Filed by Palm, Inc. Pursuant to Rule 425
                                                Under the Securities Act of 1933
                                        And Deemed Filed Pursuant to Rule 14a-12
                                   Under the Securities and Exchange Act of 1934
                                  Subject Company: Extended Systems Incorporated
                                                  Commission File No.: 000-23597



NEWSPAPER ADVERTISEMENT APPEARING IN THE IDAHO STATESMAN ON MARCH 7, 2001:



           [Logo of Extended Systems Incorporated]        [Logo of Palm, Inc.]
           Extended Systems (R)                                 palm (TM)
           Beyond Connected (TM)                            Simply Palm (TM)
                                                                palm.com





                                         two companies that

                                         are connecting the

                                         world are now, you

                                      guessed it, connected.




Palm, Inc. is proud to welcome Extended Systems to our family.

Palm, Inc., the leader in handheld computing, is teaming up with Extended
Systems, a leading provider of mobile data management and wireless
connectivity solutions. By combining the resources of both companies, we are
moving forward to achieve our collective goal to improve the way people and
the enterprise use wireless devices and mobile computing.

With a community of 145,000-plus registered developers, Palm, Inc. is looking
forward to a thriving relationship with Extended Systems. Together we provide
groundbreaking mobile and wireless solutions that continue to address the
growing demand of the global workforce, with products that are innovative and
simple. Not to mention connected.

                                                          [Picture of Palm VIIx]



Palm.Net (R) service is sold separately and is not available in all areas. See
the coverage map at www.palm.com for details. (C) 2001 Palm, Inc. All rights
reserved. Palm.Net is a registered trademark and Palm, Simply Palm, the Palm
VIIx logo and the Palm logo are trademarks of Palm, Inc. or its subsidiaries.
Extended Systems is a registered trademark and Beyond Connected is a trademark
of Extended Systems. Other products, brand names and logos may be trademarks or
registered trademarks of their respective owners.



Additional Information And Where To Find It

     In connection with the proposed transaction, Palm will file a
registration statement on Form S-4, including a proxy statement-prospectus,
with the Securities and Exchange Commission. Investors and security holders
are advised to read the registration statement, including the proxy statement-
prospectus when they become available because they will contain important
information about the proposed acquisition. Investors and security holders may
obtain a free copy of the registration statement and the proxy statement-
prospectus (when available) and other documents filed by Palm with the
Securities and Exchange Commission at the Securities and Exchange Commission's
Web site at www.sec.gov. Free copies of the registration statement (when
available) and other documents filed by Palm with the Securities and Exchange
Commission may also be obtained from Palm by directing a request to Palm.

     Extended Systems and its directors and executive officers may be deemed to
be participants in the solicitation of proxies from Extended Systems
stockholders in favor of the proposed transaction. Information regarding
interests of the officers and directors of Extended Systems in the proposed
acquisition will be set forth in the proxy statement-prospectus (when
available). In addition, information regarding the identities of such officers
and directors and their interests in the solicitation is set forth in a Schedule
14A filed with the Securities and Exchange Commission on March 7, 2001. These
documents are available free of charge at the Securities and Exchange
Commission's Web site at www.sec.gov and from Extended Systems.