ALSM Alphasmart (MM)

AlphaSmart Extends Licensing Agreement With PalmSource LOS GATOS, Calif., March 18 /PRNewswire-FirstCall/ -- AlphaSmart, Inc. , a provider of technology solutions for education, today announced that it has extended the terms of its licensing agreement with PalmSource, Inc. The new contract, which gives AlphaSmart the ability to continue to innovate on the Palm OS platform, extends the terms of its original agreement by more than two years, or through December 31, 2008. "By extending our agreementwith PalmSource, AlphaSmart is reaffirming its commitment to the Dana platform," said Ketan D. Kothari, chairman and chief executive officer of AlphaSmart. "We intend to continue to design and deliver technology solutions that reduce the cost and complexity of computing. In education, Dana adoption is accelerating, and we remain committed to investing in the solutions necessary to make it a preferred choice among educators. In addition, we're exploring ways to address the growing needs of other professional users who appreciate the simplicity, affordability and wireless capabilities of the Dana platform." Dana by AlphaSmart is a Palm Powered laptop alternative that we believe combines the convenience and affordability of a handheld with functionality comparable to a notebook computer. Each ultra-lightweight Dana features an integrated full-size keyboard with touch screen display that is 3.5 times wider than a typical handheld and can deliver more than 25 hours of battery life between charges. The wireless model, Dana Wireless, enables Wi-Fi (802.11b) connectivity in the classroom, on campus, at the office or at thousands of public HotSpots, enabling email, Web browsing and instant messaging. "The need for affordable technology solutions in the education market has never been greater, and we're pleased that Dana will continue to inspire educators and students for many years to come," said Dave Nagel, president & chief executive officer of PalmSource. "We're proud of the many contributions the platform has made within the classroom, and look forward to watching it evolve to reach new customers as well." AlphaSmart, Inc. AlphaSmart, Inc. is a provider of technology solutions for the education market. AlphaSmart's portable computer-companion products are used by students in 7,500 U.S. school districts to enhance writing, keyboarding and comprehension. Based in Los Gatos, California, AlphaSmart was founded in 1992 by former Apple Computer engineers. This press release contains forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933 and Section 21(e) of the Securities Exchange Act of 1934, including statements related to (i) our commitment to the Dana platform; (ii) our intention to continue to design and deliver technology solutions that reduce the cost and complexity of computing; (iii) our commitment to investing in solutions necessary to make Dana a preferred choice among educators; (iv) our exploration of ways to address the growing needs of other professional users; (v) PalmSource's belief that Dana will continue to provide a cost-effective solution for educators and students for many years to come; and (vi) PalmSource's expectation that Dana will evolve to reach new customers. . Our expectations and beliefs regarding these matters may not materialize. Actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include fewer teachers andadministrators embracing technology solutions and one-to-one computing than we expect; our platforms failing to obtain broad market acceptance; a decline in investment in, or a loss or reduction of funding for, educational institutions; our need to maintain and develop strong brand identity; our potential customers choosing the greater functionality offered by PCs over our platforms; the risk that some government initiatives may not endorse, or be complementary to, our platforms; risks associated with the lack of diversity among our product offerings; our Dana by AlphaSmart platform's dependence on our license with PalmSource; and our dependence on our suppliers, particularly our single source suppliers, among other risks. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in AlphaSmart's filings with the Securities and Exchange Commission, including its Registration Statement on Form S-1 declaredeffective by the Securities and Exchange Commission in February 2004. AlphaSmart does not undertake to update any forward-looking statements. Note: AlphaSmart is a registered trademark of AlphaSmart, Inc. Other brand, company and product names used in this press release belong to their respective owners. Palm OS and PalmSource are registered trademarks of, and Palm Powered is a trademark of, Palm Trademark Holding Company, LLC. Each trademark, trade name or service mark of any other company appearing in this press release belongs to its holder. DATASOURCE: AlphaSmart, Inc. CONTACT: Carleen LeVasseur of AlphaSmart Public Relations, +1-408-264-6767 or Web site: http://www.alphasmart.com/

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