Contact Information:
Jason Caskey
A&R Partners for Palm, Inc.
650.762.2813
jcaskey@arpartners.com

FOR IMMEDIATE RELEASE

PALM SETS THE PACE WITH ENHANCED WIRELESS PALM VIIx HANDHELD

New handheld features expanded memory, 40 compelling in-box web clipping applications

SANTA CLARA, Calif. - Aug. 7, 2000 - As part of its fall product line announcements today, Palm, Inc. (Nasdaq:PALM) announced nationwide availability of the new Palm™ VIIx handheld computer. The latest Palm product to feature built-in wireless access to Internet content and e-mail, the Palm VIIx handheld features a fourfold increase in memory to 8MB and 40 bundled web clipping applications, nearly double the wireless content bundled with the original Palm VII handheld.

With an estimated street price of $449, the dark-slate Palm VIIx product works with the Palm.Net® wireless service to quickly and easily connect to the Internet and send and receive e-mail messages. Its enhanced memory makes the Palm VIIx handheld well-suited for power users and mobile professionals, such as doctors, sales professionals, or anyone who needs quick access to information. Like the Palm VII handheld, the Palm VIIx model is ideal for use in business. Its ability to securely access proprietary information from corporate databases empowers users with critical decision-making information. The Palm.Net service, which offers coverage in more than 260 US metropolitan areas, requires a separate subscription.

"Our customers' enthusiastic response to the Palm VII product and our elegant web clipping interface demonstrates that quick, streamlined access to accurate, Web-based information almost anytime, anywhere has tremendous value for today's busy professionals," said Byron Connell, vice president, Consumer Markets Group at Palm, Inc. "With the unlimited volume service plan and the number of web clipping applications swelling to more than 400, users want more room for applications and more out-of-the-box content. We've delivered both at the same price-point, which adds up to tremendous value for our customers."

Wide Selection of Content
The Palm VIIx handheld comes packaged with 40 in-box web clipping applications, which allow access to expanded Internet activities, such as interactive shopping and travel and entertainment applications. Other categories of applications bundled on the Palm VIIx handheld include news and sports, financial and reference and directories.

Palm continues to ship its popular iMessenger application with the Palm VIIx handheld, allowing users to send and receive brief Internet messages wirelessly to a specific "username@palm.net" address. Palm also has made it easier to access corporate and other e-mail accounts with a selection of communication applications from Juno Air, ThinAir Mail, and Yahoo! Mail. Also bundled with the product is an application from Palm that enables wireless downloading of the 400-plus web clipping applications on the Palm.Net site located at www.Palm.Net.

Web clipping applications from many popular Internet content providers are packaged with the Palm VIIx handheld. These include ABCNEWS.com, Amazon.com, American Airlines, AOL, Moviefone, Ask Jeeves, Barnes & Noble.com, BarPoint, Britannica.com, buy.com, Continental Airlines, CBS MarketWatch.com, Delta Airlines, E*TRADE, ESPN.com, Etak, Excite@Home, Fidelity Investments, Juno, Knight-Ridder.com, Mapquest.com, Merriam-Webster, Prudential, Rovenet.Com, SNAZ, 1-800-TOW-TRUCK, Switchboard.com, ThinAirApps, Ticketmaster Online-CitySearch, Travelocity.com, United.com, USATODAY.com, USABancShares.com, Vicinity, Wall Street Journal Interactive Edition, weather.com, Yahoo! and Yodlee.com.

Information about these applications and the 400-plus web clipping applications available for the Palm VII series of handheld computers can be found at www.Palm.Net.

The Palm.Net Service
Like its predecessor, the Palm VIIx handheld uses Palm's innovative Web clipping technology and the Palm.Net service to gather information from the Internet, displaying it in real-time simply and quickly. With coverage in over 260 major metropolitan areas, the Palm.Net service is now available in three convenient service plans, with basic service starting at $9.99/month to an unlimited volume plan for $44.99/month. There is a one-time activation fee of $9.99.

About Palm, Inc.
Palm, Inc. is the leading provider of handheld computers (IDC, Dec 1999), including the m100 and 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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Palm OS and Palm.Net are registered trademarks and Palm is a trademark of Palm, Inc. or its subsidiaries.