The Palm Advantage attachment is included.

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Dear Palm Solution Providers:

We've received some questions from the Palm economy regarding what we think about the 
new version of Windows CE, which Microsoft calls Pocket PC.  We expect that Microsoft 
will make a very big launch event and advertising campaign starting April 19, just as 
they did with the last version of Windows CE.

Just like last time, some industry analysts will announce that Palm is dead, because 
Microsoft's handheld has more PC features than Palm handhelds.  And just like last 
time, when the smoke clears we think Palm will still be on top.

We don't ever underestimate a competitor, though.  The market is too competitive and 
changes too fast.  Besides, there's no question that Windows CE is less unpleasant 
than it used to be.  So we'll continue to  work hard to tell Palm's story, including 
the amazing array of great software and hardware products that you bring to the Palm 
platform.

Now that we're a public company, we have very aggressive plans to drive the long-term 
growth of the Palm platform.  We'll be revealing more about those plans in the next 
several months.  And in the meantime, we think we have a great story to tell about 
Palm and our partners today.  Here's some of the information we'll be distributing.  
You'll see this reflected in new and more aggressive marketing campaigns this summer.  
If you get questions about Palm's competitiveness, we encourage you to pass this 
information along.  And we'd like to hear from you if you have comments on this memo, 
or ideas on things that we could do better.

Please email your comments and suggestions to [EMAIL PROTECTED] with "Pocket PC 
feedback" in the subject title.

Thanks very much for your support of the Palm family.

Michael Mace
VP, Product Strategy
Palm, Inc.
=================
The Palm Advantage

Palm OS(R) handhelds are the standard
- Palm OS has more than 75% market share worldwide, and our installed base doubled in 
the last year.
- Palm OS has more than 5,000 software programs, 10-50 times more than any other 
handheld platform.
- Palm OS is supported by the leaders in enterprise software, including Oracle, 
Siebel, SAP, Lawson, Sun, and Sybase.

Palm OS handhelds are the leader because they were designed from the ground up for 
your needs
- They're designed for information management when you're on the go, not to be a 
shrunken PC.  Key features of a handheld are different from a PC:
- Simple.  You can instantly access the information you need.
- Wearable.  It's small and light enough that that you can carry it in a pocket or a 
purse all day, and the batteries last long enough that you can go on a business trip 
without fear of losing information.
- Mobile.  You can always update your information through wired or wireless 
connections, even when youÄre on the go.
- We believe Palm remains the clear leader in all three areas.

What to ask when evaluating a handheld
- How many software programs and hardware options are available?  As for any other 
computing product, the number of software and hardware options determine how much you 
can do with it.  Palm OS has by far the largest selection, with more than 5,000 
software programs and hundreds of hardware expansion options.

- Do the people around you use it?  Handheld users share information.  They use the 
infrared connection to exchange business cards, information, and even software 
programs.  Make sure you're not stuck on a handheld island.

- How many companies sell it?  Which companies support the platform?  How many?  How 
innovative are they?  Palm licensees and OEMs include many of the most innovative 
companies in electronics, including leaders like Sony, Nokia, and IBM, and hot new 
companies like Handspring, Qualcomm, and TRG.

- Is it open?  Make sure your freedom of choice is protected.  Some handhelds restrict 
your choices by forcing you to buy all of one company's software programs, limiting 
you to a single expansion technology, or not working with the full range of corporate 
software.  The Palm platform gives you freedom of choice in software, with a multitude 
of different spreadsheets, document editors, e-book readers, mapping programs, 
financial management programs, etc. (see "Did You Know," below).  The Palm platform 
offers the most expansion options -- hundreds of external expansion products for the 
Palm-branded family, Springboard(TM) modules from Handspring, CompactFlash((TM) from 
TRG, and coming soon Memory Stick(R) technology from Sony. And Palm OS handhelds are 
designed to work with all leading computing environments, including PCs and Macs; 
Outlook and Notes; Yahoo and AOL; and the leaders in enterprise software.

- Are you forced to pay for features you don't want?  Everyone wants different things 
from a handheld.  Adding hardware features increases the weight and cost of the 
system.  Bundling extra software costs you money, and uses extra memory which adds 
even more cost and reduces battery life.  You'll carry your handheld with you all day 
-- make sure you're only carrying the programs and features you'll really want.  Palm 
puts the basics in its systems, and makees it easy for you to add whatever you want.

- How simple is it, really?  Beware of companies that try to cram an entire PC into 
your pocket.  Adding PC-style menus, windows, and programs can make a handheld too 
complex, and forces you to pay for extra memory and high-powered processors that can 
destroy battery life.  Remember, the most important features of a handheld are getting 
to the information you need instantly and reliably, and getting a battery life long 
enough that you can travel without the fear of losing your information.

- How well do the features work in real life?  Sometimes features work better in a 
demo than they do in real life.  A prime example is browsing the Web.  When connected 
to a phone line, browsing can look very fast.  But when using a wireless connection, 
which is what most handheld users want to do, the Web slows to a crawl.  You can get 
browsers for the Palm platform, but we also offer Web Clipping, a Web technology 
designed specifically for handhelds, which allows access to Web information in under 
ten seconds, even over a very slow connection.

Did you know that software and hardware announced for the Palm platform includes...
--More than a dozen e-reading programs and thousands of e-books.
--Several full-function spreadsheet programs that can read and edit Excel files.
--Numerous document-editing programs that let you read and edit Word files.
--Online shopping from Amazon, Ebay, and many others.
--Several full-function database programs.
--Corporate tools that let you fill out forms, check inventory, take orders, and even 
make job offers through a wireless connnection.
--Hundreds of games.
--Many financial management programs.
--Numerous drawing and painting programs.
--Tools that let you easily develop your own Palm OS programs in minutes.
--Two Web browsers.
--An MP3 player.
--Global Positioning System receivers and several mapping programs.
--Cellphones that are also full-function Palm-compatible handhelds.
--An electronic camera that lets you view pictures on your Palm handheld.
--Online weather from Weather.com, sports from ESPN, and news from ABC, the New York 
Times, and the BBC.
--A voice memo recorder.
--And thousands of others.

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