Press Release

PalmSource and Orange Collaborate to Accelerate Availability of Palm OS Solutions

Leading Mobile Operator Joins Palm Powered Mobile World

3GSM WORLD CONGRESS, CANNES, France, Feb. 23, 2004 — PalmSource, Inc. (NASDAQ: PSRC) provider of Palm OS®, a leading operating system powering next generation mobile devices and smartphones, and Orange, one of the world's largest mobile communications companies, today announced that Orange has joined the Palm Powered™ Mobile World program to broaden the selection of Palm OS applications and extend the reach of Palm Powered smartphones.

The strong global presence of the Orange Group in the mobile market together with the leadership of the Palm OS platform will 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. Today's announcement demonstrates PalmSource's growing commitment to partner with leading operators to accelerate the deployment of Palm Powered smartphones into the growing mobile data services market.

As a charter mobile operator partner in the Palm Powered Mobile World program, Orange will collaborate with PalmSource in several areas including:

• Leveraging the extensive Palm OS developer community for the development and deployment of innovative Palm OS solutions optimized for the Orange network;
   
  
• Joint-marketing efforts to identify key Palm OS applications based on Orange's target markets and support the distribution of these solutions to Orange customers;
   
  
• Aligning the Palm OS platform with Orange's roadmap and service offerings to bring cutting-edge Palm Powered smartphones to market.
  

"We are pleased to welcome Orange as a charter member of the Palm Powered Mobile World program," said David Nagel, president and CEO of PalmSource. "We look forward to our collaboration with Orange, an industry innovator, to bring user-friendly smartphones and services to our joint customers."

"With the launch of the highly successful Orange Treo 600, we have strengthened our leadership in the innovation of smartphones," said Richard Hanscott, Vice President of Business Development and Partnerships for the Orange Group. "We look forward to leveraging PalmSource's strength in key market segments to enhance our smartphones with the widest offerings of Palm OS applications that meet the needs of our customers."

Palm OS provides a flexible and efficient platform that enables hardware manufacturers and software developers to rapidly and efficiently create a wide range of powerful, innovative and easy-to-use smart mobile devices and software applications. Approximately 30 million Palm Powered handhelds and smartphones have been sold to date and Palm OS has attracted a large and loyal following with approximately 275,000 developers building applications for Palm Powered smart mobile devices.

About Palm Powered Mobile World
Launched in the Fall of 2003, Palm Powered Mobile World is a marketing program that connects mobile operators, infrastructure providers and software developers to efficiently bring Palm OS software applications and solutions to market, providing increased revenue opportunities and a superior user experience for Palm Powered smart mobile devices. Orange joins existing mobile operator partner, Sprint, and Telefﾃｳnica Mﾃｳviles Espaﾃｱa, announced separately today, as well as infrastructure partners in the wireless Palm Powered ecosystem to capitalize on the growing smart mobile device market. More information regarding the Palm Powered Mobile World program can be found at www.palmsource.com/partners.

About Orange
The Orange group is one of the world's largest mobile communications companies, with operations in 19 countries across Europe and beyond. It provides a broad range of personal communications services, including Orange GSM1800 services and other digital cellular telephone services. The Orange brand operates in the UK, France, Switzerland, Romania, Denmark, Slovakia, Luxembourg, Thailand, the Ivory Coast, the Dominican Republic, Cameroon, the Netherlands, Botswana and Madagascar. The Orange group also has controlled operations in Belgium (Mobistar). The Orange group has a joint controlling interest in Egypt (MobiNil) and minority interests in Portugal (Optimus), Austria (One), and Mumbai/India (BPL Mobile). As at the end of December 2003, Orange was the largest mobile operator in both the UK with over 13.6 million active customers, and France with over 20 million registered customers. As at the end of December 2003, Orange controlled companies had over 49 million customers worldwide. Further information about Orange can be found on the Orange website at www.orange.com. Orange and wirefree are trademarks of Orange PCS.

About PalmSource
PalmSource, Inc. is the company behind Palm OS, a leading operating system powering mobile information devices. More than 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 Statement
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, Palm Powered Mobile World Program; the features, functions and benefit of Palm Powered smartphones; and the growing data services 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, our ability to successful execute our business objectives, including the objectives of the Palm Powered Mobile World program including to accelerate the availability and adoption, if at all, of Palm Powered smartphones into the mobile data services market; the ability of Orange to leverage the Palm OS developer community and to create innovative Palm OS solutions that meet end user demands; the ability of the Palm Powered smartphones and Palm OS software applications to provide the anticipated results and benefits; the realization of the size of the mobile data services market; our ability to maintain and grow the developer community; and the 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.