Do you know how you can tell it's a slow day for tech news? It's when major tech blogs like Engadget cover a boring little ereader like this one. I'm not trying to be mean; it's just that this ereader is really nothing special.
I've covered Energy Sistem before; they're a consumer electronics importer in Spain and this is their 6th ereader (the previous 5 had E-ink screens). It's based on a 5" LCD screen and it offers 4 options (2GB to 8GB Flash) and a microSD card slot, but no Wifi or touchscreen. Energy Sistem are selling it for 110€ to 135€, which is a little much considering what the K3 costs.
It doesn't appear to support DRM, but it does read TXT, HTML, PDF, EPUB, FB2, RTF, MOBI, CHM, and DOC ebook formats as well as a pretty broad selection of video and audio formats (WMA, MP3, MP4, WMV, AVI, RMVB, FLV, ASF, 3GP, and MOV).