Wave Issue 0209 3/15/02 Article 2-01

***Logitech and Anoto Join Forces to Introduce Pen and Paper to
the PC Platform
(March 14)

Logitech today announced a formal agreement with Sweden-based
Anoto for introducing digital pen and paper solutions to the PC
platform. As part of its entry into this new market, Logitech has
entered into a strategic relationship with existing Anoto
partners in the paper industry. Key participants in the alliance
include 3M's Post-it Notes Division, MeadWestvaco, Groupe
Hamelin, FranklinCovey and Time/system International. Building
upon Anoto functionality, the companies are developing a complete
"ecosystem," whereby consumers will be able to capture, store and
retrieve handwritten information, using the medium of paper and a
dedicated pen with the PC.

Based on technologies from Anoto that convert ordinary
handwriting into digital information, the Logitech solution is
designed to provide the user with the ability to use pen and
paper in exactly the same way that people have used them for
centuries while still making use of the powerful productivity
provided by a PC.

Logitech expects to launch the digital pen enabling Anoto
functionality for the PC platform later this year. Digital paper
enabling Anoto functionality will also be launched at the same
time.

Anoto Technology

Anoto's pen is based on an optical solution to movement tracking.
Like an optical mouse, the pen illuminates the surface of the
paper, and detects movement as the resulting image translates
across the detector. Unlike an optical mouse, though, the Anoto
pen is dependent on a proprietary pattern on the paper to
determine position. Anoto pens only work with Anoto paper.

The paper is printed with a very fine pattern of dots that
respond to infrared light. The pen illuminates the dots with an
infrared LED, and the digital camera detector takes regular
snapshots of the resulting images as the pen moves. Because the
pattern of dots is not regular, the pen can use the snap shots to
determine the pen's position. The full pattern represents a
virtual single sheet of paper hundreds of meters on a side.

Since the pattern does not repeat, the pen determines an absolute
position on the giant virtual writing surface. Anoto has
designated certain "areas" of the pattern for certain services or
actions, and suppliers can print different portions of the
pattern in different areas of one piece of paper. For instance,
one might write a note on one portion of a sheet of Anoto paper,
then check a box in a corner where a different portion of the
pattern is printed, to send it as e-mail.

The actual data processing involved with determining position is
done onboard the pen, and the resulting data is sent to the
target device (PDA, cell phone, PC, etc) either through a cable
or via Bluetooth. The pen does not convert handwriting to text,
although a portion of the pattern has been reserved for that
service. Most likely it will be offered by a third-party vendor,
or perhaps Anoto, at a later date.

Partnership with Logitech

Logitech builds accessories for PC computers and gaming consoles-
-what they call "Personal Interface Products." At CeBIT this
week, Logitech announced that going forward, their market focus
will expand to include accessories for cell phones, PDAs, and
notebook computers. In addition to pen computing on the PC
platform, the Anoto partnership may allow them to begin offering
pen computing accessories for mobile devices as well. Casio
already offers such a device, the E-Pen from InMotion, for their
organizers.