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Hewlett-Packard will soon announce two handheld computers that run Microsoft's upcoming Merlin operating system, CNET News.com has learned.

Sources also said Microsoft will announce the new handheld OS on Sept. 6 and officially call it Pocket PC 2002.

The new handhelds will be part of HP's Jornada 560 series, the sources said. One will come with 32MB of memory and the other with 64MB. Both devices will use Intel's StrongARM SA-1110 processor and will have active-matrix screens that can display 16-bit color.

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