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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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