[+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-] [+-+-+-+-+-+-+-+---===<<<+[ Palm III ]+>>>===----+-+-+-+-+-+-+-+-+-] [+-+-+-+-+-+-+---===<<<+[ Press Release ]+>>>===---+-+-+-+-+-+-+-+-] [+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-] Allen Bush A&R Partners 650-363-0982 allen_bush@arpartners.com FOR IMMEDIATE RELEASE 3Com Delivers the Palm III(TM) Connected Organizer, the Third Generation of the Industry-Leading PalmPilot(TM) Handheld Computer Palm Computing(R) platform product combines infrared capabilities, increased memory, enhanced user interface and industrial design with original award-winning technology SANTA CLARA, Calif., March 9, 1998 -- Palm Computing, Inc., a 3Com company (Nasdaq:COMS), today announced the Palm III(TM) connected organizer, the third generation of its award-winning PalmPilot(TM) products based on the Palm Computing(R) platform. In addition to the pocket size, seamless desktop synchronization, ease of use and fast data access that made the Palm Computing platform the de facto open standard in the handheld market, the Palm III organizer offers infrared (IR) beaming capabilities, increased memory, an optimized user interface and a sleek new industrial design. The Palm III organizer runs on Palm OS(TM) 3.0, the new generation of Palm Computing's highly efficient operating system for seamlessly connected handheld devices. The Palm III organizer is expected to be available in April, 1998 with a suggested retail price of $399. With the Palm III organizer's IR capability users can share records and applications wirelessly by simply "beaming" information into another user's Palm III organizer at the touch of a button. This provides new data communications opportunities both for individual users and organizations. With 2MB of RAM, users have ample room to add a wide array of applications, allowing greater expandability and customization. The Palm III organizer is flash upgradable, making it easy for users to upgrade the Palm OS(TM) software without replacing the memory card. In addition, the Palm III organizer is capable of synchronizing data over corporate Intranets and the Internet, using Palm Computing's enhanced HotSync(R) technology. To further add to the product's utility, the Palm III is bundled with the Bonus Pack from MacMillan Digital Publishing, a CD-ROM containing an extensive array of third-party applications and utilities valued at approximately $175. The Bonus Pack includes a financial calculator, a world clock, a Web channel manager, a drawing application, conduits to leading desktop PIMs including Symantec ACT! and Microsoft Outlook 97, CNET Snap! Online and an assortment of games. The Palm III organizer sets a new standard for value in the handheld computing market, with an unmatched combination of performance, functionality and ease of use at the best price point available. "With the Palm III organizer, our goal was to deliver a product that would delight our customers by building on the ease-of-use, form factor, instant response, connectivity and value that made the PalmPilot products the best-selling handheld devices worldwide," said Ed Colligan, vice president of marketing for Palm Computing. "To do this, we optimized existing features and produced a new industrial design that is both elegant and highly durable. We considered numerous additional features and carefully selected only those that both deliver new functionality and retain our dedication to portability, simplicity and affordability." To support its large and loyal customer base, Palm Computing also announced two upgrade options today. First, all Pilot 1000 and Pilot 5000 owners who purchase the Palm III organizer are eligible to trade in their Pilot organizer and receive $75 from 3Com*. This provides them not only with the software and IR benefits of the 2MB upgrade, but also the latest-generation casing and form-factor and the backlit screen. In addition, all registered users of the original Pilot 1000 and Pilot 5000 organizers, as well as the PalmPilot Personal and PalmPilot Professional Edition products, can upgrade to the software, IR and extended memory functionality of the new Palm III organizer via the Palm 2MB Upgrade, expected to be available in June, 1998. Built on the Palm Computing platform, which holds 66 percent share of the standard handheld computing market worldwide (Dataquest), the Palm III organizer maintains compatibility with the hundreds of software applications and hardware add-ons that are available from third-party vendors. With over 5,000 developers working on Palm Computing platform solutions and over 150 developers producing hardware add-ons, the Palm Computing platform offers the greatest number of handheld solutions available for both consumers and corporate customers. In addition, over one million handheld devices based on the Palm Computing platform have sold, making it the fastest adopted computing platform in history. Palm III Connected Organizer Features Infrared Beaming Infrared (IR) beaming enables users to share information wirelessly with other Palm III organizer users by simply selecting an entry, file or application to be transferred and pointing the Palm III organizer at another Palm III organizer within a distance of one meter. The information is automatically stored in the proper place on the receiver's organizer. A special "business card" option allows a user to automatically transfer the user's business card information to another user by simply aiming his or her organizer at the receiver's organizer and pressing and holding the Address Book button. To ensure copyright protection, developers of shareware and commercial software for the Palm Computing platform can easily add a security option to their applications to prevent the transfer of applications covered by a single-user software license. Increased Memory With 2MB of RAM, the Palm III