[Palm branded handhelds that incorporate OMAP processors are expected to be introduced in approximately one year. ]

Santa Clara, Calif -- Palm, Inc. (Nasdaq: PALM) and Texas Instruments (TI) (NYSE: TXN) today announced that they have entered into a multifaceted business alliance that encompasses technology, product collaboration and joint marketing. Integral to the agreement, Palm's Solutions Group has selected TI's OMAP(TM) processor platform to power a set of next-generation handheld solutions, and TI's wireless GSM/GPRS technology to enable seamless connections of Palm(TM) handheld computers.

By working with TI, the market leader in wireless technology, Palm executes on its key objectives of moving product lines to the more powerful ARM(R)-based processors and delivering wireless solutions to large enterprises. The alliance also shows accelerated market adoption of TI's OMAP processors as standard solutions for supporting data and multimedia-centric applications for handheld devices, in addition to wireless voice. The alliance further advances TI's strategy to address voice, data and multimedia regardless of the form factor.

By combining TI's wireless technology leadership with Palm's expertise in handheld computing, the companies can bring users higher performance, longer battery life and a host of new capabilities. Examples of new business functions could include utilizing rich multimedia presentations or documents, or employing biometrics for security (fingerprinting); other more mainstream functions might include searching large databases, browsing the Web with rich multimedia content, playing video clips, listening to music, or playing graphically intensive, interactive games.

"Working together, Palm and TI can accelerate the convergence of wireless voice, multimedia, and data," said Todd Bradley, Palm's executive vice president and COO of the Solutions Group. "We believe these capabilities will be increasingly important to the growing number of mobile enterprise users."

"We are excited to work with Palm, the leader in handheld computing," said Gilles Delfassy, TI senior vice president and general manager of TI's Wireless Business Unit. "With TI's OMAP and wireless technology, Palm will deliver a set of next-generation devices that take the user experience to new levels."

Palm and TI will share resources and technologies to accelerate the development of superior wireless solutions for enterprise customers as well as consumers. The companies also will co-promote the features and benefits of the resulting products to expand the market for wireless handhelds. TI also will endorse the OMAP processor-powered Palm solutions by adopting them internally as an executive standard, and placing them on its approved technology standards list for its more than 35,000 employees worldwide.

In addition to Palm's selection of TI's OMAP processors and GSM/GPRS technology for a set of next-generation handheld solutions, TI will continue to offer Palm its portfolio of other silicon and software products, which include advanced DSP-based GSM/GPRS modem processors, OMAP application processors, radio frequency, analog baseband technology, power management, audio codecs and touch-screen controllers. Palm will leverage TI's strong wireless systems expertise and experience with leading design manufacturers to support development and manufacturing.

TI's OMAP processor platform provides a foundation for enabling new applications. The TI platform has become the de-facto standard for 2.5G and 3G wireless handhelds today. OMAP processors support high-performance and low power consumption -- essential features for any mobile device -- and are scalable to address any market segment. A broad network of developers is creating a variety of new applications based on the OMAP processors today. Through the Palm OS Ready Program offered by the Palm Platform Solutions Group, TI is optimizing the OMAP wireless platform for the Palm OS(R).

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