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Dear Kindle: Watch your back. This morning at the New York Public Library, Sony President of Digital Reading Steve Haber announced a new member of the company’s e-book reader family, the Reader Daily Edition. The 7-inch device connects to AT&T’s 3G network to allow Kindle-like access to Sony’s online library.

Like the PRS-600 Touch Edition, the Daily’s screen is touch sensitive, allowing for finger-flick page turns, easy menu navigation, and notes and highlights. The Daily displays books, newspapers, and magazines in either portrait or lansdscape mode and can store more than 1,000 books onboard (though its memory is expandable via a memory card slot).

The Daily Edition will be available in December for $400.

But what good is 3G with Sony’s drab, old library? That’s on the mend, too. The new Library Finder application allows you to browse and borrow from your local library’s e-book catalog through a partnership with the OverDrive network. And earlier this summer, Sony added 1 million public domain titles via Google and Times bestsellers. They’ve also recently (finally) found love for the EPUB e-book format, the standard e-book format used by trade book publishers.

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Sony Reader Daily Edition