Specifications include a 1.6GHz Atom N270 CPU, 1G of RAM, a 160G hard drive, a 1024 x 600 display, 802.11b/g wireless, and a three-cell lithium ion battery.
The PRO version has similarly been reduced in price from $539 to $439. It includes 2G of RAM, a USB Bluetooth dongle, and a six-cell battery.
That six-cell battery can also be purchased separately for $64.
"We have established ourselves as a leader in this market and our buying power is increasing every day," said company founder Ruslan Kogan.
"Through our direct business model we can cut out the middle men and pass on these savings to our customers," he added.
The Kogan Netbook ships with the gOS operating system. "We are huge believers in cloud computing and open source software. The reasons are simple, open source software is usually faster, better and has more features," said Kogan.