Press Release

PalmSource Launches Palm Powered Mobile World in Europe

Welcomes New Mobile Operators and Infrastructure Partners in Wireless Palm Powered Economy

SAN JOSE, Calif., PalmSource® Developer Conference, Feb. 10, 2004 — PalmSource, Inc. (NASDAQ: PSRC) provider of Palm OS®, a leading operating system powering next generation mobile devices and smartphones, today launched Palm Powered™ Mobile World in Europe and welcomed to the program new operator partners, Orange and Telefﾃｳnica Mﾃｳviles Espaﾃｱa (TME), and new infrastructure partners, Action Engine and Lucent Technologies Mobility Solutions Group.

Launched in the Fall of 2003, Palm Powered Mobile World is a marketing initiative that connects mobile operators, infrastructure providers and software developers in a wireless Palm Powered™ Economy designed to bring Palm OS software applications and solutions to market, provide increased revenue opportunities for partners and a superior experience for users of Palm Powered smartphones. Working in partnership with leading operators, infrastructure providers and software developers, Palm Powered Mobile World offers:

• Mobile operators the opportunity to collaborate with PalmSource on Palm OS platform development to make it a service-ready platform for Palm Powered smart mobile devices and wireless software applications;
   
  
• Mobile operators increased revenue opportunities through ready-access to key horizontal and vertical mobile content for Palm Powered devices;
   
  
• Infrastructure providers technical and marketing support and new distribution channels into the wireless market;
   
  
• Software developers an additional revenue stream and increased exposure for their wireless applications to mobile operators worldwide and
   
  
• End-users access to an extensive Mobile World catalog of innovative software applications for Palm Powered devices in a user-friendly fashion.
  

Announced separately today, Orange and Telefﾃｳnica Mﾃｳviles Espaﾃｱa (TME) joined the Palm Powered Mobile World program as charter mobile operator partners in Europe. PalmSource will work together with Orange to enable the development of innovative Palm OS solutions that take advantage of the advanced features of Palm Powered smartphones, such as the industry-leading palmOne™ Treo™ 600. PalmSource and TME will collaborate with leading Palm OS licensees to bring cutting-edge smart mobile devices to the Spanish mobile market and align the Palm OS platform with TME's requirements and service offerings. Orange and TME join existing mobile operator partner Sprint, as well as infrastructure partners in the wireless Palm Powered Economy designed to capitalize on the growing smart mobile device market.

"Palm Powered Mobile World executes on PalmSource's objective to make Palm OS the platform leader in the smartphone market," said David Nagel, president and chief executive officer of PalmSource, Inc. "Creating a program that builds and strengthens relationships with leading mobile operators, infrastructure partners, and software developers, benefits the entire Palm Powered economy to ultimately provide the best solutions for Palm Powered smartphone customers."

As part of Palm Powered Mobile World, PalmSource collaborates with infrastructure providers to enable an end-to-end solution for Palm Powered smartphones. PalmSource welcomed new infrastructure partners to Palm Powered Mobile World, including:

• Action Engine, the pioneer and leading provider of Advanced Data Service solutions that enable mobile operators to easily and economically develop and deploy a differentiated and custom-branded suite of data services and
   
  
• Lucent Technologies Mobility Solutions Group, supplying wireless service providers with end-to-end solutions to support mobile communications, including radio access networks, core voice and data networking equipment, applications and services platforms, and software.
  

"We look forward to collaborating with PalmSource in the Palm Powered Mobile World program to enhance the availability of new mobile broadband services and Palm Powered devices," said Jeff Cortley, director of offer management with Lucent's Mobility Solutions Group. "We believe mobile subscribers will benefit from the wider range of capabilities that fully leverage the power and flexibility of Palm OS."

