Palm Stockholders Approve Transaction Involving Investment by Elevation Partners

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SUNNYVALE, Calif., Sep 12, 2007 (BUSINESS WIRE) --

Palm, Inc., (Nasdaq:PALM) today announced that Palm stockholders have approved proposals that will permit Palm to conclude a $325 million investment by Elevation Partners, L.P., borrow up to $400 million in an associated debt financing, make a cash distribution of $9.00 per share to Palm stockholders, and make related adjustments to its equity plans.

In other actions, the stockholders elected Gordon Campbell and Donna Dubinsky as Class II directors to serve until the annual meeting of Palm stockholders to be held in 2010, and ratified the appointment of Deloitte & Touche LLP as the Company's independent registered public accounting firm for the fiscal year ending May 30, 2008.

"We appreciate our stockholders' strong support of these proposals and look forward to an era of renewed innovation and focused execution at Palm," said Ed Colligan, president and chief executive officer.

In connection with this transaction, Palm will appoint Jon Rubinstein as executive chairman of the Board of Directors. Roger McNamee and Fred Anderson, both of Elevation Partners, will also join the Company's board.

About Palm, Inc.

Palm, Inc. (Nasdaq:PALM), 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 from anywhere. The company's products for consumers, mobile professionals and businesses include Palm(R) Treo(TM) smartphones, mobile companions and Palm handheld computers, 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).

Forward-Looking Statements

This press release includes forward-looking statements that are based on certain assumptions and reflect our current expectations. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements to differ materially from any future results, performance, or achievements discussed or implied by such forward-looking statements. These forward-looking statements include statements regarding the closing of the transaction with Elevation Partners, including a $325 million investment by Elevation, the incurrence of $400 million in debt by Palm, the distribution of $9.00 per share to Palm's stockholders as of the closing of the transaction, adjustments to Palm's equity plans, the appointment of Jonathan Rubinstein, Roger McNamee and Fred Anderson to Palm's board of directors at the close of the transaction, and the timing of the closing of the transaction. The risks associated with such forward-looking statements include the risk that the proposed transaction may not be completed in a timely manner, if at all, the availability of sufficient surplus under applicable law at the closing of the transactions to make the cash distribution, the availability of the debt financing and other risks, some of which are discussed in Palm's reports and other documents filed with the Securities and Exchange Commission (the "SEC") under the caption Risk Factors and elsewhere, including Palm's annual report on Form 10-K for the fiscal year ended June 1, 2007 and Palm's definitive proxy statement filed with the SEC on August 10, 2007. Any forward-looking statement is qualified by reference to these risks, uncertainties and factors. Forward-looking statements speak only as of the date of the document in which they are made. These risks, uncertainties and factors are not exclusive, and Palm undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release, except as required by law.

SOURCE: Palm, Inc.

Palm, Inc.
Christine Nakamoto, Investor Relations, 408-617-7626
christine.nakamoto@palm.com

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