The goal behind palmOne Stores is threefold:

-- Reach new customers who don't necessarily shop in traditional office or

high-technology superstores or online;

-- Offer an attractive and comfortable environment staffed by expert

consultants enabling potential customers to interact with and buy

palmOne(TM) handhelds, smartphones and a wide range of software and

accessories; and

-- Illustrate the company's vision that handheld computers and

communications solutions can and will be used by people in all walks of

life to improve productivity, access and share valuable information and

enhance the enjoyment of life.


"The surprise of seeing and interacting with our products in open-air mall settings or attractive airport locations is working," said John Hartnett, vice president, palmOne Stores Worldwide. "Half of our palmOne Store customers tell us they bought on impulse, and we're attracting an excellent mix of new clientele and loyalists."

palmOne retail stores represent a new type of distribution channel whereby the manufacturer and contract operators cooperate. palmOne provides the award-winning design concept, special furniture, images and fixtures. Contract operators hire and manage their staffs to be experts on palmOne products.

palmOne stores also have been proven to benefit sales in other retail outlets, whether traditional brick-and-mortar or online.

"palmOne retail stores are measured beyond their sales volume," said Kanwal Sharma, director of palmOne retail stores. "They deliver a high-quality brand experience, feature a full portfolio of palmOne products, and help educate customers broadly about what our solutions can do for consumers, media-savvy, mobile professionals, and the always-connected executive."

Design Awards and Store Locations

palmOne retail stores are distinguished by their high-design styling. The company's first "in-line" store, located in Century City (Los Angeles), Calif., has won four design awards alone, including the 2002 International Store Interior Design Competition and the 2003 Award of Excellence in Interiors from the American Institute of Architects, Memphis Chapter.

There are nine other locations in addition to the Philadelphia and Century City stores:

California

-- Valley Fair Westfield Shopping Town (San Jose, Calif.)

-- San Francisco Center

-- Stoneridge Shopping Center (Pleasanton, Calif.)

Maryland

-- Towson Mall (Towson, Md.)

-- Montgomery Mall (Bethesda, Md.)

Massachusetts

-- Logan International Airport, Terminal C (Boston)

-- Prudential Center (Boston)

New Jersey

-- Newark Liberty International Airport (Newark, N.J.)

-- Garden State Plaza (Paramus, N.J.)


More information about palmOne Stores and locations can be found at www.palmOne.com/retail.

About palmOne, Inc.

palmOne, Inc. delivers what matters most to customers -- whether a single consumer or company of thousands -- enabling users to improve their personal lives and professional productivity through mobile devices and solutions.

palmOne is the name adopted in October 2003 by Palm, Inc., when it spun off PalmSource, Inc., maker of the Palm OS(R) platform software, and acquired Handspring, Inc. Uniting the Zire(TM), Tungsten(TM) and Treo(TM) subbrands, the creation of palmOne launched a new, stronger market leader in handheld computer and communications hardware and software solutions.

More information about palmOne, Inc. is available at http://www.palmOne.com .

NOTE: palmOne, Zire, Tungsten, Treo and Palm OS are among the trademarks or registered trademarks owned by or licensed to palmOne, Inc. or its subsidiaries. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.

SOURCE palmOne, Inc.