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Kindle e-reader cheaper with on-screen ads

US online retail powerhouse Amazon on Monday introduced a cut-price version of its Kindle electronic reader that features on-screen ads.

Kindle with Special Offers e-readers priced at $114 each will begin shipping in the United States on May 3, according to Amazon.

Amazon charges $139 for the same Kindle without ads or deals displayed as screen savers and on the home page. The e-readers connect to the Internet to download digital books using wireless connections to routers at "hotspots."

A version of the e-reader that accesses the Internet using a built-in 3G telecom connection is priced at $189.

"We're working hard to make sure that anyone who wants a Kindle can afford one," Amazon founder and chief executive Jeff Bezos said in a release.

"Kindle with Special Offers is the same #1 bestselling Kindle - and it's only $114."

Sponsors of Kindle screensaver ads include US car maker Buick, credit card company Visa, and Proctor & Gamble beauty products line Olay, according to Amazon.

Launch deals included discounts on audible books, digital music, a Roku Streaming Player, and Amazon.com gift cards.