Historically, HP have had a number of small laptops, so it's no surprise that, according to this post over at Engadget, they're bringing out a competitor to the Eee PC.
Rumour has it that it will be 2.5 pounds, with an 8.9" 1366 x 766 LCD, WiFi, built-in webcam, the option of normal or solid state drive and be configurable with Windows or Linux.
No information regarding the processor, but it sounds like a neat little package ... although whether it's really attractive will depend on the asking price.
If these allegedly leaked images are accurate, it looks nice, too.
Update: According to this Engadget article, the price will be around $US630 and the processor is a Penryn series chip. That's a bit more expensive than an Eee PC, but with a decent processor and the rest of the specs, sounds like good value.