Microsoft Names Tablet Partners

Microsoft Corp. will work with companies including Compaq Computer Corp., Intel Corp. and Transmeta Corp. to produce a tablet-size, wireless personal computer as sales of portable PCs increase. Compaq, Sony Corp., Toshiba Corp., Acer Inc. and Fujitsu Ltd. will develop Tablet PCs using Microsoft’s next version of its Windows operating system, Microsoft said. Top PC chip maker Intel and start-up Transmeta will make the chips. Microsoft expects the first Tablet PC-brand device to be available next year. The computer will be about as big as a sheet of paper. Users will be able to enter data by writing with a stylus similar to those used with hand-held devices. In Nasdaq trading, shares of Transmeta surged $2.81, or 18%, to close at $18.81, while Microsoft closed off 50 cents at $56.06 and Intel fell 50 cents to close at $28.31. Compaq fell 60 cents to close at $19.90 on the NYSE.