Movistar and Palm Launch Treo 650 Smartphone on Movistar Network in Peru.

LIMA, Peru -- Movistar, the leading cellular telephone company in the Peruvian market, and Palm, Inc. (Nasdaq:PALM), a leader in mobile computing, today announced the launch of the Palm(R) Treo(TM) 650 smartphone on the Movistar network in Peru.

The Treo 650 smartphone combines a compact full-featured mobile phone with email, a Palm OS(R) organizer, messaging, Internet access and a digital camera, enabling users to organize and simplify their personal and professional lives in just one device.(1)

The Treo 650 smartphone provides support for Palm's VersaMail(R) email software, which enables users to access and manage email while out of the office.(2) Through the Treo 650's support for POP and IMAP email, customers can download their email either wirelessly or by synchronizing to their desktops(3); and those whose companies use Microsoft Exchange Server 2003 can have direct corporate email access and calendar synchronization through the Treo 650's Microsoft Exchange Server ActiveSync(R) integrated support.(4) With VersaMail, users can view pictures and even attached Microsoft Word, Excel and PowerPoint documents.(5)

The Treo 650 is available with voice and data plans at Movistar's retail stores throughout the country.

Treo 650's advanced features and benefits include the following:

* Vibrant, easy-to-read 320x320 display;

* Non-volatile memory, which keeps information even when the device is not charged;

* Removable battery;

* Integrated Bluetooth(R) technology for communicating with compatible headsets, car kits, computers and printers equipped with Bluetooth technology;

* Improved camera for better low-light shots, with video-capture capabilities;

* Full QWERTY backlit keyboard and new design for easier typing;

* Support for direct corporate email access to Microsoft Exchange Server 2003 using Palm's VersaMail(R) email software;

* MP3 player(6); and

* Single inbox for text and picture messaging.

About Movistar Peru

It is the leading cellular telephone brand in Peru, where it has over 4 million customers (as of Q1 2006 closing).

TelefE[thorn]nica ME[thorn]viles PerE[bar] was the first company to launch the Third Generation Technology in Peru, now used by some 1.6 million customers. In February 2006 it launched its first GSM services, after deploying the network in all 24 departments in the country, in a time record for the world mobile industry.

About Palm, Inc.

Palm, Inc., a leader in mobile computing, strives to put the power of computing in people's hands so they can access and share their most important information. The company's products for consumers, mobile professionals and businesses include Palm(R) Treo(TM) smartphones, Palm handheld computers, and Palm LifeDrive(TM) mobile managers, as well as software, services and accessories.

Palm products are sold through select Internet, retail, reseller and wireless operator channels throughout the world, and at Palm Retail Stores and Palm online stores (http://www.palm.com/store).

More information about Palm, Inc. is available at http://www.palm.com.

(1) Within wireless service coverage area only. Availability and coverage depends upon carrier and the geographic scope of international roaming agreements. Email, messaging and web access requires data services from a mobile service provider at an additional cost.

(2) Requires an email account.

(3) Windows only.

(4) Requires Microsoft Exchange Server 2003 and access enabled by IT administrator.

(5) Requires DataViz(R) Documents To Go(R) 7, included on the software installation CD.

(6) Requires an expansion card sold separately.

Palm, Treo, Palm OS, VersaMail and LifeDrive are among the trademarks or registered trademarks owned by or licensed to Palm, Inc. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.