The S121 is just under an inch thick and is 11.7-inches by 8.3-inches, weighs about 3 lbs and carries a touchscreen that runs a specialized software Asustek developed for easy touch navigation.

The use of Asus's touch mode software on Microsoft's Windows 7 OS shows how closely the two companies are working together.

"We're deeply partnered with Asus on Windows 7," said David Fester, general marketing manager at Microsoft's OEM division, at a news conference ahead of the International Consumer Electronics Show, which opens Thursday in Las Vegas.

And although the S121 will be available about a month from now, it probably won't come with Windows 7. The new OS isn't slated to hit markets until next year, although some say it could be released as early as mid-2009.

The new netbook will also "cost quite a bit," said Jonney Shih, chairman of Asus, around US$1,649 due to the 512GB SSD on board. He said Asus used its own technology to build the SSD.