Palm and ePocrates Team to Deliver Custom Handheld Solution for Healthcare Professionals

Palm, Inc. (Nasdaq: PALM), and ePocrates(tm) Inc., the largest handheld network for physicians, today announced an agreement to manufacture and distribute customized Palm(tm) handheld computers for physicians. ePocrates is the first healthcare company to enter into an original equipment manufacturer (OEM) agreement with Palm.

Under the terms of the agreement, Palm will provide ePocrates-branded handhelds with customized labeling and packaging along with pre-loaded software especially designed for physicians. ePocrates will distribute the customized Palm handhelds to physicians' offices across the U.S. Combined with its existing user base, ePocrates estimates it will have more than 100,000 users by the end of the year.

"Palm is committed to working with companies like ePocrates to create products that help physicians and other healthcare professionals provide their patients with high quality care," said Greg Rhine, Vice President of Worldwide Sales for Palm, Inc. "The increasing deployment of Palm handheld computers within the medical field illustrates the productivity gains that these professionals are realizing by using our handhelds and the applications that go with them."

In the five months since its launch, the ePocrates Network has registered approximately 45,000 active users, including over 30,000 physicians. Growing at a rate of 400 new users per day, the ePocrates Network allows physicians with Palm OS(R) platform based handhelds quick point-of-care access to important clinical information. For instance, physicians using ePocrates qRx(tm) can check whether a drug is potentially harmful when taken with other medications. Via the Internet, physicians automatically receive updated clinical information from the ePocrates clinical editorial board and content partners. The necessity for accessing current information makes the ePocrates product an essential part of any medical practice.

"ePocrates is pleased to join forces with Palm to provide healthcare practitioners with the latest information. We believe our respective leadership positions will be enhanced by working together to address the growing needs of physicians," said Jeff Tangney ePocrates co-founder and Vice President of Business Development.

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