Most pens write but Talky Talky is a pen that can read. Recently shown at the Koreannovation show in NYC, the Talky Talky (My Friend for Language Education) from Gemkid Horizon is designed to help kids learn how to read. Your child presses the tip of the pen onto the words in special coded books and the gadget speaks the word or phrase out loud.
This way kids can read what they are able to and use the Talky Talky for the parts they are are having trouble with. A flash memory card in the pen stores the words, so it has some degree of expandability. The device can also be used for music education, foreign language training, or even to teach braille. No word on availability or pricing.