Palm Open-platform Email Strategy Makes Treo Smartphone the Choice for Businesses, per Frost & Sullivan

New Frost & Sullivan Research Finds that Palm Treo Smartphone ROI Period is Less Than Two Months; Average Sales/Field Agents Productivity Gains Save $11,125 per Year

SUNNYVALE, Calif., Feb. 15, 2006 - Palm, Inc. (Nasdaq: PALM) and Frost & Sullivan today released results of a smartphone end-user survey declaring that the Palm® Treo™ smartphone is the smartphone of choice for businesses. According to the report, mobile professionals are choosing Treo smartphones for the platform's abundant business-ready applications, high degree of flexibility, choice of operating systems, and power and convenience. In addition, Frost & Sullivan assessed the return on investment (ROI) of Treo smartphones used in a range of businesses and conservatively determined the average payback period to be less than two months. The results also reported that sales and field agents experienced productivity gains that equaled $11,125 in average savings per agent each year.

"Palm is strongly positioned to be the smartphone brand name of choice for enterprise markets for a number of reasons," said Dan Colquhoun, vice president at Frost & Sullivan. "Treo smartphone users reported significant productivity improvements; workflow efficiency gains; the ability to respond more quickly to critical, time-sensitive communications; and reduced expenditures on other hardware."

Frost & Sullivan surveyed 531 U.S. enterprise employees holding either line-of-business or IT positions. The survey indicated that, when given a choice, more enterprise employees would opt for a Treo smartphone than for any other competing product.

"We wanted to provide our field sales and service force with a seamless way to stay connected to the people and information they need to do their jobs even better," said David Fairbanks, chief information officer, Silicon Graphics (SGI). "By giving them a phone and access to email and schedules using GoodLink all in one device, the Treo smartphone has fundamentally improved the way they work."(1)

Participants cited the following reasons for choosing Palm Treo smartphones:

• Business-ready Applications - At present, there are thousands of software applications for Treo smartphones available from third-party partners, including titles for finance, insurance, real estate, healthcare, education, sales force automation and IT management.
• Flexibility - Treo smartphones can connect to most back-end email server systems and infrastructures, and provide flexibility in the operating systems supported. For servers, there are solutions for all versions of Microsoft Exchange/Outlook, Lotus Domino/Notes and for Group Wise. Palm has also announced a client for the Black Berry Enterprise Server via BlackBerry Connect™.
• Choice of OS - With a choice of open, business-ready operating systems, technical and business decision makers are able to agree that simplicity, security and user satisfaction are most important in mobilizing an enterprise. Both Palm OS® and Windows Mobile® platforms work seamlessly with existing email, enterprise applications and IT infrastructure.
• Power and Convenience - Treo smartphones allow users to make calls, handle email, send messages and turn "downtime into found time" while waiting at the airport, sitting in the back of a taxi or even just waiting for meetings to begin.¹

"Frost & Sullivan's findings validate what we hear from our customers - Palm delivers the easy-to-use mobile solutions they need to do their jobs better and make entire organizations more productive," said Tara Griffin, vice president, enterprise markets, for Palm, Inc. "IT managers and decision makers will find this ROI research valuable when facing the decision of how to best make their organizations more competitive by going mobile with a secure, easy-to-deploy solution."

Currently, 40 percent of the Fortune 1000 companies use Treo smartphones, and an additional 35 percent are in testing or trials. Palm's flexible, standards-based approach and customer-centric model represent its commitment to serving the growing mobile needs of small, large and global businesses.

The Frost & Sullivan ROI report and more information on Treo smartphones can be found at http://www.palm.com/us/solutions/business/.

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

About Palm, Inc.
Palm, Inc., a leader in mobile computing, strives to put the power of computing in people's hands so they can access and share their most important information. The company's products for consumers, mobile professionals and businesses include Palm® handheld computers, Palm Treo™ smartphones, Palm LifeDrive™ mobile managers, as well as software, services and accessories.

Palm products are sold through select Internet, retail, reseller and wireless operator channels throughout the world, and at Palm Retail Stores and Palm online stores (http://www.palm.com/store).

More information about Palm, Inc. is available at http://www.palm.com.

¹Within wireless service coverage area only. Availability and coverage depends upon carrier and the geographic scope of international roaming agreements. Email, messaging and web access requires data services from a mobile service provider at an additional cost.

Palm OS, LifeDrive and Treo are among the trademarks or registered trademarks owned by or licensed to Palm, Inc. All other brand and product names are or may be trademarks of, and are used to identify products or servic

Media Contacts :

Jim Christensen Palm, Inc. 408.617.7455 jim.christensen@palm.com

Tiffany Anderson A&R Partners for Palm, Inc. 650.762.2923 tanderson@arpartners.com