Palm Inc. (formerly palmOne, Inc.), incorporated in 1992, is a global provider of handheld computing and communications devices. The Company targets consumer, business, education and government users worldwide. The Company sells products under four sub-brands: the Zire, Tungsten, LifeDrive and Treo. The Zire family is primarily designed for, and targeted at, consumers, such as entry-level and digital media enthusiasts. The Treo and Tungsten lines are primarily designed for and targeted at business professionals and enterprise users. These product families span the handheld computing and communications device market. The LifeDrive line targets both types of end users, with a product that fuses business productivity tools and entertainment applications. Zire There are two products in the Zire family. The Zire 31 was introduced in April 2004. It focuses at attracting the first-time buyer who wants a full-featured, low-cost mobile computing device. The Zire 31 is a low-cost color handheld and features 16 megabytes of memory, Moving Picture Experts Group Layer-3 (MP3) playback with a stereo headphone jack, a five-way navigator to allow access to information with just one hand, personal information management (PIM) applications and an expansion slot that supports secure digital/multimedia card (SD/ MMC) and secure digital input/output (SDIO) expansion cards. The Zire 72 handheld was also introduced in April 2004. It is a successor to the Zire 71 and is aimed at young professionals. The Zire 72 features a 1.2-megapixel integrated camera, video capture with audio, MP3 playback with RealOne Mobile Player loaded into read-only memory (ROM), the ability to listen to stereo-quality MP3 music and watch video clips using the Kinoma player, 32 megabytes of memory, a five-way navigator, PIM applications, a SD/MMC slot and a 320x320 transflective thin-film transistor (TFT) color display. Tungsten There are two products in the Tungsten family. The Tungsten E2 was introduced in April 2005, and is a successor to the original Tungsten E. The Tungsten E2 provides non-volatile, flash memory that protects stored data even if the charge and power run out. With the Tungsten E2, users can create, edit and view Microsoft Word, Excel and other Windows-compatible files, as well as listen to MP3s and watch video clips. The Tungsten E2 features a five-way navigator, PIM applications, a SD/MMC slot, a 320x320 transflective TFT color display with touchscreen and 32 megabytes of memory. The Tungsten E2 has integrated wireless capability using Bluetooth technology. The Tungsten T5 was introduced in October 2004, and is a successor to the Tungsten T3. The Tungsten T5 provides non-volatile, flash memory and can be used as a flash drive with properly equipped computers. It includes a slider design that conceals the Graffiti II writing area, a five-way navigator, an SD/MMC slot, a 320x480 transflective TFT color display, which rotates from portrait to landscape with the touch of a button and 256 megabytes of memory. This handheld offers a voice recorder for important memos, PIM applications and the capacity to create, edit and view Microsoft Word, Excel and other Windows-compatible files, as well as the capacity to listen to MP3s, view photos and watch video clips. The Tungsten T5 has integrated wireless capability using Bluetooth technology. LifeDrive The LifeDrive was introduced in May 2005. The LifeDrive has a four-gigabyte hard drive with LifeDrive smart file management. It includes a five-way navigator, a SD/MMC slot and a 320x480 transflective TFT color display, which rotates from portrait to landscape with the touch of a button. This mobile manager offers wireless e-mail access with attachments, built-in Microsoft Exchange ActiveSync, a Web browser, PIM applications and the capacity to store, create, edit and view Microsoft Word, Excel, PowerPoint and other Windows-compatible files, and view Adobe PDF files, as well as the capacity to store and listen to MP3s and store and view photos, videos and movies. The LifeDrive has integr

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