Asus is preparing to launch its new Linux-based Eee PC laptop later this month and plans to release another new model in April 2008. The Eee PC, which has a 7" display and a 900MHz Celeron M processor, is designed for budget-minded mobile consumers. The second-generation Eee PC will use Intel's Merom processor and offer longer battery life.

According to DigiTimes, Asus wants to become one of the top five laptop producers within the next three years. The company currently plans to ship over 200,000 Eee PCs by the end of the year and expects to sell between three and five million by 2009.

The Eee PC is included in Intel's "world ahead" initiative, and the chipmaker worked closely with Asus during the design phase of the product. Eee PC pricing is competitive with other budget mobile computers designed for the education market, including the OLPC Project's XO laptop, and Intel's Classmate PC. Eee PC models are expected to sell for between $199 and $349.

Asus claims that the Eee PC boots in under 15 seconds. The device will be shipped with a heavily customized Xandros Linux distribution that uses a tab-based interface instead of a conventional desktop environment. Software bundled with the system includes OpenOffice.org, Firefox, and Skype. Although Asus will not be shipping Windows XP with the Eee PC, the company claims that Microsoft's operating system has been tested extensively with the device.

Although the Eee PC has a lot to like, the exact specifications and launch price aren't known yet. There are rumors that the final model will not include the 0.3MP video camera currently listed in the specifications and that the price of the low-end model has crept up from $199 to $249. We'll know for sure when it officially launches.

The strong support for Linux could make the Eee PC a compelling choice for some open-source software enthusiasts, and the low price makes it a strong contender in the education market. At $199, the Eee PC could compete directly with the OLPC in certain regions.