Webcast details at end of release
Quotes from Palm i705 handheld enterprise beta program participants and Palm

i705 handheld partners are included at the end of this release

SANTA CLARA, Calif., Jan. 28 /PRNewswire-FirstCall/ -- Executing on its commitment to deliver wireless solutions to mobile professionals and businesses, Palm, Inc. (Nasdaq: PALM) today launched the Palm(TM) i705 handheld. It is the only wireless solution in the marketplace that delivers all of the following benefits:

In a separate news release, Palm today announced that AOL's popular AOL Instant Messenger (AIM) service and a host of other AOL services also are on the new Palm i705 wireless handheld.

Palm also today announced an enterprise-class, end-to-end, behind-the-firewall, wireless messaging solution, based on the new Palm i705 handheld, for large deployments. The Palm i705 Wireless Messaging Solution directly addresses the manageability, support and security concerns of IT managers who are deploying handhelds to large numbers of mobile workers.

"The Palm i705 is a compelling offering that addresses the need for an always-on mobile information management and email solution that serves the needs of mobile individuals as well as integrates into corporate infrastructure," said Kevin Burden, an analyst at IDC, the worldwide market research firm based in Framingham, Mass. "We believe strong demand exists for an end-to-end wireless solution that enterprises can procure from a single vendor."

Growing Mobile Work Force Demands Flexibility and Control

"People today are more mobile than ever, and the Palm i705 handheld was conceived, designed and made especially for mobile business users and corporate IT -- a first for Palm," said Todd Bradley, executive vice president and chief operating officer of Palm's Solutions Group. "The freedom to travel while remaining connected to email and messaging is a key competitive advantage for people and companies. Just as important is the ability to manage and filter incoming information from multiple messaging accounts, and our i705 handheld delivers personal control like no other product on the market today."

Two software programs are at the heart of the desktop-to-handheld collaboration. On the Palm i705 handheld, email management is made possible by the Palm MultiMail(R) Deluxe application, which supports a business account, an included webmail account at Palm.com, and support for the most widely used email accounts, such as Yahoo!, Earthlink, Mindspring, and other leading Internet email services.

On the desktop, MultiMail Deluxe Desktop Link -- a Microsoft Windows application that works with Microsoft Outlook and runs continuously in the background -- securely encrypts and decrypts email, and redirects messages to users' Palm i705 handhelds.

Studies Confirm Mobility Trend

Studies show that U.S. workers are increasingly mobile and inclined to use email and Personal Information Management (PIM), namely calendar, address, to-do, and note functions. For example,

As with other Palm branded handhelds, owners of Palm i705 handhelds have access to more than 13,000 software applications currently commercially available (see Palm's Software Connection website at http://software.palm.com . Plus, it can be expanded easily and in two ways, just like other calendar 2001 entries to the Palm family of handhelds. Internal expansion is provided by Palm's Expansion Card Slot, which can accommodate memory, application and input/output devices via SD Cards and MultiMediaCard media. External expansion is delivered via the Palm Universal Connector, which allows handhelds to be augmented with collapsible keyboards, digital cameras and other hardware.

The Palm i705 handheld is based on the Palm OS(R) v4.1 platform. It features 8MB RAM and 4MB Flash ROM, a 33MHz Motorola Dragonball VZ processor, a rechargeable lithium polymer battery and HotSync(R) USB cradle. It weighs 5.9 ounces, including the battery, and measures 4.65 inches x 3.06 inches x 0.61 inches.

The Palm.Net(R) service for the new handheld is provided via Cingular Wireless' nationwide Mobitex-based packet data network, which lets users roam 260 U.S. metropolitan areas without additional charges. This service is widely used and recognized as being the most accessible service available. Various plans are available, including unlimited use of all functions for as little as $35/month. Access to the Internet is made easier through the completely redesigned MyPalm(TM) mobile portal, which offers a range of new services. One-touch access to the Internet, with no dial-up, is provided by pressing one of four "quick access" buttons on the bottom of the Palm i705. (Various MyPalm portal applications and features are outlined in the software section of this document.)

Pricing and Availability

Palm believes the Palm i705 handheld is the most competitively priced handheld in its class, considering purchase price, activation fee, and monthly service rate. The product is available this week in U.S. retail stores for an estimated U.S. street price of $449; a Palm.Net service subscription is required to activate the wireless functionality.

