The Oyo II is going to be an updated but largely identical version of the current ereader. It will have the same general hardware design (casing, card slot, Wifi), but it will be getting an upgrade to 4GB Flash storage, faster CPU, bigger battery, and it's going to have a better quality Sipix screen.
That last is the most important. The current gen Sipix screen is best described as a gray-on-gray screen. The screen is so gray that it actually makes the original Kindle screen seem white by comparison.Yes, it is that bad.
The price for the Oyo II will be the same as the current Oyo, and the new model is due out this fall. You'll find the new model in Thalia 300+bookstores as well as their website, Thalia.de
In other news, they're also planning to launch an Android app fairly soon with an iOS reading app following along later. Both apps will be tied to the Thalia ebookstore, which has approximately 300k titles now, with about 90,000 of them in German.