palmOne Introduces Sequel to Top-selling Zire Handheld and Drops the Price of its Zire 71 Handheld

PRESS RELEASE: Adding value to the top-selling original Zire(TM) handheld while holding its sub £99 price steady(1), palmOne, Inc. (Nasdaq: PLMO) today introduced the Zire 21 handheld, with more software, a faster processor and four times greater memory. The Zire 21 handheld -- with a recommended retail price of £79 -- is an affordable and easy way for the first-time handheld-buyer to juggle daily tasks surrounding work, family and social activities. The company also announced a reduction in price for the Zire 71 handheld, effective tomorrow, from the recommended retail price of £229 to £179.

Zire 21 Handheld Benefits and Features
· Four times the storage capacity of the original Zire handheld with 8MB of memory (7.2MB user available);
· Faster access to information with new 126MHz Texas Instruments OMAP processor;
· Newest versions of Date Book, Address Book, Note Pad and To Do List with the latest Palm OS(R) software, Version 5.2.1; and
· New Software Essentials now included on the installation CD.

"The Zire 21 handheld is palmOne's sequel to the fastest-selling handheld in history," said Vesey Crichton, vice president, EMEA for palmOne. "With the same great price and ease of use, the sequel offers more memory for data and applications, as well as faster performance. We expect the Zire 21 handheld to be another hit with first-time users and gift-givers."

Memory Expansion
With four times more memory than the original Zire handheld, the Zire 21 handheld's 8MB (7.2MB user available) adds room for storing years of appointments and thousands of contacts, with additional space for choosing from more than 20,000 applications, ranging from business software to exercise logs and shopping-list managers(2).


New Processor
Running on a new and faster 126MHz Texas Instruments OMAP processor, the Zire 21 handheld speeds access to information. Designed to meet the demands of students, families and people on the job, the Zire 21 handheld offers faster interactions and easy-to-learn-and-use applications.

Software
With the latest Palm OS software, Version 5.2.1, the Zire 21 handheld features classic Palm PIM (Personal Information Management) applications with an emphasis on value and simplicity. palmOne's famous, easy-to-use PIM applications (Date Book, Address Book, Note Pad, To Do List, Memo Pad, and Calculator) allow users to quickly keep track of important information. Recurring appointments need only be entered once. Helpful reminder alarms alert users to meetings or appointments.

New valuable software essentials are included on the Zire 21 handheld installation CD. Users can keep track of birthdays and anniversaries, automobile maintenance, passwords, and expenses, as well as read an eBook and play games with software included in the box.

Zire Handheld Success
Named a best product of 2002 by BusinessWeek and PC Magazine, the original Zire handheld has been the fastest-selling handheld in the company's history, with more than 1 million units flying off shelves in its first seven months. The sleek and elegant Zire handheld also won a Gold award in the 2003 Industrial Design Excellence Awards (IDEA) competition, co-sponsored by the Industrial Designers Society of America (IDSA) and BusinessWeek magazine, proving that excellence does not have to come in an expensive package.

Like the original Zire handheld, the Zire 21 handheld is an easy way to carry information anywhere. Everything to get started comes in the package: rechargeable handheld (battery lasts about 2 weeks with normal use), desktop software for the PC or Mac, and cables. Entering information on a Zire 21 handheld is easy -- users can enter text using Graffiti(R) 2 software (palmOne's simplified alphabet), by tapping the on-screen keyboard, or by typing information into the computer and then synchronizing it onto the handheld.

Zire 71 Handheld Price Reduction
Upholding its strategy of rendering the handheld computing sector even more accessible, palmOne also announced a new, lower recommended retail price for its Zire 71 handheld, effective tomorrow. At a recommended retail price of approximately £179(1), the Zire 71 handheld has MP3(3) capability for users who enjoy listening to their favourite tunes on the move; a built-in camera to capture spontaneous snapshots; and with Kimona Player and Producer, and a free downloadable QuickTime application, users can also display their own video clips on the device, as well as download movie trailers and other pre-formatted material from the Internet.

With tomorrow's recommended retail price drop announcement, the Zire 71 handheld is made even more affordable, enabling an increased number of young professionals and multimedia enthusiasts to integrate their digital lifestyle with palmOne's world-class business and personal productivity capabilities.

Availability
The Zire 21 handheld and Zire 71 handheld are available from consumer-electronics outlets, major retail chains and online e-stores.