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MOUNTAIN VIEW, CALIF. (February 11, 2003)- Due to a change in the accounting treatment for two leases related to buildings in Sunnyvale, California, Handspring, Inc. (NASDAQ: HAND) announced today that it has restated its balance sheet for the fiscal year ended June 29, 2002 and for the quarter ended September 28, 2002. The Sunnyvale leases will now be accounted for as if Handspring owned the buildings, rather than accounted for as operating leases. This restatement has no impact to cash balances, net cash flow, the income statement or cash obligations for any period historically or going forward.

This change was made due to an error in the application of technical aspects of lease accounting, specifically the application of EITF 97-10: The Effect of Lessee Involvement in Asset Construction. Handspring's previous accounting for its Sunnyvale leases as operating leases had been reviewed by PricewaterhouseCoopers LLP (PwC), Handspring's auditors, and the documents related to the lease had been made available to PwC previously and filed properly with the Securities and Exchange Commission.

The change in accounting was not caused by Handspring's recent restructuring of its Sunnyvale lease obligations, but was detected upon review of the original lease documents by PwC lease accounting experts in conjunction with that restructuring, which closed on January 29, 2003.

Although in the original lease agreements Handspring had no ownership interest in the buildings, the application of EITF 97-10 was triggered because Handspring paid for particular tenant improvements, including air conditioning, wiring and elevators.

The restatement retroactively creates a capital asset and a corresponding non-cash liability based on the total cost incurred by the building developer during the course of the project. Investors should note that Handspring's obligation for future lease payments was identified properly in the footnotes throughout the periods effected by the change in accounting.

The new accounting treatment is reflected in the Company’s 10-Q for the quarter ended December 28, 2002. The Company also submitted for filing a Form 10-K/A for the fiscal year ended June 29, 2002 and a Form 10-Q/A for the quarter ended September 28, 2002 to restate the balance sheet for these periods.

ABOUT HANDSPRING
Handspring is a leading innovator in personal communications and handheld computing. The company's products include the Treo wireless communicators and Treo 90 organizer, the Visor expandable handheld computers, and client and server software for fast Web access from handheld devices and mobile phones. Today Handspring sells its products and accessories at www.handspring.com and through select Internet, retail and carrier partners in the United States, Europe, Asia, Australia, New Zealand, Canada Middle East, and Mexico/Latin America.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains a forward-looking statement concerning the impact of the balance sheet restatement on Handspring's cash balances, net cash flow and income statement going forward. Actual results may differ materially if lease accounting rules were to change or be interpreted differently in the future. Other risks and uncertainties are described in Handspring's most recent Form 10-Q filed with the Securities and Exchange Commission. Handspring assumes no obligation to update the forward-looking information contained in this press release, except as otherwise required by applicable law.

Handspring, the Handspring logo, Treo and Visor are trademarks of Handspring, Inc. and may be registered in certain jurisdictions. All other brand names are trademarks of their respective owners.