palmOne Licenses Microsoft Exchange Server Synchronization Protocol for Integration With Next-Generation Treo Smartphones

MILPITAS, Calif. and REDMOND, Wash., Oct. 5, 2004 — palmOne, Inc. (Nasdaq: PLMO) today announced that it has licensed Microsoft Corp.’s Exchange Server ActiveSync® protocol to enable the delivery of security-enhanced, wireless and direct synchronization between Microsoft® Exchange Server 2003, part of Windows Server System, and future Palm OS® based Treo (TM) smartphones. palmOne intends to use the technology to extend the company’s device support for Microsoft Exchange Server by adding capability for wireless server-based synchronization.

The relationship between palmOne and Microsoft underscores the market demand to make deploying mobile e-mail access easier for companies of all sizes. Many mobile e-mail solutions require a third-party server to be installed to act as a conduit between an e-mail server and a mobile device. By integrating the Exchange Server ActiveSync protocol into its devices, palmOne eliminates the need for a third-party server and provides customers with a solution for security-enhanced, wireless e-mail that is cost-effective and can be deployed quickly and easily. End users will benefit by having out-of-the-box capability to link to Exchange Server 2003 data, including e-mail and calendar information, using palmOne’s easy-to-use VersaMail (TM) client.

“palmOne has built its brand on making complex technologies easy to use, and having wireless synchronization to Exchange 2003 available out of the box will enhance our Smartphone customers’ experience while slashing company IT costs,” said Ed Colligan, president, palmOne. “Key to offering the premier mobile e-mail access device is our open-platform approach, resulting in a full spectrum of choices for individuals to CIOs at the largest enterprises.”

“The combination of the Exchange Server ActiveSync protocol and mobile solutions from palmOne provides customers with a direct means of extending wireless access to corporate e-mail from their palmOne devices in the field,” said Dave Thompson, corporate vice president of the Exchange Server Product Group at Microsoft. “We believe that the combination of Treo smartphones and Exchange Server 2003 can significantly enhance end-user productivity by providing a direct, easily implemented wireless e-mail while simultaneously lowering IT costs by eliminating the need for middleware.”

E-mail is the obvious application required by mobile workers who want to remain connected while away from the office. Between 2002 and 2006 the number of mobile workers in the United States will grow from 10 million to a total of 104.5 million individuals, and the No. 1 application organizations plan to spend money on in 2004 is e-mail. According to IDC, 84 percent of businesses will look to deploy e-mail first and then follow with personal information management, calendar applications and customer relationship management or sales force automation applications at the same time or soon after. Converged devices, like the Treo line of smartphones, are poised to capitalize on this growth in mobility with an expected compound annual growth rate (CAGR) of 47 percent worldwide by 2006.

About palmOne, Inc.

palmOne, Inc. –the leader in handheld computing and communications solutions — 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 include Zire(TM) and Tungsten(TM) handhelds and Treo(TM) smartphones, software and accessories.

palmOne products are sold at The palmOne Store ( http://store.palmOne.com/ ) and palmOne Retail Stores, and through select Internet, retail, reseller and wireless operator partners throughout the world.

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

About Windows Server System

Microsoft Windows Server System (TM) is a comprehensive family of server software providing the infrastructure for IT operations, application development, integration and information work. Built on the Windows Server (TM) operating system, and designed with Common Engineering Criteria, Windows Server System is focused on making it easier for IT professionals to connect and manage their IT environment. Because Windows Server System products are integrated for enhanced manageability and security, they help organizations reduce complexity and lower costs. All Windows Server System products support open industry standards including those based on XML to promote interoperability with other platforms. More information on Windows Server System can be found online at http://www.microsoft.com/windowsserversystem .

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

palmOne, Zire, Tungsten, Treo, VersaMail and Palm OS are among the trademarks or registered trademarks owned by or licensed to palmOne, Inc., or its subsidiaries.

Microsoft, ActiveSync, Windows Server System and Windows Server are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.

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