Dixons is to launch an innovative miniature PC, not much larger than a stack of six CD cases, that will go on sale before Christmas for under £1000.

The Micro PC has no display or keyboard of its own but is designed for ultra portability. It can connect to a monitor or tv and has a touchpad mouse replacement and built-in speaker.

Only a prototype currently exists, which Taiwanese notebook manufacturer Saintsong is evaluating for production, but the finished unit will probably have a 600MHz Intel Celeron processor, RAM expandable from 64 to 256MB, 12GB hard drive, and Windows 98SE or Millennium Edition.

Options are likely to include an external USB modem and a docking station with CD-ROM and floppy drives.