Palm Handheld Sales Surpass 20 Million Mark.

PRESS RELEASE: Palm Solutions Group today said it has sold more than 20 million handhelds to consumers, mobile professionals and businesses around the world. Spurred by the sales of its two new products, the Palm Zire and Tungsten T handhelds, Palm branded devices continue to be the world's most popular handhelds.

The introduction of the original Pilot handheld from Palm in 1996 ignited a revolution in handheld computing around the world. The simplicity, tiny size, low price tag and long battery life of Palm products -- along with the unprecedented one-button backup to a personal computer -- led to rapid adoption of the device and its Palm successors. Because Palm products let people stay connected to their most important information, they have become valuable tools to corporate executives and mobile professionals worldwide, expanding quickly into the consumer markets and winning the hearts of customers from college students to soccer moms. Palm remains the world's favorite handheld by being easy to use, expandable, wearable and highly mobile. The enduring advantage of a Palm handheld is that information is only a tap or two away versus the PC-style experience of complex dialog boxes and multiple, confusing steps to accomplish a basic task.

Last year, Palm branded handhelds commanded 39.4 percent of the worldwide personal companion handheld device market, according to IDC. This year, the company's market share has stayed constant, even though the competitive landscape has attracted more than 10 Palm Powered(TM) licensees and more than 20 Microsoft Pocket PC-based devices. Still a nascent market, Palm research shows that in the U.S. alone there are more than 63 million individuals interested in p urchasing handheld devices(1).

A pop culture symbol
Over the years, Palm has entered the lexicon as a definition of a handheld computer, and remains an enduring symbol of the social change initiated by Silicon Valley pioneers. The familiar three-ring HotSync(R) function "song" that plays when a user backs up the data on a personal computer has become a catchy tune from the boardroom to the kitchen desk. Even California's official Web site ( http://www.ca.gov ) carries a picture of a Palm branded handheld computer alongside pictures of world-famous Napa Valley grapes, the universally recognized San Francisco cable car, and the hillside letters spelling another cultural icon: Hollywood. In New York, Palm handhelds inspired a love song performed in a new off-Broadway production called the Water Coolers - The Ultimate Job Review. Palm branded handhelds have also made appearances on television shows such as David Letterman, Friends, Will & Grace, Law & Order, and Sex and the City.

"The new converts who bought Palm Zire handhelds symbolize the beginning of a new generation of handheld users," said Todd Bradley, president and chief executive officer of Palm Solutions Group. "Zire handhelds are augmenting if not replacing paper-based organization systems, and are truly making a difference in the lives of users.

"The Tungsten T is quickly becoming the new gold-standard in handheld computing," added Bradley. "Palm is a trusted choice with a comprehensive family of products. As your needs grow and change, you'll always be able to find a Palm handheld to keep track of what matters to you."

On Oct. 7, Palm announced the Zire handheld, the most affordable and lightest-weight Palm branded handheld to date. With an estimated U.S. street price of $99, the Palm Zire handheld is designed for the first-time purchaser as "an affordable way to organize your life." Included in BusinessWeek's "The Best Products of 2002," the Zire handheld helps students, families and individuals in business meet the demands of juggling endless events and activities.

Delivering power and precision to professionals worldwide, on Oct. 28, Palm debuted the Palm Tungsten T handheld, a smart and pocketable business device. The Palm Tungsten T handheld's design and software integration deliver smooth, one-handed data management, while new processing power and a new operating system supercharge applications -- making them faster and more efficient. Tungsten T customer reviews from shopping sites such as Amazon.com show that users are thrilled with the brilliant screen, sharp color, stylish design and new processing power.