Handspring unveils latest product in PDA battle

MOUNTAIN VIEW: Handspring Inc. on Monday unveiled a thinner, high-end version
of its Visor handheld computer, a counterpunch to rival Palm Inc. as they duel
for market share in this rapidly growing sector. Mountain View, Calif.-based
Handspring launched Visor Edge, a $399 device that boasts Handspring's ability
to transform the handheld computer into a mobile phone or digital camera, for
example, via its snap-on "Springboard" feature, an attachment that
will allow it to perform the various functions.

Palm said that unlike the previous version of the Visor, whose lower selling
price and multi-colors appealed to a younger market, the new product is aimed at
corporate buyers. "This product fills a different void for Handspring with
its higher price point and a more professional look," Hangspring vice
president, Joe Sipher told Reuters.

The device is the three-year-old company's first major new product in 2001, a
year in which experts forecast sales of the devices will accelerate the
company's growth. According to research firm IDC, total shipped handheld
computers will grow to 33.6 million in 2004, more than double the 2001 estimate
of 14.9 million, as consumers grow to depend on the pocket-sized devices to
carry personal information.

Palm dominated the PDA market last year, selling 72 per cent of all units,
NPD Intelect Market Tracking, another research firm, said. Handspring machines,
which use operating system software created by Palm, grabbed 14 per cent of the
market, NPD's data showed.

The metal-encased Visor Edge is similar in computing power to its Visor
Platinum predecessor, with 8 megabytes of memory, and a rechargeable battery,
and other new features. Its slim form is achieved in part because the
Springboard feature, previously a part of the computer, which now comes separate
from the main device's body, as a small module.

The latest Handspring product is being released during an active period for
the PDA market. Last week, Palm unveiled a new entry-level handheld computer,
the $199 Palm m105, and the company is expected next week to debut a new
high-end version that includes an improved display and upgraded system software.

In separate news, Handspring signed a distribution deal with Vodafone Pty.
Ltd. for its Visor line of products and Springboard expansion modules to be sold
in Australia, New Zealand and Fiji. Financial terms of the arrangement were not
disclosed. Shares of Handspring closed down almost 11 per cent to a year-low of
$21. In the past 52 weeks the shares have traded as high as $99-5/16.

(C) Reuters Limited 2001.