Microsoft to Demonstrate Hand-held Software

Microsoft Corp. will ship the next generation of its operating system for hand-held computers on Oct. 4, and it plans the first public demonstration of the software at a conference today.

New features include the ability to access desktop machines and instant-messaging capability, Microsoft said. The devices also will have a better Internet browser and be able to exchange information with hand-held machines using rival Palm Inc. software and manufactured by Palm or Handspring Inc.

Compaq Computer Corp. will offer users of its popular iPaq hand-helds a Microsoft software upgrade for about $30, while Hewlett-Packard Co., Casio Computer Corp. and other manufacturers are expected to release new hand-helds packaged with the latest Microsoft system for $300 to $600.