Amazon.com unveiled its much-anticipated Kindle 2 today. It's available for pre-order on Amazon now and retains the same price as the first version, $359. Amazon says the Kindle 2 will be released Feb. 24. The site says if you've previously placed an order for the first version Kindle and haven't yet received yet, you'll be automatically upgraded to Kindle 2.

The new Kindle sports a variety of new features. At just over 1/3 of an inch and a little more than 10 ounces, it's "pencil thin and lighter than a typical paperback," according to Amazon. The device has an "improved" display and now "boasts 16 shades of gray for clear text and even crisper images," as well as new buttons and a 5-way controller that allows for "more precise note-taking and highlighting both up and down and side to side in lines of text."

Kindle 2 has 25 percent longer battery life and better storage (2 GB), with the ability to hold over 1,500 books. The new Kindle has 20 percent faster page turns and comes equipped with a "Text-to-Speech" feature that reads content out loud. It has the same "Whispernet" wireless connectivity as the first version Kindle, based on Sprint Nextel's 3G data network. Kindle 2 also has a new feature called "Whispersync" that syncs with the original Kindle and will sync with "a range of mobile devices in the future" -- a reference to Amazon's recently announced plans to make Kindle titles available on cell phones. 

Horror author Stephen King is releasing a short story called "Ur," exclusively for Kindle. Amazon also put out a special offer: those who order Kindle 2 by midnight Feb. 10 will get "first priority."

UPDATED: Amazon.com founder Jeff Bezos tells the AP that the new Kindle is a "significant improvement versus the first generation" and that he expects strong sales to continue despite the tough economy. "Even in this  macro environment, people are buying Kindles," said Bezos, adding that the company is thinking about taking the product overseas.

Meanwhile, The New York Times live blogged the event and has a seven minute audio interview with Bezos. He chats about the selection of books on the Kindle, international plans for the device and challenges of reading books on mobile phones. "Mobile phones are good for reading for short periods of time, if you are going to read for a couple hours you are going to have problems with battery life with a mobile phone, you are going to have problems with eye strain with a mobile phone, you are going to have problems with screen size," he said. "...Reading is an important activity and it deservers a purpose-built device."

Bezos gives his trademarked laugh when reporter Brad Stone asks if the Kindle saves journalism But Bezos also said there are "genuine opportunities" to help reduce the printing costs associated with producing a newspaper, something he said Amazon.com is excited to help with the transition to new technologies.

Amazon.com also has a video of the new Kindle on its Web site.