Palm, Motorola to Develop Smart Phones

Palm Inc. and Motorola Inc. will jointly develop a smart phone based on Palm's operating system and Motorola's wireless technology.

The first phone, a tri-band Global System for Mobile Communications wireless smart phone, is expected to roll out in early 2002, the companies said in a statement Monday. Palm and Motorola plan to develop the mobile phones with larger color screens than standard mobile phones and to include Palm's Web-clipping technology, address book and calendar features.

The deal is part of an agreement from last December under which Motorola took a minority equity stake in Palm, the companies said. Motorola will offer primary support for the device, including initial customer calls and warranty, while Palm will support software and operating system support.

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