PalmSource Spins Out From Palm, Inc.

PalmSource Spins Out From Palm, Inc.
PalmSource to Be traded on Nasdaq as PSRC 


SUNNYVALE, Calif., Oct. 28  /PRNewswire-FirstCall/ -- PalmSource, Inc., provider
of Palm OS, a leading operating system powering next generation mobile devices
and smartphones, today announced its spin out from Palm, Inc. The spin out will
be effective today at 11:59 p.m. EST.  In a major milestone for the company,
PalmSource, Inc. is one of the first publicly traded companies focusing on
operating system software for smart mobile devices.

Effective October 29, 2003, PalmSource stock will begin trading on the NASDAQ
stock market under the ticker symbol: PSRC.  In addition to the spin-off, the
stockholders approved the acquisition of Handspring by Palm, Inc.  That new
combined company has been renamed palmOne, Inc. The PALM and HAND ticker symbols
will cease to trade.  palmOne's stock will trade on the NASDAQ stock market
under the ticker symbol: PLMO.

"Today's stockholder vote demonstrates strong support for the spin out of
PalmSource as a separate and independent company, as well as the merger of Palm
and Handspring," said David Nagel, president and chief executive officer of
PalmSource.  "As a stand alone public company, PalmSource can focus on
maximizing stockholder value by advancing the Palm OS platform into exciting new
and existing markets.  Our licensees, our stockholders and all of the employees
of PalmSource are delighted to become a publicly traded company, and we are
committed to acting quickly to realize the tremendous opportunity this
represents."

  The spin out of PalmSource is expected to drive the following benefits:

   -- Potential to increase the number of licensees of Palm OS;
   -- Increase the competitiveness of Palm OS
   -- Increase the responsiveness of Palm OS to technology change and
      customer needs;
   -- Sharpen focus on PalmSource's businesses and strategic opportunities,
      and
   -- Allow direct access to capital markets.



"PalmSource's competitive position extends well beyond the strength of its
brand.  The company benefits from a loyal base of customers, an established Palm
OS platform across multiple devices and a large, diverse community of
third-party developers," said Eric Benhamou, chairman of PalmSource, Inc.
"Today's stockholder vote approving the spin out brings enormous promise for the
mobile device and smartphone markets, which will continue growing in quality and
excellence as PalmSource and palmOne sharpen focus in their respective
businesses."

PalmSource's business includes Palm OS, software development tools and
applications such as personal information management applications, e-mail and
web browsers engineered to enable mobile information device manufacturers to
create innovate products to meet diverse customer needs.  In addition,
PalmSource markets and sells Palm OS software titles for Palm Powered devices
through its new online store at PalmSource.com.

The Palm OS platform has attracted a large following, with over 30 million Palm
Powered devices sold to date and software developers who have created over
19,000 Palm OS software titles, the largest collection of software for any
mobile operating system.

To view the NASDAQ presentation by David Nagel, president and CEO of PalmSource,
please go to http://www.palmsource.com/ anytime after 9:30 a.m. EST, October 29,
2003.  PalmSource b-roll is currently available, please go to
http://www.palmsource.com/, for more information.

About PalmSource

PalmSource (NASDAQ:PSRC) is the company behind Palm OS, the popular operating
system for handhelds and smartphone devices.  Licensed by industry leaders --
including Aceeca, AlphaSmart, Fossil, Garmin, GSL, HuneTec, Kyocera, Lenovo,
palmOne, Samsung, Sony, Symbol and Tapwave as well as Palm OS Ready Partners
including ATI, Intel, MediaQ, Motorola, M-Systems, Samsung and Texas
Instruments.  Palm OS has been shipped to date on more than 30 million handhelds
and smartphones, and 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 the trading of our common
stock on the NASDAQ stock market, the expected benefits of the spin-off and the
growth of the mobile device and smart phone markets.

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 establish certain minimum bid prices pursuant
to the rules of the NASDAQ stock market, our ability to successfully penetrate
new mobile device markets or the ability of new markets to grow as we
anticipate, our ability to successfully operate our business separately from
Palm's, our ability to compete with existing or new competitors, our ability,
and that of our licensees, to timely introduce new products to the market,
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.  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.

NOTE:  Palm OS is a registered trademark and Palm Powered is a trademark of
PalmSource Inc.  Palm is a trademark of the Palm Trademark Holding Company.
Other brands may be trademarks of their respective owners.

NOTE TO EDITORS:  This press release complements palmOne's press release dated
October 28, 2003: "PalmSource Spin-Off and Handspring Acquisition Approved by
Stockholders." 

DATASOURCE: PalmSource, Inc.



CONTACT:  Cynthia Harris, Public Relations, [phone], or

, or Kip Meintzer, Investor Relations,

[phone], or , both of PalmSource, Inc.



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

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