Press Release

PalmSource Joins The Khronos Group

PalmSource to Advance 3D Graphics Capabilities on Palm Powered Devices

SAN JOSE, Calif., Game Developers Conference, March 22, 2004 — PalmSource, Inc. (NASDAQ: PSRC) provider of Palm OS®, a leading operating system powering next generation mobile devices and smartphones, today announced it has joined the Khronos Group as a Contributing Member to encourage the development and adoption of OpenGL® ES as an important open 2D/3D graphics API standard for mobile multimedia applications. PalmSource plans to make the OpenGL ES Application Program Interfaces (APIs) available in a future version of Palm OS Cobalt to enable the creation of advanced 3D graphics and multimedia applications for Palm Powered™ smart mobile devices.

Furthering the momentum of Palm OS in the wireless entertainment market, PalmSource will offer its own software implementation of the OpenGL ES APIs and enable the use of OpenGL ES-compliant hardware, allowing high performance graphics applications to run on a wide variety of Palm Powered devices. This software implementation is designed to provide Palm OS developers with a more cost-efficient development path towards the creation and deployment of sophisticated multimedia applications, while offering an improved multimedia user experience for Open GL ES compliant Palm Powered handhelds and smartphones.

Additionally, PalmSource will introduce a standardized graphics driver model for Palm OS Cobalt optimized for use with OpenGL ES-compliant chipsets. This driver will accelerate both the application level OpenGL ES APIs and most 2D graphics operations, as performed by Palm OS Cobalt's sophisticated system rendering technology. This will enable chipset vendors to concentrate on a single, standardized set of acceleration specifications, and allows Palm OS Cobalt to easily take full advantage of the growing number of graphics chipsets that support the OpenGL ES API.

"PalmSource is poised to be a significant contributor to the Khronos Group's continuing efforts to establish open standards for advanced graphics and multimedia applications across leading mobile platforms like Palm OS," said David Nagel, president and CEO of PalmSource, Inc. "We believe our support for the OpenGL ES graphics standard will accelerate market delivery of differentiated Palm Powered mobile entertainment products that extend the ease-of-use and flexibility of the Palm OS platform."

"Khronos enthusiastically welcomes PalmSource to the Khronos Group and looks forward to its participation to ensure OpenGL ES meets the advanced graphics needs of the Palm Powered community," said Neil Trevett, president of the Khronos Group and senior vice president of market development at 3Dlabs. "The addition of Palm OS to the list of OpenGL ES-enabled platforms is a vital and significant step in standardizing a single, cross-vendor, state-of-the-art graphics API across all key operating systems to build a strong market for mobile 3D graphics."

"We are excited to see PalmSource join the Khronos Group," said Byron Connell, founder and senior vice president of marketing, Tapwave®, Inc. "Incorporating support for the Open GL ES APIs into Palm OS will provide a standard graphics foundation to allow game developers to produce more high quality, graphically rich entertainment content for Palm OS."

"We've been dreaming about something like this for a long time," said Scott Corley, CEO Red Mercury. "We believe platform support for OpenGL ES will position PalmSource as a strong contender in the mobile gaming community and Palm OS as the killer mobile game and graphics development platform. Today's announcement is certain to get the attention of software developers who just want a platform to do cool things on."

With projected growth to $1.9 billion in 2006 from $520 million in 2003¹, the wireless gaming market presents a tremendous revenue generating opportunity for Palm Powered licensees and Palm OS software developers to create innovative products and solutions that address the growing demands of the mobile gaming community. Palm OS licensee Tapwave pioneered a new category of Palm Powered mobile devices with the introduction of the Zodiac®, a mobile entertainment console specifically designed to deliver an unparalleled wireless gaming experience combined with traditional Palm OS functionality and software application compatibility.

As a member of the Khronos Group, PalmSource is now enabled to participate in the ongoing development of OpenGL ES, which defines subset profiles of OpenGL® and brings advanced 3D graphics to a wide range of embedded systems; and OpenML® 1.0 which enables developers to easily integrate video, audio and graphics capabilities into their application suites. All Khronos Members are empowered to contribute to the development of Khronos specifications, vote at various stages before public availability, and are therefore able to accelerate the delivery of their cutting-edge 3D platforms and applications through early access to specification and conformance testing drafts.

About the Khronos Group
The Khronos Group is a member-funded industry consortium founded in January 2000 by leading graphics and digital media companies. Khronos membership is available to any interested company and both Promoting and Contributing members are able to contribute to the development of Khronos API specifications, are empowered to vote at various stages before public deployment, and are able to accelerate the delivery of their cutting-edge 3D platforms and applications through early access to specification drafts. Go to http://www.khronos.org for more information.

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, Foundertech, 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 OpenGL ES; our plans for implementation of OpenGL ES APIs; and the wireless entertainment industry. 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, acceptance of OpenGL ES as an important open 2D/3D graphics API standard for mobile multimedia application that will accelerate market delivery of differentiated Palm Powered mobile entertainment products; our ability to successfully develop software implementing OpenGL ES APIs that meet the needs of by the wireless entertainment market, that is accepted by Palm OS developers and that produces the anticipated features, functions and benefits; the ability Palm OS developers to deploy sophisticated multimedia applications that meet the demands of Palm Powered users; the availability of an increased number of graphics chip sets that support the Open GL EX API; our ability to sustain and gain momentum in the wireless entertainment market and to benefit from any growth in the smart mobile device markets; our ability to maintain and grow our 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.

¹IDC, U.S. Wireless Gaming Forecast Update, 2003-2008: Mobile Users Just Wanna Have Fun.