Press Release

Smart Global Joins Palm Powered Mobile World

Smart Global and PalmSource to collaborate in offering wireless Palm OS software solutions and services for Palm Powered devices and smartphones

San Jose, California, PalmSource Mobile Summit and Developer Conference, May 24, 2005 — PalmSource, Inc. (NASDAQ: PSRC), provider of Palm OS®, a leading operating system powering next generation mobile devices and smartphones, announced today that Smart Global, the world's first mobile application service provider for the small and medium enterprise market (SME) based in the UK, has joined the Palm Powered Mobile World (PPMW) program. Building upon Smart Global's partnership with O2, the leading UK network operator, the Smart Global and PalmSource collaboration is expected to expand Smart Global's mobile product portfolio to include comprehensive support for Palm Powered™ devices.

Smart Global will integrate additional Palm OS applications tailored specifically for the European markets. These applications will be jointly defined by leveraging from among the 400,000–plus registered Palm OS application developers that address the needs of the SME. Both companies intend to jointly identify the Palm Powered devices to best support the newly tailored Smart Global applications.

"Smart Global joining the PPMW represents our intentions to further expand our unique market proposition and create a new breed of mobile applications and services fully integrated into mobile devices," said Guy Rosenhoiz, executive vice president and founder of Smart Global. "The PalmSource operating system and range of business focused devices offers one of the most compelling solutions for such a proposition. With PalmSource's proven committment to excellence we believe that, through this partnership, Smart Global will be able to offer an unparalleled user experience and value to its customers."

Smart Global's services are tailored to address the most important needs of small office, home office (SOHO) and SME enterprises in mobilizing their business. Services are specifically designed to improve productivity, enhance control, cut costs and enhance organizations' communications. Smart Global's services are fully hosted, managed and subscription based, thus eliminating the need for any up front investment or IT integration with the business back–end servers.

Smart Global services are broadly appealing and include email and calendar push, contacts and tasks synchronisation; instant messaging; real–time business and market information; mapping and navigation solutions, as well as more complex workforce, sales and time management services. Services support a wide range of mobile devices and PDAs and are automatically downloaded to users' mobile devices over–the–air.

"Having Smart Global as a charter member in Palm PoweredÔ Mobile World underscores PalmSource's commitment to drive the adoption of wireless Palm OS® applications in the European market," said David Nagel, chief executive officer and president of PalmSource. "Together with our industry leading partners such as Smart Global, we are furthering the position of Palm OS as one of the most service–ready platform for smartphones and mobile devices."

About Palm Powered Mobile World
Launched in the Fall of 2003, Palm Powered Mobile World is designed to connect global mobile operators, infrastructure and middleware 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. More information on the Palm Powered Mobile World program can be found at www.palmsource.com/operators.

About Smart Global
Smart Global, a UK based company in partnership with network operator O2, is the world's first provider of mobile data services targeted at small and medium sized businesses. All services have been specifically designed to address the unique needs of the SME and as such are fully hosted, require no installation or IT integration with back–office systems and are extremely simple to provision with the software sent directly to the subscriber's mobile device. Smart services are supported by a wide range of mobile phones, PDAs and BlackBerry devices, with payment via a monthly subscription fee, meaning no up–front investment is required. Businesses have the added reassurance of Smart Global's dedicated customer care team and online support, freeing them from the daily hassle of technology management. Please visit www.smartglobal.com for more information.

About PalmSource
PalmSource, Inc., the company behind Palm OS®, a leading operating system powering smart mobile devices, is a leading developer of software for mobile phones and other mobile devices. Its products include a wide range of software for mobile phones at all price points. More than 39 million mobile phones, handhelds, and other mobile devices run PalmSource software. More than 45 companies worldwide have licenses to PalmSource software, including Fossil, Garmin, GSPDA, Kyocera, Lenovo, palmOne, Samsung, Sony, and Symbol Technologies. Palm OS has given rise to a large community of users, enterprises, developers and manufacturers, who together make up the Palm Powered™ Economy. More information about PalmSource is available at www.palmsource.com, www.palmsource.co.uk, www.palmsource.fr, www.palmsource.de, www.palmsource.com/es and www.palmsource.com.cn.

CAUTIONARY NOTE REGARDING 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 regarding our collaboration with Smart Global and the Palm Powered Mobile World program. 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 collaborate successfully with Smart Global and other Palm Powered Mobile World partners; the ability of Smart Global to successfully optimize its offering for Palm OS and build product portfolio that includes comprehensive support for Palm Powered devices; our ability to successfully leverage mobile operator networks using Smart Global's services; our ability to enter into new relationships with leading mobile operators, infrastructure partners and software developers to create innovation and differentiation in the global phone an mobile device markets; realization of the anticipated benefits of the Palm Powered Mobile World program; 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 Annual Report on Form 10–K for the period ended May 28, 2004 and our Quarterly Report on Form 10–Q for the periods ended August 27, 2004, November 26, 2004 and February 25, 2005. 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.

Copyright © 2005, PalmSource, Inc. PalmSource, Palm OS, Palm Powered, and certain other trademarks and logos appearing on this press release are trademarks or registered trademarks of PalmSource, Inc. or its affiliate in the United States, France, Germany, Japan, the United Kingdom, and other countries. These marks may not be used in connection with any product or service that does not belong to PalmSource, Inc. (except as expressly permitted by a license with PalmSource, Inc.), in any manner that is likely to cause confusion among customers, or in any manner that disparages or discredits PalmSource, Inc., its licensor, its subsidiaries or affiliatesAll rights reserved.