Intel has used its Developer Forum in Shanghai to launch the second generation of its low-cost Classmate PC.

One of the first to fit Intel's "netbooks" class of portables, the new version boasts a larger 9-inch screen as well as a "more mature" look than the original model.

There's also the addition of a built-in webcam as well as new options for either 4GB of flash storage or a 30GB conventional hard drive.

The small notebook, aimed primarily at kids, offers a 900MHz Celeron M chip, 512MB of RAM, and choice of either Linux or Windows XP.

Intel said future models will use Intel's Atom processor, an energy-efficient, low-cost computer chip designed to provide wireless capability to small mobile computing devices.

The new model, called the "2Go PC" will be sold by CTL through Amazon in the States for $400. UK info has not been provided yet.