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Palm Launches Next-Generation Product Subbrands: Unveils Tungsten and Zire Strategy



8 October, 2002 – Six years after pioneering the handheld market, Palm, Inc. (NASDAQ: PALM) today defined a new era in handheld computing with the creation of two distinct subbrands for its portfolio of handheld products – the Tungsten™ and Zire™ families. Tungsten products will provide powerful solutions for mobile professionals and enterprise work forces; Zire handhelds will provide affordable options for individuals to organise their busy lives.

"What a student or a suburban supermum wants from a handheld is fundamentally different from what an IT manager or a road warrior expects," said Todd Bradley, president and chief executive officer of Palm Solutions Group. "We're serious about delivering what matters most to both groups: that's what Zire and Tungsten are all about."

· The Palm Tungsten product line will include industrial-strength handheld hardware and software solutions for mobile professionals and serious business users. These solutions will use cutting-edge wireless and mobile technologies to solve complex technology problems for IT managers seeking to deliver secure data to mobile work forces.

The Palm Zire product line will offer snappy personal products that get straight to the point for individuals. With 50 percent fun and 50 percent take-charge ingredients, Zire handhelds are simple, approachable and easy-to-use for people balancing personal, professional or academic lives – or all of the above.

In Asia Pacific, launched today under the new sub-brands is Zire - the first handheld catered to mainstream consumers, featuring Palm's classic personal information management (PIM) features with an emphasis on value and simplicity (refer to accompanying release).

Based on the industry-leading Palm OSÒ platform, both product lines will combine new industrial designs with the classic Palm functionality that has made Palm products the world's favourite handhelds.

This year, sales of Palm OS handheld computers to consumers are predicted to reach nearly 5 million units, again surpassing all other platforms by a large margin. Further, sales of handheld computers to enterprises are expected to account for the biggest growth segment in the market (IDC, June 2002). Palm has shipped more than 18 million Palm-branded handhelds worldwide to date.

Information about Palm, Inc. is available at http://www.palmone.com/aboutpalm.

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About Palm, Inc.
Palm, Inc. is a pioneer in the field of mobile and wireless Internet solutions and a leading provider of handheld computers, according to IDC (2001). Based on the Palm OS® platform, Palm's handheld solutions allow people to carry and access their most critical information wherever they go. Palm™ handhelds address the needs of individuals, enterprises and educational institutions by offering the foundation for thousands of application solutions. Palm stock is traded on the Nasdaq national market under the symbol PALM. More information is available at http://www.palmone.com/au

Palm OS is the registered trademark and Palm is the trademark of Palm, Inc. Other brands may be trademarks of their respective owners.

Palm, Tungsten and Zire are trademarks and Palm OS is a registered trademark of Palm, Inc. Other brands may be trademarks of their respective owners.





Palm, Palm OS, and Treo are among the trademarks or registered trademarks owned or licensed to Palm, Inc. Microsoft and Windows Mobile are either registered trademarks or trademarks of Microsoft Corporation. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.