Gates: MS, Barnes & Noble have e-book deal

Partnership takes advantage of an emerging category of handheld e-book readers

Microsoft and Barnes & Noble have struck a partnership to take advantage of an emerging category of handheld "e-book readers", CEO Bill Gates said during his keynote at the giant Consumer Electronics Show Wednesday evening.

Gates averred to the deal during a demonstration of a small handheld computer equipped with Microsoft's new ClearType software, aimed at making the printed word far more readable even on tiny LCD screens. Gates said the two companies will formally announce their deal on Thursday.

For full coverage, see the CES News Special.

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