Techworld's Peter Judge reports today that Palm is launching a new $499 smartphone companion called Foleo, a Linux-based mini-laptop that syncs with your Palm Treo (and other smartphones) via Bluetooth.

"Weighing 2.5lbs, with a 10.2 in screen and a five hour battery life, Foleo is intended as a smaller, faster, alternative to the laptop, which makes the phone the central communication device," Judge writes. "It turns on and off instantly, and keeps synchronised ('at the touch of a button,' according to Palm). Edits made to documents on the Foleo are automatically made on the paired smartphone and vice versa."

The device will have both Wi-Fi and Bluetooth, as well as a USB port, video-out port, headphone jack, and SD and CF card slots. It's indended for use with e-mail, Web browsing, and management of Word, Excel, PowerPoint and PDF files.

"Foleo is the most exciting product I have ever worked on," says Palm founder Jeff Hawkins. "Smartphones will be the most prevalent personal computers on the planet, ultimately able to do everything that desktop computers can do. However, there are times when people need a large screen and full-size keyboard. As smartphones get smaller, this need increases. The Foleo completes the picture, creating a mobile-computing system that sets a new standard in simplicity."

It's a very cool idea, but I'm not convinced that the Foleo is any more attractive than any other 10-inch laptop, including the much-anticipated 10-inch MacBook. I agree with Hawkins that there's a need, but I'm not sure this is the answer...

More here from InfoWorld ... more here from TheStreet ... more here from Engadget ... more here from Switched ... more here from DailyTech ... more here from TMCnet ... more here from Wi-Fi Planet ... and the press release is here.