Asustek Computer and Intel are working a line of laptops priced as low as £100, according to a top Intel executive. "The entry level notebooks… will start at $199 (around £100), street price," said Intel's Sean Maloney today. Update: Hands on with the Asustek and Intel £100 laptop PC.

The notebooks are intended for users in emerging markets and education, said Intel's Maloney. He announced the initiative with Asustek chairman Jonney Shih at the Computex exhibition, which started today in Taipei.

The £100 Asustek notebooks are similar to Intel's existing Classmate PC notebooks, a line of low-cost machines aimed at schools in developing markets. The £100 Intel, Asus notebooks will have an Intel processor and either a 7in or 10in screen. The ultra-cheap laptops will come with Wi-Fi, a solid-state hard disk and run either Linux or Windows XP.

"It's totally new. It's going to have the Classmate PC brand on it, but it will be sold and shipped by Asus," Maloney said, calling the notebooks a complement to Intel's current Classmate PC line, which is aimed at bringing more students in emerging markets online.

"We're delighted there's another product here that can be used to address this problem," he said.

The £100 price of the low-end version of Asustek's new laptop is not far from the current price of the OLPC's (One Laptop Per Child's) laptop. In April, OLPC raised the price of its upcoming XO laptop, commonly called the $100 laptop, to $175 (around £90).

See also: Building the £50 laptop, OLPC to reach $100 laptop mark next year and OLPC's £75 laptop to ship next week .