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Books from the Kobo bookstore (kobobooks.com) work on the Sony. Just make sure to download the Adobe DRM file and you'll be okay to go. You can even use the Kobo desktop software to sync your Kobo ebooks onto your Sony eReader.
The prices are similar as other bookstores, but Kobo offers coupons. If you have a look in the Kobo forum, you'll find a thread that's usually updated with the lastest coupon offers.
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