Sony announced a new electronic paper gadget at the CES 2006 called Sony Reader.

The Sony Reader follows the Sony Librie that was already available in Japan for a while now.
The Sony Reader is about the size of a paperback novel and about .5 inches thin. Sony combined a electronic paper display with a one-handed navigation and durable case. The Sony Reader can store hundreds of books in internal memory with the addition of an optional Memory Stick or Secure Digital (SD) flash memory card. Besides PDF the Sony Reader can also display jpeg files and web pages.
Sony says the battery holds for 7,500 page turns (cute way to define battery life).
The high resolution electronic paper display is readable from a variety of viewing angles, even outdoors in bright sunlight. Since there is no backlight, readers will not experience the fatigue associated with long term reading on an LCD.
Sony will offer eBooks via their Sony Connect service.
The Sony Reader will be available in the U.S. this spring.
More details in this Sony press-release and on the Sony Reader site