Palm CEO Carl Yankowski Resigns

Palm announced that Carl Yankowski has decided to resign as ceo. Eric Benhamou, Palm chairman of the board, will serve in his place until a permanent successor is named. A search has begun for a new ceo of Palm. The company also announced that it is in the final stages of its internal separation into two businesses.

"We thank Carl for his industry vision, for keeping Palm handhelds and the Palm OS the most popular choice among individuals and businesses around the world, and for setting the stage for future new OS and solutions growth," said Benhamou. "We wish him success in his future endeavors."

"With Palm's transition into two individual businesses almost complete, my role has changed, and it no longer matches my aspirations," Yankowski said. "I leave confident that our separation and solutions strategies, combined with the new leadership at the helm of both businesses, will result in increased shareholder value. It has been an honor to lead Palm."

Yankowski did not announce his future plans.

Benhamou will chair an executive council that will help him lead the company until a new ceo is named. The council comprises David Nagel, Platform Solutions Group ceo; Todd Bradley, Palm exec vp and coo of The Solutions Group; and Judy Bruner, Palm senior vp and cfo.

Palm is made of two business groups: The Solutions Group is responsible for designing and delivering the popular Palm family of products, including the Palm m100 and Palm m500 series handhelds and the Palm VIIx handheld, as well as hardware add-ons, software and accessories.

The Platform Solutions Group is responsible for developing the Palm operating system and licensing it to a growing number of companies working to make handheld computing pervasive. By the end of calendar year 2001, the Platform Solutions Group is expected to become an internal subsidiary of Palm, a move that increases focus and drives innovation in both of Palm's businesses. More than 175,000 software developers have registered to develop software that runs on the Palm OS platform, and more than 12,000 software titles are available commercially today.

Financial Update
"While the economic slowdown persists, and consumer confidence has fallen following the Sept. 11 terrorist attacks, we are encouraged that sell-through has rebounded to levels above that of the summer months," Benhamou said.

The company confirmed that the second fiscal quarter remains on track with the revenue guidance provided on Sept. 20, 2001.

"We also are pleased that recent market research reports from Gartner and Jupiter Media Metrics reconfirm the strength of the Palm brand with both consumers and enterprises," said Benhamou.