PalmSource and MontaVista Software Team to Accelerate Development of Next Generation Linux Mobile Phones

-- MontaVista joins Palm Powered Mobile World SUNNYVALE, Calif., Aug. 9 /PRNewswire-FirstCall/ -- PalmSource, Inc. (Nasdaq: PSRC), provider of Palm OS(R), a leading operating system powering next generation phones and mobile devices, and MontaVista Software, the leading Linux provider for the telecommunications market, today announced they are teaming up to help further accelerate the development of next generation Linux-based mobile phones. PalmSource has joined MontaVista's Mobilinux Open Framework partner program; and MontaVista has joined PalmSource's Palm Powered(TM) Mobile World (PPMW) program. As partners, MontaVista and PalmSource can leverage their collective expertise to create integrated solutions for handset vendors and mobile operators looking to build Linux handsets.

"Joining Palm Powered Mobile World enables MontaVista to work closely with the extensive PalmSource developer community and wireless ecosystem to provide the tools and knowledge facilitating development of innovative applications that leverage the functionality and openness of Linux," said Peder Ulander, vice president, marketing, MontaVista Software. "PalmSource, with Palm OS, has developed a leading mobile application framework. We look forward to working closely with PalmSource to deliver best of breed products that combine the best of the Mobilinux and PalmSource operating systems, making it easier for handset manufacturers to deliver compelling, Linux-based mobile handsets."

"By joining MontaVista's Mobilinux Open Framework partner program, PalmSource is further demonstrating its commitment to enabling Palm OS, the mobile industry's leading application framework, to run on Linux," said Albert Chu, vice president, business development for PalmSource. "MontaVista is the leading Linux provider for mobile devices with world class partners and customers. Partnering with MontaVista will enable faster time to market for our mutual customers who want to deliver compelling, cost effective Linux-based mobile phone solutions." About MontaVista Mobilinux Open Framework

MontaVista's Mobilinux Open Framework is an industry-wide program for creation and promotion of Linux-based handset reference architectures. The primary goal of this program is to provide mobile handset vendors and operators with the architectural freedom to create and deliver differentiated products and services. Through this program, mobile handset vendors will build and ship devices featuring the latest technologies more quickly and more efficiently, while reducing overall development costs. More information on the Mobilinux Open Framework can be found at: http://www.mobilinux.com. About Palm Powered Mobile World

The Palm Powered(TM) Mobile World program connects mobile operators, infrastructure and middleware partners and software developers in a wireless Palm Powered economy designed to bring Palm OS software applications and solutions to market, provide increased revenue opportunities for partners and a superior experience for users of Palm Powered mobile devices. More information on the Palm Powered Mobile World program can be found at: http://www.palmsource.com/partners. About MontaVista Software

MontaVista Software provides an Open Source platform, allowing system designers to innovate across a wide range of inter-connected intelligent devices and communications infrastructure. MontaVista enables software developers with a commercial-grade Linux-based operating system. MontaVista Linux is a universal development platform that helps customers differentiate their products and get them to market faster at lower overall development costs. MontaVista Linux is the preferred choice of some of the world's largest corporations.

Founded in 1999, by real-time operating system pioneer James Ready, and headquartered in the heart of Silicon Valley, in Sunnyvale, Calif., MontaVista Software is a privately held company funded by leading venture capital firms and strategic corporate investors. For more information about MontaVista Software, please visit http://www.mvista.com . About PalmSource

PalmSource, Inc., the company behind Palm OS(R), a leading operating system powering smart mobile devices, is a leading developer of software for mobile phones and other mobile devices. Its products include a wide range of software for mobile phones at all price points. More than 39 million mobile phones, handhelds, and other mobile devices run PalmSource software. More than 45 companies worldwide have licenses to PalmSource software, including Fossil, Garmin, GSPDA, Kyocera, Lenovo, Palm, Samsung, Sony, and Symbol Technologies. Palm OS has given rise to a large community of users, enterprises, developers and manufacturers, who together make up the Palm Powered Economy. More information about PalmSource is available at http://www.palmsource.com, http://www.palmsource.co.uk, http://www.palmsource.fr, http://www.palmsource.de, http://www.palmsource.com/es and http://www.palmsource.com.cn CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include, without limitation, statements regarding our collaboration with MontaVista and the Palm Powered(TM) Mobile World program. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include, without limitation, our ability to collaborate successfully with MontaVista Software and other Palm Powered Mobile World partners; the ability of MontaVista Software to successfully optimize its offering for Palm OS(R) and to build a product portfolio that includes comprehensive support for Palm Powered devices; our ability to enter into new relationships with leading mobile operators, infrastructure partners and software developers to create innovation and differentiation in the global phone an mobile device markets; realization of the anticipated benefits of the Palm Powered Mobile World program; and other risks and uncertainties contained in our public announcements, reports to stockholders and other documents filed with and furnished to the Securities and Exchange Commission, including our Annual Report on Form 10-K for the period ended May 28, 2004 and our Quarterly Report on Form 10-Q for the periods ended August 27, 2004, November 26, 2004 and February 25, 2005. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements. NOTE: PalmSource, Palm OS, and certain other trade names, trademarks and logos are trademarks which may be registered in the United States, France, Germany, Japan, the United Kingdom, and other countries and are either owned by PalmSource, Inc., it's affiliates, or are licensed by PalmSource, Inc., from Palm Trademark Holding, Company LLC.

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