Following our exclusive on Palm's new Treo 700p smartphone yesterday, Sprint has become the first cellular carrier to step forward and offer a pricing plan built around the new phone. The new Treo, which is Palm's first PalmOS-based smartphone with EV-DO wireless broadband capability, also features improved multimedia support over older Treo smartphones to allow for faster Internet video and audio enjoyment. Sprint plans to use push all these new features to their limit with their new Treo plan, offering cellular customers everywhere a phone that is unmatched anywhere in the world with service that simply cannot be topped.

SPRINT ANNOUNCES PLANS TO BE FIRST TO OFFER MOBILE BROADBAND-CAPABLE PALM TREO RUNNING PALM OS

Sprint Power VisionSM Smart Device TreoTM 700P by Palm features industry-unique multimedia capabilities powered by the nation’s largest mobile broadband network that allows users to do more in more places

RESTON, Va. − May 16, 2006 − Sprint (NYSE: S) today announced plans to be the first carrier to offer the Sprint Power VisionSM Smart Device TreoTM 700P by Palm – the latest PDA/Phone combo to deliver broadband-like download speeds of Sprint Mobile Broadband Services operating on the Sprint Power Vision Network(1). Sprint has the largest mobile broadband network of any carrier today and is expected to extend its leadership role to reach an estimated 190 million people nationwide and in Puerto Rico by year end and concurrently implement second-generation upgrades to bring additional mobility benefits to users in 1Q 2007. The Treo 700P will be available at the end of May at Sprint Stores, Sprint business channels and online at www.sprint.com at $399.99 after available discounts and promotions.

Ideal for customers who want to extend their workplace and stay connected for personal needs, the Treo 700P builds upon the success of earlier models offering enhancements in several areas including broadband-like download speeds, an enhanced Blazer Web browser and an updated Palm OS (version 5.4.9). Sprint is enabling the Treo 700p with flexible connectivity options like phone-as-modem that takes advantage of the devices capability to be used with a laptop to provide high-speed data access. Sprint is also expected to be the only wireless carrier to offer live TV capabilities – via Sprint TV - on the Treo 700P at launch.

“Sprint realizes that every business customer is also a consumer and uses mobility for productivity, social connections, entertainment and news,” said Danny Bowman, vice president of product marketing for Sprint. “The Treo 700P is ideal for customers who are looking for a device that provides a combination of power and elegance to satisfy the need for owning a stylish, cutting-edge device while still helping them to be more efficient and productive.”
The Treo 700P allows Sprint customers to do more in more places and provide a powerful productivity and entertainment experience. Features include:

• Support for Sprint Mobile Broadband Service on the nation’s largest mobile broadband network.
• Support for Sprint TVSM – Emmy-award winning service providing more than 50 channels of video and audio for TV on the go, including live TV with full motion video and vivid sound.
• Support for On Demand – retrieve personalized information for local news, sports, weather, movies and more.
• Support for Sprint PCS Picture MailSM, Messaging, Games, Ringers, Screensavers
• Email and Web capable
• Phone as modem capability
• Palm OS organizer
• Bluetooth® Wireless technology
• 1.3 megapixel digital camera with video capabilities
• Built-in MP3 player
• Speakerphone
• 128 MB Memory – (60 MB available for end user storage)
• Enhanced attachment capabilities – Documents to Go (version 8.0) including a new PDF viewer
• Voice memo application

"The new Sprint Treo 700p delivers on Palm's commitment to provide business and mobile professionals with the tools they need to stay productive while on the road," said John Hartnett, senior vice president worldwide sales and customer relations for Palm. "The Treo 700p provides a world-class email and Web experience and, combined with Sprint's high-speed EV-DO network, gives businesses more reasons to extend their corporate information with a Treo mobile solution."

For content, the Treo 700P has access to Sprint downloadable games, ringers, screensavers and other Palm OS productivity and entertainment applications applied directly on a customer’s Sprint bill. Additional content is available via the Sprint PCS Software Store provided by Handango™, an intelligent on-device catalog of applications and digital media, allowing users to find, download and buy software, games, ringtones, graphics and other applications simply and securely. The store can also be visited online at http://sprint.handango.com.
For complete details on the Treo700P, visit http://www.sprint.com/treo.
Sprint customers can currently use several devices on the Sprint Power Vision Network to access various audio, video and data applications at average download speeds of 400-700 kbps and peak speeds up to 2Mbps(2). Sprint today has the most wireless broadband coverage of any carrier. The Sprint Power Vision Network now covers more than 150 million people and services customers in 220 major metropolitan areas as well as 470 airports across the nation, the most of any carrier. The Sprint Power Vision Network is expected to reach an estimated 190 million people nationwide by the end of the year.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of communications services bringing mobility to consumer, business and government customers. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks offering industry leading mobile data services; instant national and international walkie-talkie capabilities; and an award-winning and global Tier 1 Internet backbone. For more information, visit www.sprint.com.

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This news release includes “forward-looking statements” within the meaning of the securities laws. The statements in this news release regarding the business outlook, expected performance, as well as other statements that are not historical facts, are forward-looking statements. The words "estimate," "project," ”forecast,” "intend," "expect," "believe," "target," “providing guidance” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, customer and network usage, customer growth and retention, pricing, operating costs, the timing of various events and the economic environment

(1) Within EvDO data wireless service coverage area only. Actual data speeds vary based on network capacity and application design. Backward-compatible with 1xRTT and IS95 networks. Email and web require data services from a mobile service provider at an additional cost. VPN may also be required.

(2) (2) Speed claims based on Sprint network tests. Actual speeds and coverage on the Treo 700p vary. Palm’s independent field tests show that the Treo 700p can deliver speeds of between 400-600 kilobits per second.

Palm, Palm OS and Treo are among the trademarks or registered trademarks owned by or licensed to Palm, Inc.