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Press Release


Palm and IBM Enter Reseller Agreement

Alliance Provides Customers With Upgrade Path, Expands Market

SANTA CLARA, Calif., July 23 /PRNewswire-FirstCall/ -- Palm, Inc. (Nasdaq: PALM) today announced an agreement through which IBM becomes a U.S. reseller of Palm(TM) handheld computers. The agreement not only broadens the handheld product choices for IBM's large customers, but also brings Palm handhelds to the attention of small- and medium-size businesses that purchase from IBM. Customers can now purchase any Palm handheld -- from the entry-level Palm m100 series to the higher-end Palm m500 series, or the Palm i705 handheld with integrated wireless(1) -- from IBM.

"Palm understands the intense demands of a company's mobile fleet and makes products that meet their needs, whether in a business group, across a corporation through the IT department, or for a small business," said Glenn Cross, senior vice president, Americas Sales, Services, and Enterprise Business Development, Solutions Group, Palm, Inc. "As we continue to make strides into the enterprise, relationships with business leaders like IBM strengthen our position and help us to better serve all our enterprise customers. Being chosen as an IBM supplier of handhelds is clearly a compliment to our technology and reaffirms our role as a champion for the mobile enterprise."

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 (2001). 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) Wireless Internet access via the Palm i705 handheld requires a subscription to the Palm.Net(R) wireless service, which is paid for by users and proprietary to Palm. Coverage is limited and available only in the United States.

NOTE: Palm OS and Palm.Net are registered trademarks and Palm is a trademark of Palm, Inc. IBM is a registered trademark of International Business Machines Corporation. Other brands may be trademarks of their respective owners.

SOURCE Palm, Inc.
Web site: http: //www.palm.com
CONTACT: Kristine Boyden of A&R Partners, +1-650-762-2831, or kboyden@arpartners.com, for Palm, Inc.



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