The 1.73-inch screen supports a resolution of 320X240 pixels with 16 greyscale levels.
The online retail giant acquires Liquavista, a screen tech company that made a splash at the 2011 CES with its color e-reader.
The mooted new tablet is roughly A4 size, and takes doodling in class to the next level.
The company is reportedly trying to sell Liquavista, a firm it acquired in January 2011, for less than $100 million.
Gadgets at CES 2013 give us a peak into the future: e-ink on smartphones, device-to-device wireless charging, and controlling a tablet with your eyes.
The Pebble E-Ink watch works with iOS and Android, and already has over $1.6m funding.
As rumors swirl that Amazon is developing a new Kindle with an integrated light, Barnes & Noble's new $139 Simple Touch with GlowLight is already a reality.
Can the new iPad's high-resolution display compete with e-ink? It's apples and oranges, so to speak.
Amazon unveils the Kindle Touch for $99. A 3G version will retail for $149, while a cheaper no-touch version will sell for $79.
Disney Research has created a smartphone projector system that brings flat surfaces to life using invisible infrared ink.