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Palm™ Debuts Two Tungsten Handhelds with Innovative Software

Ultrapowerful Tungsten T3 Handheld with Breakthrough Screen and Sleek, Business Savvy Tungsten E Handheld Available Immediately

HONG KONG, Oct. 9, 2003 -- Expanding the powerful and stylish Tungsten™ family of business handhelds, Palm, Inc. (Nasdaq: PALM) today introduced two new Chinese models -- the Palm™ Tungsten T3 handheld, for the most demanding professionals who need a best-in-class colour and wireless handheld; and the Palm Tungsten E handheld, for cost-conscious professionals who need premium power and performance.

Both handhelds feature substantial software innovations, including significantly more capable Personal Information Management (PIM) features and productivity software.

"Skillful integration of distinguished hardware and innovative software is key to delivering a great customer experience, and we're convinced our new handhelds will please new and experienced Palm handheld customers," said Ken Wirt, senior vice president and general manager of Palm's Handheld Business Unit. "What's more, Palm's business innovations let us price the new handhelds very competitively."

The Tungsten T3 handheld is Palm's first device that supports a ultra high-resolution colour screen in landscape, as well as the typical portrait mode. The handheld offers greater input flexibility, streamlined access to key features and optimal viewing in either mode. The screen display is 50 percent larger than on any previous Palm branded device, and the new soft input screen area provides a virtual Graffiti(R) 2 writing area. With faster Bluetooth™ setup embedded in the handheld, a wireless communications suite, fast 400MHz XScale processor, 64MB1 of RAM and superior productivity and multimedia capabilities, the Tungsten T3 handheld offers exceptional performance in a compact design for an estimated street price of HK$3,180.

The Tungsten E handheld features 32MB2 of RAM a crisp high-resolution colour display, updated core applications, multimedia software and expandability through cards or add-on accessories. It retains the classic Tungsten appearance, with its compact, sleek modern form and improved 5-way navigator for one-handed navigation. This handheld gives professionals an upscale handheld with premium features for an estimated street price of HK$1,580.

New Software

Improved Personal Information Management
Palm's core applications have been revamped on the two new Tungsten handhelds, providing improved organization and customization of information management, including a new agenda view, improved scheduling, more contact information, larger memos and notes and advanced built-in Microsoft Outlook.

Java Virtual Machine Available for Download
Palm Solutions Group has licensed from IBM a Java Virtual Machine (JVM), WebSphere(R) Micro Environment, for Palm Tungsten handhelds. Now, the more than 3 million members of the Java development community can write business applications for mobile workforces and consumer applications for gaming and information on the go, effectively increasing Palm Solutions Group's development community tenfold. It is available today for Tungsten handhelds users. Tungsten T3 and Tungsten E handheld users, as well as Tungsten W, Tungsten C and Tungsten T2 handheld users, that purchase their handheld on Oct. 1 or after can download the JVM for no cost. Users interested in deploying Java applications can download the JVM from http://pluggedin.palm.com/regac/pluggedin/Java.jsp. More information on Palm's Java strategy and activities developers is available at http://www.palm.com/java.

Palm Tungsten T3 Handheld Features and Benefits

New Display Enables Horizontal and Vertical Viewing
The Tungsten T3 handheld's stunning 320 x 480 colour transflective TFT display expands as the slider is opened, allowing landscape as well as portrait modes to be used by a simple tap on the screen. Users can rotate between modes in one tap. Traditional portrait mode is ideal for most applications and for one-handed navigation. Landscape mode often is better when viewing spreadsheets, email, web pages and multimedia clips. At the bottom of the display, Palm added a new status bar -- a toolbar with icons to give users one-tap access to screen rotation and other frequently used features.

Powerful Performance and More Expansion Options
The Tungsten T3 handheld comes with a powerful 400Mhz Intel XScale processor and 64MB1 of RAM allowing plenty of space and speed for complex documents or applications. Expandability options using the expansion slot or Universal Connector include a digital camera, MARGI Presenter-to-Go, Palm's Power To Go charger, and a variety of keyboards.

Business and Multimedia Applications
The Tungsten T3 handheld comes bundled with QuickOffice Pro that supports Microsoft Word, Excel and PowerPoint compatible files. Multimedia applications such as RealOne Mobile Player, Palm Photos, Kinoma Player and Voice Memo Recorder deliver support for MP33 files, JPEG photos, video clips and voice notes. The handheld also come loaded with CJKOS Chinese system and Penpower Chinese handwriting input system, enabling operations in English, Simplified and Traditional Chinese environment.

Enhanced Bluetooth Capabilities Create More Seamless User Experience
Built-in Bluetooth wireless connectivity gives mobile professionals the ability to access wireless content and stay connected while out of the office with the Tungsten T3 handheld4. By using a Bluetooth-enabled mobile phone as a modem5, users can access the web and email or swiftly initiate a phone call using Quick Lookup. Users also can perform a wireless HotSync(R) operation with Bluetooth-enabled computers and share information wirelessly with other Bluetooth-enabled devices.

Palm Tungsten E Handheld Features and Benefits

High-resolution Screen Improves Clarity and Readability
The Tungsten E handheld's 320 x 320 high-resolution colour display -- the same premium transflective TFT screen first introduced in the Tungsten C and Zire 71 handhelds -- supports more than 65,000 colours. The sharp display makes viewing text, photos, VersaMail™ messages, office documents and video easy and helps prevent eyestrain in dark rooms or bright sunlight.

The Tungsten TE handheld comes bundled with QuickOffice Pro that supports Microsoft Word, Excel and PowerPoint compatible files. In addition, it also comes with CJKOS Chinese system and Penpower Chinese handwriting input system, enabling operations in English, Simplified and Traditional Chinese environment; and iWord English-Chinese/Chinese-English two-way dictionary with 30,000 words.

Multimedia Software Adds to Versatility
The Tungsten E handheld's powerful Texas Instruments OMAP 311 ARM processor and 32MB2 of internal memory make listening to music files3 and playing movie trailers or home movie clips easy. It ships with RealNetworks' RealOne Mobile Player as well as Kinoma Player and Producer. Users can store MP3 or RealAudio files on an expansion card and listen through the built-in speaker or via the stereo headphone jack6. With RealNetworks' RealOne Mobile Player software, users can create and manage play lists, as well as run music in the background while using most other Palm applications. With Kinoma Player and Producer, and a free downloadable QuickTime application, handheld users can transfer and display their own home movie clips on the device, as well as download movie trailers and other preformatted material from the Internet.

Availability
Palm Tungsten E handhelds will be available mid-October while Tungsten T3 handhelds will be available late-November at electronic and IT outlets, as well as major retail chains.

Effective today, Palm also announced a price reduction for its Tungsten T2 handheld; estimated street price is now at HK$2,580.

About Palm, Inc.
Information about Palm, Inc. is available at http://www.palm.com/hk/ie.

(1) 52MB actual storage capacity available.
(2) 28.3MB actual storage capacity available.
(3) Listening to MP3s requires the use of an expansion card, sold separately.
(4) Email and ISP account required, not included.
(5) Compatible Bluetooth phone model and wireless GSM/GPRS carrier subscription required, not included.
(6) Headphones sold separately.

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Palm OS, Graffiti and HotSync are registered trademarks of PalmSource, Inc., a subsidiary of Palm, Inc. Palm, Tungsten, Zire, Palm Reader and VersaMail are trademarks of Palm, Inc. Other brands may be trademarks of their respective owners.





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