedule meetings quickly and efficiently;
• Choose from a wide variety of rich, localized content, from sports, film, and TV schedules to trade shows;
• Receive reminders of time-sensitive events, such as business deadlines and personal celebrations such as birthdays and anniversaries; and
• Synchronize w/ Palm's simple one-touch HotSync® software to leading software programs.

Acquisition details
The closing of the transaction - which is subject to Hart-Scott-Rodino antitrust review - is expected in about two months.

AnyDay.com employees will continue to work from current headquarters in Cambridge, Mass., and Palm thus establishes a larger East Coast presence.

Additional information about this announcement can be found on www.palm.com and www.AnyDay.com.

About AnyDay.com
AnyDay.com, Inc., the creator of the Internet's premier time management solution, was founded in 1998 and has headquarters in Cambridge, Mass. By extending the capabilities of the online calendar with group organizing, events directory, integrated e-mail scheduling system and more, AnyDay.com empowers people to efficiently organize all aspects of their professional and personal lives.

About Palm, Inc.
Palm, Inc. is the leading provider of handheld computing devices (IDC, Dec 1999), including the Palm III™, Palm V™ and Palm VII™ series of handheld computers. The Palm OS platform is the foundation for the industry-leading handheld computers from the company as well as products from its strategic partners such as IBM, QUALCOMM, Franklin Covey, Handspring, TRG and Symbol Technologies. Platform licensees also include Sony and Nokia. Designed to support the increasingly mobile and geographically dispersed nature of information management, the company's handheld solutions allow people to carry their most critical information in their pockets.

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This press release includes forward-looking statements, including statements about the employment of AnyDay.com employees, functionality to be made available by combining Palm and AnyDay.com technology, and availability of future products and solutions. These statements are subject to risks and uncertainties, which could cause future events to differ materially. These risks and uncertainties include the ability of Palm to successfully integrate AnyDay.com, possible development or marketing delays with the products and solutions to be offered, potential defects in the products and solutions to be developed and the acceptance by the market of these products and solutions.