Palm unveils new handheld computers

SANTA CLARA: Palm Inc. on Monday unveiled its newest handheld computer
devices, the Palm m500 and Palm m505, in a bid to stay atop the fast-growing
market for personal digital assistants.

The Santa Clara, Calif.-based company, which sold nearly three out of four
handheld computers purchased in the US last year, said the monochrome m500 is
scheduled to be available in the United States in late April for an estimated
price of $399. The m505, which has a color screen, is set to hit stores in the
United States in May with a retail price of $449, Palm said. The devices will be
offered internationally about a month after their US launch, Palm said.

The gizmos include features such as postage stamp-sized expansion slots for
multimedia cards offering images, music, video clips and more, Palm said. Other
highlights include enhanced wireless Internet connectivity software and a new
connector for hardware add-ons such as MP-3 music players, it said.

The m500 series handhelds offer a faster processor and use the latest version
of the company's Palm OS 4.0 operating system. Palm's new devices come bundled
with software that allows customers to connect to the Internet with a mobile
phone, send and receive messages instantaneously and manage e-mail, the company
said.

The product introduction comes at a time when other industry players are also
raising the stakes in the hand-held computer arena. Handspring Inc. last week
unveiled a thinner, high-end version of its Visor handheld computer, while
Compaq Computer Corp. recently announced the launch of its iPAQ Pocket PC.

Sony Corp , for its part, last week unveiled a jazzed-up version of its
"CLIE" handheld personal digital assistant, which is based on Palm
technology. And Hewlett-Packard Co. recently announced its Jornada device, which
will allow users to make telephone calls, among other things.

According to IDC Research, total shipped handheld computers will grow to 33.6
million in 2004, more than double the 2001 estimate of 14.9 million, as
consumers increasingly depend on the pocket-sized devices to carry personal
information.

Palm shares finished off $1-5/8 at $13-9/16 on the Nasdaq Friday, not far
from a 52-week low of $12-3/8. The stock has a 52-week high of $67-3/8.

(C) Reuters Limited 2001.