America Online Inc. is in talks to produce AOL-branded PCs in conjunction with Microworkz Inc., a manufacturer of inexpensive computers.
According to Microworkz, representatives of AOL visited the Lynnwood, Wash.-based company to discuss Microworkz producing the computers for AOL. But a source familiar with the talks says AOL is interested in buying Microworkz outright. Microworkz released a statement publicly denying that any acquisition discussions were taking place.
On Monday, at the PCExpo trade show in New York, Microworkz announced a new $200 computer/Internet appliance, called the iToaster.
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