Press Release

PalmSource and SyChip Collaborate to Deliver Wi-Fi Connectivity Modules for Palm OS Licensees

SyChip Joins Palm OS Ready Program

SUNNYVALE, Calif., and PLANO, Texas, July 14, 2004 — PalmSource, Inc. (NASDAQ: PSRC) provider of Palm OS™, a leading operating system powering next generation mobile devices and smartphones, and SyChip Inc., a leading developer of radio frequency chip scale modules (RF-CSM), today announced SyChip's entry into the Palm OS Ready Program, delivering integrated Wi-Fi connectivity solutions to Palm OS licensees. SyChip joins existing Palm OS Ready partners ATI, Intel, M-Systems, Motorola, NVIDIA, Samsung Semiconductor and Texas Instruments.

In joining the Palm OS Ready Program (POSR), SyChip's Wi-Fi wireless connectivity solutions will be certified to be Palm OS platform compatible. Certified POSR solutions can free up valuable development time for Palm OS licensees, offering faster time-to-market for new and unique smart mobile devices. The SyChip embedded chip scale module offers licensees the ability to quickly integrate Wi-Fi connectivity in their new mobile device designs, allowing system architects to concentrate on creating differentiated products without the need to dedicate engineering efforts to develop Wi-Fi connectivity.

"By joining the Palm OS Ready Program, SyChip is solidifying its position as a wireless solutions provider for Palm OS licensees," said Moses Asom, co-founder and senior vice president of marketing and business development at SyChip. "With the availability of Palm OS WLAN modules, SyChip is giving Palm OS licensees greater flexibility for integrating Wi-Fi connectivity into their new and existing device designs."

According to its January 30, 2004 Wireless LAN Semiconductor report, Gartner Dataquest estimates that by 2006, 60 percent of PDAs and five percent of cellular handsets will include built-in wireless LAN connections. "The growing presence of wireless LAN access points and hotspots is creating a demand for smart mobile devices with built-in Wi-Fi connectivity," said Joseph Byrne, principal analyst at Gartner. "Cost-effective, small-footprint radios minimize the time and effort required by manufacturers of smart mobile devices to add WLAN capability."

"SyChip is making it easier for Palm OS licensees to deliver Wi-Fi connectivity in their next-generation smart mobile devices, reducing time to market and leveraging SyChip's expertise in the development of products based on the evolving 802.11 standards," said Charlie Tritschler, vice president of product marketing for PalmSource. "By partnering with industry-leading vendors, we believe PalmSource is streamlining the design and development process allowing new and innovative devices to come to market in the shortest possible timeframe."

About the Palm OS Ready Program
Launched in July 2001, the Palm OS Ready Program allows industry-leading component providers to drive faster innovation of Palm Powered devices and foster growth throughout the Palm Powered™ Economy. Combining access to key components of Palm OS technology with in-depth technical training and resources, the Palm OS Ready Program provides silicon and peripheral providers the ability to deliver more complete solutions to the Palm OS licensee community enabling Palm OS licensees to bring innovative and differentiated Palm Powered mobile devices to market faster and more efficiently. For more information on the Palm OS Ready Program, visit www.palmsource.com/about/os_ready.html.

About SyChip
SyChip designs, develops and markets radio frequency integrated circuits and chip scale modules for the wireless mobile market. The company focuses on developing RF modules that are differentiated due to proprietary integration, modular architectures, and low loss silicon technologies. As a result of the proprietary integration, world-class RF system design, proprietary multifunction ASICs, software and smart utilities, SyChip's RF designs drastically reduce component count, offer very small footprints and are easy to integrate into a mobile device. Customers benefit by significantly reducing their time-to-market, increasing performance and improving reliability of their wireless devices. More information is available at www.sychip.com.

About PalmSource
PalmSource, Inc. is the company behind Palm OS, a leading operating system powering mobile information devices. Approximately 33 million Palm Powered handhelds and smartphones have been sold to date worldwide. Industry leaders Aceeca, AlphaSmart, Fossil, Founder Technology, Garmin, GSL, 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 Powered Economy. More information about PalmSource is available at www.palmsource.com, www.palmsource.co.uk, www.palmsource.fr, www.palmsource.de and www.palmsource.com.cn.

Palm, Palm OS, PalmSource and Palm Powered are trademarks of Palm Trademark Holding Company, LLC.

Safe Harbor Statement
CAUTIONARY NOTE REGARDING 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, statements related to, SyChip's radio frequency chip scale modules (also referred to as SyChip's Wi-Fi connectivity solutions), the features and benefits of the Palm OS Ready Program, Palm OS licensees, next generation smart mobile devices, and the PDA and handset markets. 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, SyChip's ability to obtain PalmSource certification, if at all, for SyChip's radio frequency chip scale modules; Palm OS licensees' realization of the anticipated benefits of SyChip's Wi-Fi connectivity solutions, including, without limitation, reduced development time, faster time to market and faster integration of Wi-Fi connectivity into a licensee's new mobile device design; the ability of Palm OS licensees to benefit from SyChip's radio frequency modules in their existing products and their ability to successfully use these radio frequency modules in the design and production of new and unique smart mobile devices that meet end-user requirements; the ability of the Palm OS Ready Program to provide the anticipated results and benefits, including, without limitation, streamlining the design and development process allowing new and innovative devices to come to market in a timely fashion; the ability of SyChip to solidify its position as a wireless solutions provider for Palm OS licensees; realization of the anticipated percentage of built-in wireless LAN connections in the PDAs and cellular handsets; our ability and the ability of SyChip and Palm OS licensees to successfully compete in the wireless and/or smart mobile device markets; the ability of PalmSource or its licensees to benefit from any growth in the wireless and/or 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, November 28, 2003 and February 27, 2004. 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.