Fujitsu unveiled a commercially available color ebook reader dubbed FLEPia.
The Fujitsu FLEPia can display 260,000 colors, offers Bluetooth and high-speed wireless LAN.

The design of the FLEPia is not dazzling. As long as the ePaper is not going to the edges of the device eBook reader will look like a cheap photo frame from Walgreens.
Features of the Fujitsu FLEPia include 8 inch color ePaper screen, SD card slot, Bluetooth, and WiFi.

The FLEPia weighs 385g and is at 12.5mm way to thick (Kindle 2 is 9mm).
A Japanese version of the FLEPia comes with Windows CE 5.0 installed in addition to the eBook reader software.
The price in Japan for the FLEPia is 99,750 Yen (~$1,000).
More details on the Fujitsu Frontech site. Via Engadget.

I do not think the FLEPia is the solution for Hearst to publish magazines. I still wonder what kind of eBook device they are working on. To publish magazines you need color, else advertisers will not be part of the game.