Microsoft is set to unveil the next version of its Windows Mobile operating system this week, codenamed Magneto, according to sources familiar with the situation.

The launch corresponds with Microsoft's Mobile & Embedded DevCon event taking place in Las Vegas this week, where company Chiarman and Chief Software Architect Bill Gates will make a keynote address on mobile development strategies.

Details of the new mobile OS have been scarce, but an online review of a leaked version of the software cites improved navigation and contact functions, as well as a significant expansion in Microsoft Office for PDA capabilities. The newly named Office Mobile includes changes to Word and Excel and the emergence of PowerPoint Mobile, according to the review at www.mobile-review.com.

Earlier this year Microsoft tried to silence other sites that offered leaked information on its forthcoming mobile software. It sent letters to electronics news site Engadget.com, Windows fan site Neowin.net and smart phone information Web site Modaco.com, claiming that by posting screen shots and details on the unreleased software, they were violating the company's intellectual property rights.

Neowin and Modaco removed their articles, but Engadget left its article in place, claiming that the information was not stolen, but taken from other sources on the Web.

Microsoft is holding a press event in London on Tuesday to announce a new worldwide product launch, but representatives for the company remained tight-lipped about whether it was regarding Magneto.

From ComputerWorld