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Palm and Audi Launch Communications Tool for Improved Safety and Convenience on the Road

SUNNYVALE, Calif. & AUBURN HILLS, Mich.--Aug. 2, 20052, 2005--

  Companies Unveil Seamless Bluetooth Integration for Hands-free In-car Calling  



Palm, Inc. and Audi of America, Inc. today announced their collaboration in a new generation of communications solutions designed to improve safety and convenience for drivers: easy and totally integrated hands-free calling inside the car. Using built-in Bluetooth(R) short-range wireless technology and the Palm(R) Treo(TM) 650 smartphone(1), drivers of 2006 Audi A6 and A8 vehicles can make and receive calls(2) totally hands-free using the car's MMI(TM) (Multi Media Interface) console, voice-recognition interface(3) or steering-wheel controls.

The Bluetooth integration is a major innovation the two companies are delivering as part of an alliance that includes technology co-development and integrated marketing campaigns that reach the two brands' combined audiences.

"Today people spend more time in their cars than ever before, and mobile phone usage and utility is exploding," said John Hartnett, senior vice president, Americas, at Palm, Inc. "As the convenience of smartphones and wireless access continues to expand worldwide, an important next step was to integrate these technologies into cars in a way that places safety first. Now drivers can keep their eyes on the road and hands on the wheel, while using the Treo 650 to communicate with the outside world."

"Audi and Palm share very similar user demographics and leadership in design, technology and brand loyalty," said Stephen Berkov, director of marketing at Audi of America, Inc. "In light of these similarities, we saw a special opportunity in the intersection of car and phone technologies."

With the Treo 650 smartphone, Audi drivers can take advantage of the Treo 650's advanced calling features without ever touching the smartphone. After initiating Bluetooth communications between the Treo 650 and the car, drivers can use the steering-wheel controls, MMI controls on the dashboard, or the optional voice recognition to do the following:

-- Pick up or ignore incoming calls;

-- Dial outgoing calls;

-- View active call status, including caller ID;

-- View the Treo 650's call history;

-- Dial from Treo 650 favorites, speed dials, or call logs;

-- Access Treo 650 voicemail;

-- Manage multiple incoming calls; and

-- View carrier information, including signal strength and roaming status.

Bluetooth technology comes built-in to the Treo 650 smartphone and is standard in every 2006 Audi A8 and A6, so no extra purchase is required for Treo 650 owners who also own one of these new Audi models. Bluetooth technology also is available on the 2006 Audi A3 and 2006 Audi A4 and S4 sedans and Avants when the vehicles are equipped with the optional phone preparation.

In addition, Audi of America will introduce a special phone cradle that allows the customer to securely dock the Treo 650 smartphone in the center arm rest. The cradle provides a connection to the vehicle's external antenna for optimal reception as well as a power supply that charges the Treo 650 while in the cradle. Customers will be able to purchase the cradle from their local Audi dealer this fall.

About Palm, Inc.

Palm, Inc. (formerly palmOne, Inc.) -- a leader in mobile computing -- strives to put the power of computing in people's hands so they can access and share their most important information. The company's products include smartphones, under the Treo(TM) brand; mobile managers, under the LifeDrive(TM) brand; handheld computers, under the Tungsten(TM) and Zire(TM) brands; as well as software and accessories.

Palm(R) products are sold through select Internet, retail, reseller and wireless operator channels throughout the world, and at Palm Retail Stores and Palm online stores (http://www.palm.com/store).

More information about Palm, Inc. is available at http://www.palm.com.

About Audi of America

Audi's history in America dates to 1969, when the brand was first introduced to the U.S. market. Always an innovator, Audi offered a range of front wheel drive sedans to a market that scarcely understood the advantages to this now well-established concept. In 1980, Audi introduced quattro permanent all-wheel-drive to the world and 2005 marks the 25th anniversary of this legendary system.

Audi's success on the road has been matched by its success on the track. The Audi R8 has won the American Le Mans Series Championship for five consecutive years and the 24 Hours of Le Mans five times, a racing dynasty begun in the year 2000. The Audi RS 6 returned in 2004 to the SPEED World Challenge and captured its second consecutive manufacturer's title.

The network of over 260 Audi dealers currently offers a line of premium vehicles that include the category-defying Audi A3, the sporty A4 sedan, Avant and Cabriolet models; the high performance S4 sedan, Avant and Cabriolet models; the design-leading A6 sedan and the all-new A6 Avant; the premium flagship all-aluminum Audi A8, A8 L and A8 L W12; the crossover allroad quattro and the award-winning TT Coupe and Roadster.

Audi of America is headquartered in Auburn Hills, Michigan, and markets a line of luxury cars built in plants in Ingolstadt and Neckarsulm, Germany and Gyor, Hungary. The parent company, AUDI AG, is headquartered in Ingolstadt, Germany.

More information about Audi of America, Inc. is available at www.audi.com.

(1) Only available on GSM versions of the Palm Treo 650 smartphone.

(2) Within wireless service coverage area only. Availability and coverage depends upon carrier and the geographic scope of international roaming agreements.

(3) Voice recognition is an optional feature.

Broadcast Video and Other Palm Materials

Broadcast video and other materials are available online from Palm's Multimedia Library (www.palm.com/MultimediaLibrary). Press can register at the site, which is hosted by The NewsMarket (www.TheNewsMarket.com), a web-based news and video archive, to browse and preview an extensive content library and order footage directly from their desktops. Registration and ordering on the site is free.

Palm, palmOne, LifeDrive, Treo, Tungsten, and Zire are among the trademarks or registered trademarks owned by or licensed to Palm, Inc. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.