SANTA CLARA, Calif., May 23, 2002 -- An independent study of enterprise deployments of the two leading operating systems for handheld computers and smartphones -- Palm OS(R) and Pocket PC -- conducted by The Gantry Group LLC of Concord, Mass., shows that the Palm OS platform delivers a 41 percent annual cost savings to enterprises when contrasted with the Pocket PC platform. The complete study is available on Palm’s website at www.palm.com/enterprise.

Gantry Group designed and tested a highly parameterized TCO measurement tool that captured multiple cost components associated with buying, deploying, managing and supporting handheld devices. Of the six basic cost components examined in the study, Palm OS based devices were less expensive in every component -- and more than 60 percent less expensive for software, IT services and training (see chart below).

According to Gantry, the average number of devices involved in a deployed enterprise solution is at least 500 devices; based on that, enterprises could realize an annual cost savings of $159,995 to their bottom lines if they were to deploy Palm solutions.

Forty enterprise sites -- 20 Palm OS mobile solutions and 20 Pocket PC mobile solutions -- were researched, recruited and interviewed in the United States. Gantry is now expanding the study to encompass case studies on the ROI (return on investment) realized by three of the companies in the study that used Palm(TM) branded handhelds.

“This study provides the compelling evidence we are sharing with enterprise customers that proves Palm Powered(TM) handhelds are a more cost-effective mobile solution,” said Ken Wirt, Palm’s senior vice president of marketing and product management. “This TCO message, combined with the high user acceptance experience reported by Palm handheld customers, lets Palm create a win both for the IT department and the end user -- our goal as a provider of enterprise solutions.”

Palm OS and Pocket PC are the two leading mobile solution platforms, according to IDC’s April 2002 report, “Sync or Swim: Worldwide Smart Handheld Devices Forecast and Analysis, 2002-2006.” This report shows that the Palm OS platform had a 52.8 percent share of worldwide handheld device shipments by operating system in 2001. IDC notes Pocket PC share in 2001 was only 21 percent.

About Gantry Group
The Gantry Group is a strategic advisory firm that uses primary market research to help companies cost-effectively accelerate the successful market adoption of their products and services -- online and offline. Through Gantry Group’s market intelligence, market research, and ROI/TCO benchmarking service suites, more than 165 client companies have identified, positioned and quantified their value within the marketplace. Additional information about Gantry Group can be found at www.gantrygroup.com.

About Palm, Inc.
Information about Palm, Inc. (Nasdaq: PALM) is available at http://www.palm.com/aboutpalm.

Palm OS is a registered trademark and Palm and Palm Powered are trademarks of Palm, Inc. Other brands may be trademarks of their respective owners.

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