Amazon announced yesterday that they will soon have a lower priced option for their Kindle e-reader device. It will be called ‘Kindle with Special Offers’.

The new version will have the same functionality when it comes to reading an e-book, but it will also include “sponsored screensavers” and banner ads on its home page. According to Amazon, the new Kindle will not place ads on pages of e-books.

The new Kindle with Special Offers will sell for $25 less than the standard version of Kindle. The new one with ads is available now for pre-ordering on Amazon.com, and will be set to ship on May 3rd. The price will be $114. The no-ad Kindle will remain available at a price of $139.

Chase, Visa, Olay, and Buick are listed on Amazon’s home page as having signed up to be sponsors on the new Kindle. Amazon will also run promotions on the device.

“We’re working hard to make sure that anyone who wants a Kindle can afford one” said Amazon found and CEO Jeff Bezos, in an announcement about the new Kindle.

There will now be three versions of the Kindle offered on Amazon. The Kindle with Special Offers ($114), the standard Kindle ($139), and the Kindle 3G ($189). While the first two versions require a Wi-Fi connection to download e-books, the 3G version allows the user to download while “on the go”, using the same wireless signals that cell phones use. The Kindle 3G does not require a monthly service fee or subscription.