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What's electronic ink - or E Ink - I hear you ask? The concept is relatively simple. Within the ink there are millions of tiny microcapsules, each one containing white particles suspended in dark dye and when an electric field is applied to the liquid, the microcapsules become visible. With a little bit of application, you have a display that has all the qualities of a sheet of paper but the versatility of a standard computer display.

The deal includes a $7.5 million cash investment to develop the electronic ink sheets and the new displays could make e-books and handheld computers a lot easier to read. But the real advantage of electronic ink over conventional display screens is that they use substantially less power. Power is only used to switch the inks on to change the letters - you don't need a continual power supply to keep an image on the screen.

The electronic ink sheets are currently being developed and it is hoped that the first E Ink products will hit the shelves sometime in 2003.