Leaders in Next-generation Phones and Mobile Devices Strengthen Relationship
for Continued Innovation
SUNNYVALE, Calif. and MILPITAS, Calif., May 24 /PRNewswire-FirstCall/ --
PalmSource (Nasdaq: PSRC) and palmOne Inc. (Nasdaq: PLMO) today announced that
palmOne has renewed its license of the Palm operating system. As part of this
new agreement, palmOne can continue to develop and market smartphones and
other mobile devices based on the industry leading Palm OS(R) through
2009. Under the terms of the agreement PalmSource will receive minimum royalty
payments of $148.5 million, which includes $65 million for calendar years
2007 to 2009 subject to meeting certain development milestones.
The companies also announced today that PalmSource has sold its interest
in the holding company that owns the trademarks of the Palm brand, in exchange
for $30 million to be paid by palmOne over three and a half years. Over the
next four years, PalmSource will retain rights to use the PalmSource name and
certain related Palm trademarks for itself and its licensees. PalmSource will
also adopt a new brand identity during this period.
With the new license agreement in place, PalmSource and palmOne can
continue to collaborate and bring innovative Palm Powered(TM) products to
market. Over the years palmOne has developed a full line of successful Palm
Powered smartphones and mobile devices, including the Treo(TM) smartphone,
Tungsten(TM) and Zire(TM) families of handheld computers and the LifeDrive
mobile manager. Palm Powered phones are supported by more than 40 of the
world's top wireless carriers, making Palm OS a leading platform for the
development and deployment of phones and wireless devices.
"Extending our license of Palm OS is an essential component of our success
and ensures we can continue to build great Palm OS based products for years to
come," said Ed Colligan, palmOne president and chief executive officer. "The
openness and ease-of-integration of the Palm OS allows palmOne to benefit from
the advantages of a powerful platform."
"We greatly value our relationship with palmOne and its exceptional Palm
OS based smartphones and mobile computing products," said Patrick McVeigh,
interim chief executive officer of PalmSource." We look forward to working
with palmOne on future mobile products that provide customers with
state-of-the-art capabilities."
About palmOne
palmOne, Inc. -- a leader in mobile computing -- strives to put the power
of computing in people's hands so they can access and share their most
important information. The company's products include Treo(TM) smartphones,
the LifeDrive(TM) mobile manager, Tungsten(TM) and Zire(TM) handhelds, and
software and accessories.
palmOne products are sold through select Internet, retail, reseller and
wireless operator channels throughout the world, and at palmOne Retail Stores
and palmOne online stores (http://www.palmOne.com/stores ).
More information about palmOne, Inc. is available at
http://www.palmOne.com .
About PalmSource
PalmSource, Inc., the company behind Palm OS(R), a leading operating
system powering smart mobile devices, is a leading developer of software for
mobile phones and other mobile devices. Its products include a wide range of
software for mobile phones at all price points. More than 39 million mobile
phones, handhelds, and other mobile devices run PalmSource software. More than
45 companies worldwide have licenses to PalmSource software, including Fossil,
Garmin, GSPDA, Kyocera, Lenovo, palmOne, Samsung, Sony, and Symbol
Technologies. Palm OS has given rise to a large community of users,
enterprises, developers and manufacturers, who together make up the Palm
Powered Economy. More information about PalmSource is available at
www.palmsource.com, www.palmsource.co.uk, www.palmsource.fr,
www.palmsource.de, www.palmsource.com/es and www.palmsource.com.cn.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release
contains forward-looking statements that involve risks and uncertainties, as
well as assumptions that, if they never materialize or prove incorrect, could
cause PalmSource's results to differ materially from those expressed or
implied by such forward-looking statements. Such forward-looking statements
include, without limitation, statements related to palmOne's plans for Palm
Powered(TM) smartphones and mobile devices, the anticipated minimum royalty
payments and the changes to the PalmSource brand identity. The risks and
uncertainties that could cause PalmSource's results to differ materially from
those expressed or implied by such forward-looking statements include, without
limitation: PalmSource's ability to maintain and grow the Palm OS developer
community; PalmSource's ability to meet certain development milestones;
PalmSource's ability to develop new brand identity; PalmSource's ability to
benefit from any growth in the smartphone and mobile device markets;
PalmSource's ability to maintain and grow its developer community; and the
general economic conditions in the U.S. and abroad and other risks and
uncertainties contained in PalmSource's public announcements, reports to
stockholders and other documents filed with and furnished to the Securities
and Exchange Commission, including the Company's Annual Report on Form 10-K
for the period ended May 28, 2004 and its Quarterly Reports on Form 10-Q for
the periods ended August 27, 2004, November 26, 2004 and February 25, 2005.
All forward-looking statements in this press release are based on information
available to us as of the date hereof, and PalmSource assumes no obligation to
update these forward-looking statements.
NOTE: palmOne, LifeDrive, Zire, Tungsten and Treo are among the
trademarks or registered trademarks owned by or licensed to palmOne, Inc. All
other brand and product names are or may be trademarks of, and are used to
identify products or services of, their respective owners.
PalmSource, Palm OS, Palm Powered, and certain other trademarks and logos
appearing on this press release are licensed to PalmSource by Palm Trademark
Holding Company, LLC. These marks may not be used in connection with any
product or service that does not belong to PalmSource, Inc. (except as
expressly permitted by a license with PalmSource, Inc.), in any manner that is
likely to cause confusion among customers, or in any manner that disparages or
discredits palmOne, its licensor, its subsidiaries or affiliates. All other
brands and trademarks used herein are or may be trademarks of, and are used to
identify other products or services of, their respective owners. All rights
reserved.
SOURCE PalmSource, Inc.; palmOne Inc.
05/24/2005
CONTACT: media, Maureen O'Connell of PalmSource, Inc., +1-408-448-1462,
or maureen.oconnell@palmsource.com; or Marlene Somsak of palmOne, Inc.,
+1-408-503-2592, or marlene.somsak@palmone.com; or investors, Brian Siegel of
PalmSource, Inc., +1-408-400-1942, or investor.relations@palmsource.com; or
Sandy O'Halloran of palmOne, Inc., +1-408-503-7405, or
sandy.ohalloran@palmone.com
Web site: http://www.palmsource.com
Web site: http://www.palmOne.com