Press Release

PalmSource Announces Foundertech Has Licensed Palm OS

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, and Founder Technology Group, Corp. (Foundertech), a leading computer manufacturer in China, today announced Foundertech has licensed Palm OS to distribute Foundertech-branded Palm Powered devices in China.

Foundertech is one of the largest PC companies in China focused on the research, development, manufacturing and marketing of software and hardware products for China's IT industry. Foundertech owns and operates an extensive sales and distribution network, spanning over 100 major cities across the country.

"We are pleased to partner with PalmSource to extend the power and flexibility of the Palm OS platform and bring innovative Palm Powered devices to the Chinese market," said Zhou Xianfeng, vice president, Founder Technology Group, Corp. "Our first Palm Powered product for the Chinese market will be a Palm Powered eBook, which users can easily customize with thousands of Palm OS applications and eBooks to fit their individual needs."

"Foundertech is an ideal partner for PalmSource in China because of its brand leadership and strong distribution system," said David Nagel, president and CEO, PalmSource. "Foundertech's ability to bring innovative technology to the Chinese market combined with PalmSource's commitment to create the best platform for mobile devices will foster the growth of the Palm Economy in China."

Palm OS provides a flexible and efficient platform designed to enable hardware manufacturers and software developers to rapidly and efficiently create a wide range of powerful, innovative and easy-to-use Palm Powered mobile devices and software applications. More than 30 million Palm Powered handhelds and smartphones have been sold to date and Palm OS has attracted a large and loyal following with more than 275,000 developers building applications for Palm Powered smart mobile devices. These solutions are designed to increase the value to the end-user by offering customization of Palm Powered smart mobile devices and to help expand the market for our licensee's products and services.

About Founder Technology Group Corp (Foundertech)
Foundertech's major businesses include enterprise product business group, consumer product business group, mobile product business group, and software product business group. More information about Foundertech is available at http://www.foundertech.com/English/e-about_founder/introduction.htm.

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.

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, statements related to Founder's collaboration with Palm OS ODMs and OEMs, Founder's sales and distribution network, , the partnering of Founder and PalmSource, the features and functions of the Palm OS platform and Palm Powered mobile devices, PalmSource's commitment to create the best platform for mobile devices and the value of Palm Powered solutions. 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, the ability of Founder to successfully collaborate with Palm OS ODMs and OEMs to create Palm Powered devices, the ability of Founder to leverage the Palm OS platform, the ability of Founder to leverage its sales and distribution network to expand the distribution of Palm Powered devices in China as anticipated, the ability of Foundertech to successfully create and timely deliver a Palm Powered eBook that fits the individual needs of users and which is easily customize by users with Palm OS applications and eBooks, market acceptance of Palm Powered products in China, the ability of the PalmSource to benefit from any growth in the Palm Powered device market in China, the ability of PalmSource to successfully implement and maintain its commitment to create the best platform for mobile devices and the realization of the anticipated benefits from such commitment, PalmSource's ability to foster the growth of the Palm Economy in China, the availability of a wide range of Palm OS applications, our ability as well as Foundertech's and our ODMs and OEMs to compete with existing or new competitors, and the 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.