Mike Taylor, chief executive of CPI, said: "I don't see much of a future for these kind of devices. People like to have something they can, for example, take on the beach without the worry of battery life or lighting conditions.

"The book is a very strong product and a source of entertainment that people continue to purchase during a tough economic times. It is portable and simple, electronic devices are niche products and won't win people's hearts."

The new product, developed by scientists from Cambridge University, has been manufactured in Dresden, Germany. The Plastic Logic E-reader will join a spate of electronic e-readers already available from companies including Amazon, Sony and LG.

Plastic Logic's "paperless paper" can hold hundreds of documents, books and media. It is touted as the first serious challenge to real paper. There is currently no word on its launch date.

Dean Baker of Plastic Logic, said: "The most significant change here is the display technology based upon plastic electronics. Unlike glass and silicon-based displays, which are very heavy and fragile, it is thin, light, flexible and robust.

"What people are essentially buying is information, and this causes a lot of waste, when that needn't be the case."