A project looking to produce affordable computers to address the digital divide as released its low-cost Raspberry Pi computer priced at just £16.

The Raspberry Pi project aims to sell £16 Linux-based computers to allow children to learn about computing in schools. The project handlers have said that they are now testing a beta version of the device.

The Model A Raspberry Pi is based on a microchip that is similar to the one used in mobile phones. The first circuit boards are complete and the production is scheduled to begin next year.

Raspberry’s Liz Upton said, "If all the boards from this batch perform well in testing, we'll be auctioning ten of them off. Once we're happy that this test run is fine, we'll be pushing the button immediately on full-scale manufacture in more than one factory."

The project is now carrying out electrical, software and hardware tests on the circuit boards before it is integrated into the device. The Raspberry device will come in two versions, the first £16 Model A and a second Model B, priced £22.

The project was earlier planning to release the product into the market by the end of the year but the product will be delayed by about three months.