Hi Per,
The chip that will be suggested to me will is about $1. This is all that I know of.
The exact family of chips, the development tools, etc. and their tentative prices will be informed to me within the next couple of days...I will post it here.

Compiler is free, and the chip is about $1, is all that I know of today.

My requirements to him were:
About 32 I/O, prefereably to direct drive the 7segment LEDS(10-digits), ADC (minimum: 12bits, 1ksps), internal EEPROM, preferably with a PGA. internal timers atleast 2, In-system programmable, UART, and any other feature to enhance the product will be an added advantage.

To this, his reply was the $1 chip...max $1.5...At first I did not believe him, but he has assured me about it....now that makes me re-think about AT89C52/AT89C55WD===>Freescale....doesn't it?

Bye, from Kiran V Sutar