The agreement provides that PalmGear will provide the back-end infrastructure, Palm OS software catalog, and customer and technical support to users purchasing software applications via the PalmSource Web site.

PalmSource says Palm OS developers will be able to utilize the new PalmGear site giving them an expanded marketplace for their applications and software for the customers of the more than 29 million Palm-powered mobile devices around the world.

Separately, Palm's hardware business said it has struck a deal with Novarra, Inc., to use next generations of Novarra's Palm Web Pro browser in specific future Palm handhelds. Currently, Web Pro 1.0, by Novarra, ships on the Palm Tungsten T, Tungsten T2 and Tungsten W handhelds.

Palm is expected to announce details of a new Tungsten product in October, according to information leaked on the PalmInfoCenter Web site.

The report said the Tungsten T3 will retail for $400, and went onto say the Tungsten Es specs are similar to the Tungsten T2, but will have a different case. The Tungsten E will contain a 144 Mhz ARM processor, Palm OS 5.2, 32 MB RAM, a HighRes color screen and tablet, and is expected to cost around $200, according to PalmInfoCenter.