Personal Organizer Designed to Attract New Mass-Market Customer

MILPITAS, Calif., Oct. 7 -- Six years after pioneering the handheld market, Palm, Inc. today announced the Zire(TM) handheld, the most affordable and lightest-weight Palm(TM)-branded handheld -- featuring classic, proven Palm functionality and an all-new design. With an estimated U.S. street price of $99, the Palm Zire handheld is designed for the first-time purchaser and billed as "an affordable way to organize your life." The Zire handheld is designed to meet the demands of students, families and individuals in business juggling endless events and activities.

While handhelds already are widely accepted productivity devices, the Palm Zire handheld represents the first major introduction to mainstream consumers at the sub-$100 price point. The Zire handheld features Palm's classic personal information management features with an emphasis on value and simplicity.

"The Palm Zire handheld symbolizes the beginning of a new generation of useful tools to simplify our lives," said Todd Bradley, president and chief executive officer of Palm Solutions. "Zire handhelds can replace or augment paper-based organization systems and deliver substantial savings in time and cost."

The Palm Zire handheld is an easy way to carry the information you need, anywhere you go. Everything you need to get started comes in the package; rechargeable handheld, desktop software for the PC or Mac, and cables. Entering information on a Zire handheld is easy -- write with Graffiti(R) (Palm's simplified alphabet), tap the on-screen keyboard or type your information into your computer and then transfer it onto your handheld.

"Handhelds are not new technology. We know they work, we know they keep your information safe, and we know they've helped millions of people be more organized," said Bradley. "Palm is a trusted choice with a comprehensive family of products. As your needs grow and change, you'll always be able to find a Palm handheld to keep track of what matters to you."

Palm Zire Handheld Features and Benefits

New Design

The Palm Zire handheld is an elegant and sleek device -- the lightest-weight Palm handheld on the market at 3.8 ounces. The distinctive, polished white face and silver back lends a visual simplicity and elegance. The handheld comes with a removable flip lid to protect the 160 x 160 monochrome display screen while stored. The new two-button design focuses on what matters to first-time users -- Address Book and Date Book -- while providing an engaging look and feel.

Classic Palm Applications (Date Book, Address Book, Note Pad and To Do's)

Palm's famous, easy-to-use personal information applications allow users to quickly keep track of important information. Recurring appointments need only be input once. Helpful reminder alarms alert users to meetings or appointments.

Beaming

With Zire handhelds, people can share information files or applications wirelessly -- via infrared -- with other Palm Powered(TM) handhelds. At some ballparks, for example you can receive the roster and stats; and museum, retail, entertainment and restaurant information can be received from beaming stations to your personal Zire handheld.

Ample Storage Capacity

Palm Zire handhelds can store approximately 6,000 addresses, five years of appointments (approximately 3,000 entries), and more. Zire handheld users can expand the functionality by choosing from 15,000 applications from business software to puzzles and games to personal productivity software (http://palm.com/zire). Zire handhelds also come with four interactive games: Puzzle, Minehunt, Giraffe and Hardball.

Safety and Security

Based on the industry-leading Palm OS(R) platform, Palm Zire handhelds ship with Palm Desktop software for connectivity with Windows and Mac environments. Additionally, Chapura PocketMirror software for connectivity to Microsoft Outlook is included. Zire handheld owners can back-up personal information and use Palm Desktop software or Outlook to enter information and transfer that data to the handheld.

Availability

Consumer-electronics outlets, major retail chains and online e-stores will sell Zire handhelds. The Palm Zire handheld is immediately available in most countries worldwide.

About Palm, Inc.

With shipment of 19 million Palm handheld computers, many carried in pockets, purses and briefcases around the world, Palm delivers devices that

Information about Palm, Inc. is available at http://www.palm.com/aboutpalm.

NOTE: Palm OS and Graffiti are registered trademarks and Palm, Palm Powered. and Zire are trademarks for Palm, Inc. Other brands may be trademarks of their respective owners.

* Estimated US Street Price

SOURCE Palm, Inc.