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Mark Peters : May 26th 2005 - 21:45 CET

palmOne and PalmSource agreed on Palm license

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palmOnepalmOne and PalmSource agreed on Palm license : PalmSource and palmOne today announced that palmOne has renewed its license of the Palm operating system. As part of this new agreement, palmOne can continue to develop and market smartphones and other mobile devices based on the industry leading Palm OS through 2009. Under the terms of the agreement PalmSource will receive minimum royalty payments of $148.5 million, which includes $65 million for calendar years 2007 to 2009 subject to meeting certain development milestones. The companies also announced today that PalmSource has sold its interest in the holding company that owns the trademarks of the Palm brand, in exchange for $30 million to be paid by palmOne over 3,5 years.
palmOne and PalmSource agreed on Palm licensePalmSource and palmOne
Over the next four years, PalmSource will retain rights to use the PalmSource name and certain related Palm trademarks for itself and its licensees. PalmSource will also adopt a new brand identity during this period. With the new license agreement in place, PalmSource and palmOne can continue to collaborate and bring innovative Palm Powered products to market.

Palm smartphones and mobile devices
Over the years palmOne has developed a full line of successful Palm Powered smartphones and mobile devices, including the Treo smartphone, Tungsten and Zire families of handheld computers and the LifeDrive mobile manager. Palm Powered phones are supported by more than 40 of the world's top wireless carriers, making Palm OS a leading platform for the development and deployment of phones and wireless devices.

Palm OS license - Essensial component
"Extending our license of Palm OS is an essential component of our success and ensures we can continue to build great Palm OS based products for years to come," said Ed Colligan, palmOne president and chief executive officer. "The openness and ease-of-integration of the Palm OS allows palmOne to benefit from the advantages of a powerful platform."

PalmSource - Great relationship with palmOne
"We greatly value our relationship with palmOne and its exceptional Palm OS based smartphones and mobile computing products," said Patrick McVeigh, interim chief executive officer of PalmSource." We look forward to working with palmOne on future mobile products that provide customers with state-of-the-art capabilities."

About palmOne
palmOne, Inc. - a leader in mobile computing - strives to put the power of computing in people's hands so they can access and share their most important information. The company's products include Treo smartphones, the LifeDrive mobile manager, Tungsten and Zire handhelds, and software and accessories. palmOne products are sold through select Internet, retail, reseller and wireless operator channels throughout the world.

About PalmSource
PalmSource, the company behind Palm OS, a leading operating system powering smart mobile devices, is a leading developer of software for mobile phones and other mobile devices. Its products include a wide range of software for mobile phones at all price points. More than 39 million mobile phones, handhelds, and other mobile devices run PalmSource software.

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