Five years ago: Palm Windows to spawn handhelds

The first handheld systems based on Microsoft's Windows CE operating system will ship late this year.

Sources said that Microsoft plans a September 16 announcement for the OS, formerly known as Pegasus and based on the Windows 95 kernel.

Hewlett-Packard (HP), Casio, Compaq, NEC and Philips are all reportedly at work on products that use the OS. HP confirmed it is working on a Windows CE-based handheld but said it is unlikely to ship the product this year.

Separately, the firm also said that it has cancelled plans to release the OmniGo 120, a version of the OmniGo 100 with a backlit screen. "We didn't feel it was appropriate to launch it at the current time," a spokesman said. Privately, the firm blamed low pricing from UK rival Psion, which is due to announce new lines on Thursday.