3Com Delivers Palm IIIe™ Connected Organizer, Full-featured Handheld at Breakthrough Price

Also Introduces USB Cable and New Stylish Carrying Cases

Santa Clara, Calif., July 19, 1999 - Palm Computing, Inc., a 3Com company (Nasdaq: COMS), today introduced the Palm IIIe™ connected organizer, a low-priced, entry-level addition to its industry-leading family of handheld products. Designed to address the fast-growing consumer market for handheld organizers, the Palm IIIe organizer combines the popular, easy-to-use functionality of previous Palm Computing® organizers with the company's lowest ever introductory list price of U.S. $229. 3Com also announced new accessories including a Universal Serial Bus connection kit and a variety of stylish carrying cases.

As the entry-level model in the Palm III™ family of products, the Palm IIIe organizer is ideal for users new to Palm Computing products - including students, parents and business professionals. The Palm IIIe features the same convenient form factor as the award-winning Palm III organizer plus the advanced liquid crystal display screen for improved contrast and clarity that was first seen in the Palm IIIx™ organizer.

"Palm Computing organizers have become indispensable tools for managing almost any aspect of daily life," said Byron Connell, director of product marketing for Palm Computing.

"With the Palm IIIe product, we hope to delight a broader segment of users who are new to Palm Computing organizers and who will appreciate the value of the Palm Computing organizer's world-renowned ease-of-use at an extremely affordable price." Based on the Palm Computing platform, the Palm IIIe organizer shares the same award-winning features - such as ease of use, simplicity and instant one-touch synchronization with any PC or Macintosh computer - that have made Palm Computing products the most popular handheld organizers on the market. An extremely efficient design for data storage enables the Palm IIIe organizer's 2MB of memory to store 6,000 addresses, five years of appointments, 1,500 To Do items, 1,500 memos and 200 e-mail messages.

The Palm IIIe organizer features version 3.1 of the award-winning Palm OS™ software and ships with the Palm™ Desktop software. The Palm IIIe also features infrared (IR) "beaming" for sharing information -- such as schedules, events, applications, games or memos -- wirelessly with other IR-enabled Palm Computing organizer users. The Palm IIIe organizer runs on two AAA batteries.

Palm Computing Announces New Accessories Palm Computing also today announced new accessories for the Palm Computing family of organizers, including a new solution for connecting to PC and Macintosh computers via Universal Serial Bus ports. The PalmConnect® USB kit is a cable that allows users to connect HotSync® cradles and cables to PCs, laptops and Apple USB-equipped systems. The kit, expected to be available in August, includes the latest version of the Palm Desktop software for Macintosh users and is listed for a price of U.S. $39.95.

3Com also introduced stylish new carrying case options for the Palm III series of products: - The PalmGlove™ neoprene case was designed exclusively for Palm Computing by Body Glove, Santa Monica, Calif. Available from Palm Computing in six colors -- black, olive, royal blue, teal, yellow and purple - these sporty cases are water resistant and shock absorbent, providing extra protection for any Palm III series organizer. The PalmGlove case is now available for a list price of $29.95. - The new Palm Premiere Case Collection offers two distinct styles of slim Italian leather cases for the Palm III series. These are available from Palm Computing in three colors: saddle, mocha brown and trail brown. A basic model is listed at $39.95, and an extended model is $49.95.

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