Press Release

PalmSource and ITM Technology AG Launch the Palm Powered hagenuk SmartPhone S 200 in Germany

Palm Powered Phones Gain Momentum in European Wireless Market

CEBIT, HANOVER, Germany – March 10, 2005 — PalmSource, Inc. (NASDAQ: PSRC), provider of Palm OS®, a leading operating system powering next generation phones and mobile devices and ITM Technology AG today launched the Palm Powered™ hagenuk SmartPhone S 200. ITM Technology AG plans to offer the hagenuk SmartPhone S 200 to wireless customers in Germany through its retail channels beginning in April. The estimated retail price of the Palm Powered hagenuk SmartPhone S 200 is 499 EUR incl. VAT.

PalmSource and ITM Technology are hosting a press conference today at 2:00 p.m. GMT in the ITM Technology AG booth C72 in Hall 12 to highlight the launch of the Palm Powered hagenuk SmartPhone S 200. Attendees can also visit the ITM Technology AG booth C72 in Hall 12 to see the hagenuk SmartPhone S 200 during CeBit, March 10–16, 2005.

"We are pleased to partner with PalmSource to bring the Palm Powered hagenuk SmartPhone S 200 to wireless customers in Germany, " said Ralph Kimmig, CEO of ITM Technology AG. "Leveraging the ease–of–use and innovation of Palm Powered smartphones will enable us to grow our business and capitalize on the growing phone market."

"The hagenuk SmartPhone S 200 is a major step forward in the distribution of Palm Powered phones in Europe," said David Nagel, president and CEO of PalmSource. "We look forward to extending our leadership as a phone software provider by enabling more cutting–edge Palm Powered phones to come to market that meet the needs of mobile users in Europe."

The Palm Powered™ hagenuk SmartPhone S 200 combines the popular Palm OS and state–of–the–art wireless and multimedia features in a compact form factor. Additional features include:

• 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 ITM Technology AG
International Telecommunication and Multimedia (ITM) Technology AG is one of the leading import and distribution organizations supplying the German, western and eastern European markets. The Company's product portfolio spans the entire telecommunications market from wired analog phones, digital answering machines, DECT phones, VOIP telephony solutions and GSM smartphones. ITM Technology AG markets its products under the popular and well–accepted brand names "AEG" and "hagenuk" and has strong experience in sourcing, designing, distribution, marketing and customer service. For additional information, please visit www.aeg–itm.de and www.hagenuk–itm.de.

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.

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 ITM Technology AG's hagenuk SmartPhone S 200; the features and functions of Palm Powered™ smartphones; and the market for Palm Powered mobile phones. 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 hagenuk SmartPhone S 200 to meet the demands of wireless carriers and customers in Europe at acceptable price points; the ability of ITM Technology AG to leverage the ease–of–use and innovation of Palm Powered smartphones to grow its business as anticipated and our ability to realize the anticipated benefit from such growth; realization of the anticipate growth in the German phone market; continued and new acceptance of Palm Powered phones by wireless carriers; our ability of maintain and grow our developer community; 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 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 and Palm OS 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, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.