America Online Thursday said it plans to sell a low-priced PC targeting low-income and minority households who agree to sign up for a year of dialup Internet service.

The online unit of Time Warner will begin selling the computer and service at Office Depot this month.

The launch is part of a broad strategy at the recovering online service, which watched 2.2 million members abandon its service.

Over the past two years, the company has attempted to find new sources of revenue by appealing to different categories of customers including the Spanish-speaking and teen markets.

Executives said it hoped to attract the 27% of U.S. households comprised of seniors, African Americans and Hispanics who do not yet own a PC.

The computers will come configured with a simple desktop with large icons that send users to specific areas of the AOL service or applications loaded on the computer. They can also be preconfigured for Spanish language speakers.

The company said its AOL Latino service launched last October has already become the leading service provider servicing the U.S. Spanish-speaking community, with over 2 million members.

AOL plans to launch a service targeting the African American community, called Blackvoices, in September.

Source: Agencies