Basic Agreement for Wireless Service

SANTA CLARA, Calif., July 10 /PRNewswire/ --Palm, Inc. (Nasdaq: PALM) today announced that the Department of the Navy, Space and Naval Warfare (SPAWAR) Systems Center in Charleston, S.C., issued a Basic Agreement to Palm for Palm.Net(R) wireless service, which powers the Palm(TM) VII series handheld computers. This is the first such purchasing agreement for Palm.Net wireless connectivity for government agency customers. The basic agreement is available for use by the Space and Naval Warfare Systems Center, Charleston, in support of its employees and program sponsors.

In a move to make Palm.Net more compatible with large-scale government purchasing requirements, Palm and SPAWAR have arranged a government payment vehicle to facilitate acquisition of Palm.Net wireless service. To date, the purchase structure for the Palm.Net wireless service has been set up for monthly individual credit card payments.

"In the past, agencies have struggled to navigate the government's purchasing path to Palm.Net wireless service," said John Inkley, manager, federal sales, Palm, Inc. "Now, agencies can purchase Palm.Net services in a way that works with, rather than against, their internal procurement processes."

Under the terms of the agreement, SPAWAR will order service from Palm, Inc. upon request of government agencies requiring such service. SPAWAR can issue Communications Service Authorizations (CSAs) to Palm for telecommunications service and equipment. Each CSA issued under the agreement will provide Palm with the information necessary to process the order. The agreement demonstrates Palm's willingness to commit to the federal government, offering all agencies the ability to purchase Palm.Net service through a federal contract vehicle.

Palm.Net is the ISP for Palm's integrated wireless handhelds, the Palm VII series. The Palm VII series handhelds use Palm's innovative web clipping technology and the Palm.Net service to gather information from the Internet, displaying it on the handheld in real time, simply and quickly. With coverage in several hundred major metropolitan areas, the Palm.Net wireless service is now available to all government agencies for purchase through SPAWAR.

Palm is already a widespread force in public sector enterprise computing. Palm handhelds function as the primary computing platform in a number of federal agency programs, such as the handheld electronic maintenance manual for SPAWAR, the Center for Disease Control's disaster relief studies, U.S. Army cafeteria headcount applications, the U.S. Navy's Program Executive Office for Theatre Surface Combatants destroyer ship inspection applications, and the U.S. Navy's PASS program for grading the landing of Navy jets onto aircraft carriers.

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 more than 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.

NOTE: Palm OS and Palm.Net are registered trademarks and Palm is a trademark of Palm, Inc. or its subsidiaries.
SOURCE Palm, Inc.
Web site: http: //www.palm.com
CONTACT: Maureen O'Keeffe of O'Keeffe & Company, Inc., 703-883-9000, ext. 110, or mokeeffe@okeeffeco.com, for Palm, Inc.