1. Telesoft Partners Individuals in a Smart Device World October, 2004 Dave Nagel Chief Executive Officer

2. Develops & Distributes Palm OS™ Over 36 Million Devices Sold to Date Top Tier Licensees – palmOne, Sony, Samsung, Garmin, Lenovo, Kyocera, AlphaSmart, Symbol Technologies, Etc… #1 U.S. Smartphone Platform* Listed on NASDAQ (PSRC) October 29, 2003 Completed Secondary Offering ($62M) April 1, 2004 Pure Play Software Platform Company PalmSource Highlights *NPD, Feb 2004

3. Smart Mobile Device Evolution 1 st PDA ---------------------------------- 36 Million Smart Mobile Devices

4. New Categories of Devices from a Converged World Hard drive based music devices Communicators Location Handheld Content/ Entertainment Telematics Communication Commerce Mobile Computing

5. Sources: IDC, 2004; DFC Intelligence, 2003 CAGR (03–07) Smart phones/ Communicators 69% Entertainment players 23% Portable gaming 9% Handhelds/ Tablets 4% 20032004200520062007 90 60 30 2002 Smart Mobile Device Opportunities Annual worldwide unit sales in millions

6. What is a Smart Device? Completely digital content and customization Connected and always on a wireless or broadband network Operated by a digital user interface.

7. Mobile Information Everywhere Transfer pictures from Smart Camera over network connection Purchase and download music to accompany slide show

8. The User Challenge in a Smart Mobile World Network Interoperability Information Management User Interface

9. The User Challenge in a Smart Mobile World CDMA 2000 Bluetooth 1.1 MPEG 4 HTML HTTP 802.11g 802.11a 802.11b AES MMS SMS VOIP IPSEC Triple DES DRMs Network Interoperability Information Management User Interface

10. The User Challenge in a Smart Mobile World Email Documents Movies CDs Pictures Information Management User Interface CDMA 2000 Bluetooth 1.1 MPEG 4 HTML HTTP 802.11g 802.11a 802.11b AES MMS SMS VOIP IPSEC Triple DES DRMs Network Interoperability Files

11. The User Challenge in a Smart Mobile World User Interface Information Management CDMA 2000 Bluetooth 1.1 MPEG 4 HTML HTTP 802.11g 802.11a 802.11b AES MMS SMS VOIP IPSEC Triple DES DRMs Network Interoperability Email Documents Movies CDs Pictures Files

12. Palm OS User Experience Award winning user interface Optimized for small, mobile devices Customizable Media rich interface Communication always Catalog and access everything -Personal -Social -Business -Entertainment TodayFuture Devices carry 10MB to 10+GB, and network to reach the world

13. Palm OS: Interoperability through Standards UPnP SyncML N-way sync for peer-to-peer Background Sync Web Services Advanced Blue Tooth profiles Location based services TodayFuture Networking Blue Tooth, WiFi, IPv6, GPRS, Java, USB, … Media Frameworks for DRM, media, drivers Communication POP/IMAP, SMS, RIM, IM, …

14. Palm OS Information Management Structured, secure SQL databases (find) Unstructured data by VFS, FAT16/32 standards HotSync, Beaming, Exchange Manager UPnP SyncML Smart data categorization N-way sync for peer-to-peer Background Sync Social network aware TodayFuture

15. Q&A

16. The Expanding Economy

17. Sources: PalmSource Developer Registration Database, PalmGear Website PSI, Primary research, ereader.com, audible.com ’03 & ‘04 Strong Ecosystem Growth 275K 50M 22K 13K 10K 13 30M Developers App Downloads Applications eBooks Audiobook/Titles Wireless Operators Installed Base 355K 75M 29K 18K 22K 30 36M 20032004