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AlphaSmart believes it has a clever alternative to notebook computers. The company develops handheld computing devices designed primarily for use in classrooms. Its AlphaSmart Neo, which runs on three AA batteries, features a full-size keyboard and applications including wireless file sharing. The company also offers a product based on the Palm operating system called Dana that uses rechargeable batteries. Renaissance Learning acquired AlphaSmart for about $58 million in cash and stock in 2005.