Combination will accelerate HP’s growth within the more than $100 billion connected mobile device market. Photo: Palm

PALO ALTO and SUNNYVALE, Calif., April 28, 2010

HP and Palm, Inc. (NASDAQ: PALM) today announced that they have entered into a definitive agreement under which HP will purchase Palm, a provider of smartphones powered by the Palm webOS mobile operating system, at a price of $5.70 per share of Palm common stock in cash or an enterprise value of approximately $1.2 billion.

The transaction has been approved by the HP and Palm boards of directors.

The combination of HP’s global scale and financial strength with Palm’s unparalleled webOS platform will enhance HP’s ability to participate more aggressively in the fast-growing, highly profitable smartphone and connected mobile device markets.

Palm’s unique webOS will allow HP to take advantage of features such as true multitasking and always up-to-date information sharing across applications.

Todd Bradley, executive vice president, Personal Systems Group, HP. Photo: HP

“Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices,” said Todd Bradley, executive vice president, Personal Systems Group, HP.
“And, Palm possesses significant IP assets and has a highly skilled team. The smartphone market is large, profitable and rapidly growing, and companies that can provide an integrated device and experience command a higher share. Advances in mobility are offering significant opportunities, and HP intends to be a leader in this market.”

Jon Rubinstein, chairman and chief executive officer, Palm. Photo: Palm

“We’re thrilled by HP’s vote of confidence in Palm’s technological leadership, which delivered Palm webOS and iconic products such as the Palm Pre. HP’s longstanding culture of innovation, scale and global operating resources make it the perfect partner to rapidly accelerate the growth of webOS,” said Jon Rubinstein, chairman and chief executive officer, Palm.
”We look forward to working with HP to continue to deliver industry-leading mobile experiences to our customers and business partners.”

Applications designed for the Palm® webOS™ platform make your phone more powerful, more useful, and more fun. Photo: Palm

Under the terms of the merger agreement, Palm stockholders will receive $5.70 in cash for each share of Palm common stock that they hold at the closing of the merger.

Applications designed for the Palm® webOS™ platform make your phone more powerful, more useful, and more fun. Photo: Palm

The merger consideration takes into account the updated guidance and other financial information being released by Palm this afternoon.

Applications designed for the Palm® webOS™ platform make your phone more powerful, more useful, and more fun. Photo: Palm

The acquisition is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of Palm’s stockholders.

Applications designed for the Palm® webOS™ platform make your phone more powerful, more useful, and more fun. Photo: Palm

The transaction is expected to close during HP’s third fiscal quarter ending July 31, 2010.

Palm’s current chairman and CEO, Jon Rubinstein, is expected to remain with the company.


About Palm


Palm, Inc. creates intuitive and powerful mobile experiences that enable consumers and businesses to connect to their information in more useful and usable ways.

The company’s groundbreaking Palm webOS platform, designed exclusively for mobile application, introduces true multitasking and Palm Synergy, which brings your information from the many places it resides into a single, more comprehensive view of your life.

More information about Palm, Inc. is available at

www.Palm.com  



About HP


HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society.

The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems.

More information about HP (NYSE: HPQ) is available at

http://www.hp.com/  


http://www.hp.com/hpinfo/newsroom/press/2010/100428xa.html  



Jon Rubinstein
Chairman and CEO, Palm, Inc.

Jon Rubinstein, chairman and chief executive officer, Palm. Photo: Palm

Jon is chairman and CEO of Palm.
He joined Palm in 2007 to be the driving force behind the company's return to innovation, resulting in Palm webOS and the Palm Pre.
As chairman and CEO, Jon is responsible for Palm's global product innovation and business strategy.

Jon has helped launch some of the most influential computing products of the past decade. As a member of Apple's senior executive staff and head of hardware engineering, Jon was instrumental in conceiving the iPod.
He began his Apple career in 1997 as senior vice president of hardware engineering, overhauling the company's engineering teams, product roadmaps and manufacturing processes.
In 1998, Jon led the rapid rollout of the iMac, a machine that at once revitalized Apple and revolutionized personal computer design, and subsequently drove a complete overhaul of the popular Mac product line.
As worldwide popularity of the iPod soared, Jon was appointed head of Apple's iPod Division until he left the company in 2006.

Before joining Apple, Jon spent two decades building his career at a variety of computer companies, including Hewlett-Packard and NeXT, and founded his own computer company, Firepower Systems Inc.

Jon is a member of the National Academy of Engineering (NAE) and a senior member of the IEEE.

He received bachelor's and master's degrees in electrical engineering from Cornell University and a master's degree in computer science from Colorado State University.

http://www.palm.com/us/company/management-team/rubinstein-jon.html  



Todd Bradley
Executive Vice President, Personal Systems Group, HP.

Todd Bradley, executive vice president, Personal Systems Group, HP. Photo: HP

Todd Bradley is executive vice president of HP’s Personal Systems Group, a $42 billion annual revenue business that includes personal computers, mobile devices, technical workstations, personal storage solutions and Internet services.
He also is a member of HP’s Executive Council.

Under Bradley’s leadership, the Personal Systems Group has accelerated profitable growth, firmly establishing HP as the No. 1 PC vendor in the world.
During his three-year tenure, the business has added more than $15 billion in revenues and increased profitability threefold.

His organization reset the global PC industry with its “The Computer Is Personal Again” campaign, setting a new standard for design, user interface and the overall customer experience.
At the helm of the largest global supply chain in the IT industry, Bradley has promoted environmental and social responsibility across thousands of suppliers and channel partners and millions of customers whose lives and businesses HP touches.

During his 28-year management career, Bradley has held senior roles at GE Capital, Dun & Bradstreet and FedEx.

Prior to joining HP, Bradley was chief executive officer of Palm.
Before that, Bradley was executive vice president of global operations for Gateway.

Bradley holds a bachelor of science in business administration from Maryland’s Towson University, where he is currently a member of the board of visitors.
He also serves as a director of LiveOps and trustee of the American Film Institute.

http://www.hp.com/hpinfo/execteam/bios/bradley.html