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Sunday, 04/25/2004 12:02:32 PM

Sunday, April 25, 2004 12:02:32 PM

Post# of 93819
Paul Allen, Antelope, OQO Have Big Hopes For Very Tiny Laptops
BY JULIE VALLONE

FOR INVESTOR'S BUSINESS DAILY

To PC users on the go, little things mean a lot. That's why laptops, handhelds, mobile phones and other devices have grown smaller.

As these devices have continued to shrink, mobile users have had to make some compromises. Those who want ultra-portable handhelds sacrifice PC power and functionality, while those who won't settle for anything less than a fully equipped PC have to lug around a few extra pounds of laptop each day.

Three companies are trying to change that — OQO in San Francisco, Vulcan in Seattle and Antelope Technologies in Highlands Ranch, Colo. They all make or are making — only Antelope's product is for sale — tiny computers, so tiny you can carry them around in your pocket. They're all less than 6 inches wide and weigh less than a pound, but pack all the punch of a big PC.

These products fill a niche, says Simon Yates, an analyst with Boston-based Forrester Research.

"There's been a form factor gap between the handheld and the notebook," said Yates.

Handheld screens usually cover four total inches, and laptops 10 to 14 inches, he says. These mini-laptops fall in between.

"What's interesting about these new devices is that they carry the full version of the Windows operating system," he said. That, he says, is unusual for handhelds and will boost their appeal.

The uPC, or ultra personal computer, is OQO's product. The 4.9-by-3.4-by-0.9-inch, 14-ounce PC has a screen that slides up to reveal a regular keyboard, designed to be used with your thumbs.

The OQO screen is transflective. That is, it's designed to work as well in sunlight as it does in the office.

Helped On IBM, Apple Laptops

Operating on Windows XP, it also comes with a 1-gigahertz Transmeta (TMTA) Crusoe processor, a 20-gigabyte, shock-mounted hard drive and 256 megabytes of RAM memory. It also has a digital pen for screen navigation, wireless networking support, Bluetooth and FireWire technology, and a desktop stand with docking cable to easily move data between it and your desktop PC.

Jory Bell, OQO's co-founder, has built his career designing laptops. He's helped on IBM's (IBM) ThinkPads, and Apple Computer's (AAPL) G3 line and Titanium PowerBooks. Bell says OQO didn't want users to make any trade-offs in function. So the company equipped the uPC with plenty of features. "We combine the best of all worlds," he said.

Bell says the uPC is aimed at people who do a lot of work on the road. The product is scheduled to go on sale this fall for less than $2,000.

Vulcan, owned by Microsoft (MSFT) co-founder Paul Allen, is developing the FlipStart PC. The device measures 5.8 by 4.1 inches, and weighs in at a just under a pound. FlipStart engineering director Rod Fleck says that while the unit is 20% bigger than OQO's, the size should give business and other enterprise users a richer experience.

The FlipStart has a clamshell design, like most regular laptops. It comes with many of the features offered by OQO's uPC, as well as some others. These include an HDTV-quality display screen, designed just for FlipStart, that lets users view business software applications without scrolling. Optional features include the ability of users to link into corporate networks, and a "lid module." This lets users check e-mail, calendar and contacts, and play MP3 music without even opening the device. Vulcan hopes to start selling the FlipStart before Christmas.

The company hasn't yet released prices. Fleck says the basic unit will probably be priced competitively with the uPC and other laptops.

The folks at Antelope have a similar idea about mobile computing, but have taken a different approach. In November, they released their modular computing platform. It's built around a 3-by-5-by-0.75-inch modular computing core, or MCC, device that contains standard features of a desktop PC. But the MCC can be removed from its PC docking station and used in a variety of shell units. Antelope plans to offer car docks in the future.

Targets Military, Petroleum

"With our device, there's no syncing (configuring to get the handheld to work with the desktop PC), as long as you have your shells," said Thomas Scott, Antelope co-founder and chief financial officer. "Wherever you go, you always have your entire computer with you."

Antelope has set its sights on specific markets, such as the military and petroleum industries. The company offers its MCC and all peripherals for $3,780. Components such as docking stations, shells and batteries are also sold individually, though. The core unit with the handheld shell costs about $2,750.

Marketing Director Marya Kokaska says Antelope likely will have consumer products out next year. She says the company is working with partners to build compatible peripherals.

While it costs more than most handheld devices, Antelope's advantage at the moment is that it's actually available.

"We've been waiting for these (other products) for quite a while," said Forrester's Yates. "I've seen lots of slides, but these companies have got to start shipping some products

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