PalmSource Ships Palm OS 6 to Its Licensees

SUNNYVALE, Calif., January 6, 2004 - PalmSource, Inc. (NASDAQ: PSRC) the provider of Palm OS®, a leading operating system powering next generation mobile devices and smartphones, has shipped Palm OS 6, the next major release of its operating system, to its licensees.

PalmSource has fulfilled its commitment to deliver the next major release of the Palm OS before the end of 2003. Palm OS 6, shipped December 29, 2003, combines the flexibility, simplicity and ease of use that we believe are the hallmark of today's versions of Palm OS with the emergent operating system requirements that meet the demands anticipated for tomorrow's smart mobile devices. These requirements include modularity, multi-tasking, memory protection, robust security and state-of-the-art multimedia capabilities. Palm OS 6 enables the development of a new class of Palm Powered mobile products and strengthens PalmSource's position in the wireless and telephony markets. Palm OS 6 now joins PalmSource's growing family of product offerings.

"Palm OS 6 is a major milestone for PalmSource, and we are happy to deliver the final version on schedule," said Larry Slotnick, chief products officer at PalmSource. "We believe that our team has developed a tremendous product for our licensees to bring innovative Palm Powered mobile products into new markets."

About PalmSource
PalmSource, Inc. is the company behind Palm OS, a leading operating system powering mobile information devices. More than 30 million Palm Powered handhelds and smartphones have been sold to date worldwide. Industry leaders Aceeca, AlphaSmart, Fossil, Foundertech, Garmin, GSL, HuneTec, Kyocera, Lenovo, palmOne, PerComm, Samsung, Sony, Symbol Technologies and Tapwave license Palm OS to create diverse mobile devices that meet unique customer needs. Palm OS has given rise to a large community of users, enterprises, developers and manufacturers, who together make up the Palm Economy. More information about PalmSource is available at https://www.palmsource.com,http://www.palmsource.co.uk, http://www.palmsource.fr, http://www.palmsource.de and https://www.palmsource.com.cn.

Palm OS is a registered trademark and Palm Powered is a trademark of Palm Trademark Holding Company, LLC. Other brands may be trademarks of their respective owners.

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 related to, the features and benefits of Palm OS 6; requirements for and the development of a new class of mobile devices by PalmSource's licensees; and the value of Palm Powered solutions. 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, the ability of Palm OS 6 to successfully meet, if at all, the demands for tomorrow's smart mobile devices; PalmSource's licensees to develop or create timely and innovative Palm Powered products running on Palm OS 6; the ability of such licensees to leverage the Palm OS 6 platform; market acceptance of Palm Powered devices running on Palm OS 6; our ability as well as that of our licensees to compete with existing or new competitors; the ability of PalmSource to benefit from any growth in the mobile device and smartphone markets; and the general economic conditions in the U.S. and abroad 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 Quarterly Report on Form 10-Q for the period ended August 29, 2003. 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.