Press Release

PalmSource and GSPDA Welcome New G88 Smartphone

3GSM WORLD CONGRESS, CANNES, France, Feb. 23, 2004 — PalmSource, Inc. (NASDAQ: PSRC) provider of Palm OS®, a leading operating system powering next generation mobile devices and smartphones, and Group Sense PDA Limited ("GSPDA"), one of the largest sellers of handheld computers in Asia and the PDA subsidiary of Group Sense (International) Limited (GSL, HKEx: 0601), today announced the G88 Palm Powered™ GSM smartphone.

Following the successful Palm Powered Xplore G18 launched last year, the Palm Powered G88 is a full-featured smartphone that integrates traditional Palm OS PIM functionality and telephony features in a sleek and compact form factor. The Xplore G88 runs Palm OS 4.1.2 and features a built-in 320 x 240 digital camera with digital zoom; 16 MB RAM/16 MB ROM/22MB Flash Internal Memory Card; high quality color 2.2 inch D-TFD 65K colors LCD screen; and SMS / MMS / WAP / e-mail / Java support. It also features a slide hard numeric keypad and one-handed navigation 5-way jog dial to fit the natural habits of mobile phone users. GSPDA reports that it is currently talking with several operators to bring the G88 to market this summer.

"The modular architecture of the Palm OS platform allows GSPDA to create innovative smartphones for the growing wireless market," said Francis Li, executive director marketing and business development, GSPDA. "We will continue to collaborate with PalmSource to enrich our wireless product offerings and expand our reach into new market segments."

"We believe that the new G88 demonstrates GSPDA's continued track record to bring innovative and easy to use Palm Powered smartphones to market," said David Nagel, president and chief executive officer of PalmSource. "GSPDA is not only an innovator in Palm Powered smartphone design, they also embrace their development efforts with a cutting-edge time to market approach."

The Palm OS platform is designed with an open, modular architecture that enables licensees and software developers to create differentiated products and solutions for the communications, education, enterprise and entertainment markets. With approximately 30 million Palm Powered devices sold worldwide to date, choosing Palm OS offers licensees and software developers new business opportunities and the chance to broaden their reach into the handheld and smartphone markets.

About Group Sense PDA Limited
Group Sense PDA Limited (GSPDA), the flagship of its parent company Group Sense (International) Limited for PDA business, was established in 2000 in Hong Kong. Besides conventional PDA, GSPDA also produces converged products - PDA-phones and smartphones. In September 2001, GSPDA rolled out the world's first Chinese-based PDA-phone model e938 that features open OS architecture and full-range communication functions including voice, fax, e-mails, WAP and SMS. For non-phone type of products, embedded-Bluetooth™ is added to provide short-range connectivity with other Bluetooth-enabled devices. GSPDA launched the world's smallest smartphone, Xplore G18, which is powered by Palm OS, in late 2003. Now GSPDA plans to bring the G88, the newest smartphone in its Xplore family to market in this summer. GSPDA is now selling products to China, Hong Kong, Taiwan, Thailand, Singapore, Indonesia, Malaysia, Middle East, Europe and USA. More information is available at http://www.gspda.com.

About PalmSource
PalmSource, Inc. is the company behind Palm OS, a leading operating system powering mobile information devices. Approximately 30 million Palm Powered handhelds and smartphones have been sold to date worldwide. Industry leaders Aceeca, AlphaSmart, Fossil, Founder Technology, 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 http://www.palmsource.com, http://www.palmsource.co.uk, http://www.palmsource.fr, http://www.palmsource.de and http://www.palmsource.com.cn.

Palm, Palm OS and PalmSource are registered trademarks of, palmOne and Palm Powered are trademarks of, Palm Trademark Holding Company, LLC. Other brands may be trademarks of their respective owners.

Forward Looking Statement
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 feature, functions and benefits of the G88 products; the ability of GSPDA to reach new market segments in collaboration with PalmSource and the feature, function and benefits 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, the ability of the features, functions and benefit the G88 to provide the anticipated results and benefits, as well as its market acceptance by end users; the ability of G88 to take advantage of the Palm OS software titles; the ability of GSPDA to achieve mobile carrier acceptance and certification by the summer, if at all, and to compete with existing or new competitors; continued acceptance of the Palm OS platform by software developers; the ability of the Palm OS platform to enable software developers to create the anticipated differentiated products and solutions for the communications, education, enterprise and entertainment markets; our ability to benefit from any growth in the smart mobile device markets; 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 and November 28, 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.