SANTA CLARA, Calif., June 25 /PRNewswire/ -- Major U.S. retailers are taking notice of the revenue opportunity in the handheld industry. More than 6.6 million handheld computers were purchased in the United States during 2000, and that number is expected to grow to more than 26 million by 2005, according to IDC.(1) Palm, Inc. (Nasdaq: PALM) today announced that Sears stores are offering Palm(TM) handheld computers in retail outlets nationwide. Palm will reach more than 100 million new customers each year, including those in the burgeoning youth and young adult markets.

"Sears is an American institution. Its selection of Palm products shows just how far consumers have come in embracing innovative solutions to simplify their lives," said Greg Rhine, vice president of worldwide sales for Palm. "The handheld computer has moved squarely into mainstream consumer culture."

Sears is the first national department store to sell Palm handhelds. A trial in 100 Sears stores late last year was so successful that Sears now sells Palm products in all of its 860 stores nationwide, serving more than 100 million American households each year. Sears has devoted more than half of the handheld computer shelf space to the Palm m100, m105 and IIIc products, and accessories such as color faceplates and leather cases.

"Palm handhelds are becoming ubiquitous. Their availability at Sears is recognition of their growing popularity with customers," said Ray Brown, vice president of home electronics at Sears. "Our consumer electronics associates are able to show customers how a handheld computer can simplify life by putting important information and applications in one place."

The Palm handheld computers available at Sears stores include the following:

-- The Palm m100 handheld is the lowest-priced Palm handheld ever introduced. It offers easy personalization for people new to handheld computers.

-- The Palm m105 handheld combines the simplicity of the m100 handheld with 8MB of memory and Internet connectivity software in the box. It comes with a cradle.

-- The Palm IIIc handheld features a clear, bright and readable color display with a longer battery life that many other color handheld computers on the market. It is ideal for users who color-code information; create and store images; and use graphics-intensive content, such as games or web pages.

About Palm, Inc.

Palm, Inc. is a pioneer in the field of mobile and wireless Internet solutions and a leading provider of handheld computers, according to IDC (December 2000). Based on the Palm OS(R) platform, Palm's handheld solutions allow people to carry and access their most critical information with them wherever they go. Palm(TM) 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 Franklin Covey, HandEra (formerly TRG), Handspring, IBM, Kyocera, Sony and Symbol Technologies. Platform licensees also include Acer, Garmin, Nokia and Samsung. The Palm Economy is a growing global community of industry-leading licensees, world-class OEM customers, and approximately 160,000 innovative developers and solution providers that have registered to develop solutions based on the Palm OS platform. 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.

(1) DC's "Hand Check: The Smart Handheld Devices Market Forecast and Analysis, 2000-2005"

NOTE: Palm OS and HotSync are registered trademarks and Palm and Palm Powered are trademarks of Palm, Inc. or its subsidiaries. Other brands may be trademarks of their respective owners.

SOURCE Palm, Inc.
Web site: http: //www.palm.com
CONTACT: Julia Rodriquez of Palm, Inc., 408-878-2605, or julia.rodriguez@corp.palm.com owing global community of industry-leading licensees, world-class OEM customers, and more than 155,000 innovative developers and solution providers that have registered to develop solutions based on the Palm OS platform. 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.

NOTE: Palm OS is a registered trademark and Palm and Palm Powered are trademarks of Palm, Inc. or its subsidiaries.

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SOURCE Palm, Inc.
Web site: http: //www.palm.com
CONTACT: Media, Staci Slaughter of San Francisco Giants, 415-972-1960, or sslaughter@sfgiants.com; or Alexa Ender of A&R Partners, 650-762-2819, or aender@arpartners.com, for Palm, Inc.