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By John Spooner
Posted on ZDNet News: Feb 24, 2000 12:00:00 AM

Just in time for tax season, consumers will be able to use Excel on their PocketPCs.

Microsoft Corp. (Nasdaq: MSFT) is preparing an April launch of, and a new suite of applications for, its PocketPC. The Redmond, Wash., software maker hopes that consumers will find PocketPC's user interface and application software, code-named Rapier, an easier-to-use successor to its Palm-size PC.

PocketPCs will offer new hardware designs from a number of vendors, along with the new user interface and applications such as Pocket Explorer and Pocket Word. The device's underlying operating system will be Microsoft's Windows CE.

New PocketPC devices will be divided into two categories, or classes.

PocketPC Standard devices, sources said, will offer basic personal information management capabilities with the addition of Microsoft's Pocket Explorer and Microsoft Mobile channels, which allow users to automatically download Web sites, taking them on the road. PocketPC Standard devices, with monochrome screens, will start at about $199, sources said.

PocketPC Standard devices are meant to be "a good personal organizer with Microsoft channels and good connectivity," said a source.

Microsoft and its hardware partners will also offer a more feature-rich PocketPC device, called PocketPC Professional.

The Professional, a name borrowed from Microsoft's Handheld PC Professional, will include, for the first time, Microsoft's Pocket Word and Pocket Excel applications, as well as the new Pocket Explorer, sources said.

The Word and Excel applications will likely be used to view documents and spreadsheets on the PocketPC Professional. Light editing should also be possible. It is not yet known if Microsoft has changed file formats for the applications to allow Word 2000 or Excel 2000 documents created on a PC to be read without translation on a PocketPC or vice versa.

The device will also sport improved handwriting recognition software, sources said.

In addition, PocketPC Professional will offer Microsoft's electronic book reader application and clear type technology, which will allow users to read electronic books on the devices. Also included will be the Microsoft Media player application, which can play MP3 or Windows Media Player audio files.

PocketPC "is not perfect, but it's a real improvement over the last generation," said a source familiar with the device.

It will have to be to woo customers away from Palm Computing's products. PocketPC, formerly known as Palm-size PC, has been a distant second to Palm Computing's Palm line of handheld devices since its introduction in 1998 as Palm PC.

Observers say that the lower price points of the monochrome PocketPC Standard devices are aimed squarely at the Palm and Palm licensees, such as Handspring Inc., which sells the Visor handheld.

Palm Computing this week announced its first color device, the Palm IIIc.

Microsoft officials were contacted for this story; however, they declined to comment on unannounced products.

The company has said that Hewlett-Packard Co., Casio Corp. and Compaq Computer Corp. will be among its PocketPC hardware makers.

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