Press Release

PalmSource and GSPDA Launch New Xplore M68 Smartphone in Europe

Fourth Generation Palm Powered Xplore Smartphone Delivers Enhanced Multi Media Features, Bluetooth and Higher Resolution Integrated Camera

3GSM WORLD CONGRESS, CANNES, France, Feb. 14, 2005 — PalmSource, Inc. (NASDAQ: PSRC) provider of Palm OS®, a leading operating system powering next generation phones and mobile devices, 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 welcomed the new Palm Powered™ Xplore M68 smartphone. The new Xplore M68 smartphone from GSPDA will be showcased in the PalmSource booth located in Stand K5 in Hall 4 of the Palais des Festivals.

Joining the existing Palm Powered Xplore G18, G88 and M28 smartphone product family, the Xplore M68 combines the industry–leading Palm OS and state–of–the–art wireless and multimedia features in a compact form factor. The Xplore M68 is now available through distributors in France, Germany, Italy and Spain. Pricing will be set by the individual distributors.

"Combining our strength in building innovative smartphones with the flexibility of Palm OS has enabled us to provide our customers with easy–to–use wireless products that deliver a superior telephony and multimedia user experience," said Thomas Tam, managing director of GSL Group Sense (International) Ltd.

"We are pleased to welcome GSPDA's fourth–generation Palm Powered Xplore smartphone as it strengthens the Palm OS platform's leadership position in the European smartphone market," said David Nagel, president and chief executive officer of PalmSource. "With GSPDA's cutting–edge design philosophy and efficient time–to–market approach, we look forward to more innovative smartphones to come to market that meet the needs of Palm Powered mobile users."

Xplore M68 Smartphone Expanded Features and Benefits:

  • Palm OS® Garnet;
  • Bluetooth technology for communicating with headsets, car kits, computers and printers equipped with Bluetooth technology;
  • MP3 and MPEG4 for audio and video–capturing and playback;
  • 1.3 megapixel integrated camera for vibrant photos;
  • 32 MB RAM / 64 SDRAM flash memory;
  • 2.2–inch D–TFD 64K colors LCD screen;
  • SMS, MMS, WAP, email, Java support;
  • SD/MMC Card expansion; and
  • One–handed navigation five–way jog dial.

Palm Powered smartphones are sold by over 30 of the world's top wireless carriers worldwide, making Palm OS a leading platform for the development and deployment of wireless devices. The Palm OS platform is designed with an open, modular architecture that gives licensees and software developers the flexibility to create differentiated products and solutions for various markets. With over 20,000 Palm OS software titles available today, the Palm OS platform offers one of the largest third–party software catalogs to enable users to customize their Palm Powered™ smart mobile devices to fit their particular needs. Choosing Palm OS opens up new business channels for hardware manufacturers and software developers and provides the opportunity to broaden their reach into the smartphone and wireless device 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 is now selling products to China, Hong Kong, Taiwan, Thailand, Singapore, Indonesia, Malaysia, Middle East, Europe and USA. More information is available at www.gspda.com.

About PalmSource
PalmSource, Inc. is the company behind Palm OS®, a leading operating system powering mobile information devices. Approximately 38 million Palm Powered handhelds and smartphones have been sold to date worldwide. Industry leaders Aceeca, AlphaSmart, Fossil, Garmin, GSL, Kyocera, Lenovo, palmOne, QTech, 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, www.palmsource.com/es and www.palmsource.com.cn.

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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 regarding the features, functions and benefits of the Palm OS platform and the Xplore M68 smartphone, and GSPDA's time–to–market approach. 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 Palm OS platform to provide state–of–the–art wireless and multimedia features in a form factor that enables our licensees to build innovative smartphones, which provide end users with a superior and easy–to–use telephony and multimedia experience; the ability of the Palm OS platform to strengthen the Palm Powered Economy by creating new business channels for hardware manufacturers an software developers; the ability of GSPDA to execute its design philosophy and time–to–market approach and bring innovative smartphones to market that meet end user demands; our ability to achieve the anticipated benefit from introduction of new Palm Powered™ products and applications to the market; our ability to grow and maintain our developer community and to compete with existing and new competitors; 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 Annual Report on Form 10–K for fiscal year ended May 28, 2004 and our Quarterly Reports on Form 10–Q for the periods ended August 27, 2004 and November 26, 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.

Copyright © 2005, PalmSource, Inc. PalmSource, Palm OS, Palm Powered, and certain other trademarks and logos appearing on this press release are trademarks or registered trademarks of PalmSource, Inc. or its affiliate in the United States, France, Germany, Japan, the United Kingdom, and other countries. These marks may not be used in connection with any product or service that does not belong to PalmSource, Inc. (except as expressly permitted by a license with PalmSource, Inc.), in any manner that is likely to cause confusion among customers, or in any manner that disparages or discredits PalmSource, Inc., its licensor, its subsidiaries or affiliates. All other brands and trademarks used herein are or may be trademarks of, and are used to identify other products or services of, their respective owners. All rights reserved.