Asustek will begin production of four Asus-brand sub-notebooks in the $249-549 price range, based around Intel's Classmate PC design in July.
The notebooks will be released a few months before Asustek starts building similar devices for Intel in September.

The entry version of the Asustek will be $249, which will be the low end of price scale mooted by Intel when it talked about its classmate PC range.

Intel's design includes a seven inch LCD at 800x480, an Ultra-Low Voltage (ULV) Celeron M 900 with no L2 cache, and 256MB of DDR-II. 
It seems that Asustek is targeting the PC for developing countries.

More here.