BBC News Online: Business

Psion pockets Motorola deal

The agreement will see the two companies jointly design handheld devices for use on cellular networks in Europe, North America and Asia.

The products will have integrated voice and data capability and are "designed to put the internet in the user's pocket."

They should be launched in the first half of next year, Psion said.

Shares in Psion rose 31p to £31.16 in early trading on the London stock market.

Race for mobile devices

Motorola and Psion are already linked through their membership of the Symbian joint venture - which includes other mobile phone manufacturers - set up to exploit the Epoc operating system Psion developed.

"This agreement is a strong endorsement for Symbian and represents a great step forward for Psion," said Psion chief executive David Levin.

Strong competition

The race to develop mobile phones and other devices that use the internet on the move has heated up.

Late last year, Ericsson announced a tie-up with Microsoft to develop a rival technology to Symbian.

All the major UK mobile phone companies plan to roll out services which receive some internet services by the end of the year.

And the next generation of mobile phone licences, which are currently being auctioned by the UK government, will allow a full internet data and video capability.