3Com Reduces Prices of Palm III and PalmPilot Connected Organizers.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 9, 1998--Palm Computing, Inc., a 3Com company (Nasdaq: COMS), today reduced the prices of its market-leading Palm III(TM) and PalmPilot(TM) Professional Edition connected organizers. The Palm III connected organizer now has a suggested retail price of U.S. $369, down from $399, and the PalmPilot Professional Edition connected organizer will now list for U.S. $249, down from $299.

In addition, customers purchasing a Palm III organizer between October 9, 1998, and January 9, 1999, will receive a mail-in certificate for a free Palm(TM) Travel Pack, valued at U.S. $135. The Palm Travel Pack includes Frommer's(R) "10 Minute Guide to Travel Planning on the Net," TrekWare(TM) U.S. mapping software, World FAQ(TM) destination information software, Concept Kitchen(R) care kit for Palm Computing(R) organizers, a custom travel case and an extra stylus.

Pat McVeigh, vice president, sales at Palm Computing, Inc., said, "Our business is growing rapidly and our volumes are increasing dramatically. As a result, we are able to pass this cost savings along to our customers. By reducing the price of the Palm III and PalmPilot Professional Edition products we are able to make handheld computing devices more affordable to a wider range of consumers."

The Palm III and PalmPilot Professional Edition connected organizers feature a full suite of personal information management applications, including Date Book, Address Book, To-Do List, Calculator and Memo Pad, a backlit screen, as well as E-Mail and Expense capabilities. Both models feature Palm Computing's innovative HotSync(R) technology which seamlessly synchronizes data on the organizer with a personal computer at the touch of a button.

The Palm III organizer offers 2MB of memory and infrared capabilities that enable users to share records and applications wirelessly by simply "beaming" information into another user's infrared-enabled Palm Computing platform device at the touch of a button.

With more than two million devices shipped since the launch of Palm Computing platform products in 1996, Palm Computing products have won over 70 awards and received broad industry recognition for their form-factor, ease-of-use, price, expandability and viability for enterprise data management solutions. With the support of over 10,000 software developers and hundreds of companies creating hardware add-ons such as wireless modems, pager cards, telephony products, voice recognition modules and global positioning system (GPS) receivers, the Palm Computing platform has become the standard in the handheld computing industry. Palm Computing platform products represent 63 percent of the worldwide standard handheld computing market (Dataquest).

How To Receive a Palm Travel Pack

Palm Travel Packs are available immediately in the U.S. and Canada. Customers can obtain a Palm Travel Pack by mailing a certificate that is included with the Palm III connected organizer along with their dated cash register receipt or invoice and original UPC symbol to: Palm III Holiday Promotion Travel Pack, P.O. Box 2593, Grand Rapids, Minnesota, 55745-2593. Certificates must be postmarked by February 9, 1999. For more information on this free offer, visit the Palm Computing Web site at www.palm.com, or see your local retailer.

About 3Com

3Com Corporation enables individuals and organizations worldwide to stay more connected by communicating and sharing information and resources anytime, anywhere. As one of the world's preeminent suppliers of data, voice and video communications technology, 3Com has delivered networking solutions to nearly 200 million customers worldwide. The company provides large enterprise, small and medium enterprise, carriers and network service providers, and consumers with comprehensive, innovative information access products and system solutions for building intelligent, reliable and high performance local and wide area networks. For further information, visit 3Com's Web site at www.3Com.com or Palm Computing's Web site at www.palm.com.

Note to Editors: 3Com, Palm Computing and HotSync are registered trademarks, and Palm, PalmPilot and Palm III are trademarks of Palm Computing, Inc. or 3Com Corporation. All other company and product names may be trademarks of the respective companies with which they are associated. No products mentioned herein are manufactured by Pilot Corporation or Pilot Corporation of America, manufacturers and distributors of writing instruments.