Palm & Windows Mobile

Mobile-computing pioneer Palm Inc. (Nasdaq: PALM) and software pioneer Microsoft Corp. (Nasdaq: “MSFT”) today announced a strategic alliance to accelerate the Smartphone market segment with a new device for mobile professionals and businesses. Palm has licensed the Microsoft® Windows Mobile® operating system for an expanded line of Treo™ Smartphones, the first of which will be available on Verizon Wireless’ national wireless broadband network. The news was revealed in a press conference with Ed Colligan, president and chief executive officer of Palm; Bill Gates, chairman and chief software architect of Microsoft; and Denny Strigl, chief executive officer of Verizon Wireless.

The collaboration gives customers more choices and marks a dedicated effort to deliver one of the world’s most innovative Smartphone solutions on the software platform favored by many businesses. Treo Smartphones combine the hallmark Palm experience of a full-featured mobile phone with e-mail, messaging, Web access1 and organizational software in an attractive, compact design. The New Treo Smartphone takes advantage of the Windows Mobile 5.0 platform in multiple ways, offering Outlook® Mobile, Office Mobile and Internet Explorer Mobile built into the Smartphone, as well as direct access to Exchange Server 2003 for mobile access to information2. In addition, the new Treo will operate with Verizon Wireless’ BroadbandAccess service, the largest high-speed wireless broadband network in the United States. Verizon Wireless expects the new Treo to be available to its customers in early 2006.

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