Press Release

PalmSource Ushers Innovation in the China Mobile Market

Second Annual China Conference Introduces New Palm OS 5 Simplified Chinese Edition Handhelds and Software Applications

BEIJING, PalmSource China Conference, Dec. 8, 2003 - PalmSource, Inc. (NASDAQ: PSRC) provider of Palm OS®, a leading operating system powering next generation mobile devices and smartphones, today welcomed Palm OS developers at its second annual China Developer Conference. During his opening keynote talk, PalmSource President and CEO, David Nagel, celebrated the launch of the new P100 and P300 Palm Powered™ handhelds from Lenovo, announced that Founder Technology Group, Corp. (Foundertech) has licensed Palm OS to distribute Foundertech-branded Palm Powered devices in China and honored three Palm OS developers with the first Chinese Powered Up awards.

"PalmSource is executing on its business objective to become a platform leader in the growing Asian market," said David Nagel, president and CEO, PalmSource. "We look forward to continued innovation from our licensees, developers and strategic partners to make Palm Powered mobile devices pervasive across consumer, business and education markets in Asia."

As the largest handheld market in the Asia-Pacific region outside Japan1 and the largest single mobile phone market in the world2, China represents a market-capitalizing opportunity for licensees and developers to create innovative products and solutions. Since its official launch into China in December 2002, PalmSource has achieved several milestones that have advanced the Palm OS platform and the Palm Economy in the handheld and smartphone markets:

December 2002
  • Opening of PalmSource subsidiary in Hong Kong and a representative office in Beijing
  • New Palm OS licensees Legend Group Limited and Group Sense (International) Limited (GSL)
  • Collaboration with authorized Palm OS developer training center Tsinghua-Solutions in Beijing and Zhong Shan University, in Guangzhou
  • Partnership with Portable Innovation Technology ("PiTech") as the first Palm OS System Development Partner

April 2003

  • Legend launches the Pam 168 Palm Powered handheld

August 2003

  • GSL launches the first Palm Powered smartphone, the Xplore G18

September 2003

  • PalmSource ships Palm OS 5 Simplified Chinese Edition, the first fully localized operating system based on the leading ARM-compliant Palm OS 5 platform
  • Zhongshan University offers first Palm OS development courseware and in-depth training

December 2003

  • Lenovo launches the first Palm Powered handhelds running on Palm OS 5 Simplified Chinese Edition, the P100 and P300
  • PalmSource announces Founder Technology Group, Corp. (Foundertech) has licensed Palm OS to distribute Foundertech-branded Palm Powered devices in China
  • PalmSource launches new online Chinese Palm OS developer forum
  • PalmSource announces the first Chinese Powered Up award winners and honors Palm OS developers ESRI China (HK) Global Business/AirZip, Kinoma and Mintel Learning Technologies
  • Palm OS developer NSBasic announced the availability of NS Basic/Palm Chinese Edition, a developer tool for building Chinese language applications for consumer, business, government and education sectors

Known for the power and flexibility of its sophisticated, easy-to-use interface, the Palm OS platform is the foundation for over 30 million handhelds and smartphones sold worldwide. The 275,000-strong Palm OS developer community is a vital part of the Palm Economy and a key driver for the success of the Palm OS platform in the handheld and smartphone markets worldwide. With more than 20,000 software titles available for Palm Powered smart mobile products, these devices can be tailored to specific needs and ultimately become, personal companions in one's daily life.

PalmSource Developer Conferences offer software developers an inside, up-close look at the latest Palm OS technology and Palm Powered smart mobile devices as well as industry knowledge about new market opportunities. PalmSource will host its annual U.S. Developer Conference in San Jose, CA, February 10-12, 2004. For more information about PalmSource's Developer Conferences, visit: www.palmsource.com/developers/conference2003/series.html. For further information about today's announcements, view the individual press releases posted at www.palmsource.com/press.

About PalmSource
PalmSource, Inc. is the company behind Palm OS, a leading operating system powering mobile information devices. More than 30 million Palm Powered handhelds and smartphones have been sold to date worldwide. Industry leaders Aceeca, AlphaSmart, Fossil, Garmin, GSL, HuneTec, Kyocera, Lenovo, palmOne, PerComm, Samsung, Sony, Symbol Technologies and Tapwave license Palm OS to create diverse mobile devices that meet unique customer needs. Palm OS has given rise to a large community of users, enterprises, developers and manufacturers, who together make up the Palm Economy. More information about PalmSource is available at www.palmsource.com, http://www.palmsource.co.uk, http://www.palmsource.fr, http://www.palmsource.de and http://www.palmsource.com.cn.

Palm OS is a registered trademark and Palm Powered is a trademark of Palm Trademark Holding Company, LLC. Other brands may be trademarks of their respective owners.

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, our business objectives I the Asian market, the continued innovation of our licensees, developers and strategic partners, the size of the Asia-Pacific region handheld and mobile phone market and the role of Palm OS developer community in the success of the Palm OS platform. 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 successfully execute our business objective to become a platform leader in the growing Asian market, the ability of our licensees, developers and strategic partners to successfully innovate with Palm OS to make Palm Powered mobile devices pervasive across multiple markets in Asia, the ability of our licensees and developers to compete with existing or new competitors and to timely introduce new products, the realization of the size of the Asia-Pacific region handheld and mobile phone market, our ability to maintain and grow the Palm OS developer community, general economic conditions in the U.S. and abroad 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 Quarterly Report on Form 10-Q for the period ended August 29, 2003. 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.

1 Gartner, August 2003.
2 The Chinese Ministry of Information and Gartner, 2002

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