(July 23, 2002) - Palm, Inc. and IBM announced plans today to develop a joint capability that will let customers securely access enterprise applications and data using select models of wireless-enabled Palm^TM branded handheld computers, including the Palm m515 color handheld®. This deal is intended to increase the use of IBM's software development tools in the handheld business, and to strengthen the position of Palm handhelds in the corporate market.

Through IBM's WebSphere® Everyplace Access (WEA), customers would be able to build upon their technology investments and existing development skills to extend applications beyond the firewall on wired networks using wireless technology and Palm handhelds. In addition, IBM and Palm plan to deliver the first enterprise-class instant messaging and awareness solution for Palm handhelds using Lotus® Sametime® technology. Users of select wireless-enabled Palm handhelds would be able to exchange instant messages among themselves and with desktop Sametime users. Under this agreement, Palm will work with IBM to implement, tune and deliver a WEA-compatible mobile client suite for Palm handhelds. The companies plan to jointly market and promote the capability.

Comprising both IBM and Palm software applications and infrastructure, this capability would let customers deploy the applications they need, yet access the complete suite of functionality of WEA. The first release is scheduled to be available later this year, and new products are expected from both companies as the capabilities evolve.

Also announced today is an agreement under which IBM becomes a U.S. reseller of Palm^TM handheld computers. The reseller agreement broadens the handheld product choices for IBM's large customers, and brings Palm handhelds to the attention of small- and medium-size businesses that purchase from IBM.

Palm and IBM are also working together on open standard technologies, including SyncML. Additional enterprise data will be able to be accessed using Lotus Domino^TM.

Palm's technology includes its Web browser, Personal Information Management (PIM) and e-mail, as well as Wireless Messaging Solution. In addition, Palm is developing a new backbone architecture called Reliable Transport (RT), which is a core infrastructure that will underlie all of Palm's wireless enterprise software initiatives. It will be an enterprise component to the Palm platform that optimizes the end user's experience when accessing IBM technology on a Palm handheld. For more information, see www.palm.com.