Has anything changed in Palm's strategy for the enterprise?
Palm's commitment to the enterprise remains rock solid. We will continue to focus on the large and strategically important enterprise market and the needs of corporate users by developing real solutions that solve business needs.

Palm in the enterprise
The current challenging economic climate led to Palm's and Extended Systems' mutual and amicable decision to terminate the proposed merger agreement. The outcome of this decision will result in leveraged relationships with systems integrators, application solution providers, and others, including Extended Systems, building enterprise solutions around our Palm devices.

Our strength and commitment
Palm has the #1 share in the handheld computing market, and we aim to retain that prominence in the future by investing in R&D for our leading Palm OS and for Palm-branded devices that serve CIOs, IT managers, and central decision-makers in large businesses. This has never been in doubt--nor can it be compromised.

Palm will focus on the following:

• Partner to deliver solutions that meet business needs and solve enterprise and institutional customers' problems through the use of affordable handheld computing technology. This includes wireless and wireline access to the Internet, email, and compatibility to most productivity applications such as Word and Excel;

• Fit smoothly into companies' infrastructure, delivering secure access to corporate data, via Extended Systems, Aether, IBM, and other enterprise partners.

• Leverage the 155,000 Palm OS developers and members of the Palm Economy to drive more enterprise-class solutions to this growing market.

• Partner with application solutions providers, system integrators, and commercial resellers to develop and deliver these solutions to corporations.

For the back issues of PalmPower's Enterprise Edition, visit http://www.palmpowerenterprise.com/backissues/backissues.html.

For the article, "Now That Pocket PC Has Passed a Million Sales, Is It Gaining on Palm?" by Tish Williams in TheStreet.com, visit http://www.thestreet.com/_yahoo/tech/hardware/1438347.html.

For more information about Palm computers, visit http://www.palm.com.

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