Palm Sets Oct. 28 for Stockholder Meeting to Vote on PalmSource Spin-off and Handspring Acquisition

MILPITAS, Calif., Sept. 29 /PRNewswire-FirstCall/ — Palm, Inc. (NASDAQ:PALM) today announced that its annual meeting of stockholders will be held on Oct. 28, 2003. Key business of the meeting will be to vote to approve and adopt an agreement and plan of reorganization related to the distribution of Palm’s shares of PalmSource common stock to Palm’s stockholders as well as the acquisition of Handspring, Inc., and the issuance of shares of Palm common stock to Handspring stockholders.
Palm stockholders at the close of business on Sept. 23, 2003, will be entitled to vote on the proposal.
Palm also announced that the Securities and Exchange Commission on Friday, Sept. 26, declared effective Palm’s registration statement on Form S-4. That form includes the proxy statement that will be mailed to Palm stockholders related to the annual meeting.
The meeting will be held at 8 a.m. PST on Tuesday, Oct. 28, at Palm headquarters (Building 10), 580 N. McCarthy Blvd., Milpitas, Calif., 95035.
Proposal Rationale
Palm and PalmSource believe that Palm’s stockholders will realize benefits from the separation of the two companies, including:
— Greater clarity of mission and focus for both businesses;
— Increased speed and responsiveness to technology change and customer
needs for both companies;
— Increased number of potential licensees for the Palm operating system;
— More direct access to capital markets for both companies, given that
they can be more easily understood by investors and securities
The Handspring merger is designed to create a stronger market leader in mobile computing and communications. The combination will put the Palm Solutions Group in a better position to pursue its objectives of growing the market, maintaining industry leadership and achieving profitability. Palm believes that the potential benefits of the merger include the ability to:
— Take better advantage of future growth opportunities through increased
scale and improved operational efficiency;
— Deliver a broad portfolio of mobile products from traditional handhelds
to wireless handhelds and smartphones;
— Add Palm’s strong brand and distribution channels to Handspring’s
highly regarded Treo product line and wireless telecommunications
carrier relationships; and
— Enhance Palm’s management team and board of directors through the
addition of several of Handspring’s key officers and directors.