EXHIBIT 99.1

         INVESTOR RELATIONS:                         PUBLIC RELATIONS:
         Brad Driver                                 Allen Bush
         Handspring                                  Handspring
         650-230-5070                                650-230-5029
         bdriver@handspring.com                      abush@handspring.com

 HANDSPRING REDUCES FINANCIAL OBLIGATION THROUGH RESTRUCTURED LEASE AGREEMENTS

MOUNTAIN VIEW, CALIF. (JANUARY 16, 2003) - Handspring, Inc. (NASDAQ: HAND) today
announced that it has entered into an agreement to restructure its lease
agreements related to two new buildings in Sunnyvale, California. As a result of
the restructuring, Handspring will reduce significantly a long-term financial
obligation and lower its financial breakeven point. The closing of the
restructuring is subject to certain closing conditions and is anticipated to be
completed later this month.

Handspring will pay $61.2 million in total consideration to the building
landlord and contractor to replace the previous obligation of approximately $350
million over 12 years. The Company will immediately pay $15.3 million from the
Company's unrestricted cash and $40.9 million from restricted cash by releasing
Letters of Credit securing the previous lease obligations. The Company will pay
an additional $5.0 million over the next 5 years in various debt and lease
payments. As of December 28, 2002 (prior to the completion of this transaction)
Handspring reported an unrestricted cash and investments balance of $65.7
million, and a restricted cash balance of $44.2 million.

In addition, Handspring will issue to the landlord warrants to purchase 10
million shares of Handspring common stock. These shares are subject to certain
restrictions on sale.

"We are pleased to be able to reduce dramatically our long-term financial
obligations through a restructuring of our real estate leases," said Donna
Dubinsky, Handspring's CEO. "Handspring is now better positioned to move towards
our goal of profitability by the end of the calendar year."

As a result of the restructuring of the lease agreements, in its fiscal third
quarter, ending March 29, 2003, Handspring expects to record a charge against
earnings of $75 to $80 million in Q3 to account for the transaction, the
write-off of previously capitalized tenant improvements, and advisor fees. More
information on the transaction will be available in the Company's 10-Q, to be
filed in February.

Handspring will continue to operate out of its current facilities in Mountain
View, California.

ABOUT HANDSPRING

Handspring is a leading innovator in personal communications and handheld
computing. The company's products include the Treo wireless communicators and
Treo 90 organizer, the Visor expandable handheld computers, and client and
server software for fast Web access from handheld devices and mobile phones.
Today Handspring sells its products and accessories at www.handspring.com and
through select Internet, retail and carrier partners in the United States,
Europe, Asia, Australia, New Zealand, Canada, the Middle East, and Mexico/Latin
America.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve risks and
uncertainties, including those relating to the timing for closing the lease
restructuring transaction and the effect of the transaction on Handspring's
position to move towards its goal of profitability by the end of the calendar
year. Actual results may differ materially due to a number of factors including,
among others: the parties' success in closing the lease restructuring
transaction, the degree to which Handspring's payments to the landlord and
contractor pursuant to the lease restructuring transaction will affect its
ability to achieve its business objectives; Handspring's future product
development, carrier business development and expense control efforts; the
timing of the build-out of advanced wireless networks and the quality and scope
of voice and data service coverage offered by wireless carriers; the degree to
which wireless carriers will facilitate the successful introduction of
Handspring's wireless products; our dependence on third parties to supply
components for Treo in sufficient volumes and at satisfactory quality levels;
customer acceptance of Handspring's Treo communicator products; and the rapid
pace of technological change and competitive developments in the wireless
communications industry. 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, except as otherwise required by applicable law.

Handspring, the Handspring logo, Treo and Visor are trademarks of Handspring,
Inc. and may be registered in certain jurisdictions. All other brand names are
trademarks of their respective owners.

                                     -end-