Palm PCs running Microsoft's Windows CE operating system represents a potential challenge to 3Com's highly successful Palm unit which dominates the pocket PC market.

Now Microsoft has added colour support to its Palm PC operating system, enabling Hewlett-Packard to launch the Jornada 420 which it claims is the first Windows CE palm-sized PC to incorporate an easy to read colour display.

HP says the 256-colour, 240 by 320 pixel screen markedly improves readability over previous monochrome models and that its light weight, 250g, and compact size - 13cm by 8.1cm by 2.2cm - allows it to travel easily in a pocket or purse.

A configurable start button allows quick, easy, single-handed use, and a transparent flip-up cover protects the screen from damage. The Jornada 420 is expected to cost £399 sterling (€580) when it goes on sale in selected European countries next month. (www.hp.com/jornada)