Handspring Acquires Bluelark Systems to Bring Wireless Internet Access

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MOUNTAIN VIEW, CALIF., (Tuesday, Dec. 26, 2000) - Handspring, Inc.
(NASDAQ: HAND) announced today that it has entered into a definitive
agreement to acquire Bluelark Systems, Inc. of Mountain View Calif.,
developers of Blazer(tm) and BlueSky(tm), a Palm OS(tm) web browser and
proxy server system that enable fast, seamless 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, a leading innovator in the handheld computing industry, 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, said, "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, in the
easy and elegant style that our customers are accustomed to."

"Through this acquisition, the Bluelark team is joining forces with a
leading innovator in the handheld computing market. Together, we believe
we will have the resources and expertise to build and widely distribute
leading products for wireless Internet access," said Simon Mawby, CEO of
Bluelark Systems.

Bluelark's core technology is a customizable mobile application platform
called BlueSky, designed to give people a rich Internet experience from
wireless-enabled handheld products. It also provides a product called
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. The Blazer experience is especially beneficial for
viewing rich content on color display products such as the
Handspring(tm) Visor(tm) Prism. Initially, Handspring intends to bundle
Blazer with its new VisorPhone(tm) product beginning in 2001.

ABOUT BLUELARK
Bluelark Systems provides leading-edge technology designed to power the
delivery of content to mobile devices. Based on the BlueSky Mobile
Application Platform, Bluelark develops server infrastructure and client
applications for device manufacturers, wireless ISPs, carriers, and
corporations. Bluelark Systems is privately held and is located in
Mountain View, Calif.

ABOUT HANDSPRING
Handspring is a leading innovator in the handheld computing industry.
The company develops, manufactures and markets a family of expandable
handheld computers for a broad range of markets and customers. Founded
in 1998, Handspring's flagship technology is the Springboard platform
that provides a simple and easy method for hardware and software
expansion. Today Handspring sells its Visor line of handheld computers,
along with a line of Springboard expansion modules and accessories, at
Handspring.com and through select Internet and retail partners in Asia,
Canada, Europe, Japan and the United States.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that involve
risks and uncertainties, including those relating to: Handspring's
ability to advance its development of products, following the
acquisition of Bluelark, that provide a secure, standards-based web
connection in a true pocket-size form; the degree to which Web browsing
will become a key application for Handspring products; Handspring's
future success in deploying wireless Internet products noted for their
easy and elegant style; the combined companies' ability to build and
widely distribute leading products for wireless Internet, and
Handspring's plans to bundle Blazer with VisorPhone in 2001. Actual
results may differ materially due to a number of factors including,
among others: the companies' success in closing the transaction and
combining the two companies; Handspring's ability to integrate Bluelark
technology with existing and future Handspring products; consumer
acceptance of and demand for wireless Internet functionality, and the
rapid pace of technological change and competitive developments in the
handheld computer and wireless Internet industries. The matters
discussed in this press release also involve risks and uncertainties
described in Handspring's most recent Form 10-Q filed with the
Securities and Exchange Commission. Handspring assumes no obligation to
update the forward-looking information contained in this press release.

Handspring and the Handspring logo are trademarks of Handspring, Inc.
and Blazer, BlueSky, Bluelark and Bluelark Systems are trademarks of
Bluelark Systems, Inc. Such trademarks may be registered in certain
jurisdictions.

Press Contacts:

Volker Jacob
Handspring
PR Manager EMEA
+41 22 747 7754
vjacob@handspring.com


Brian Jaquet
Handspring, Inc. (U.S.)
+1 650 230-5211
bjaquet@handspring.com

Sven de Reuter / Daniela Tavares-Lucas
Text 100 Public Relations
+49 40 43 29 29 46 / 12
Email: svenr@text100-hh.de /danielal@text100-hh.de