NEW YORK, TECHXNY/PC Expo, June 26 /PRNewswire/ -- Palm, Inc. (Nasdaq: PALM) and Extended Systems Inc. (Nasdaq: XTND) today announced that they have signed a non-binding Letter of Intent (LOI) for Palm to resell Extended Systems' XTNDConnect Server Software as a Palm(TM) branded product by the fourth quarter of this calendar year. This step reflects the strong relationship between the two companies despite their mutual agreement to end the acquisition of Extended Systems by Palm last month.

Building on two other alliance deals -- with SAP and PricewaterhouseCoopers -- Palm continues to move forward with strategic alliances to deliver end-to-end mobile and wireless solutions for large enterprises. This LOI with Extended Systems strengthens Palm's offering as it brings enterprise customers a Palm branded synchronization solution that expands on Palm's secure and reliable product to address the key enterprise issues of seamless integration, security and reliability. The companies will promote the server-based synchronization solution to developers, which will spawn greater application development for deployment of handheld solutions, including the Palm family of handhelds, within enterprises.

Industry studies indicate that 70 percent of Fortune 1000 companies will investigate and establish a handheld standard by the beginning of 2002.(1) Palm and Extended Systems are providing the market with a vision and execution plan for the growing number of enterprises integrating mobile technologies into IT infrastructure. By reselling XTNDConnect Server, Palm becomes a single vendor that can provide hardware and software that allows seamless integration of a variety of mobile devices into corporate IT infrastructures. Broad-scale deployments of handheld devices become easier for enterprise organizations.

XTNDConnect Server makes mobile device deployment and behind-the-firewall access to real-time business information simple and secure. Any corporate information that resides on Microsoft Exchange, Lotus Domino and ODBC-compliant database servers will be accessible from Palm and Palm Powered(TM) handhelds, as well as Windows CE/Pocket PC and EPOC (Psion) mobile devices. The cross-platform support that XTNDConnect Server provides is particularly noteworthy, because the product provides IT managers with a single solution for managing multiple mobile devices.

XTNDConnect Server offers IT managers centrally controlled systems-management tools while ensuring consistent applications and service delivery across various operating system platforms and for multiple devices. IT managers also will see other mobile and wireless computing benefits for their organizations from implementing Palm handhelds and the XTNDConnect Server software, including greater flexibility, investment protection and larger services and solution choices.

The executives of both companies agree that offering enterprise customers a combined solution of Palm's handheld computer technologies and Extended Systems' mobile infrastructure software will enable broader adoption of mobile devices. Palm and Extended Systems plan to work together to provide a migration path for existing customers using Palm's previous enterprise-class synchronization software, HotSync(R) Server.

"With Extended Systems' technology, Palm is better positioned to address the enterprise solutions market by offering a mobile infrastructure platform that maximizes the benefits of mobile device deployment and minimizes the headaches," said Extended Systems President and Chief Executive Officer Steve Simpson.

"The mutual attraction Palm and Extended Systems felt in our merger plans remains as strong as ever," said Carl Yankowski, Palm chief executive officer. "We're going to do everything we planned together -- but as independent partners."

About Extended Systems

Extended Systems is a leading provider of mobile information management solutions that enable users to access, collect, synchronize, and print information on demand. The company's products include data synchronization and management software, short-range wireless connectivity products (Bluetooth and IrDA-compliant), and client/server database management systems with remote access capabilities. Extended Systems' customers and key relationships include 3Com, Palm, IBM, Microsoft, Compaq, Motorola, Ericsson, Hewlett-Packard, Agilent, Sharp, NEC, and Toshiba.

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.

Cautionary Note Regarding Forward-looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including those relating to Palm's long-term plans to continue to utilize alliances to develop and market products and services to enterprise customers; and the parties' long-term plans to collaborate to provide enterprise customers with a combined solution of Palm's handheld devices and Extended Systems' infrastructure software. Actual results may differ materially due to a number of factors, including, among others, future strategic decisions made by Palm and/or Extended Systems; competitive developments; demand for mobile and wireless handhelds; and the rapid pace of technological change in the handheld computer, communications and wireless industries. The matters discussed in this press release also involve risks and uncertainties described in Palm's and Extended Systems' most recent filings with the Securities and Exchange Commission. Palm and Extended Systems assume no obligation to update the forward-looking information contained in this press release.

(1) Winn Technology. A copy of the survey is available at www.palm.winntech.net/.

Palm OS and HotSync are registered trademarks and Palm is a trademark 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: Rochelle Adams of A&R Partners, 650-762-2850, or radams@arpartners.com, for Palm, Inc.; or Joanne Taylor of Extended Systems, Inc., 208-322-7575, ext. 6015