Intel at its IDF developer event has demonstrated its Ultra Mobile PC, a tiny portable unit featuring a full blown computer running Windows.

The portable device will be launched later this season, said Sean Maloney, general manager of Intel's Mobility Group who referred to the devices as the next step in PC mobility.

"You are going to see a tremendous wave of experimentation in the next year and a half, two years," Maloney said, pointing to different form factors that for instance feature keyboards that slide or swivel out.

"You won't have to wait long for the announcements of the first ones of these devices."

According to a source familiar with the matter, at least three manufacturers are scheduled to unveil the portable PCs on Thursday at the Cebit tradeshow in Hannover. Running Windows XP, they are expected to cost between $500 and $1000 and rely heavily on flash memory for their storage.

The source also linked Intel's Ultra Mobile PC to Microsoft's mysterious Origami project.

Intel and Microsoft have been playing name games with the Ultra Mobile PC form factor for almost the past year.

Microsoft chairman Bill Gates for the first time showed off the device at WinHEC last year in May and referred to it as the "Carry Everywhere PC". The device at the time was presented as an ultra thin PC featuring a 7 inch screen and all day battery life.

Intel chief executive Paul Otellini consequently showed off the device at IDF last August and it re-emerged again at the Consumer Electronics Show in Las Vegas last January as the "Slide concept".