Palm and Movistar Launch Treo 650 Smartphone on Movistar Network in Mexico

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MEXICO CITY — Palm, Inc., a leader in mobile computing, and Movistar, owned by Telefonica Moviles of Spain, are offering the latest Movistar corporate solution, Oficina movistar, on the Palm Treo 650 smartphone in the Mexican market. The solution provides professionals an innovative tool that supports their business and personal lives.

Oficina movistar, which was introduced in February, provides companies with a mobile office solution on a portable handheld device, enabling professionals to access corporate emails, contact lists, calendars, to-do lists, and the Internet while out of the office. Designed to work with Movistar’s EDGE (Enhanced Data for Global Evolution) network, the Treo 650 smartphone has proven to be a powerful device for Movistar’s enterprise customers.

“The demand for all-in-one devices continues to increase, and the Treo 650 smartphone is the perfect solution for business professionals who need fast access to the information and applications that matter most to them,” said Ignacio Gallego, general manager of Palm Mexico. “We are pleased to continue to work with operators like Telefonica Moviles Mexico in an effort to put the latest member of the Treo family within reach of Mexican customers.”

“Movistar is committed to offering the highest-quality, world-class solutions to our customers,” says Juan Antonio Azcarraga, director of communications of Telefonica Moviles Mexico. “This mission inspires us to work with companies like Palm that offer the latest-generation tools that seamlessly integrate with our enterprise applications. At Movistar, we consider ourselves the strategic partners of our enterprise clients, and we offer customized solutions to meet their needs and specifications.”

About the Treo 650 Smartphone from Palm, Inc.

Building on the award-winning Treo 600 design, the new Treo 650 smartphone from Palm makes it easier than ever for mobile professionals to stay connected. By combining a compact, full-featured mobile phone with email, an organizer, messaging and web access, the Treo 650 lets users organize and simplify their business and personal lives all in one place. the Treo 650 offers integrated Bluetooth technology, a higher-resolution screen, multimedia capabilities, a removable battery, non-volatile memory, an improved backlit keyboard, and support for direct corporate email access to Microsoft Exchange Server 2003. More information can be found at www.palm.com/Treo650.

About Telefonica Moviles

Telefonica Moviles is the company that manages the mobile telephony operations for the Telefonica Group. It is one of the first operators of mobile telephony in the world and a leader in the Hispanic and Portuguese speaking market sector. It has operations in three continents and more than 86.5 million clients, including BellSouth Latin America customers, recently acquired in January of 2005. At the closing of the second quarter of 2005, Telefonica Moviles reported a net income of 927.8 million euros.

Telefonica Moviles is a charter member of FreeMove, the alliance of European mobile operators. Telefonica Moviles trades on the New York Exchange Stock under the TEM symbol.

About Palm, Inc.

Palm, Inc. (formerly palmOne, 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 include smartphones, under the Treo brand; mobile managers, under the LifeDrive brand; handheld computers, under the Tungsten and Zire brands; as well as software 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 (www.palm.com/store).

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

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