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For customers with access to Cingular Wireless services, VisorPhone can be purchased for U.S. $299, with the simultaneous service plan activation (Visor handhelds are sold separately). Handspring expects to sell VisorPhone through physical distribution channels in the U.S. in the first half of 2001.

"We are pleased to be shipping the VisorPhone this month after initially introducing this ground breaking Springboard module this fall," said Ed Colligan, senior vice president of sales and marketing for Handspring. "VisorPhone will bring a whole new voice communications and computing experience to current and future Visor customers and we believe it will truly change the way people communicate with each other."

ABOUT VISORPHONE

VisorPhone is a compact mobile phone module that extends slightly above and beyond the top and back of Visor itself. VisorPhone contains a battery, speaker, antenna, and three buttons: one to power VisorPhone on and off and two that allow a user to switch between voice and text messaging functions.

As with all Springboard modules, all software needed to use VisorPhone is included in the module itself. Springboard modules are self-installing and self-de-installing and can run in place so there is no need to transfer software between Visor and the module. The process is automatic and fast. To use VisorPhone, a person simply inserts the module into the Springboard slot. When powered on, VisorPhone will automatically register to the GSM network. When the module is removed, software is automatically deinstalled, leaving Visor in a clean state. The Visor need not be turned on or off, or applications closed, to insert or remove VisorPhone.

VISORPHONE SERVICE PLANS

VisorPhone operates on the GSM standard, the most widely used digital phone standard in the world, and is designed to function exclusively with the Springboard expansion slot. The GSM standard allows users to receive wireless coverage in over 4,600 cities and towns throughout North America. Handspring is selling service plans from Cingular Wireless initially with an expanded rollout expected in early 2001. This regional rollout will make VisorPhone first available to PacBell customers in California and Nevada on the West coast and to BellSouth Mobility customers in North Carolina, South Carolina, Eastern Tennessee and Coastal Georgia on the East coast. A one-stop shopping purchase and activation process is now available exclusively at Handspring.com allowing customers to easily choose the service plan that best fits their specific needs.

The service providers, not Handspring, determined pricing plans based on current competitive offerings. For a full list of pricing plans and options, simply type in your zip code at the following URL: http://www.handspring.com/products/visorphone and click on the "Buy it!" button to see what service is available in your area. Pricing is in line with plans offered for mobile phones today. Additional carrier information and activation details are provided at Handspring.com. Customers can purchase the VisorPhone without a service plan for U.S. $499 from Handspring.com.

Visor handhelds are available from Handspring.com and major retail outlets including Amazon.com, Best Buy, CDW, CompUSA, DataVision, Fry's, J&R Computerworld, Staples, Target Stores and Wal-Mart ranging in price from U.S. $149 to U.S. $449.

ABOUT HANDSPRING

Handspring is a leading innovator in the handheld computing industry. The company develops, manufactures and markets a family of expandable handheld computers for a broad range of markets and customers. Founded in 1998, Handspring's flagship technology is the Springboard platform that provides a simple and easy method for hardware and software expansion. Today Handspring sells its Visor line of handheld computers, along with a line of Springboard expansion modules and accessories, at Handspring.com and through select Internet and retail partners in Asia, Canada, Europe, Japan and the United States.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve risks and uncertainties, including those relating to: the future availability of VisorPhone in retail stores and in geographic areas beyond those served by Cingular Wireless; the new voice communications and computing experience that VisorPhone will bring to Visor owners; the degree to which VisorPhone will change the way people communicate with each other; and the price of the service plans and scope of coverage that will be offered by GSM carriers. Actual results may differ materially due to a number of factors including, among others: the retail channel's willingness to carry VisorPhone; consumer acceptance of the product; the degree to which GSM carriers will facilitate the successful introduction of VisorPhone and the pricing and terms of rate plans that they will offer for use with the product; and Handspring's and its suppliers' capacity to meet demand for the VisorPhone. The matters discussed in this press release also involve risks and uncertainties 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.

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