Motorola and Palm to Extend Palm User Experience Into Mobile Phone Design

Motorola and Palm, Inc. are collaborating to meet the growing demand for full-service mobile wireless devices by creating a new smart phone that blends the functionality of a Palm handheld computer with the simplicity and compact form factor of today's mobile phone. The companies signed an agreement to co-develop and co-brand these mobile smart phones, leveraging Motorola's market leading wireless technologies, creative product line, and distribution channels, with Palm's core handheld functionality, its web clipping technology for data-based access to content and services and its robust, flexible operating system, the Palm OS(R) platform.

The cooperation will initially produce a tri-band GSM wireless smart phone, expected to be available early in 2002. Combining technologies from both corporations, the companies envision the device will contain a larger color screen than standard mobile phones, and will include Palm's HotSync(R) software and over-the-air synchronization using Motorola's Starfish TrueSync(TM) software. This innovative device, featuring General Packet Radio Service (GPRS) compatibility and the Palm OS software, is expected to be the first in a series of smart phone products that Motorola and Palm will explore.

"Motorola is fundamentally changing the way the world communicates," said Merle Gilmore, Motorola executive vice president and president of Motorola's Communications Enterprise. "Palm's widely adopted technology will complement our broad line of smart mobile devices, providing further consumer and business access to the vast global network of information and personal interaction."

"With premier licensees, over 100,000 developers and about 70 percent share of handhelds, the Palm platform is a driving force in the growth of the mobile Internet," said Carl Yankowski, chief executive officer of Palm, Inc. "Motorola's expertise in providing elegant, smart mobile devices will provide both consumer and business users with smartphone products that offer seamless integration of wireless data and voice access."

This effort is an extension of an agreement in December 1999 under which Motorola took a minority equity stake in Palm, Inc. The new device will be initially distributed through Motorola's existing sales channels. Motorola plans to provide primary support for the product, including initial customer calls and warranty; Palm intend to supply software and operating system support. Both corporations expect to support third-party developers and applications through Palm's Developer Support Network and Motorola's global network of Application Development Centers. These Motorola Centers are currently located in Sweden, the UK, and Spain, with additional centers expected to open later this year.

About Palm, Inc.
Palm, Inc. is a pioneer in the field of mobile and wireless Internet solutions and a leading provider of handheld computers (source: IDC, December 1999). Based on the Palm OS platform, Palm's handheld solutions allow people to carry and access their most critical information with them wherever they go. Palm handhelds address the needs of individuals, enterprises and educational institutions through thousands of application solutions. The PalmPowered platform is also the foundation for product from Palm's licensees and strategic partners such as Cresenda Wireless, ePocrates, Inc., Franklin-Covey, Handspring, IBM, Sony, Symbol Technologies, and TRG. Platform licenses also include Kyocera and Nokia. Palm went public on March 2, 2000. Its stock is traded on the Nasdaq national market under the symbol PALM. For more information, please go to www.palm.com.

About Motorola
Motorola, Inc. (NYSE: MOT) is a global leader in providing integrated communication and embedded electronic solutions, including end-to-end wireless Internet and software-based products and technologies. These solutions provide new and unique ways for businesses and consumers to easily access the information they want, when they want it. Motorola's innovative combination of technologies, software solutions and applications, are being continually developed and expanded upon to bring added value to the company's advanced mobile devices, network infrastructure, and communication platforms. Sales for Motorola in 1999 were $33.1 billion. Further information about Motorola can be found at: www.motorola.com.

Source: Motorola