SUNNYVALE, Calif.–(BUSINESS WIRE)—April 1, 2006—Following the NASDAQ closing bell on March 31, 2006, Palm, Inc. (Nasdaq:PALM) and Apple® (NASDAQ:AAPL) jointly announced the merger of Palm with Apple’s Portable Division(1). The merger combines Palm’s leadership position in the handheld computing and smartphone markets with Apple’s leading position in the digital music player and personal computing markets. Subject to regulatory approval, the merger will go into effect December 31, 2006 (2).

“As a standalone company, we delivered strong results, a result of solid execution against company objectives,” said Ed Colligan, president and chief executive officer of Palm. “Combining the power of the Treo and iPod brands will allow us to extend our record of double-digit year-over-year revenue growth and profitability gains, as well as provide significant cost cutting synergies.”

Smartphone sell-through reported by Palm’s carrier partners more than doubled recently, validating the company’s strategic decision to support multiple open platforms and offer a choice of smartphones based on either Windows Mobile(R) or Palm OS(R). Palm will also be combining the next iteration of Treo® smartphone with Apple’s popular iPod® line, making it the first company to offer both Windows® and Apple® operating systems.

According to Steve Jobs, chief executive of Apple, consumers will benefit substantially from the merger. “The first generation collaborative device will operate on a Treo enhanced Palm OS operating system, employ 5 gigabytes of onboard memory, and offer all of the advantages of an iPod mini® for digital downloads. With a built in laser keyboard for e-mail, as well as a scroll wheel that controls most device functions including the phone, we believe we will have a truly competitive product offering.”

Customers can expect the first iPod Treo to handle AAC files and include the same mobile version of iTunes® found on the new Motorola SLVR®, and other popular iTunes® phones. The addition of iTunes® will give the Treo® the ability to stream audio from a variety of sources.

About Apple
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store.

About Palm
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) handheld computers, Palm Treo(TM) smartphones, Palm LifeDrive(TM) mobile managers, as well as software, services and accessories.

(1) How far did you read before you caught on?

(2) An identified source at mytreo.net said that this is the 2nd year in a row a hoax has been perpetrated on April 1st. Happy April Fool’s Day!

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Filed under: Treo and Palm news