Handspring and mm02 to Bring Treo Communicators to Europe; Alliance Brings First Palm OS Phone With Full Wireless Voice and Data Capabilities to European Customers.

Business Editors/High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 15, 2002

Handspring (Nasdaq:HAND) and mm02 (NYSE:OOM), a leading provider of mobile communications services in Europe, today announced that mm02 will distribute and market Handspring's Treo family of compact communicators. The companies will work together during the first quarter of this year to launch Treo via mmO2 networks in the UK (Cellnet), the Netherlands (Telfort), Germany (Viag) and Ireland (Digifone). mm02 is the first European carrier to announce provision of service plans for Treo products. mmO2 and Handspring will develop joint marketing programs and use mmO2's distribution network to bring Treo to market through other physical and online channels as greater supply becomes available in the coming months.

Treo is the first integrated Palm OS wireless communicator product that will be launched on mmO2 networks, providing customers with an ideal pocket-sized solution for combined voice and data services. With seamlessly integrated phone, organizer, web and messaging applications in a small, lightweight and elegant device, Treo will take advantage of mm02's broad GSM networks to provide the best-combined voice and data experience available.

"mmO2 is a natural partner for us because it shares our vision of integrated, next generation wireless devices and services that offer real benefits to the consumer," said Donna Dubinsky, CEO of Handspring. "As we continue to focus more on delivering innovative communicator products like Treo, partnerships with operators like mm02 will become critical to our success. Launching Treo together is a great starting point, and we look forward to a long and rewarding alliance."

Making the announcement, Kent Thexton, chief data and marketing officer at mmO2, said, "We are committed to working with a range of device manufacturers and service developers to bring the benefits of mobile data to all of our customers across our European footprint. Representing one of the first pan-European agreements to be signed by mmO2, this important alliance reinforces our aim to be a leader in the provision of mobile data services. The availability of Handspring's communicators will compliment our growing mobile data product portfolio which already includes the RIM BlackBerry and, from the Spring of this year, the O2 XDA. Data now represents over 10 per cent of our service revenues and, with the recent launch of new devices and services as well as future developments, we expect that to increase to 25 percent within three years."

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, wireless email, SMS text messaging and internet access in a small, lightweight device. Treo will initially 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 mmO2 partnership covers the Handspring Treo 180, 180g and also the Handspring Treo 270 colour model, which is expected to enter retail distribution this summer. Treo will be GPRS upgradeable upon availability of GPRS software that Handspring plans to deliver this summer.

With Treo, dialing and caller recognition from contact databases with thousands of entries are easier than ever before. The built-in keyboard of the Treo 180 and customizable auto-text templates for SMS- and email make messaging fast and simple. Treo users also have access to the broader Internet through Handspring's award-winning Blazer web browser, optimized for use on communicators and handheld computers. Blazer provides fast access to almost any site on the Internet, not just those web sites designed exclusively for mobile access. Treo also includes standard Palm OS features like desktop synchronization with email clients such as Microsoft Outlook and Lotus Notes, and compatibility with thousands of Palm OS applications.

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.

About mmO2

mmO2 has 100% ownership of mobile network operators in four countries: the UK (BT Cellnet), Germany (Viag Interkom), the Netherlands (Telfort Mobiel), and Ireland (Digifone). Additionally it has operations on the Isle of Man (Manx Telecom) and a leading European mobile Internet portal business, Genie. mmO2 was the first company in the world to launch and rollout a commercial GPRS (or 2.5G) network and has secured third generation mobile telephony ("3G") licenses in the UK, the Netherlands, and Germany. mmO2 expects to apply for a 3G license in Ireland when the application process commences. mmO2 has approximately 17 million customers and over 15,000 employees, with revenues for the year ended 31 March 2001 of (pound)3.2 billion.

CAUTIONARY STATEMENT

This press release contains forward-looking statements that involve risks and uncertainties, including those relating to: the ability of Handspring and mmO2 to effectively launch and market Treo; the degree to which next generation wireless devices and services offer real benefits to the consumer; and Handspring's ability to develop and maintain partnerships with wireless operators such as mmO2. Actual results may differ materially due to a number of factors including, among others: future economic conditions; consumer acceptance of and demand for Handspring's Treo communicator products; the availability of Treo communicator products in the US and 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. The matters discussed in this press release also involve risks and uncertainties described in Handspring's most recent Form 10-Q and Handspring's Registration Statement on Form S-3 of November 19, 2001, as amended and supplemented, filed with the Securities and Exchange Commission. Handspring assumes no obligation to update the forward-looking information contained in this press release.

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.