Palm Announces Stock Buyback Program

Business Wire, Sept 21, 2006

SUNNYVALE, Calif. -- Palm, Inc. (Nasdaq:PALM) today announced that its board of directors has approved a stock buyback program of up to $250 million of its common stock.

The share repurchase will be funded using the company's existing cash balance and future cash flows. The share repurchases will occur through open market purchases, privately negotiated transactions and/or transactions structured through investment banking institutions as permitted by securities laws and other legal requirements. The program allows the company to repurchase its shares at its discretion. Market conditions will influence the timing of the buyback and the number of shares repurchased.

At the end of the first quarter of fiscal year 2007, Palm had cash, cash equivalents and short-term investments of $527.9 million and 103.6 million common shares outstanding.

About Palm, Inc.

Palm, Inc., a leader in mobile computing, strives to put the power of computing in people's hands so they can access and share their most important information. The company's products for consumers, mobile professionals and businesses include Palm(R) Treo(TM) smartphones, Palm handheld computers, and Palm LifeDrive(TM) mobile managers, as well as software, services and accessories.

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

More information about Palm, Inc. is available at http://www.palm.com.

Palm, Treo and LifeDrive 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.