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Palm, Inc.
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PALM, IBM TEAM TO DELIVER WIRELESS E-BUSINESS SOLUTIONS FOR THE ENTERPRISE

IBM Services Help Companies "Mobilize" with Palm Solutions

SANTA CLARA, Calif., Oct. 25, 2000 - Palm, Inc. (Nasdaq: PALM) today announced an alliance with IBM to develop, market and sell mobile e-business solutions to enterprises worldwide. The alliance allows IBM and Palm to recommend appropriate hardware, software and services from each other as the preferred solution to meet both companies' enterprise customer needs.

According to a recent report by Jupiter Communications, wireless technology can provide important benefits in customer service, but large organizations need help designing, implementing and managing the entire scope of integration projects. As part of the new alliance, IBM has created a consulting and systems integration competency within its Global Services organization focused on developing and deploying applications for Palm handheld computers and Palm Powered™ handhelds, such as the IBM Workpad, and related Palm-based data services, such as the Palm.Net™ wireless service . The technology to deliver these solutions to customers of Palm and IBM is based on IBM's just released WebSphere Everyplace Suite, which is used to develop and deploy applications to non-PC devices, like Palm handhelds.

Unlike consumer use of handhelds for basic applications such as e-mail, scheduling or games, an enterprise-wide wireless solution can be used for a wide variety of information management implementations. In the enterprise, reliability and security are critical to tasks such as financial transactions, bill payments, airline scheduling and updates. These types of systems require consulting, planning, project management, data pooling and analysis, as well as ongoing upgrades and training. To meet those requirements, IBM Global Services and Palm are working together to provide one-stop, end-to-end enterprise wireless solutions.

Delta Airlines is company that has benefited from the new IBM and Palm alliance. Delta has created a state-of-the-art Web/wireless solution for their flyers. The system provides gate and flight-scheduling information, and viewing of itineraries using Palm handhelds.

"We needed a consultant to help formulate the design of the system, as well as an experienced partner in the areas of project management, development and technical expertise, especially in XML, as it relates to the legacy infrastructure," said Toby Pratt, pervasive computing project manager, Delta Airlines. "IBM and Palm were especially effective in moving quickly together and keeping us apprised of every development."

"IBM is uniquely positioned to help enterprise customers looking for end-to-end mobile e-business solutions. They have a full suite of offerings for today's business leaders," said Alan Kessler, Palm's chief operating officer for Platform and Products. "The relationship with IBM is ideal for Palm-it addresses the needs of our enterprise customers and is a critical element of our overall enterprise strategy."

The IBM and Palm joint solutions will allow mobile workers in numerous fields to complete various mission-critical enterprise activities, including logging on to corporate intranets, referencing databases for information, reading and sending e-mail, accessing automated sales tools and entering orders.

About Palm, Inc.
Palm, Inc. is a pioneer in the field of mobile and wireless Internet solutions and a leading provider of handheld computers (source: IDC, December 1999). Based on the Palm OS platform, Palm's handheld solutions allow people to carry and access their most critical information with them wherever they go. Palm handhelds address the needs of individuals, enterprises and educational institutions through thousands of application solutions. The Palm OS® platform is also the foundation for products from Palm's licensees and strategic partners, such as Cresenda Wireless; ePocrates, Inc.; Franklin-Covey; Handspring; IBM; Sony; Symbol Technologies; and TRG. Platform licensees also include Kyocera and Nokia. Palm went public on March 2, 2000. Its stock is traded on the Nasdaq national market under the symbol PALM. More information is available at www.palm.com.

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Palm.Net and Palm OS are registered trademarks are trademarks of Palm, Inc. or its subsidiaries. All other trademarks are the property of their respective owners.