Palmtop computers have begun to fight their way out of the executive toy bracket into the mainstream. Small, handheld computing devices, palmtops or HPCs, as they are also known, are only now beginning to make their mark as a corporate tool.

The worldwide market for handhelds grew by 65 per cent in 1997. The reason for this is their increasing sophistication. A convergence of a range of devices, handhelds have many of the capabilities of full-size computers. They are also light and small enough to fit into a pocket or handbag.

They come in the form of either small pen-based devices, or small portable PCs with a keyboard, and to date the market has been largely driven by individual professionals in the retail sector.

The research arm of the GartnerGroup in the US, Dataquest, predicts that as paging and Internet features become more sophisticated, corporate sales will make up more of the overall market. It says that handhelds will be increasingly recognised as a way for business people to carry important data that can be backed up.

The advent of the Windows CE 2.0 operating system, which is a scaled-down version of Windows 95, has paved the way for a new breed of palmtops that look and act, on a reduced scale, like a Windows 95 computer. With the release of Windows CE 2.0 handheld devices come closer to fully fledged business productivity tools, approaching the functionality of notebook PCs.

Not all handhelds operate on Windows CE, however. The Psion Series 5, for example, runs on the EPOC 32 operating system. It transfers files to and from Windows 95 and NT applications via the included PsiWin. Because the permanent menus are touch sensitive, it cuts down on the clutter of many CE displays which allow only four lines of text between menus, pointers and control buttons.

The Series 5 has won awards for its ergonomic design; it also has a graphics package, which at the moment is not available on other systems.

While the need for remote computing devices has always existed, the technology up to recently has not performed well enough. The ill-fated Apple Newton bombed because of problems with its hand writing recognition function, the small size of its keyboard and an inadequate screen.

Some of the problems that dogged earlier palmtop models have been overcome. There have been improvements in keyboard design, in screen size and processing power.

Hewlett-Packard has incorporated a desktop management software called Toptools into the 300LX and 320LX palmtop computers which monitors the health of the devices.

Standard features on handheld PCs now include word processing and spreadsheet facilities, infra-red connection to PC, printer, or another palmtop. The infrared connection means that you can send messages to another compatible palmtop owner, handy if you want to engage in a bit of industrial espionage in the board room.

Other features include the ability to connect to the telephone to upload and download files from a PC, as well as to send faxes and receive email. The Hewlett-Packard 620LX and the Sharp HC-4500 also have colour monitors.

Window's CE machines typically include a contact manager, a task scheduler, a miniature version of Word and Excel and Windows Explorer.

3Com's Palm Pilot fended off attack from Windows CE-based systems last year. The Palm Pilot has a contact messenger, a scheduler and an expense tracer. The most popular device in handheld computer market, it sold more than 1.6 million sold worldwide last year. Hewlett-Packard was the number one Window CE device with 43 per cent of the market share, Casio had 17 per cent, and Philips accounted for 16 per cent.

Improvements aside, palmtops still have some way to go before being fully accepted as business tools. Mr Jim Powell, Product Manager PCs, of Dixons in Britain says people are not yet fully aware of the capabilities of handhelds.

"They think they are a fashion item, in the same way people were using filofaxes which had a yuppie image. Palmtops cost between £300£1,000 and arguably make you look a lot more professional and make you more organised.

"When you can work on the train or bus, you can make better use of your time when you go into work and generate more time for yourself outside of work."

The thing to remember when choosing a handheld computer is to buy according to your needs. The favourite of most of the retailers contacted for this survey was the Psion Series 5 for its sheer functionality and usability.