Financial terms of the deal, unveiled at RSA's security conference in San Jose, Calif., were not disclosed. The pact will install RSA's BSAFE Crypto-C and BSAFE SSL-C micro edition products in PalmSource's new OS 5.

Gina Clark, a vice president with Santa Clara, Calif.-based PalmSource, said satisfying security concerns is key to be success in the enterprise market.

"We will continue to enhance the Palm OS platform to help meet the needs of enterprise customers to ensure greater confidence and broader choice, including technologies such as strong encryption and authentication from RSA," Clark said.

For Bedford, Mass.-based RSA the deal is an extends and expands its relationship with Palm. The firm already provides user-identification software for the handheld maker, ensuring that only authorized users access network files, application and communications.

"Palm OS 5 combined with RSA Security's strong encryption and user authentication capabilities helps mobile users realize the trusted e-business process," said Bill McQuaide, an RSA spokesman.

Shares of RSAS were off 0.05 to 9.7 at midday. In the last 52 weeks, the issue has ranged from 6.79 to 37.94.