FranklinCovey, one of Palm's top resellers in the United States, is the first Palm OEM to sell the Palm i705 solution through its nationwide retail stores, website and catalog. Based in Salt Lake City, FranklinCovey sells Palm handheld computers bundled with its planning and time-management software and tools.

The Palm Mini Keyboard, 3.25 inches x 2.75 inches, is also available this week at retail stores and online at The Palm Store ( http://store.palm.com ) for $59.95.

There are never any roaming charges -- the same rates apply in all coverage areas, and there are no extra charges for peak-hour usage. All plans require a one-time setup charge of $9.99.

Software

In addition to the award-winning PIM applications and the industry's leading handheld OS platform, Palm is supplying free business software with the Palm i705:

In addition, the all-new version of the MyPalm wireless portal provides a set of mobile services for the Palm i705 handheld that is updated automatically through the HotSync operation:

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 platform, Palm's handheld solutions allow people to carry and access their most critical information wherever they go. Palm(TM) handhelds address the needs of individuals, enterprises and educational institutions by offering the foundation for thousands of application solutions. Palm stock is traded on the Nasdaq national market under the symbol PALM. More information is available at http://www.palm.com.

URL: http://ir.palm.com/ireye/ir_site.zhtml?ticker=palm&script=2400&item_id=595666

Digital Replay approximately 2 hours after the call (no pass codes needed):

NOTE: Palm.Net, MultiMail, HotSync and Palm OS are registered trademarks, and Palm, Palm Powered, MyPalm and Palm Reader are trademarks of Palm, Inc. Other brands may be trademarks of their respective owners.

"Palm's new i705 handheld is convergence we've been waiting for. A single communication platform for notification-based wireless email and messaging, plus all the PIM functionality -- the combination seems like it'll be a sure winner."

"Palm's new i705 handheld is an excellent solution for Staples, which plans to deploy wireless devices more broadly throughout our enterprise. We've worked closely with Palm to help them understand our needs and are quite confident their new handheld will deliver productivity benefits for our mobile work force. The secure transmission of corporate email -- behind our firewall -- combined with their productivity functionality is a winner."

"Earlier Palm handhelds have already met with great success here at Textron Financial. Palm's dedication to making email a key part of the i705 will certainly help us achieve greater productivity. It's likely that our biggest issue will be dealing with the unhappy employees who aren't in the first-wave implementation. If this beta works as we expect, we'll consider a wider scale deployment."

"As a long-time Palm VII user and a developer of several clinical applications for the Palm VII, I am very pleased to see the release of the Palm i705. The compatibility with existing Palm VII programs is excellent, and the new features such as USB synchronization, always-on networking, hidden antenna, rechargeable battery, and an enhanced wireless email client are strong incentives to upgrade."

"The Palm i705 looks fantastic. The wireless email and notification capabilities of the i705 should provide incredible value for us -- a real productivity boost. I particularly like how easily the i705 integrates with Microsoft Office and all the business software applications we use every day."

"The Palm i705 is great! I recently used it in St. Louis ... it was fantastic ... amazing technology! Having access to corporate email, plus the great productivity functionality... it's a definite winner."

"The Palm i705 is a killer solution -- the form factor with wireless modem, battery life, coverage, out-of-the-box compatibility, and huge existing base of software -- are just what we want for our company."

"The Palm i705 is generating a lot of excitement for us. With mobile access to our corporate intranet, and the addition of secure, behind-the- firewall corporate email with always-on notification, integrated with all of Palm's existing productivity tools, it's a major advance. The new handheld will enhance the productivity of our highly mobile knowledge workers."

"The Palm i705 provides our management and staff with access to real-time corporate messaging, saving them hours a day. This enhances their ability to stay on top of business issues while away from the office, which is frequent. Not only will Analysts International enjoy the 'staying connected' benefit of the i705, but we're really excited about the opportunities that this new device brings to bear for our clients. As a solutions provider focused on improving the mobile workforce capabilities of our clients, we expect the i705 to bring the same tremendous value to them as well."

