Intel and Asustek unveiled their joint effort $199 laptop called the Eec PC 701 (what a mouthful) today. There will actually be two models, a $199 and $299 version. Both will have a 7-inch screen size and include some type of wireless internet capability. It will be a fully functional low-end notebook. Asustek plans to start shipping units this summer, with the goal of selling 200,000 units in 2007 under the Asustek brand. The units would sell for between $199 - $299, the higher amount will be for a version with more on board flash RAM.

Eee PC 701 Specification:

• Display 7"
  
• CPU & Chipset: Intel mobile CPU & chipset
• OS: Linux/ Microsoft Windows XP compatible
• Communication: 10/100 Mbps Ethernet; 56K modem, WLAN: WiFi 802.11b/g
• Memory: 512MB, DDR2-400
• Storage: 4/ 8/ 16GB Flash
• Webcam: 300K pixel video camera
• Audio: Hi-Definition Audio CODEC; Built-in stereo speaker; Built-in microphone
• Battery Life: 3hrs (4 cells: 5200mAh, 2S2P)
• Weight: 1.96lbs
  
• Dimension & Weight: 22.5 x 16.5 x 2.1~3.5cm, 0.89kg

It appears the device can run either Windows XP or Linux, but there's also some kind of stripped down OS that was demonstrated and it's unclear exactly what is being used in this instance.