Palm Powered Mobile Devices Will be Targeted to Asia Pacific Region

HONG KONG and BEIJING, Dec. 10 /PRNewswire-FirstCall/ -- Group Sense PDA Limited ("GSPDA"), the third largest seller of handheld computers in Asia and the PDA subsidiary of Group Sense (International) Limited (GSL, HKEx: 0601); and PalmSource, Inc. (PalmSource), provider of the world's leading operating system for handhelds and smart phones, and the Palm OS(R) subsidiary of Palm, Inc. (Nasdaq: PALM), today announced that GSPDA has signed an agreement to license the Palm OS(R) operating system. Under the terms of the agreement, GSPDA will develop and market mobile devices based on the world-leading Palm OS for the Asia Pacific region, including China, Taiwan, Hong Kong, South Korea, Thailand and Singapore.

Palm OS is a leading handheld operating system, as reflected by the worldwide market share of Palm OS based products. Palm OS was designed from the ground up specifically for mobility. This means Palm OS offers far more efficient use of resources, better performance, and more productivity for users. With the new license agreement, PalmSource and GSL will collaborate in bringing ongoing innovation and distribution to Palm Powered(TM) devices.

"GSL is an innovator in handheld information devices, including electronic dictionaries, translators and internet-related products, with a marketing network throughout many Asian countries," said David Nagel, CEO of PalmSource, Inc. "We are excited about working with GSL to make Palm Powered mobile devices pervasive across consumer, business and education markets in Asia."

"The flexible nature of Palm OS will allow GSL to create differentiated products for the China market that will expand upon our current capabilities," said Samson Tam, Chairman and CEO of GSL. "This strategic agreement between GSL and PalmSource will enable the creation of new solutions for the Asian market."

GSL designs, manufactures and sells handheld information products, primarily electronic dictionaries, personal digital assistants (PDAs) and original design manufacturing products. These devices allow consumers to acquire and utilize information in a quick and convenient manner for education, entertainment, data access and communication. The licensing agreement with PalmSource will extend their products into Palm Powered smart phones as well as other mobile handheld devices.

About PalmSource, Inc.

PalmSource is the company behind Palm OS, one of the world's most successful operating systems for handhelds and smart phones. Licensed by industry leaders -- including Acer, AlphaSmart, ARM, ATI, Fossil, Garmin, GSL, Handera, Handspring, Intel, Kyocera, Legend, MediaQ, Motorola, Palm, Samsung, Sony, Symbol and Texas Instruments -- Palm OS has been shipped on more than 25 million handhelds and smart phones, and given rise to a huge community of users, enterprises, developers and manufacturers, who together make up the Palm Economy. PalmSource's new headquarters are located at 1240 Crossman Ave. in Sunnyvale, Calif. PalmSource is a subsidiary of Palm, Inc. (PALM). More information about PalmSource, Inc., is available at www.palmsource.com. Information about Palm, Inc. is available at www.palm.com/aboutpalm.

About Group Sense PDA Limited

Group Sense PDA Limited (GSPDA), the flagship of its parent company Group Sense (International) Limited for PDA business, was established in 2000 in Hong Kong. Besides conventional PDA, GSPDA also produces converged products -- PDA-phones and smartphones. In September 2001, GSPDA rolled out the world's first Chinese-based PDA-phone model e938 that features open OS architecture and full-range communication functions including voice, fax, e-mails, WAP and SMS. For non-phone type of products, embedded-Bluetooth(TM) is added to provide short-range connectivity with other Bluetooth-enabled devices. GSPDA is now selling products to China, Hong Kong, Taiwan, Thailand, Singapore, Indonesia, India, Malaysia, Middle East and France.

NOTE: Palm OS is a registered trademark and Palm Powered is a trademark of PalmSource, Inc. a wholly owned subsidiary of Palm, Inc. Other brands may be trademarks of their respective owners.

SOURCE PalmSource, Inc.