Yuen and executives from Thomson Multimedia said they expect consumers will use Gemstar's e-book format to get secure, high-speed access to reading content for future e-books and to services such as crossword puzzles and word games.

"By 2003, we expect avid readers will be converted to our devices," Yuen told a crowd in New York City last week.

The introduce two e-book systems on Friday (Oct. 13). The REB100 paperback-sized device with monochrome screen will retail for $299, and the REB 1200 tablet-sized device with a color screen and leather cover will sell for $699.

Thomson Multimedia will make and market the e-book systems under the RCA brand featuring hardware and software licensed from Gemstar-TV Guide. Gemstar obtained it e-book technology via its purchase of Softbook Press Inc. and NuvoMedia Inc. in January 2000.

Each of the devices has a modem that can be used to dial into a Gemstar server to purchase an e-book in the Gemstar format; the REB 1200 can support an Ethernet connection. Both models will be available after Thanksgiving in retail outlets nationwide and at www.rca.com.

Each device has a high-resolution, backlit LCD and enough memory to store several e-book titles. But they differ in their CPU, operating system and storage media. The REB 1100 uses an ARM7-based CPU and Smart Media flash memory, while the more expensive REB 1200 is powered by two Motorola Inc. processors — a 68HC11 controller and a Coldfire microprocessor — and uses CompactFlash memory.

Thomson Multimedia will merge the two hardware architectures into a single platform in another year. Engineers at the company's e-book group are already working on a next-generation e-book device that will be available sometime in 2001, according to Lou Lenzi, vice president for global business development and new ventures for Thomson's New Media Services unit.

That common platform will likely support SanDisk Corp.'s CompactFlash memory cards, which Thomson uses in its RCA digital cameras.

Thomson Multimedia said the next-generation reader will incorporate technologies that reduce its size, cost and power consumption and boost its Internet connection speed.

Lenzi said the team is investigated the use of bistable LCD technology that could extend the battery life of an e-book system to months, rather than days or weeks. Such a nematic LCD can retain a rendered image on-screen even after power is removed.

Lenzi said his group will help create services such as crossword puzzles, word scrambles and perhaps even photo albums for e-book devices. Such services will let an e-book system do more than access electronic books, Lenzi said. Even so, Thomson does not want the systems to turn into large PDAs, he said. "We don't see us going head-to-head with PDAs. We're interested in building a dedicated device for reading," Lenzi said.

Thomson pays Gemstar a licensing fee for the use of its e-book technology, and said it hopes other manufacturers with also license the technology to help build the e-book product category.

Exclusive content

Under agreements signed with several major publishers, Gemstar will make material from Penguin Putnam Inc., Simon & Schuster, St. Martin's Press, Warner Books and Harlequin available on an exclusive basis in e-book format for 90 days prior to its availability in any other format, the company said. This will allow Gemstar to price its e-books above hard-cover editions. The price of the e-book titles will fall to the same as paperbacks once the paperback editions are available, the company said.

Six e-book titles by best-selling authors will be available in the Gemstar format next month when the RCA e-book devices go on sale. The e-book titles will be offered before conventional book versions of the works are available. These will include: "The Last Precinct" by Patricia Cornwell; "Prometheus Deception" by Robert Ludlum; and"Roses are Red," by James Patterson.

Gemstar has also signed deals with magazine and newspaper publishers to make their content available in the Gemstar e-book format.