EXHIBIT 99.2


MEDIA CONTACT:                                           PR2000-08

Marlene Somsak
Palm, Inc.
408.326.7513
marlene somsak@palm.com
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                     PALM ADOPTS SHAREHOLDERS' RIGHTS PLAN


SANTA CLARA, Calif., October 3, 2000 -- Palm, Inc. (Nasdaq: PALM) today
announced that its board of directors has adopted a Shareholders' Rights Plan.
Under the plan, Palm will issue a dividend of one right for each share of common
stock -- par value of $0.001 per share -- of the company held by stockholders of
record as of the close of business on Nov. 6, 2000. The plan is designed to
assure stockholders fair value in the event of a future unsolicited business
combination or similar transaction involving the company. Palm added that the
plan was not adopted in response to any attempt to acquire the company, and that
it is not aware of any such efforts.

Each right will initially entitle stockholders to purchase a fractional share of
the company's preferred stock for $ 370. However, the rights are not immediately
exercisable and will become exercisable only upon the occurrence of certain
events. Upon certain other events, unless redeemed for $0.001 per right, the
rights will become exercisable by holders, other than rights held by an
unsolicited party acquirer, for shares of the company or of the third-party
acquirer having a value of twice the right's then-current exercise price.
Further details of the plan are outlined in a letter that will be mailed to
stockholders as of the record date.

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About Palm, Inc.
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Palm, Inc. is a pioneer in the field of mobile and wireless Internet solutions
and a leading provider of handheld computers (source: IDC, December 1999). Based
on the Palm OS/(R)/ platform, Palm's handheld solutions allow people to carry
and access their most critical information with them wherever they go. Palm
handhelds address the needs of individuals, enterprises and educational
institutions through thousands of application solutions. The Palm OS platform is
also the foundation for products from Palm's licensees and strategic partners,
such as Cresenda Wireless; ePocrates, Inc.; Franklin-Covey; Handspring; IBM;
Sony; Symbol Technologies; and TRG. Platform licensees also include Kyocera and
Nokia. Palm went public on March 2, 2000. Its stock is traded on the Nasdaq
national market under the symbol PALM. More information is available at
www.palm.com.
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Palm OS is a registered trademark of Palm, Inc. or its subsidiaries.

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