Europe : The Xda II from O2 - giving customers access to colour images, video, music, games, information, phone and corporate internet applications whilst on the move - goes on sale from 1st November, initially in the UK, Germany and Ireland, it was announced today.

The integrated Windows Mobile-based Pocket PC and mobile handset is the ultimate mobile PDA for both consumer and business customers, offering a host of advancements over its predecessor - the highly acclaimed xda. These include a high-quality, built-in digital camera, tri-band functionality and a tailored O2 Active menu that is intuitive and easy-to-use, and guides customers to services such as full internet browsing, multimedia messaging (MMS), colour games, video, information, alerts and pictures.

It incorporates twice as much memory (128MB) and considerably faster performance due to its advanced Intel PXA 263 processor running at 400 MHz. The Xda II runs Microsoft's latest Windows Mobile 2003 software for Pocket PC Phone Edition and retains its sleek, stylish design.

Ideal for consumers, the Xda II offers a built-in digital camera with a 65,000-colour display to ensure that photographs are sharp and clear as well as full multimedia messaging capability. Customers can also set up personal email (for example O2 mail, Freemail or Yahoo) quickly and easily due to a new set-up Wizard.

The in-built Windows Media Player enables customers to view full colour videos with sound from the Internet; and access the forthcoming O2 video download service, including chart music, news, sports and comedy. The larger memory makes the Xda II a highly effective MP3 player, capable of storing up to 40 tracks. Optional memory cards can be used.

Corporate customers using the Xda II will be able to take advantage of the forthcoming release of Exchange 2003, making it easier for them to access business information whilst on the move. Also, through support of tri-band, the Xda II can be used seamlessly in the US as well as Europe, Australia and Asia thanks to O2's extensive GPRS roaming capability. Bluetooth is standard to allow compatible headsets or PCs to be connected. PowerPoint and PDF documents can now be viewed on the Xda II and customers can deliver a presentation by simply plugging straight into a projector.

A range of business services and applications, including Xmail and Extended Office, are offered to enable access to corporate email.

New features of the Xda II include:

an integrated 640x480 pixels digital camera and full multimedia messaging functionality
tri-band capability to enable seamless use worldwide
128MB RAM Memory (up from 64MB)
Bluetooth capability
a faster processor (Intel Xscale technology based processor at 400 MHz) facilitating faster use and improved battery life
improved talk and standby time
stored picture caller identification - see who's calling
a removable battery enables power users to swap the battery whilst on the move
the latest Phone Edition of Windows MobileTM 2003 Software for Pocket PC
customer focussed packages for ease of use and understanding
Kent Thexton, chief marketing and data officer, mmO2, said: "Even today, a year after its successful launch, the xda from O2 is a leading device of its class. The Xda II reinforces our commitment to lead in mobile data and is attracting high value customers.

By combining a high specification product, outstanding functionality, customer-focussed packages and transparent pricing, we believe the Xda II will leverage the success of the xda and continue to win us market share. We expect it to be one of this years most wanted Christmas gifts!"

Annemarie Duffy, senior marketing manager, Microsoft EMEA, commented: "The launch of the Xda II combined with the imminent availability of Exchange Server 2003 ushers in a new era for mobile data communications. Always on access to email, business and personal data is becoming the de facto standard. Today's announcement brings us one step closer to prolific email and internet access, anytime, anywhere."

"mmO2 continues to deliver feature rich and innovative handheld data solutions to the mobile market," said Hans G. Geyer, Intel Vice President and General Manager of Intel's PCA Components Group. "Utilising the low power and high performance of the Intel XScale® technology, the new Xda II delivers convergence and mobility for both the consumer and business user."

Sales of the Xda continue to show steady growth finding a firm following amongst technology-friendly adopters. More than 79,000 devices have been sold in UK, Germany, Ireland and Asia. O2 has seen strong uptake from major corporations, which are offering bespoke software and services embedded in the Xda to their customers. Recent examples include Reuters and Cantor.

As well as winning excellent reviews, users of the Xda generate more than three times the level of mobile data traffic than the second most data-oriented handset - the Nokia 6310i - and on average use up to 4.0MB per month. The average revenue per user (ARPU) of the XDA is around 35% higher then average post-pay ARPU across O2's footprint.