NEC will release a subnotebook next year that runs the Windows CE operating system. Code-named "Livingston," the computer will feature the next generation version of the NEC CPU now used in Windows CE handheld computers (HPC). It will run 30 to 40 hours on AA batteries, according to sources and will feature a clamshell design and a hard drive. It will sell for less than $1000.

The produce will ship with Windows CE 2.0, which will be beta testing later this year. Windows CE 2.0 features color support and a Java virtual machine (JVM).