At Macworld in San Franciso, Apple officially introduced a new flash-memory based iPod , confirming the many rumours on the internet about a possible launch.
The rectangular device - named iPod shuffle - will have about the size of a pack of chewing gum. The main difference is that this player uses flash memory instead of a hard disk. Another major difference is that it has no display screen.
A 512MB version will be available for $99 and a 1GB version will retail for $149.
Jobs also said that the iTunes Music Store has sold more than 230 million songs since it first openend.

You can buy the iPod shuffle at Amazon:
Apple 512 MB iPod Shuffle MP3 Player or the
Apple 1 GB iPod Shuffle MP3 Player.
Another announcement was that several automotive companies (DaimlerChrysler, Nissan, Volvo and others) will start installing iPod adapters as a factory install option on several models in the coming year.
Source:
Forbes
More info at Apple's iPod shuffle
product page