AT&T Inc will start selling Palm Inc's mobile phones in a few months, Palm said on Monday.

The moves promises to expand distribution and possibly raise consumer awareness of phones made by Palm, whose stock has suffered amid questions over its ability to survive in a tough market dominated by bigger rivals.

Palm said its Palm Pre Plus and Palm Pixi Plus will be available in AT&T stores in the coming months, for $149.99 and $49.99, respectively, with a two-year service contract, and after a $100 mail-in rebate.

(Reporting by Franklin Paul, editing by Gerald E. McCormick)