Palm and Microsoft 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(R) Windows Mobile(R) operating system for an expanded line of Treo(TM) smartphones, the first of which will be available in the U.S. only on Verizon Wireless’ national wireless broadband network. The Treo smartphone on Windows Mobile is a CDMA-based phone targeted for the U.S. market and takes advantage of Verizon Wireless’ BroadbandAccess service on its EV-DO network with download speeds averaging 400-700 kilobits per second. The new Treo smartphone is powered by an Intel processor and joins Palm’s award-winning family of Treo smartphones, which includes the Treo 600 and Treo 650, both offered today to Verizon Wireless customers. Full product details will be disclosed when the product is available for purchase in the U.S. only in early calendar 2006. No plans were revealed for additional mobile operators. Palm indicated that a GSM Treo smartphone using Windows Mobile was not anticipated to be released earlier than the second half of 2006.

Mobile-computing pioneer Palm, Inc. and software pioneer Microsoft Corp.
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(R) Windows Mobile(R) operating system for an expanded line of Treo(TM)
smartphones, the first of which will be available in the U.S. only 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,
Inc.; Bill Gates, chairman and chief software architect of Microsoft Corp.; and
Denny Strigl, president and 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 email, messaging,
web access(1) and organizational software — in an attractive, compact design.
The new CDMA 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 information.(2) 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
smartphone to be available in the U.S. only to its customers in early 2006.

“We’ve long believed that the future of personal computing is mobile
computing, and our collaboration with Microsoft is a historic step in delivering
that vision to a larger market,” said Colligan. “We’re confident customers will
see a differentiated smartphone that delivers our world-class usability on
Microsoft’s flexible and robust Windows Mobile operating system. We collaborated
with Verizon Wireless first because of its high-speed wireless network and
growing footprint of BroadbandAccess cities.”

“This is a landmark alliance that will help businesses remain on the cutting
edge of competitiveness,” Gates said. “Demand for accessing information on
mobile devices is soaring, and businesses want a low-cost, scalable solution.
We’re excited to team with Palm and Verizon Wireless to deliver a winning
Windows Mobile solution that connects professionals to their critical
information while on the go.”

The Treo smartphone on Windows Mobile is a CDMA-based phone targeted for the
U.S. market and takes advantage of Verizon Wireless’ BroadbandAccess service on
its EV-DO network with download speeds averaging 400-700 kilobits per second.

“The new Treo smartphone running Windows Mobile will highlight the speed and
power of our BroadbandAccess service,” said Strigl. “The Treo will deliver fast
downloading of email and attachments as well as quick access to
critical-business information, providing businesses with a great return on
investment. Our strong relationships with Microsoft and Palm continue to provide
real value for our customers.”

The new Treo smartphone is powered by an Intel processor and joins Palm’s
award-winning family of Treo smartphones, which includes the Treo 600 and Treo
650, both offered today to Verizon Wireless customers.

The Palm Experience on Windows Mobile
During the press conference, the companies demonstrated the Palm experience now
brought to life on Windows Mobile. The audience saw a sampling of Palm’s
award-winning hardware design integrated thoughtfully with a rich Palm software
suite, including the ability to:
• Contact someone quickly from the Today Screen and choose between home, office
or mobile numbers, or select email or SMS. With only two letters entered, a
customer can find a record from among thousands of contacts;
• Reach people most often called via photo speed dials visible as a band of
images on the Today Screen;
• Decline a call with a friendly SMS, signaling “In a meeting” or “Talking with
the boss” instead of simply ignoring the call; and
• Rewind, delete or fast-forward through work or cell phone voicemail with
familiar and consistent on-screen icons.

Full product details will be disclosed when the product is available for
purchase in the U.S. only in early calendar 2006. No plans were revealed for
additional mobile operators. Palm indicated that a GSM Treo smartphone using
Windows Mobile was not anticipated to be released earlier than the second half
of 2006.