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Palm operating systems unit chief resigns

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CIOL Bureau
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SANTA CLARA: Handheld computer company Palm Inc. on Thursday said Alan

Kessler is resigning as general manager of the unit that develops the operating

systems software behind the pocket-sized devices.

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Kessler, head of Palm's Platform Solutions Group, plans to leave the Santa

Clara, California-based company on August 17. He did not disclose his plans.

Kessler joined Palm in 1999, when it was still a subsidiary of 3Com Corp., after

a 14-year stint in other parts of the former parent company. "I'm ready ...

to move on to a new challenge," he said in a statement.

In his latest job, Kessler was responsible for the development, licensing and

expansion of the Palm OS platform, which powers devices made by Palm and its

licensees such as Sony Corp. and Handspring Inc. Palm chairman Eric Benhamou, a

member of the Platform Solutions Group Committee of the company's board, will

act as chief executive of the Platform Solutions Group until a permanent

replacement is named.

Kessler's departure comes as Palm is sharpening its focus on developing the

software group amid a slump in sales of Palm-branded hardware. Palm makes the

vast majority of handheld computers, and its Palm OS software is used in over 75

per cent of all personal digital assistants.

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On July 27, Palm said it planned to form a separate, wholly owned unit for

its software group, which would continue to make use of Palm's infrastructure

and staff services. Wall Street analysts have suggested that such a move would

help Palm capitalize on its leading position in the handheld software market

without the distraction of the slumping hardware market.

Palm also said on Thursday it paid Be Inc. $11 million to acquire the

software maker's intellectual property and technology assets. Palm's stock fell

22 cents, or about 5.2 per cent, to $3.98 on Nasdaq shortly after midday.

(C) Reuters Limited 2001.

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