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Palm Digital Media Joins PalmSource, Inc.

Handhelds

SANTA CLARA, Calif., April 3 /PRNewswire-FirstCall/ -- Palm Digital Media, the leading publisher and distributor of eBooks for handheld computers, has joined PalmSource, Inc., the Palm OS(R) subsidiary of Palm, Inc. (Nasdaq: PALM). PalmSource provides the most successful operating system for handheld computers and smart phones and is the foundation for most handheld devices sold worldwide.

The move to PalmSource is a perfect fit for Palm Digital Media. Its award-winning Palm Reader(TM) is the leading eBook reader application for Palm Powered(TM) handhelds and Pocket PC devices. Palm Digital Media will continue to offer Palm Reader and eBooks via www.palm.com/ebooks, and through relationships with Palm OS(R) licensees.

With more than 4,500 titles from most major U.S. publishing houses, Palm Digital Media offers the largest selection of any retailer of eBooks for handhelds, including retailers of Microsoft Reader eBooks. In February 2002, it was named Best eBook Publisher by Handheld Computing Magazine. In October 2001, Pocket PC Magazine awarded Palm Reader with a Best Product award for best eBook reader. Palm Digital Media introduces 15 to 20 new eBooks every day and averages 1,000 new customers a week.

Palm Digital Media Releases List of March's Top 10 Best-selling eBooks

In related news, Palm Digital Media today released its list of March's top 10 best-selling eBooks. The eBooks can be purchased at www.palm.com/ebooks. They are available for immediate download 24 hours a day. Most Palm Reader eBooks take less than two minutes to download and require only a few hundred kilobytes of available memory on the reader's handheld computer.

Palm Digital Media Top 10 Best-selling Fiction eBooks March 2002 1. "Everything's Eventual" by Stephen King (Schribners) 2. "Spider-Man" by Peter David (Ballentine Books) 3. "Dragonquest" and "Dragonflight" by Anne McCaffrey (Ballentine Books) 4. "The Stone Monkey" by Jeffery Deaver (Simon & Schuster) 5. "Sasso" by James Sturz (Walker & Co.) 6. "Violets Are Blue" by James Patterson (Little, Brown & Co.) 7. "Last Man Standing" by David Baldacci (AOL Time Warner) 8. "Wit'ch Storm" and "Wit'ch Fire" by James Clemens (Ballentine Books) 9. "The Demon Spirit" and "The Demon Awakens" by R. A. Salvatore (Ballentine Books) 10. "The Time Machine" by H. G. Wells (Peanut Press) Palm Digital Media Top 10 Best-selling Non-fiction eBooks March 2002 1. The Holy Bible, New International Version from Zondervan 2. Webster's New World College Dictionary by Hungry Minds 3. Random House Roget's Thesaurus from Random House Reference 4. Webster's New World Compact School and Office Dictionary by Hungry Minds 5. "The Procrastinator's Handbook" by Rita Emmett (Walker and Co.) 6. "Piloting Palm" by Andrea Butter and David Pogue (John Wiley & Sons) 7. "The Gentle Art of Verbal Self Defense" by Suzette Haden Elgin (Barnes & Noble Digital) 8. "The 7 Habits of Highly Effective People" by Stephen R. Covey (Franklin Covey) 9. "Secret Sex" by Iris and Steven Finz (St. Martin's Press) 10. "The Multi-Orgasmic Couple" by Douglas Abrams and Rachel Carlton Abrams, and Mantak Chia and Maneewan Chia (HarperCollins PerfectBound) About PalmSource, Inc.

PalmSource, Inc., the Palm OS(R) subsidiary of Palm, Inc., provides the most successful operating system for handheld computers and smart phones in history. It is the foundation for most of the handheld devices sold worldwide. Palm Powered(TM) devices include those made by Acer; HandEra; Handspring; Kyocera; Palm, Inc.; Samsung; Sony; Symbol Technologies; and, in the future, AlphaSmart and Garmin. Currently, there are more than 13,000 applications available for Palm Powered devices, exclusive of in-house software programs developed by enterprise organizations.

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 .

NOTE: Palm OS is a registered trademark and Palm, Palm Powered and Palm Reader are trademarks of Palm, Inc. Other brands may be trademarks of their respective owners.

SOURCE Palm, Inc.
Web site: http: //www.palm.com
CONTACT: Kathleen Dixon of Dixon Communications, +1-408-871-7765, or kathleen@kdixon.com, for Palm Digital Media



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