Palm and IBM Join Forces to Deliver Mobile E-Business Solutions.

SANTA CLARA, Calif., and ARMONK, N.Y., Nov. 1 /PRNewswire/ --

Palm, Inc. (Nasdaq: PALM) and IBM (NYSE: IBM) today announced an agreement to collaborate on providing mobile e-business solutions to customers of both companies worldwide.

As part of the agreement, IBM Global Services will create a consulting and systems integration competency to focus on developing and deploying business applications for Palm OS(R) platform devices, such as the IBM Workpad, and related Palm-based data services, such as the Palm.Net(R) wireless service.

The technology to deliver these solutions is based on IBM's just-released WebSphere Everyplace Suite, which allows mobile devices to connect to the web. In addition, IBM's DB2 Everyplace database, MQ series products, VisualAge Micro Edition Java technology, and Tivoli Device Manager are available to support the Palm OS(R) platform.

"Our agreement with Palm is an important part of our strategy to work with leading platform providers to offer enterprises complete mobile e-business solutions," said John Kirby, vice president, Global Mobile e-business Services, IBM. "IBM has helped hundreds of customers around the world across every industry sector extend web and enterprise data to new pervasive devices, including many for the Palm OS platform, as securely and reliably as being directly connected to a corporate network."

This week, IBM announced a comprehensive set of products and services that will enable service providers to build the information technology infrastructure to link the web and wireless networks. With this initiative, Palm and IBM will employ those products and services to help enterprises extend and develop a range of applications for the Mobile Internet.

"IBM is uniquely positioned to help enterprise customers with end-to-end mobile e-business solutions. They have a full suite of offerings -- from professional services to back-end infrastructure products, such as WebSphere Everyplace Suite -- for today's business leaders. As part of this agreement, Palm will work with IBM as a preferred solutions provider for our enterprise customers," said Alan Kessler, Palm's chief operating officer for Platform and Products. "The agreement with IBM is ideal for Palm -- it addresses the needs of our enterprise customers and is a critical element of our overall enterprise strategy."

The solutions will provide companies with the flexibility and convenience to complete a variety of enterprise activities, including logging on to corporate intranets, referencing databases for information, reading and sending e-mail, updating calendar information, accessing automated sales tools and entering orders.

About IBM

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. IBM offers a wide range of services, solutions, and technologies that enable enterprises to take full advantage of the new era of e-business. IBM has helped companies like Sabre, SwissAir, and Delta Air Lines let their customers use wireless devices to make and change travel reservations, virtually anytime, anywhere. IBM has also helped more than a dozen financial services companies deliver their online banking and trading services to wireless devices. To extend e-business to mobile e-business, IBM is exploiting its systems integration expertise, web hosting experience, and e-business application capability providing the reliability, scalability, global reach and security businesses need to succeed. IBM can be found on the Web at http://www.ibm.com .

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 Palm OS(R) platform is also the foundation for products from Palm's licensees and strategic partners, such as Cresenda Wireless; ePocrates, Inc.; Franklin-Covey; Handspring; IBM; Sony; Symbol Technologies; and TRG. Platform licensees 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. More information is available at www.palm.com.

NOTE: Palm OS and Palm.Net are registered trademarks and Palm is a trademark of Palm, Inc. or its subsidiaries.