"The Palm i705 handheld is a great fit for our target customers. Not only does it enable always-on access to our secure email application, it also allows us to combine two critical requirements for our mobile computing applications: patient data storage and urgent alerts/notifications. It enables us to take a huge leap forward in giving physicians a tool that accommodates their workflow and extends access to critical information for improving the quality of patient care."

"iAnywhere Solutions is pleased to have the opportunity to participate in the i705 beta program. The combination of our industry-leading m-Business platform and Palm's new 'always on' device offers an innovative method of delivering mission-critical information to mobile workers."

"We were impressed with the web-browsing capabilities of the Palm i705. We really liked the i705's consistent behavior when rendering HTML pages on the fly. That ability is key in enabling wireless portal deployment. The Palm i705 handheld offers a solid PDA browser, and we are very happy with its performance."

"Support.com (Nasdaq: SPRT) is excited about Palm's direction with the new wireless i705 handheld, as we share Palm's vision to extend advanced application coverage -- like our own mobile support automation software functionality -- to handheld device customers worldwide. The device's built-in wireless capabilities and slim form factor break new ground in the handheld computing market. Businesses seeking to gain competitive advantage through the use of mobile technologies will want to consider the new Palm i705."

"We're pleased to be part of the Palm i705 beta program because the always-on capabilities of the i705 ideally complement the features of Neomar's enterprise wireless software. We believe that the combination of the i705's always-on features and Neomar's Real Mobility(TM) functionality will make the i705 an attractive platform for enterprise applications throughout the Global 2000."

"Participating in the Palm i705 beta program has shown us just how powerful this new Palm wireless handheld can be for mobile users. The i705 handheld offers secure wireless email in a streamlined package -- two features that are essential to the mobile workforces that our organization targets. Palm and ClickServices are aggressively promoting our joint solution, and the availability of the new i705 handheld will help bring customers to our door."

"With the launch of the Palm i705, Palm has taken another strong step in their support of sophisticated wireless applications. We were pleased to have the opportunity to be part of the Palm i705 beta program because it gave us a chance to preview an excellent product. The new handheld is a perfect fit for enterprise development initiatives."

"We see the new Palm i705 handheld as being a perfect fit for enterprise development initiatives. The combination of the i705, the Palm platform, and enterprise applications offers strong potential for the development of a wide range of wireless applications that are key to air2web's business."

"In addition to always-on messaging for personal and corporate use, Palm has created the i705 handheld with the necessary supporting peripherals, infrastructure and services that allow for the development of broader enterprise-class solutions. Through our close working relationship with Palm, Mobilocity will continue to develop and deploy mobile computing solutions for our enterprise clients on the i705 handheld."

SOURCE Palm, Inc.
Web site: http: //www.palm.com
Photo: NewsCom: http: //www.newscom.com/cgi-bin/prnh/20020128/SFM083-a NewsCom: http://www.newscom.com/cgi-bin/prnh/20020128/SFM083-b NewsCom: http://www.newscom.com/cgi-bin/prnh/20020128/SFM083-c NewsCom: http://www.newscom.com/cgi-bin/prnh/20020128/SFM083-d AP Archive: http://photoarchive.ap.org PRN Photo Desk, 888-776-6555 or 212-782-2840
CONTACT: Marlene Somsak of Palm, Inc., +1-408-878-2592, or marlene.somsak@corp.palm.com; or Yvette Lorenz-Machlan of A&R Partners +1-650-762-2827, or ylorenz_machlan@arpartners.com, for Palm, Inc.
CAPTION: SFM083-b PALM I705 WIRELESS HANDHELD The Palm i705 wireless handheld from Palm, Inc. (PRNewsFoto)[TK] SANTA CLARA, CA USA 01/28/2002
CAPTION: SFM083-c PALM I705 WIRELESS HANDHELD The Palm i705 wireless handheld from Palm, Inc. (PRNewsFoto)[TK] SANTA CLARA, CA USA 01/28/2002
CAPTION: SFM083-d PALM I705 WIRELESS HANDHELD The Palm i705 wireless handheld from Palm, Inc. (PRNewsFoto)[TK] SANTA CLARA, CA USA 01/28/2002
CAPTION: SFM083-a PALM I705 WIRELESS HANDHELD The Palm i705 wireless handheld from Palm, Inc. (PRNewsFoto)[TK] SANTA CLARA, CA USA 01/28/2002