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Palm Pre to Launch in Europe with O2 and Movistar

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Palm webOS Phone to Arrive in UK, Ireland, Germany and Spain on Local Telefonica Networks

Palm, Inc. today announced that the

Palm Pre™ phone is scheduled to be available initially in the UK, Ireland and Germany exclusively on the O2 network, and in Spain exclusively on the Movistar network, in time for the holidays. Palm Pre, the first phone based on the new Palm webOS™ mobile platform, brings your information from the many places it resides — on your phone, at work or on the web — into one simple, integrated view.1

“Europe continues to be an important region for Palm, and we’re proud to work with O2 and Movistar to spread the excitement Palm Pre has already ignited in North America,” said Jon Rubinstein, Palm chairman and chief executive officer. “Since we showed Palm Pre at Mobile World Congress in February, there’s been a great deal of anticipation for an announcement about European availability, and that day is here.”

“We are fast becoming the home of the smartphone with the addition of the hotly-anticipated Palm Pre to our already extensive portfolio,” said Matthew Key, chairman and chief executive officer, Telefonica Europe. “Our customers will be the first outside of North America to experience one of the most successful mobile devices of the year.”

In its first weekend of availability in the United States, Palm Pre broke Sprint’s previous first-weekend sales records. Palm Pre also is scheduled to debut in Canada with Bell Mobility in the second half of 2009.

Palm Pre introduces a breakthrough user interface and hardware design that makes it one of the most integrated and user-friendly mobile phones on the market. Featuring a smooth, elegantly rounded ergonomic design and a physical keyboard (QWERTY in UK, Ireland and Spain, QWERTZ in Germany) that slides out only when needed, Palm Pre is engineered to feel natural in your hand and comfortably small in your pocket. When closed, Palm Pre is ideal for phone calls, web browsing, music, photos and videos; when open, Palm Pre is optimized for email and text messaging. It provides an exceptional experience for phone calls, whether held to your ear, over speakerphone or via Bluetooth.

With its curved slider and gesture-controlled touch interface, Palm Pre fuses exquisite design with the revolutionary webOS software for fast access to content on the device or web. Invented exclusively for mobile use, webOS offers an instinctive user experience that seems to anticipate your needs.

Availability and Pricing
Palm Pre is scheduled to be available initially in the UK, Ireland and Germany exclusively on the O2 network, and in Spain exclusively on the Movistar network, in time for the holidays. Pricing for the phone has not yet been determined.

Customers who would like to register to receive additional information about Palm Pre and be notified when it’s available can register at:

About Telefonica
Telefonica is one of the world’s largest telecommunications operators by market capitalisation. Its activities are centred mainly on the fixed and mobile telephony businesses, while its broadband business is the key growth driver underpinning both. It operates in 25 countries and has a global customer base of 260 million. Telefonica’s growth strategy is focused on the markets in which it has a strong foothold: Spain, Europe and Latin America. Telefonica is a 100% private sector company with its shares listed in Madrid and other stock exchanges and more than 1.5 million individual shareholders.

About Palm, Inc.
Palm, Inc. (Nasdaq:PALM) is a leading mobile products company, creating instinctive yet powerful mobile products that enable people to better manage their lives on the go. The company’s products for consumers, mobile professionals and businesses include Palm Treo™, Palm Pre™ and Palm Centro™ phones, as well as software, services and accessories.

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1 Use of this device requires providing a valid email address, mobile phone number, and related information for account setup and activation. Unlimited usage data plan strongly recommended; additional data charges may apply. Within wireless coverage area only. Number of applications and actual performance will vary depending on applications used and actions performed.

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