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Dell Launching Low-Cost Notebook Line Built By Compal

Dell will launch a new low-cost notebook built by Taiwan-based Compal as early as June. The new computers will come in a variety of sizes and may use software from Dell subsidiary Zing--the music-player company it acquired last year --to make it easy for users to manage music and video from the Web, Dell officials say.

Dell is joining rivals such as Hewlett-Packard and Asustek Computer in the emerging market for low-price notebook computers, which has several names including netbooks, mini-notebooks and ultramobile PCs, or UMPCs. One of the best-known entries is Asustek's Eee PC, with a starting price of $299. H-P this week introduced a $499 laptop with some similar features that is being marketed to schools for classroom use.

The Dell machines seem more likely to compete with the Eee PC, which is aimed at consumers, than HP's Mini-Note PC. The Dell device will have an 8.9-inch display and will be priced starting at $399, according to a Compal official.

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