The device is based on Iomega's n.hand technology and will use disks half the size of a business card costing around $10 (£6.25) a disk - a fraction of the price of a Flash Card. The disks will be used in PDA's, cell phones and digital cameras. Iomega will make n.hand available to computer and consumer electronics manufacturers, and devices using the storage technology are expected to be available in the second half of next year.
A spokesman for Iomega said an official announcement was imminent.
Iomega can be contacted by telephone on 01628-822444.
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