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Press Release

Palm Launches New U.S. TV Ad Campaign Featuring Spring Lineup SANTA CLARA, Calif., March 25 /PRNewswire-FirstCall/ --
Palm, Inc. (Nasdaq: PALM) today launches a new U.S. TV and online ad campaign
that features the company's newest products: the Palm(TM) m130 and m515 color
handhelds and the Palm i705 wireless handheld. The campaign features a
30-second TV spot that will air on national network and cable, and is
scheduled to run for five weeks. AKQA, a San Francisco-based advertising and marketing services agency,
developed the new campaign. The ad was produced by Digital Kitchen, with music
by Plastilina Mosh. According to Bob Pullum and Adam Lau, AKQA associate creative directors,
the spot contains three distinct chapters that demonstrate how each of the new
handhelds uniquely enhances the lifestyles of a wide range of users, and that
show that no matter what the user wants to do, there is a Palm handheld that
can help do it better. Palm understands that users want different things. The person who buys an
m130 may be interested in organization and entertainment, while an m515 user
is most likely focused on business productivity. The i705 user places a
tremendous value on constant communication and staying connected with friends
and colleagues. "This TV ad shows a diversity of mobile-lifestyle needs that we are
responding to in really useful ways, both in our product offerings and in our
ongoing relationship with customers," said Ken Wirt, senior vice president of
Solutions Group Marketing for Palm, Inc. "An important aspect of the ad is
that it recognizes the sense of community that has built up around Palm
handhelds. It encourages viewers to join the Palm community by visiting
palm.com and enrolling in the Palm Pays Back Program, a new referral program
that rewards customer loyalty."
About the Palm Pays Back Program When a referred friend purchases a Palm m130, m515 or i705 handheld, the
Palm Champion receives 'Palm Bucks' that can be redeemed for specially
selected Palm merchandise via a secure online Palm catalog.(1) The awards are
45 Palm Bucks for each Palm i705 handheld purchased, 40 Palm Bucks for each
Palm m515 handheld purchased and 25 Palm Bucks for each Palm m130 handheld
purchased. The maximum award is 500 Palm Bucks per person. The program, which
runs through May 20, 2002, is available in the United States only.
The Products The Palm m130 and m515 handhelds both feature bright color screens that
support more than 65,000 colors, Palm's dual-expansion technology and access
to more than 13,000 commercial software applications in addition to the
popular Personal Information Manager (PIM) and intuitive user interface that
have made Palm products the world's favorite handheld computers. The m515
recently was recognized with the MobileFocus Award in the Mobile Handheld
Computer category. The Palm i705 handheld is the only wireless solution in the marketplace
that delivers all of the following:
-- always-on(2) "push" email from up to eight email accounts;
-- secure, end-to-end, behind-the-firewall email for corporate users;
-- web browsing via Google search or URL entry; plus
-- classic PIM features, such as Date Book and Address Book, combined in a
sleek silver one-piece package.
About AKQA
AKQA is a creatively led communications agency that helps to make its
clients more successful through great ideas. AKQA combines the capabilities of
an advertising agency and a new media firm to create and deliver ideas across
all media platforms. AKQA has a global alliance with Accenture and has offices
in Europe, Asia and America. http://akqa.com .
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 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 .
(1) Palm Bucks are not actual cash, are not redeemable for cash, and can
be used only to purchase items from the Palm Pays Back Promotion
online catalog. Palm Bucks are redeemable until July 20 (60 days
after the promotion ends on May 20, 2002).
(2) The "always-on" service is paid for by users, is proprietary to Palm,
and coverage is limited in the United States.
NOTE: Palm OS is a registered trademark and Palm is a trademark of Palm,
Inc. Other brands may be trademarks of their respective owners.
SOURCE Palm, Inc. Web site: http: //www.palm.com CONTACT: Jenny Gispen-Schultz of Palm, Inc., +1-408-878-2453, or jenny.gispen.Schultz@corp.palm.com
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