Action Engine and Lucent Technologies Mobility Solutions Group join existing Palm Powered Mobile World infrastructure partners:

• Good Technology, providing standards-based enterprise systems for wireless messaging and information access;
   
  
• Mobilitec, providing the infrastructure for the delivery of mobile applications and services;
  
• PalmGear, powering the new PalmSource software store;
   
  
• Pinpoint, providing the infrastructure provisioning and delivery of wireless Palm OS applications;
   
  
• Pumatech, delivering carrier-grade, end-to-end Palm OS synchronization software and services;
   
  
• Research In Motion (RIM), providing the global BlackBerry® infrastructure and software for wireless data connectivity;
   
  
• Visto, providing mobile messaging middleware solutions and services for mobile operators, enterprises and mobile workers and
   
  
• WideRay, enabling the delivery of wireless Palm OS applications through beaming stations in operator retail stores.
  

As part of Palm Powered Mobile World, PalmSource will make available to mobile operators, a catalog of tested Palm OS applications suitable for over-the-air (OTA) delivery to Palm Powered smart mobile devices. In addition to the existing OTA catalog of 35 applications, new software applications now available for OTA delivery on Palm Powered smartphones include:

• Backgammon by Cascata, the classic board game;
   
  
• Bejeweled by Astraware, one of the most popular puzzle games;
   
  
• Merriam-Webster Crossword 2.0 by JSmart Technologies, Inc., a crossword puzzle game;
   
  
• MobileDB by Handmark, a productivity tool that allows a user to manage data lists;
   
  
• Pocket Bartender 1.1 by NeoHand, Inc., a cocktail recipe database;
   
  
• Pocket Tunes by NormSoft, an MP3 and streaming audio player;
   
  
• SplashMoney by SplashData, a personal finance application for money management;
   
  
• Warfare Incorporated by Handmark, a war strategy game;
   
  
• ZLauncher by ZZTECHS, a system management solution that integrates the system supervisor, application/database manager and expansion card manager.
  

More information regarding the Palm Powered Mobile World program can be found at www.palmsource.com/partners.

About PalmSource
PalmSource, Inc. is the company behind Palm OS, a leading operating system powering mobile information devices. Approximately 30 million Palm Powered handhelds and smartphones have been sold to date worldwide. Industry leaders Aceeca, AlphaSmart, Fossil, Founder Technology, Garmin, GSL, HuneTec, Kyocera, Lenovo, palmOne™, PerComm, Samsung, Sony, Symbol Technologies and Tapwave license Palm OS to create diverse mobile devices that meet unique customer needs. Palm OS has given rise to a large community of users, enterprises, developers and manufacturers, who together make up the Palm Economy. More information about PalmSource is available at http://www.palmsource.com, http://www.palmsource.co.uk, http://www.palmsource.fr, http://www.palmsource.de and http://www.palmsource.com.cn.

Palm, Palm OS and PalmSource are registered trademarks of, palmOne and Palm Powered are trademarks of Palm Trademark Holding Company, LLC. Other brands may be trademarks of their respective owners.

Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include, without limitation, statements related to the benefits of the Palm Powered Mobile World program; the software titles that will be available through the program; the collaboration between PalmSource, Orange and TME; and the growth of the smartphone market. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include, without limitation, the ability of the Palm Powered Mobile World program to achieve its objectives and provide the anticipated benefits described; our ability to successfully collaborate with our Palm Powered Mobile World partners, including Orange and TME; the ability of Orange to successfully develop innovative Palm OS solutions for Palm Powered smartphones; our ability to successfully penetrate new markets or the ability of the markets to grow as we anticipate; our ability to continue to support and grow our developer community; our ability to benefit from any growth in the mobile device and smart phone markets; our ability to compete with existing or new competitors; general economic conditions in the U.S. and abroad and other risks and uncertainties contained in our public announcements; reports to stockholders and other documents filed with and furnished to the Securities and Exchange Commission; including our Quarterly Report on Form 10-Q for the period ended August 29, 2003 and November 28, 2003. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.