organizer is capable of storing 6,000 addresses, five years of appointments (approximately 3,000 entries), 1,500 To Do items, 1,500 memos, and 200 e-mail messages. The Palm III connected organizer is also equipped with flash memory for software-only upgrades of the Palm OS software, eliminating the need to replace the memory card to upgrade the operating system. New Industrial Design Durability and ruggedness have been greatly increased with the Palm III organizer, while special attention has been paid to softening the edges to increase comfort in the palm of the user's hand. For extra protection, each organizer comes with a protective flip cover. The Palm III organizer also comes equipped with an ergonomically designed metal stylus to provide a more natural fit and feel. File Linking With a new "file linking" feature, users can automatically import data from a file located on a remote server each time the Palm III organizer is synchronized with the desktop. For example, a salesperson can choose to receive newly updated price lists, sales leads or other data located on a network each time synchronization occurs. This feature is ideal for enterprises employing a highly mobile workforce where remote access to important networked information is critical to business productivity. Optimized User Interface The Palm III organizer offers a variety of fonts and sizes to improve the readability of data on the Palm III organizer screen. In the desktop calendar application, the day view has been improved to provide greater access to the To Do and Address functionality, so users can easily drag and drop information from one application to the next. E-Mail The Palm III organizer offers built-in e-mail compatibility with Microsoft Exchange(TM), Microsoft Outlook 97(TM), Lotus(R) cc:mail(TM), Microsoft Outlook Express and QUALCOMM's(R) Eudora Pro(TM). Many third-party conduits are available that provide connectivity to almost every other major e-mail application, including POP3 Internet Mail clients and Lotus Notes(TM). Enhanced HotSync(R) Technology HotSync technology now enables users to synchronize their data remotely, via networks or dial-in access, through a TCP/IP connection. PalmPilot Professional Edition organizer customers using the original Network HotSync(R) software who upgrade to Palm III functionality via the Palm(TM) 2MB upgrade will automatically receive the built-in network capability as part of the installation process. New Palm III organizer customers can download the network synchronization capability for free from the Palm Computing web site at www.palm.com. Broad Desktop Application Support Many vendors continue to build "conduits," desktop links that enable one-button two-way data exchange between Palm Computing platform organizers and PC-based software. These include links to CorelCENTRAL8, Franklin Ascend 97, GoldMine Software's GoldMine, Lotus Notes, Lotus Organizer, Daytimer from Daytimer Technologies, Microsoft Outlook 97, Microsoft Schedule+, Maximizer from Maximizer Technologies, ON Technology's Meeting Maker, NetManage Ecco Pro, Novell GroupWise, Now Up-To-Date and Contact, Oracle InterOffice, Sidekick and Internet Sidekick from Starfish Software, and Symantec ACT!. The Palm III organizer is compatible with Windows 95, Windows NT and Macintosh operating systems. A MacPac connection kit including desktop software is sold separately for Macintosh connectivity. An upgrade to the currently available version 1.0 MacPac, is expected in summer, 1998. 3Com will provide a Web download of the upgrade for registered users from www.palm.com upon release. This MacPac upgrade is being written specifically for the Macintosh OS and will provide an extensible conduit architecture. The architecture will enable third party companies to develop Macintosh OS specific conduits and desktop applications that seamlessly integrate and synchronize with any Palm Computing platform based-device. A prerelease version of the conduit software developer kit (SDK) is already available. The Palm III organizer is expected to be available in April, 1998 for a suggested retail price of $399 at leading computer, consumer electronics and office supply stores nationwide, including Best Buy, Circuit City, CompUSA, Computer City, Egghead, Fry's, The good guys, J&R; Computer World, MicroCenter, Office Depot, OfficeMax, RCS, Service Merchandise, Staples, The Sharper Image and other fine regional retailers and computer catalogs. The PalmPilot Personal and PalmPilot Professional Edition organizers also remain available, with suggested retail prices of $199 and $299 respectively. About 3Com 3Com Corporation enables individuals and organizations worldwide to communicate and share information and resources at anytime from anywhere. As one of the world's preeminent suppliers of data, voice and video communications technology, 3Com has delivered networking solutions to more than 100 million customers worldwide. The company provides enterprises, network service providers and carriers, small businesses and consumers with comprehensive, innovative information access products and system solutions for building intelligent, reliable and high performance local and wide area networks. For further information, visit 3Com's World Wide Web site at http://www.3com.com, or the press site at http://www.3com.com/pressbox. * For details about the refund offer, please visit http://palm.3com.com/refund on the World Wide Web. # # # 3Com, Palm Computing and HotSync are registered trademarks, and PalmPilot is a trademark of 3Com Corporation or its subsidiaries. This product is not manufactured by Pilot Corporation or Pilot Corporation of America, manufacturers and distributors of writing instruments. All other company and product names may be trademarks of the respective companies with which they are associated. [+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-]