Palm Releases List of Best-selling eBooks for 2001

Guide to E-Commerce Technology

Number of Palm eBooks Sold Grows More Than 40% Over 2000

SANTA CLARA, Calif., Jan. 2 -- Palm, Inc. (Nasdaq: PALM) today named its best-selling eBooks for 2001. Palm Digital Media sold almost 180,000 eBooks this year, up more than 40 percent from last year, and nearly doubled its revenue.

"This is an emerging industry, and the steady growth that we are experiencing shows that there is a great deal of interest in eBooks," said Mike Segroves, director of business development for Palm Digital Media. "We average 1,000 new customers a week -- a clear indicator that handheld computer users are adopting this technology."

Palm Digital Media, the leading publisher and distributor of eBooks for handheld computers, offers a fast-growing list of more than 3,500 titles from most major U.S. publishing houses. The eBooks are available for reading with Palm Reader(TM), recent winner of Pocket PC magazine`s Best Product award for eBook readers. Palm Reader runs on Palm Powered(TM) handhelds using Palm OS(R) 3.0 and higher, as well as on Pocket PC handhelds.

Palm eBooks are available at http://www.Palm.com/ebooks. The eBooks are available for purchase and immediate download 24 hours a day. Most Palm Reader eBooks take less than two minutes to download and require only a few hundred kilobytes of available memory on the reader`s handheld computer.

Palm Digital Media Top 10 Best-selling Fiction eBooks for 2001
1. "Dreamcatcher" by Stephen King (Simon & Schuster)
2. "Timeline" by Michael Crichton (Random House)
3. "Riding the Bullet" by Stephen King (Simon & Schuster)
4. "The Talisman" by Stephen King and Peter Straub (Random House)
5. "Black House" by Stephen King and Peter Straub (Random House)
6. "The Hades Factor" by Robert Ludlum and Gayle Lynds (St. Martin`s Press)
7. "Digital Fortress" by Dan Brown (St. Martin`s Press)
8. "Star Wars: Darth Maul: Saboteur" by James Luceno (Random House)
9. "K-PAX" by Gene Brewer (St. Martin`s Press)
10. "The Jupiter Theft" by Donald Moffett (e-reads)

Palm Digital Media Top 10 Best-selling Non-fiction eBooks for 2001

1. "The Procrastinator`s Handbook" by Rita Emmett, (Walker and Company)
2. "Jack: Straight From the Gut" by Jack Welch and John Byrne (AOL Time Warner Book Group)
3. "The 7 Habits of Highly Effective People" by Stephen R. Covey (Franklin Covey)
4. "Surfing the Edge of Chaos" by Pascale, Millemann and Gioja (Crown Publishers)
5. "Get Anyone To Do Anything and Never Feel Powerless Again" by David J. Lieberman (St. Martin`s Press)
6. "Useless Sexual Trivia" by Shane Mooney (Fireside)
7. "Dave Barry Is Not Taking This Sitting Down" by Dave Barry (Crown Publishers)
8. "52 Saturday Nights" by Joan Elizabeth Lloyd (AOL Time Warner Book Group)
9. "Now and Forever, Let`s Make Love" by Joan Elizabeth Lloyd (AOL Time Warner Book Group)
10. "The Vagina Monologues" by Eve Ensler (Villard)

About Palm, Inc.
Palm, Inc. is a pioneer in the field of mobile and wireless Internet solutions and a leading provider of handheld computers, according to IDC (December 2000). Based on the Palm OS(R) platform, Palm`s handheld solutions allow people to carry and access their most critical information wherever they go. Palm(TM) handhelds address the needs of individuals, enterprises and educational institutions through thousands of application solutions.

The Palm OS platform is also the foundation for products from Palm`s licensees and strategic partners, such as Acer, Franklin Covey, HandEra (formerly TRG), Handspring, IBM, Kyocera, Samsung, Sony and Symbol Technologies. Platform licensees also include AlphaSmart, Garmin and Nokia. The Palm Economy is a growing global community of industry-leading licensees, world-class OEM customers, and approximately 175,000 innovative developers and solution providers that have registered to develop solutions based on the Palm OS platform. Palm went public on March 2, 2000. Its stock is traded on the Nasdaq national market under the symbol PALM. More information is available at http://www.palm.com .

NOTE: Palm OS is a registered trademark and Palm, Palm Powered and Palm Reader are trademarks of Palm, Inc. Other brands may be trademarks of their respective owners.