Press Release


PalmSource Joins the Consumer Electronics Linux Forum

Company to Collaborate with CELF to Advance the Development of Linux–based Devices

SUNNYVALE, Calif., March 8, 2004 — PalmSource Inc., (NASDAQ: PSRC) provider of Palm OS®, a leading operating system powering next generation phones and mobile devices, today announced it has joined the Consumer Electronics Linux Forum (CELF). The CELF is an open standards–based consortium of industry–leading companies aimed at encouraging adoption of Linux for the development of consumer electronics devices. PalmSource has joined the CELF as an Associate member.

The CELF was established in June 2003 by eight companies, Matsushita Electric Industrial Co., Ltd., Sony Corporation, Hitachi, Ltd., NEC Corporation, Royal Philips Electronics, Samsung Electronics Co., Ltd., Sharp Corporation, and Toshiba Corporation, to further enhance and promote the use of Linux in digital consumer electronics products. CELF now has over 50 members.

"We are pleased to join the Consumer Electronics Linux Forum and collaborate with other industry–leading companies and the open source community to advance the development of Linux–based products," said John Ostrem, lead scientist of PalmSource. "With PalmSource's recent acquisition of China MobileSoft and the Company's Linux expertise, we believe PalmSource is poised to make significant contributions to the CELF as it develops Linux–based phone software products."

"We are delighted to welcome PalmSource to the Consumer Electronics Linux Forum and look forward to the Company's active support in our mission to enhance Linux as a platform for new consumer applications and promote the technology as a major component of digital electronics products," said Scott Smyers, chairman of the board of directors of CELF.

About Consumer Electronics Linux Forum (CELF)
The Consumer Electronics Linux Forum (CELF) is a California Non–Profit Corporation focused on the advancement of Linux as an open source platform for consumer electronics (CE) devices. The CELF intends to operate completely within the letter and the spirit of the open source community. The CELF is a place to come and discuss various issues that are of particular importance to the CE industry. Through an open process, the CELF members will clarify and codify certain requirements to be addressed in open source software. Thereafter, the CELF will evaluate any open source submissions as to their effectiveness and responsiveness to the requirements. Open source submissions accepted by the CELF Architecture Group and Steering Committee will be incorporated into the CELF source tree, which itself is open to the public. Information about CELF is available at http://www.celinuxforum.org.

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 Palm OS® Developer Suite 1.1; Palm OS® Cobalt, and the development of next generation multimedia and wireless applications. 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 Palm OS Developer Suite 1.1 to perform as described and to provide the anticipated benefits including, without limitation, simplification of the development process; integration of the tools required by developers to easily build, edit, compile, and debug ARM–native applications for Palm OS®; the ability of Palm OS Developer Suite 1.1 to enable Palm OS developers to create best–in–class next generation wireless applications for ARM–based Palm Powered phones; acceptance of Palm OS Cobalt by our licensees and use of it's new API's by developers; the ability of PalmSource to grow and maintain its developer community and to compete with existing and new competitors; the continued growth of the smartphone and wireless markets and the penetration of these markets by PalmSource and its licensees; 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 the period ended May 28, 2004 and our Quarterly Report 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.

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