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| | Palm buys Handspring |
 | | The boards of directors of Palm, Inc. and Handspring, Inc., a maker of Palm OS smartphones, today announced that they each have unanimously approved a definitive agreement for Palm to acquire Handspring to form a new, stronger market leader in mobile computing and communications. |
 | | The transaction, encompassing the spin-off of PalmSource and the merger of Handspring with the remaining Palm Solutions Group of Palm, is expected to close in the fall, subject to certain conditions. |
 | | The proposed spin-off is expected to be tax-free to Palm and the Palm shareholders, and the proposed acquisition of Handspring is expected to be tax-free to shareholders of both companies for U.S. federal income tax purposes. |
| www.pdacortex.com /Palm_buys_Handspring.htm (1475 words) |
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