3Com Reduces Prices of Industry-Leading Palm III™ and PalmPilot™ Professional Connected Organizers

Santa Clara, Calif., May 6, 1999 - Palm Computing, Inc., a 3Com company (Nasdaq: COMS), today announced a price reduction for two members of its market-leading family of handheld connected organizers. The versatile Palm III™ organizer is now available for a suggested retail price of U.S. $249, reduced from $299. The PalmPilot™ Professional Edition organizer is now listed at U.S. $149, down from $199. The prices of the recently announced ultra-slim Palm V™ organizer and the Palm IIIx™ organizer with expanded memory, remain at $449 and $369 respectively.

This pricing action is consistent with Palm Computing's commitment to price leadership and its dedication to growing the handheld computing market by offering customers industry-leading products at the most accessible price points.

"The hallmark of the Palm Computing product family is its tremendous value -- practical, intuitive and extensible solutions at easily affordable prices," said Pat McVeigh, vice president of sales for Palm Computing. "As our sales volumes continue to rise exponentially and volume purchases increase in corporate environments, we are able to offer our world-leading products at lower costs, making them even more attractive to a broader range of consumers and enterprise customers alike."


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