Correcting and Replacing Gartner Release Issued Earlier, BW2177.

Business Editors

NOTE: The following news release replaces and corrects the

previous Gartner news release, which ran earlier Thursday on

Business Wire, BW2177 (CA-GARTNER)

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 31, 2002

Gartner Dataquest Revises Third-Quarter PDA

Results Based on Vendor Adjustments;

Hewlett-Packard Restates PDA Shipment Information for 3Q02

Revised shipment numbers by one of the top-tier vendors have significantly changed the preliminary worldwide and U.S. PDA shipment results by Dataquest Inc., a unit of Gartner, Inc. (NYSE:IT and ITB).

Gartner Dataquest's restated numbers show worldwide PDA shipments totaled 2.55 million units in the third quarter of 2002, a decrease of 2.4 percent from the same period last year. In the U.S. PDA market, shipments totaled 1.21 million, a 1.4 percent decrease.

"HP's worldwide shipment numbers have been lowered by 89,000 (approximately 23 percent) from previous estimates due to a discrepancy in its earlier tabulations," said Todd Kort, principal analyst for Gartner Dataquest. "Based on this new information, market growth rates have declined, showing that the PDA industry is struggling more than previously reported."

The new results drop HP to the No. 3 PDA vendor worldwide, and move Sony up into the No. 2 position (see Table 1). At the top spot, Palm's market share has improved to 31.7 percent worldwide and 41.7 percent in the U.S. PDA market (see Table 2).

Table 1
Worldwide PDA Unit Shipment Estimates for 3Q02 (Units)
----------------------------------------------------------------------
                  3Q02  3Q02 Market       3Q01 3Q01 Market
Company      Shipments    Share (%)  Shipments  Share (%)  Growth (%)
----------------------------------------------------------------------
Palm           808,805       31.7      754,810       28.8       7.2
Sony           344,963       13.5       90,690        3.5     280.0
Hewlett-
 Packard       292,850       11.5      317,890       12.1      -7.9
Toshiba        144,391        5.7        8,000        0.3   1,705.0
Handspring     100,100        3.9      353,642       13.5     -71.7
Others         863,823       33.8    1,093,786       41.8     -21.0
Total Market 2,554,932      100.0    2,618,818      100.0      -2.4
----------------------------------------------------------------------

Note: Does not include smart phones such as Kyocera 6035, Samsung
I-300, and Handspring Treo 180.
Source: Gartner Dataquest (October 2002)

The Palm OS accounted for 50.2 percent of the worldwide PDA market in 2003, compared to 28.3 percent for Microsoft Windows CE. In the U.S. PDA market, Palm OS comprised 69.5 percent of all PDA shipments, while Windows CE was on 19.7 percent of PDAs shipped.

Table 2
U.S. PDA Unit Shipment Estimates for 3Q02 (Units)
----------------------------------------------------------------------
                  3Q02 3Q02 Market      3Q01  3Q01 Market
Company      Shipments   Share (%) Shipments    Share (%)  Growth (%)
----------------------------------------------------------------------
Palm           505,000        41.7   479,000         39.0         5.4
Sony           240,000        19.8    50,000          4.1       380.0
Hewlett-
 Packard       117,000         9.7   150,000         12.2       -22.0
Handspring      80,000         6.6   276,000         22.5       -71.0
Toshiba         70,180         5.8        NA           NA          NA
Others         197,806        16.3   272,753         22.2       -27.5
Total Market 1,209,986       100.0 1,227,753        100.0        -1.4
----------------------------------------------------------------------

Note: Does not include smart phones such as Kyocera 6035, Samsung
I-300, and Handspring Treo 180.
Source: Gartner Dataquest (October 2002)

This information is preliminary. As Gartner Dataquest analysts cross check statistics through their evaluation process, final numbers will be available soon to clients of Gartner Dataquest's Computing Platforms research cluster. This program is designed to help companies focus on opportunity, with coverage of the complete range of computer hardware platforms as well as associated supply chain components, systems, distribution channels and end-user groups. For more information on how to subscribe to this program, please call 408-468-8000. Reports can be accessed on the Internet at www.gartner.com.

Gartner Dataquest is the leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the information technology industry.

Gartner, Inc. is a research and advisory firm that helps more than 10,500 clients leverage technology to achieve business success. Gartner's businesses consist of Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 4,000 associates, including more than 1,000 research analysts and consultants, in more than 75 locations worldwide. Fiscal 2002 revenue totaled $907 million. For more information, visit www.gartner.com.