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Palm Centro Cell Phone – 1 Million Sold

Centro Now Attracting New Smartphone Customers in 10 Countries Worldwide

Palm, Inc. (Nasdaq:PALM) today announced that it has sold its one-millionth Palm Centro™ smartphone, demonstrating the $99 product’s mass appeal to customers ready to get all the power of a smartphone at the price of a traditional mobile phone.(1) Palm is now shipping Centro in 10 countries worldwide, including Hong Kong, Singapore, India, the UK, Germany, Spain, Ireland, France and Italy, and its already-rapid momentum is set to grow as Palm debuts the product in additional countries around the globe.

“The Palm Centro is flying off the shelves because users who want to step up to a smartphone see it as the perfect first choice,” said Brodie Keast, senior vice president of marketing for Palm, Inc. “It has everything a person needs to stay organized and connected with everyone who is important to them. We’re very excited about the Centro’s near-instant popularity in the U.S. and think it’s going to be a huge hit as it continues to make its way across the globe.”

First introduced in the United States last September exclusively with Sprint, and more recently introduced on AT&T in February, the fully featured Centro smartphone is available from both carriers for $99.99.(1) Centro has reached more young adults and women, as well as a broader range of household income, than any prior Palm smartphone. It offers customers an affordable, simple and fun option for staying connected and doing more with their mobile phones.(2)

“Smartphones are certainly not new to business professionals; however, now more than ever we are seeing consumers migrate toward these types of devices as form factors have become more appealing and price points are now competing with traditional mobile phones,” said Ryan Reith, senior research analyst with IDC. “Palm’s Centro plays right into the hands of the consumer looking for a more robust experience on their mobile phone. We definitely expect to see this trend continue worldwide.”

Increasingly, consumers are making the shift from traditional mobile phones to smartphones, motivated by the desire to do more with their phones and the arrival of lower-cost devices. Smartphones accounted for 11 percent of all mobile phone sales in 2007 in the United States, and this is expected to increase to 35 percent by 2011.(3) A recent Palm survey of Centro customers highlighted this trend, indicating that 70 percent are first-time smartphone users. When compared to other Palm smartphones, Centro also is reaching almost double the number of women, more than double the number of customers under age 35, and nearly three times as many customers with a household income of less than $75,000.

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Centro’s full QWERTY keyboard and color touch screen make it easy to quickly type text messages, respond to emails, start instant message conversations, browse the web and more. It offers all of the great organizer functionality for which Palm is renowned, such as a detailed and integrated contacts list and a simple and handy calendar for juggling business meetings and get-togethers with friends.

About Palm, Inc.
Palm, Inc. is a global leader and innovator of easy-to-use mobile products that simplify people’s lives and help them stay connected on the go. The company offers a range of products — including Palm Treo™ and Centro™ smartphones, Palm handhelds, services and accessories — to meet the needs of consumers, mobile professionals and businesses.

Palm products are sold through select Internet, retail, reseller and wireless operator channels throughout the world, and at Palm online stores (http://www.palm.com/store).

(1) The Palm Centro from Sprint and AT&T is available for $99.99 after a two-year service agreement and available discounts and promotions.

(2) Within wireless service coverage area only. Availability and coverage depends upon carrier and the geographic scope of international roaming agreements. Email, messaging and web access requires data services from a mobile service provider at an additional cost.

(3) Palm’s Company Estimates based on IDC data.

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Palm, Treo and Centro are among the trademarks or registered trademarks owned by or licensed to Palm, Inc. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.

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