PORT WASHINGTON, NEW YORK, March 14, 2002 -- Portable software sales were up 220 percent in 2001 according to NPDTechworld^SM, the definitive online source for accessing essential market information for the consumer electronics and information technology industries.

Over 900,000 units were sold through retail channels during 2001, up from about 225,000 in 2000. Not totally unexpected was that games were the largest category in 2001, with approximately 350,000 units sold.

"It was a great year for handhelds, which ultimately resulted in a blockbuster year for portable software," said Steve Koenig, senior software analyst, NPDTechworld. "Consumers discovered that handhelds have more functionality than storing a calendar and contacts. They have become a direct extension of the PC."

NPDTechworld point-of-sale data also shows that the clear leader in operating systems for handhelds was the Palm OS, which accounted for almost all (97 percent) of 2001 portable software sales through retail.

Retail revenues from the sale for portable software more than doubled in 2001 to $27 million; up $15 million from 2000's results of $12 million. Increased competition has lowered the average selling price (ASP) of handheld software, which declined $12 in 2001 versus 2000. The ASP for handheld software in 2000 was $42 compared to $30 in 2001.

"The portable software category continues to heat up, and we anticipate that prices will continue to drop. As handhelds become more powerful and the utility of these devices increase, software publishers will likely focus their development and marketing efforts on this key growth segment," Koenig added.