After some denial and conflicting information, HP now says it'll release a a handheld PDA that would combine the features of WiFi and Bluetooth with the convenience of a mobile phone, like Dell. The report comes from the Mobile Commerce World website.

'We're trying to develop a best in class product and we are working with our partners in this kind of breakthrough,' Raymond Wah, vice-president of HP's mobile business unit for the Asia-Pacific, told BT.

HP has disbanded its PDA research centre - which it used to run in Singapore - about nine months ago, as part of its integration strategy after its merger with Compaq. All PDA designs are now done at HP's design centre in Houston. Most of the staff involved with the PDA research centre in Singapore have been redeployed.

Competitor Dell is set to launch a mobile device with integrated wi-fi and Bluetooth within the same timeframe.