Palm Taps Y&R to Lead Worldwide Advertising

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SUNNYVALE, Calif., Oct 13, 2006 (BUSINESS WIRE) -- Palm, Inc. (Nasdaq:PALM) today announced Y&R San Francisco as agency of record for its worldwide advertising efforts. Y&R is one of the world's leading marketing communications agencies with offices in 81 countries.

During Palm's process of reviewing agencies, Y&R emerged as the agency with the best mix of strategic and creative talent globally to help Palm build its mantle as the pioneer and continuing innovator in mobile computing.

"The Palm brand in the Americas is synonymous with simple, elegant mobile computing; now we want to make this recognition global," said Ed Colligan, Palm president and chief executive officer. "Y&R is ideally suited to unleash the power of our brand in this exciting growth marketplace."

"We are absolutely ecstatic about the opportunity to take the Palm brand to even greater levels on a worldwide scale," said Penny Baldwin, managing partner, Y&R San Francisco. "We will be working with a fantastic management and marketing team at Palm, and look forward to what we believe will be a terrific partnership."

Palm thanks AKQA, a leading interactive marketing agency, for seven years of innovative advertising. During those years, AKQA's team acted as chief architect of the company's post-IPO-era promotion, which helped catapult Palm to greater prominence. AKQA helped Palm retain its leadership in handheld computing against bigger competitors with more resources. The advertising agency also created much of Palm's highly successful presence in the smartphone market. During that time, AKQA amassed a wide range of creative and efficacy awards, including interactive agency of the year for 2005.

About Y&R

Y&R is one of the world's leading marketing communications agencies and is the largest division of Young & Rubicam Brands. Founded in 1923, the agency today has 162 offices in 81 countries around the world. Our client partners are some of the world's most prestigious global corporations, including Accenture, Cadbury Schweppes, Campbell Soup Company, Colgate-Palmolive, Danone, Ford Motor Company and Xerox. Hamish McLennan is Global Chief Executive Officer.

About Palm, Inc.

Palm, 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 for consumers, mobile professionals and businesses include Palm(R) Treo(TM) smartphones, Palm handheld computers, and Palm LifeDrive(TM) mobile managers, as well as software, services and accessories.

Palm products are sold through select Internet, retail, reseller and wireless operator channels throughout the world, and at Palm Retail Stores and Palm online stores (http://www.palm.com/store).

More information about Palm, Inc. is available at http://www.palm.com.

Palm, LifeDrive and Treo are among the trademarks or registered trademarks owned by or licensed to Palm, Inc. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.

SOURCE: Palm, Inc.

Palm, Inc.
Marlene Somsak, 408-617-7451
marlene.somsak@palm.com
or
A&R Edelman for Palm, Inc.
Kristine Boyden, 650-201-8830
kboyden@ar-edelman.com

Copyright Business Wire 2006

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