Handspring introduced Treo 270, a color-screened version of its wireless communicator that combines a mobile phone and a personal digital assistant (PDA). Treo 270 is available for $499 with new service activation or $699 without a plan.

It also launched Treo 90, a palm-sized organizer with a color display that is not equipped with a mobile phone. At $299, it comes with 16 megabytes, slots for memory expansion cards, and a rechargeable battery.

Both models feature a built-in keyboard and Palm Inc.'s PALM.O Palm OS operating system software.

Handspring has reshaped its product line around communicators, led by its Treo 180 and 180g, rolled out earlier this year to raves from critics and strong demand from retailers, but lukewarm enthusiasm from consumers.

In an effort to spur sales, Handspring earlier this month offered an incentive that effectively cut the price of the Treo by $100 to $399, with the simultaneous activation of a new cellular service agreement.

Handspring also this month cut prices on its older Visor PDA line, bringing all of its black-and-white digital organizers below $200.

Handspring shares rose 20 cents, or 9.85 percent, to close Tuesday at $2.23 on Nasdaq.

Reuters