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 September 25, 2000
Motorola & 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.