Clearing up a Misconception - Palm's Stock Price
I have noticed a couple misleading statements in recent articles about our stock price that I want to clear up. Under the terms of our recapitalization transaction with Elevation Partners, Palm paid a cash distribution to shareholders of $9.00 per share, funded by Elevation's investment of $325 million, new debt and a portion of existing cash. With this cash distribution paid out to Palm's shareholders (as of October 24th, 2007), the Palm stock price naturally decreased by the amount of the cash distribution. If you add back the $9.00 per share to the current price of our common stock, you would see that the current stock price is roughly the same value as it was a year ago ($13.84 as of January 30th, 2007). Articles referencing a significant drop in Palm's stock price without mentioning the $9,00 per share cash distribution are misleading.
Of course we all want to see Palm's stock price increase. We are working hard to transform our company to help drive the value higher, and everyone at Palm is focused on delivering great products. As we do that, we expect that Palm's future success as a company will follow.
-Paul Loeffler














