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Initially reading PDFs on the KA1 was frustrating. After installing koreader on it, PDFs became much more manageable. I also installed koreader on my Kobo Aura. However, the larger screen on the KA1 makes the PDF experience more enjoyable on it than on the Aura.
Although I am not very technologically savvy, I was able to install koreader without any difficulty on both devices. | haven't tried highlighting or annotating so can't answer your questions on that matter.
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