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Kobo H2O is the most recent Kobo ereader with external expansion slot for micro sd card.
Kobo Touch 2.0 has internal micro sd card slot and is easy to open letting you replace internal micro sd card with a 32gb card. First copy image from internal sd card to your computer then write this image to your larger capacity sd card. I would keep the old sd card or at least a copy of the image as a backup.
Used and reconditioned Kobo ereaders are available from Ebay.
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