Palm Opens Flagship Retail Store in Manhattan's Rockefeller Center.

Company Celebrates with Limited-Time Offer of Free Palm Z22 Handheld with Purchase of Treo Smartphone 

SUNNYVALE, Calif. -- Expanding its retail presence in New York, Palm, Inc. (Nasdaq:PALM) today announced a new Palm[R] Retail Store, its largest store to date. Complete with Palm's entire product portfolio of smartphones, handhelds, mobile managers and accessories, the store features live demonstrations and activations on three major U.S. carriers. The new flagship store, located in historic Rockefeller Center and facing Radio City Music Hall, is offering customers who purchase any Treo[TM] smartphone between Dec. 11 and Dec. 17 a free Palm Z22 handheld - the perfect stocking stuffer!

Palm Retail Stores provide the company a way to introduce Palm smartphones and handhelds beyond Palm's core customers of mostly business professionals to a broader group of consumers. By offering an array of products from smartphones to handhelds with accessories that include Bluetooth[R] headsets and high-end cases, the award-winning Palm Retail Stores have succeeded at expanding Palm's visibility with young adults and busy moms to active seniors. And with the introduction earlier this month of fun colors for the new Treo 680 smartphone, Palm has a great draw for this expanded audience.

"New and loyal customers can experience simple, mobile computing up close, in-depth and across our full product line at Palm Retail Stores," said Tim Roper, vice president, U.S. region, for Palm, Inc. "Specifically by opening a retail store in Rockefeller Center, we have the opportunity to capture the attention of pedestrians who frequent this famous location - especially during the holiday season - so they can see for themselves how powerful yet easy to use our products are. We even have a Palm Treo street team directing customers to the new store."

Clean lines, sleek accents and bold graphics depicting the Treo lifestyle greet visitors to the Rockefeller Center Retail Store location. Expert associates help guide visitors to the Palm mobile solution that best meets their unique needs.

With Palm solutions, users can play MP3s, watch full-length movies(1), take and send pictures - or even view television on a Treo smartphone(2). Business needs also are addressed by the Treo smartphone, which includes a mobile phone, email, an organizer, messaging and web access(3). With more than 30,000 commercially available software titles for Palm OS[R] based products and more than 18,000 software titles for Windows Mobile based products, the in-store associates can customize a solution for everyone.

The new Rockefeller Center retail store, located in the heart of Midtown Manhattan, can be accessed from inside 30 Rockefeller Center's granite-lined concourses or from the street entrance located at 74 W. 50th St., New York.

In addition to the new Rockefeller Center retail store, Palm Retail Stores are located in two other New York locations - John F. Kennedy International Airport and La Guardia International Airport. In total, there are 30 Palm Retail Stores conveniently located in malls and airports nationwide, all of which carry the line of Palm products and accessories.

More information about other Palm Retail Stores and locations can be found at (www.palm.com/retail).

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) Requires an expansion card (available up to 2GB), sold separately.

(2) Requires a subscription.

(3) 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.

Palm, Palm OS, Treo 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.