Handspring and APE Telecom to Bring Treo to Sweden; Strategic Agreement Brings First Palm OS Phone With Full Wireless Capabilities to Swedish Customers.

Business Editors/High-Tech Writers

GENEVA, Switzerland--(BUSINESS WIRE)--Jan. 15, 2002

Handspring (Nasdq:HAND) today announced a strategic distribution agreement with APE Telecom, one of Sweden's leading distributors of mobile communication products, covering a joint launch and marketing programme to bring the Handspring Treo(TM) family of compact communicators to Swedish customers, starting immediately. Both companies will join forces and will develop joint marketing programs and use APE's distribution network, including TELIA stores throughout Sweden, to bring Treo to the market.

The Handspring Treo is the first Palm OS wireless communicator product that will be launched in Sweden (after the VisorPhone wireless module for the Visor range of Handspring handhelds) providing customers with breakthrough technology of integrated phone and wireless data functionality. Dialing and caller recognition from contact databases with thousands of entries are as natural and easy to use as one button web access and customizable auto-text templates for SMS and email messaging. Awarded Palm OS features as Hotsync to desktop (eg. Outlook, Lotus) and compatibility to thousands of Palm OS applications add to the integrated keyboard and large display, making wireless data a new experience.

The Handspring Treo family of compact communicators is expected to be available to Swedish customers around February at an estimated price of SEK 5990 (inc. VAT) with a Telia-contract and at SEK 8990 (inc. VAT) without contract.

Treo is ideally suited for those who currently carry both a mobile phone and a handheld computer but wish to have all their information in one device. It combines a GSM mobile phone, a Palm OS organiser, and wireless email, SMS text messaging and internet access features in a small, lightweight device. Treo will be available in two versions: the Treo 180, including a built-in keyboard for text input, and the Treo 180g for those who prefer Palm OS `Graffiti' text input. The APE partnership covers the Handspring Treo 180, 180g and also the Handspring Treo 270 colour model, which is expected to hit the stores in the Summer 2002. Treo will be GPRS upgradeable upon availability of GPRS software.

"The Handspring Treo represents the latest cutting edge development in our history of providing innovative, pioneering handheld products. In Treo we have a communicator that exquisitely provides an intuitive transition for wireless customers from voice-only through to voice and data services. Innovative and compelling products like Treo will assist Network Operators in providing a better wireless experience to their customers, and thereby increase the uptake of wireless data services. APE is a natural partner for us because they share our vision of integrated, next generation wireless devices and services that offer real benefits to the consumer," said Roger Kermisch, Handspring's VP and General Manager, Europe.

"We are very pleased to be Handspring's main partner in bringing Treo to Swedish customers. Treo offers end users a very innovative and easy to use communicator product, which effectively integrates wireless phone and PDA functionalities. We believe that Treo has a great potential on the Swedish market and we have already seen a great demand for the product from our resellers," said Berth Hertzberg, Vice President Marketing & Sales, APE Telecom.

About Handspring

Handspring is a leading innovator in personal communication and handheld computing. The company develops, manufactures and markets the Treo family of communicators, the Visor family of expandable handheld computers, and client and server software for fast web access from handheld devices and mobile phones. Founded in 1998, the company established itself as an industry leader with its Springboard platform, which provides a simple and easy method for hardware and software expansion. Today Handspring sells its Visor line of handheld computers and Springboard expansion modules and accessories at www.handpsring.com and through select Internet and retail partners in the United States, Asia, Canada, the Middle East and Europe.

Cautionary Note Regarding Forward-looking Statements 

This press release contains forward-looking statements that involve risks and uncertainties, including those relating to: the ability of Handspring and Ape Telecom to effectively launch and market Treo through APE's distribution network; Handspring's ability to sustain its track record of continuous product innovation; the features and capabilities of Handspring's Treo communicator product and its ability to allow Network Operators to provide a better wireless experience to their customers, and thereby increase the uptake of wireless data services; and the availability and potential of Treo. Actual results may differ materially due to a number of factors including, among others: future economic conditions; consumer acceptance of Handspring's Treo communicator products; the availability of Treo communicator products internationally; the timing of the build-out of advanced wireless networks and the quality and scope of voice and data service coverage offered by wireless carriers; the degree to which wireless carriers will facilitate the successful introduction of Handspring's wireless products; and the rapid pace of technological change and competitive developments in the handheld computer and wireless communications industries. Reported results should not be considered as an indication of future performance. The matters discussed in this press release also involve risks and uncertainties, as described in the prospectuses filed by Handspring on December 19, 2001 with the Securities and Exchange Commission. Handspring assumes no obligation to update the forward-looking information contained in this press release, except as otherwise required by applicable law.

Note to Editors: Handspring, the Handspring logo, Treo, Blazer, Visor, VisorPhone and Springboard are trademarks of Handspring, Inc. and may be registered in certain jurisdictions. All other brand names are trademarks of their respective owners.