The hand-held Tag operates through a web-based application called LeapFrog Connect. It interacts directly with books via an infra red camera which recognises letters, words and symbols on the page of a Tag book. Audio for the stories, games and activities can also be downloaded.
Craig Hendrickson, vice president of reading at LeapFrog said: "We couldn't be more excited to unveil the Tag Reading System -- LeapFrog's successor to the LeapPad Learning System.
"The Tag Reading System brings together leading-edge technology, an intuitive product interface and the most engaging content to create a truly amazing, magical reading experience that has the power to instill a lifelong love of reading."
Available in summer in the US and targeting children between the ages of four and eight, the Tag is expected to retail at $49.99, Tag Books and Activity Boards are expected to retail at $13.99 while Activity Cards are expected to retail at $7.99
Details on UK availability are not yet known.
Chris Shipley, executive producer of Demo 08 said: "LeapFrog's Tag Reading System was hand-selected from hundreds of emerging products to debut at DEMO 08 because it is a promising new technology that encourages and supports young children as they learn to read.
"Its intuitive design and cutting-edge innovation literally bring books to life. It really is the next-generation reading system for a new generation of readers."