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3COM LICENSES PHONE.COM'S UP.BROWSER FOR USE IN THE PALM COMPUTING PLATFORM

REDWOOD CITY, Calif. (August 3, 1999)
¾ 3Com Corporation (Nasdaq:COMS) and Phone.com (Nasdaq:PHCM) announced today they have signed a licensing agreement that allows Palm to incorporate Phone.com's Wireless Application Protocol (WAP)-compatible UP.Browser™ in the Palm Computing® platform. Leveraging its leadership in the handheld organizer market, Palm will license the industry-leading Palm Computing platform with integrated WAP capability to wireless handset manufacturers to develop devices that deliver superior usability, connectivity, and immediate, reliable access to information for business customers and consumers.

"This agreement enables licensees of the Palm Computing platform to develop outstanding wireless mobile phones with the small screens and keypad input for which WAP is optimized. WAP complements Palm Computing's web clippingSM technology, which we are deploying in the Palm VII™ connected organizer and which is optimized for similar devices from our licensees with larger screens and pen input," said Rob Hayes, platform product manager for Palm Computing, Inc., a 3Com company. "We are pleased to team with Phone.Com to add their market-leading WAP technology to the Palm Computing platform. WAP has wide support as a standard to deliver Internet information to mobile phones and is an important part of the Palm Computing platform's support for manufacturers in that market."

The WAP Forum's global wireless application protocol specification leverages existing Internet standards such as XML and IP for all wireless networks. WAP Forum members include terminal and infrastructure manufacturers; operators, carriers and service providers; software houses; content providers; and companies developing services and applications for mobile devices. Phone.com founded the WAP Forum with Ericsson, Nokia, and Motorola and plays an active role on the WAP board of directors and in leading the technical evolution of the specification.

"The Palm Computing platform is well positioned to partner with leading wireless handset manufacturers and develop innovative wireless devices," said Jeff Damir, vice president of business development for Phone.com. "We look forward to working with Palm to enable a new breed of wireless handsets that combine WAP's powerful Internet access capabilities with Palm's proven strengths in ease of use and connectivity."

"3Com's broad licensing approach for the Palm Computing platform will create a new generation of connected devices, " said Bob Egan, research director - mobile and wireless for the Gartner Group. "The mobile phone market will reach 1 billion users by 2003. 3Com's collaboration with Phone.com will drive innovation in the high-end smart phone segment."

About the Palm Computing Platform
With an installed base exceeding four million customers, the Palm Computing platform is the foundation for the world's leading family of handheld computing products from 3Com including the Palm III™, Palm IIIx™, Palm IIIe™, Palm V™ and new wireless Palm VII™ connected organizers, in addition to a broad range of products from Palm Computing's strategic partners. These products include the IBM WorkPad PC Companion, the Franklin-Covey Electronic DayPlanner, the Symbol SPT 1500 with built-in bar code scanning capabilities for vertical markets,and the pdQ from QUALCOMM. Palm Computing platform products hold a 72 percent market share of the worldwide handheld personal companion market (IDC, November 1998).

About 3Com Corporation
With approximately 300 million customers worldwide, 3Com Corporation connects more people to information in more ways than any other
networking company. 3Com delivers innovative information access to products and network system solutions to enterprise, small businesses, carriers, and network service providers, PC OEMs and consumers. 3Com - More connected™. For more information, visit 3Com's web-site at www.3com.com or the Palm Computing web-site at www.palm.com.

About Phone.com
Phone.com, Inc. is a leading provider of software that enables the delivery of Internet-based services to mass-market wireless telephones. Using its software, wireless subscribers have access to Internet- and corporate intranet-based services, including Email, news, stocks, weather, travel and sports. In addition, subscribers have access via their wireless telephones to network operators' intranet-based telephony services, which may include over-the-air activation, call management, billing history information, pricing plan subscription and voice message management. Phone.com is headquartered in Silicon Valley, California and has regional offices in London and Tokyo. Visit http://www.phone.com for more information.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, Phone.com's limited operating history, potential fluctuations in Phone.com's operating results, uncertainties related to the Phone.com's long sales cycle and reliance on a small number of customers, Phone.com's dependence on the acceptance of its products by network operators and wireless subscribers, Phone.com's ability to adequately address the rapidly-evolving market for delivery of Internet-based services through wireless telephones, the need to achieve widespread integration of Phone.com's browser in wireless telephones, competition from companies with substantially greater financial, technical, marketing and distribution resources and the ability of Phone.com to manage a complex set of engineering, marketing and distribution relationships. Further information regarding these and other risks is included in Phone.com's prospectus dated June 10, 1999 and in its other filings with the Securities and Exchange Commission.

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3Com and Palm Computing are registered trademarks, and Palm, Palm III, Palm IIIx, Palm V, Palm VII and More connected are trademarks of 3Com Corporation or its subsidiaries. The Phone.com name and logo and the family of terms carrying the "UP." prefix are trademarks of Phone.com, Inc. All Rights Reserved. All other brands and product names may be trademarks of the respective companies with which they are associated.