NPD INTELECT REPORTS IMPRESSIVE DEBUT FOR HANDSPRING PERSONAL DIGITAL ASSISTANT

PORT WASHINGTON, NEW YORK, June 22, 2000 – According to leading marketing information provider NPD INTELECT Market Tracking, the new personal digital assistant (PDA), Handspring, has managed to quickly garner consumer attention. In its first month of distribution, April 2000, Handspring captured 18% of retail unit sales and 14% of retail dollar sales. Despite Handspring’s impressive debut, long-time leader Palm continues to sustain leader status.

According to NPD INTELECT data on handheld computers sold in April and first quarter 2000, the debut of Handspring resulted in a decreased market share for four of the first quarter’s five leading handheld brands, completely removing Royal Business from the top five manufacturers.

What may have contributed to Handspring’s strong introduction in the retail market is its average price of $229.95, making it $100 less than the average PalmPilot and nearly half the price of Hewlett Packard’s handheld. The Handspring has several features that competitors do not, such as a unique, patented external expansion slot called Springboard. The Springboard system, along with Visors Plug-and-Play, allows the consumer to add software and hardware modules without any software drivers or special adapters.

Handspring’s strong showing in April is especially noteworthy given the product’s limited distribution. Only two major national retailers carried the Handspring brand while other handheld manufacturers have a much wider distribution.

"The strong premier of Handspring may provoke a buy-and-try attitude, but it remains to be seen whether it will continue to seriously challenge the competition," commented Sima Vasa, NPD INTELECT vice president of technology products. "However, April’s unit figures seem to suggest that with a wider distribution, the Handspring could continue to be a strong competitor in the handheld market."