Now Available in More Than 25 Countries, Centro is among the Top 10 Phones Worldwide for Mobile Internet

Palm, Inc. (Nasdaq:PALM) today said it has sold its two-millionth Centro smartphone, confirming the $99 product's growing momentum with traditional mobile phone users who want to move up to a phone that offers more functionality.(1) Palm is now offering Centro in more than 25 countries in North America, South America, Europe and Asia Pacific.

Recent data released by AdMob, the largest advertising network on the mobile web, further echoes the momentum of Palm's smallest, lightest and most affordable smartphone. According to the company's Mobile Metrics report (www.admob.com/s/solutions/metrics), Palm Centro leapt onto the list of mobile phones worldwide in May as the No. 8 device, and moved up in June to No. 7. AdMob cites the growth of inexpensive phones, such as Palm Centro, as a primary driver in mobile Internet usage.

"Consumers are ready to do more on their mobile phone, and Centro has struck a chord around the world," said Brodie Keast, senior vice president of marketing for Palm, Inc. "Centro has everything a person needs to stay connected with everyone who is important to them -- and at a price point and size that make smartphones more attractive to a much wider audience."

Palm also showed strong growth among smartphone manufacturers, ranking No. 2 in the United States in mobile advertising reach, and No. 3 worldwide. The AdMob report, which analyzes worldwide data to gauge mobile Internet use among devices able to receive mobile ads, also noted that 24.3 percent of worldwide ad requests in June were from smartphones, up from 22.4 percent in May. As more consumers leave their traditional mobile phones behind in favor of moving up to phones with greater functionality, mobile web usage is expected to increase.

Now available from almost 20 carriers worldwide, including the three largest carriers in the United States, Centro has reached more young adults and women, as well as a broader range of household income, than any prior Palm smartphone. It offers customers an affordable, simple and fun option for staying connected and doing more with their mobile phones.

Centro's full QWERTY keyboard and color touch screen make it easy to quickly type text messages, respond to emails, start instant message conversations, browse the web and more. It offers all of the great organizer functionality for which Palm is renowned, such as a detailed and integrated contacts list and a simple and handy calendar for juggling business meetings and get-togethers with friends. Centro lets users "sideload" songs and manage music, audio books and videos easily(2), as well as shoot pictures or videos with the built-in digital camera.

More information about Palm Centro is available at www.palm.com/centro.

About Palm, Inc.

Palm, Inc. is a leading mobile products company, creating instinctive yet powerful mobile products that enable people to better manage their lives on the go. The company's products for consumers, mobile professionals and businesses include Palm Treo and Centro smartphones 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 online stores (http://www.palm.com/store).

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

(1) Within wireless service coverage area only. Availability and coverage depends upon mobile service provider and the geographic scope of international roaming agreements. Email, messaging and web access requires data services from a mobile service provider at an additional cost.

(2) While some applications, songs and books are available free of charge, others may be sold separately.

Palm, Treo and Centro 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.

Contacts
A&R Edelman for Palm, Inc.
Sara Coughlin, 650-762-2957
scoughlin@ar-edelman.com