Taiwanese hardware maker Elitegroup Computer Systems will ship 300,000 low-cost laptops to the US bundled with Lindows.com's operating system.
Elitegroup's A535 laptop will come with the LindowsOS Laptop Edition software, built-in Wi-Fi support and DVD dual-drive for $699.
Deployment of the Linux laptops comes despite the software maker's trademark dispute with Microsoft over the similarity between the Lindows and Windows names. The two companies are scheduled to go to trial in the US on 1 March.
Judges in Finland and Sweden have already ordered preliminary injunctions barring the Linux provider from using the Lindows name.
Lindows has signalled that it will not be deterred by legal woes, however, and has claimed 2004 "the year of the Linux laptop".
Its deal with Elitegroup will put its software in laptops distributed to retailers in the US and Canada, Lindows said.
Lindows is not the only supplier pushing Linux on the desktop. Sun Microsystems has recently introduced its Linux-based Java Desktop System.
Its latest agreement with Elitegroup is being seen by the company as an opportunity to introduce its new laptop OS, introduced in December, to the US market.
The Linux notebooks feature an Advanced Micro Devices 4, 1400+ processor and 128Mbytes of memory.
Scarlett Pruitt writes for IDG News Service