PalmSource and Telefonica Moviles Espana Collaborate To Grow the Smart Mobile Device Market in Spain

PalmSource and Telefonica Moviles Espana Collaborate To Grow the Smart Mobile
Device Market in Spain
Leading Spanish Mobile Operator Joins Palm Powered Mobile World 


CANNES, France, Feb. 23  /PRNewswire-FirstCall/ -- 3GSM WORLD CONGRESS --
PalmSource(R), Inc.  provider of Palm OS(R), a leading operating system powering
next generation mobile devices and smartphones, and Telefonica Moviles Espana
(TME), the mobile operator of Telefonica Moviles, today announced TME has joined
the Palm Powered(TM) Mobile World program to speed up the availability and
accelerate the adoption of Palm Powered smartphones in the Spanish mobile
market.

As a new charter member of Palm Powered Mobile World, Telefonica Moviles Espana
will collaborate with PalmSource and leading Palm OS licensees to bring
cutting-edge smart mobile devices to the Spanish mobile market. In addition, TME
will work closely with PalmSource to align the Palm OS platform with TME's
requirements and service offerings. TME will also collaborate with PalmSource in
cooperative marketing activities and leverage the approximately 275,000- strong
Palm OS developer community to provide key vertical market solutions including
sales force automation, utilities, logistics and delivery.

Today's announcement builds on PalmSource's commitment to optimize the Palm OS
platform for the creation of cutting-edge Palm Powered smartphones that produce
higher Average Revenue Per User (ARPU) and deliver a compelling Palm Powered
experience for wireless customers.In addition, the collaboration reinforces
PalmSource's strategic objective to extend the Palm OS platform into the
emerging mobile data market in Spain, while providing increased revenue
opportunities for leading mobile operators such as TME.

"The combination of two market leaders in Spain for mobile devices and services
will promote greater penetration of Palm Powered smartphones into the Spanish
mobile market and accelerate the mobile data business for TME," said David
Nagel, president and CEO of PalmSource.

"We look forward to working with PalmSource to offer our customers cutting-edge
smart mobile devices that provide a truly compelling Palm Powered user
experience," said Luis Ezcurra, Development Services General Manager of
Telefonica Moviles Espana. "The leading market strength and innovation of the
Palm OS platform will extend our market leadership, reduce time to market and
increase ARPU for our Palm Powered mobile products and services."

Palm OS provides a flexible and efficient platform that enables hardware
manufacturers and software developers to rapidly and efficiently create a wide
range of powerful, innovative and easy-to-use smart mobile devices and software
applications. Approximately 30 million Palm Powered handhelds and smartphones
have been sold to date and Palm OS has attracted a large and loyal following of
approximately 275,000 developers building applications for Palm Powered smart
mobile devices.

About Palm Powered Mobile World

Launched in the Fall of 2003, Palm Powered Mobile World is a marketing program
that connects mobile operators, infrastructure providers and software developers
to efficiently bring Palm OS software applications and solutions to market,
providing increased revenue opportunities and a superior user experience for
Palm Powered smart mobile devices. TME joins mobile operator partner, Sprint,
and Orange announced separately today, as well as infrastructure partners in the
wireless Palm Powered ecosystem to capitalize on the growing smart mobile device
market. More information regarding the Palm Powered Mobile World program can be
found at http://www.palmsource.com/mobileworld.

About TME

Telefonica Moviles Espana (http://www.empresa.movistar.com/) is the operator of
Telefonica Moviles Group in the Spanish market, where it has more than 19.66
million active customers at the end of 2003 and offers a comprehensive portfolio
of data services and applications using the latest mobile technologies,
including GPRS, MMS and UMTS. Telefonica Moviles, S.A. manages all the
Telefonica group's mobile operations throughout the world. It is one of the
world's largest mobile telephony companies and leader in the Spanish- and
Portuguese-speaking mobile telephony market, with an active customer base of
over 52 million. The company reported net profit of euros 1.257 billion in 9M03,
with a 28.4% increase in recurring profits. Telefonica Moviles' shares are
traded on the Spanish and New York Stock Exchanges with the ticker TEM.

About PalmSource

PalmSource, Inc. is the company behind Palm OS, a leading operating system
powering mobile information devices.  Approximately 30 million Palm Powered
handhelds and smartphones have been sold to date worldwide. Industry leaders
Aceeca, AlphaSmart, Fossil, Founder Technology, Garmin, GSL, HuneTec, Kyocera,
Lenovo, palmOne(TM), PerComm, Samsung, Sony, Symbol Technologies and Tapwave
license Palm OS to create diverse mobile devices that meet unique customer
needs. Palm OS has given rise to a large community of users, enterprises,
developers and manufacturers, who together make up the Palm Economy.  More
information about PalmSource is available at http://www.palmsource.com/,
http://www.palmsource.co.uk/, http://www.palmsource.fr/,
http://www.palmsource.de/ and http://www.palmsource.com.cn/.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and
uncertainties, as well as assumptions that, if they never materialize or prove
incorrect, could cause our results to differ materially from those expressed or
implied by such forward-looking statements. Such forward-looking statements
include, without limitation, statements related to, Palm Powered Mobile World
Program; the features, functions and benefit of Palm Powered smartphones; and
the emerging mobile market in Spain.  The risks and uncertainties that could
cause our results to differ materially from those expressed or implied by such
forward-looking statements include, without limitation, our ability to
successful execute our business objectives, including the objectives of the Palm
Powered Mobile World program including to accelerate the availability and
adoption, if at all, of Palm Powered smartphones in the Spanish market; our
ability to maintain and continue to optimize the Palm OS platform to enable
creation of Palm Powered smartphones that produce ARPU that is acceptable to
mobile operators; the ability of the Palm Powered smartphones and Palm OS
software applications to provide the anticipated results and benefits; the
realization of the size of the mobile data market in Spain; our ability to
maintain and grow the developer community; and the general economic conditions
in the U.S. and abroad and other risks and uncertainties contained in our public
announcements, reports to stockholders and other documents filed with and
furnished to the Securities and Exchange Commission, including our Quarterly
Report on Form 10-Q for the period ended August 29, 2003 and November 28, 2003.
All forward-looking statements in this press release are based on information
available to us as of the date hereof, and we assume no obligation to update
these forward- looking statements.

Palm, Palm OS and PalmSource are registered trademarks of, palmOne and Palm
Powered are trademarks of, Palm Trademark Holding Company, LLC. Other brands may
be trademarks of their respective owners. 

DATASOURCE: PalmSource, Inc



CONTACT: Laurie Spindler, Public Relations for PalmSource, Inc.,

[phone], or ; or Telefonica Moviles

Espana, Press Office, + 34-680-01-86-00, or  



Web site:  http://www.palmsource.com/

http://www.palmsource.co.uk/

http://www.palmsource.fr/

http://www.palmsource.de/

http://www.palmsource.com.cn/

http://www.palmsource.com/mobileworld

http://www.empresa.movistar.com/ 

Copyright