Palm Responds to Unwarranted Lawsuit Over Dubious Patents

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SUNNYVALE, Calif., Nov 06, 2006 (BUSINESS WIRE) -- Palm, Inc. (Nasdaq:PALM) today issued the following statement in response to a patent-infringement lawsuit filed against it by patent-holding company NTP Inc.

The NTP lawsuit claims that certain Palm products infringe seven NTP patents. All seven of the patents asserted are being re-examined by the U.S. Patent and Trademark Office (PTO) and have been rejected by the re-examiners as invalid. Palm also noted that the NTP patents disclose a pager-based email service that has nothing in common with the mobile-computing devices invented by Palm.

Palm has been in occasional contact with NTP concerning a license to these patents. When Palm last communicated with NTP many months ago, however, each of the patents already was the subject of re-examination proceedings by the PTO. Palm is disappointed that, after many months of silence and repeated rejections of NTP's claims by the PTO, NTP has chosen to sue on patents of doubtful validity.

Palm respects legitimate intellectual property rights, but will defend itself vigorously against the attempted misuse of the patent and judicial systems to extract monetary value for rights to patents that may ultimately have no value at all.

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.

SOURCE: Palm, Inc.

Palm, Inc.
Christine Nakamoto, 408-617-7626 (Investor Relations)
christine.nakamoto@palm.com
Marlene Somsak, 408-617-7451 (Media Relations)
marlene.somsak@palm.com

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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. All screen images are simulated.