Palm, Inc. Press Release:

SUNNYVALE, Calif., Jul 13, 2006 — Palm (Nasdaq:PALM) today announced it has forged a new relationship with Vodafone targeted at expanding the adoption of wireless push email in Europe.

The Palm Treo smartphone that will result from this collaboration will represent an industry first by operating on Vodafone’s 3G/UMTS network and delivering the hallmark Palm experience on top of the Microsoft Windows Mobile operating system. The new Treo smartphone will be available first to Vodafone customers in multiple European countries, including the UK, Germany, Spain, Italy and Netherlands, before the end of the calendar year.

“Partnering with Vodafone, a world-class mobile operator, is a significant step to accelerate our geographic expansion and serve more European customers,” said John Hartnett, Palm senior vice president of worldwide sales and customer relations. “This collaboration will provide a powerful tool for enterprise customers that delivers on the Palm promise of ease of use and lets mobile professionals be fully productive away from the office.”

Today, only an estimated 2 percent of business email inboxes worldwide are accessed via mobile, according to market research firm The Radicati Group. Palm, Vodafone and Microsoft will target this large, untapped market with real-time push email using Microsoft’s Messaging and Security Feature Pack available on Windows Mobile 5.0, which includes Direct Push Technology and enhanced security features.

“Vodafone’s business customers expect us to help them increase productivity and make the most of their business and personal time,” said Nick Jeffery, global director of Business Marketing, Vodafone. “The new Treo smartphone will be a market-leading device, which combined with our high-speed 3G/UMTS network and real-time push email, will make this an invaluable business tool.”

“The new Treo based on Windows Mobile will offer a unique experience for mobile business users in Europe and will be an attractive proposition for organizations considering mobile deployments. The combination of powerful and familiar software, a fantastic user experience and world-class service through one of the leading mobile network operators in the world is a winning formula for businesses and organizations in Europe,” said Suzan DelBene, corporate vice president of marketing for the Mobile and Embedded Devices Division at Microsoft.

Information on the new Treo smartphone will be shared closer to commercial availability.

About Palm, Inc.

Palm, Inc., a leader in mobile computing, strives to put the power of computing in people’s hands so they can access and share their most important information. The company’s products for consumers, mobile professionals and businesses include Palm(R) Treo(TM) smartphones, Palm handheld computers, and Palm LifeDrive(TM) mobile managers, as well as software, services and accessories.

Palm products are sold through select Internet, retail, reseller and wireless operator channels throughout the world, and at Palm Retail Stores and Palm online stores (http://mytreo.net/store).