IBM is previewing it's forthcoming network computer (NC) line this week at Lotusphere '97. IBM NCs will be running Lotus applications, that have been rewritten in Java.

The first member of IBM's Network Station line, formally announced last fall, is scheduled to ship in volume in March. It will cost $695 without a monitor, according to IBM officials. At present, this system, based on a PowerPC 403 processor and compliant with the Oracle Network Computer Reference Profile, is being beta tested at corporate sites, IBM officials said.

The second thin client on display at Lotusphere, in Orlando, Fla., will illustrate IBM's efforts to improve the speed and performance of the Network Station line, IBM said. Encased in a slightly larger chassis than the original version of the NC, the system sports a 100Mbps Ethernet connection and a more robust PowerPC 603e processor. Smart card technology, a principal element in the Oracle NC Reference Profile, will also play a role in the demonstrations.

By demonstrating these systems at Lotusphere, IBM hopes to counter interest in the NetPC specification, developed by Microsoft and Intel, that will be fleshed out in March.

Microsoft and Intel said the forthcoming diskless NetPCs won't compromise PC functionality, or rely on the network or server to execute applications; rather, they will lower costs through "integrated management software" and "other tools".

IBM, meanwhile, hopes to show that, in contrast to the (vaporware) NetPC, IBM's NCs have moved past the concept stage.

The company will demonstrate by running applications on its NCs that include Lotus' upcoming version of cc:Mail for Java, as well as an unreleased Java-enabled scheduling and calendar client, sources close to the company said.

"IBM is totally committed to the network-computer concept and to an entire product family," said Glenn Batalden, network station architect for IBM, in Rochester, Minn.