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Hewlett-Packard has announced a new low-end desktop PC designed for small businesses and featuring a version of the Linux operating system.

The Compaq D220 PC will be available July 7 as a user-configurable system, according to HP. The base configuration includes a 2.0-GHz Celeron processor, 128MB of DDR SDRAM, a 40GB hard drive, and a CD-ROM drive.

Basic Setup

The base model of the configurable version also comes with MandrakeSoft SA's Mandrake Linux version 9.1, rather than one of the usual Microsoft operating systems found on HP PCs. The company does sell other business PCs with Mandrake Linux as an option, a spokesperson says. In addition, HP sells notebooks that run Linux.

Customers worldwide may choose Mandrake Linux 9.1, while customers in Asia-Pacific have as a second option TurboLinux Inc.'s operating system, according to the spokesperson.

The Linux version of the D220 costs only $349, matching the price of the least-expensive desktops in HP's product line. At this price, no monitor is included. For $150 more, small and medium-size business customers can upgrade the processor to a 2.4-GHz Pentium 4.

HP calls the D220 a microtower unit. The case is designed to fit into tight places such as under a shelf or desk in a workplace cubicle. It measures 7.1 inches wide by 15.4 inches deep by 14 inches high.

Competing Systems

HP also sells a $349 Pavilion desktop that runs on an Advanced Micro Devices Athlon XP 2000+ processor. It also markets a Presario desktop--with the same AMD processor--priced at $349 after a $50 mail-in rebate.

Rival PC vendor Dell sells a $349 Dimension 2350 PC, but Dell includes a 2.2-GHz Celeron processor at that price (after a $50 mail-in rebate) for small-business customers.

HP will also offer the D220 in several preconfigured setups that bundle Microsoft's Windows XP Home. The same D220 base configuration with a 2.0-GHz Celeron processor and Windows XP Home costs $429. Several other preconfigured systems are currently available directly through HP or through resellers.

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