Handspring to Bring Wireless Internet to Handheld Computer Family

Handspring, Inc. announced that it has entered into a definitive agreement to acquire Bluelark Systems, Inc. of Mountain View, Calif., developers of Blazer and BlueSky, a Palm OS Web browser and proxy server system that enables Internet access from handheld computers. With this acquisition, Handspring can advance its development of handheld products and Springboard modules that provide a secure, standards-based Web connection in a true pocket-size form.

Handspring will buy Bluelark Systems for, up to, 450,000 shares of Handspring common stock. Closing of the transaction is subject to approval by the shareholders of Bluelark and certain other conditions, and is anticipated to close in the first calendar quarter of 2001.

Donna Dubinsky, President and CEO of Handspring, says, "With the Internet such an important part of people's everyday lives, it's important to make it easier for people to access information from wherever they are. With Bluelark's software and infrastructure, Web browsing will become a key application for Handspring products."

Bluelark's core technology is a customizable mobile application platform called BlueSky, designed to give people an Internet experience from wireless-enabled handheld products. It also provides Blazer, client software for handheld devices that connects to the Internet to provide rapid transport of Web content. Because the BlueSky infrastructure supports all major existing standards, content is optimized for viewing on a handheld display regardless of its origin. For example, Blazer can display optimized content from sources including HTML, WAP and cHTML, and is beneficial for viewing rich content on color display products such as the Handspring Visor Prism. Initially, Handspring intends to bundle Blazer with its new VisorPhone product beginning in 2001.