Media Contacts:
Jim Cortese
A&R Partners for Palm, Inc.
650-762-2868
jcortese@arpartners.com

Julia Rodriguez
Palm, Inc.
408-326-9390
julia_rodriguez@palm.com

FOR IMMEDIATE RELEASE

PALM ANNOUNCES PALM VENTURES GROUP

Initial $50 Million to Accelerate the Growth of the Palm Economy

SANTA CLARA, CA - September 6, 2000 - Palm, Inc., (NASDAQ: PALM) the leading provider of handheld computers, today announced that it has created Palm Ventures, a new organization designed to make strategic investments in companies that will grow, enhance and support the Palm Economy. The Palm Economy is a global community of industry-leading licensees, world-class OEM customers, and over 100,000 innovative developers and solution providers that have registered to support the Palm operating system and platform. This convergence of companies has been crucial to Palm's success by developing many of the new solutions required to meet the evolving needs of consumers and enterprise users in the handheld and wireless space.

Having earmarked $50 million initially, Palm Ventures is dedicated to seeking promising investment opportunities. "The handheld market is growing, and Palm is committed to investing in opportunities that will accelerate this growth," said Robert Hayes, Director of Palm Ventures. "Our success to date is, in large part, due to the many entrepreneurs in the Palm Economy who have developed products and services complementary to our own offerings."

Companies funded by Palm Ventures will have opportunities to create other types of business relationships with Palm. "With this and other efforts Palm will continue to encourage entrepreneurial activity that has made the Palm Economy so vibrant," said Doug Solomon, Chief Strategy Officer at Palm. "Companies funded by Palm Ventures will have a unique opportunity to work with Palm and leverage the resources and business opportunities that Palm has to offer."

For further information on Palm Ventures and how to contact the group, click here.

About Palm, Inc.
Palm, Inc. is the leading provider of handheld computers (IDC, Dec 1999), including the Palm™ 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 is a registered trademark and Palm is a trademark of Palm, Inc. or its subsidiaries. All other trademarks are the property of their respective owners.