Safe Harbor Statement
This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements include statements regarding the following: beliefs and expectations regarding Palm’s focus, market traction, management team, operational improvements, growth, execution on enterprise strategy, delivering new solutions on schedule, and balance sheet; beliefs and expectations regarding the markets for handhelds, devices, software, services and accessories and the growth of such markets; beliefs and expectations regarding the Palm Economy and Palm’s ability to compete against Microsoft; beliefs and expectations regarding near-term objectives, including turning Palm into two well-capitalized, profitable high-growth companies, executing the enterprise strategy and introducing the industry’s best ARM-based wireless solutions; beliefs and expectations regarding milestones relating to objectives, including reporting separate financials, achieving break-even operating results and positive cashflow from operations, the external separation of the OS subsidiary, introducing an enterprise-integrated wireless device, full behind-the-firewall server-based corporate e-mail capability, establishing strategic alliances with enterprise partners, the beta release of ARM-based Palm OS, introducing broad wireless capabilities in Palm solutions and introducing Palm-branded, ARM-based product line with wireless capabilities; beliefs and expectations regarding revenue growth, channel inventory, gross margins, component costs, modifications to existing products, improvements in reverse logistics operations, new products, in-house inventory, enterprise penetration, web sales and e-marketing, expenses and operating expense management and inventory and inventory management; beliefs and expectations regarding SD and SDIO; beliefs and expectations regarding the introduction of an enterprise integrated wireless solution; beliefs and expectations regarding the acquisition of ThinAirApps; beliefs and expectations regarding strategic alliances and the alliance with Siebel; beliefs and expectations regarding the enterprise market, enhancing the Palm OS and enterprise capabilities; beliefs and expectations regarding the Palm OS and transition to ARM; beliefs and expectations regarding broad wireless capabilities to be integrated in Palm devices; beliefs and expectations regarding the relationship with Texas Instruments; beliefs and expectations regarding Palm’s momentum, Palm’s team, Palm’s strategy and milestones, operational improvements and financial performance, enterprise and wireless focus and new products in 2002. These statements are subject to risks and uncertainties that may cause actual results and events to differ materially, including but not limited to those related to possible development or marketing delays relating to Palm’s product and solution offerings, potential defects in the products and solutions developed, the acceptance by the market of Palm’s products and solutions, possible fluctuations in the demand for Palm’s products and solutions, the growth of the markets for Palm’s existing and future products and solutions, Palm’s ability to compete effectively with existing or new competitors, and possible future price cutting or other actions by competitors. Additional risks and uncertainties are detailed in Palm’s annual and quarterly reports and other filings with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the quarter ended August 31, 2001, as amended, and its registration statement on Form S-3 filed on December 20, 2001, as amended. Palm, Inc. undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this presentation.