Dell Inc. said Tuesday its Aero smart phone is now on sale in the U.S. for $99 with a two-year AT&T contract.

Dell has been selling similar phones in China and Brazil since late last year and has been promising a U.S. version since January.

The Dell Aero uses an older version of Google Inc.`s Android operating system than many competing phones on the market today. The Aero uses version 1.5, also called "cupcake," while most phones now use version 1.6 or higher. Dell says it has done a significant amount of work adding features to the base Google system.

The Aero has a 3.5-inch touch screen and a 5-megapixel camera, and it has photo and video editing functions built in. Dell says the Aero can sync with Windows Media Player and music without copy protection.

Dell, one of the world`s largest makers of personal computers, has been looking for ways to diversify its business as profit margins on traditional PCs have grown thinner and thinner. Dell also wants to stay relevant as more everyday computing tasks get done on smart phones instead of desktops and laptops.

BDST: 1615 HRS, 25 August 2010