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It's a sure sign that pervasive computing has entered a new era - in some ways even more telling than the PC's dominance or wireless communication's emergence. The good old-fashioned teddy bear has become an intelligent agent. Computer scientists are now using stuffed toys as intelligent agents in an array of applications - from bunnies and squirrels that serve as cell phone answering devices to bears that function as "living" log recording devices. This paper discusses the significance of equipping stuffed toys with emerging technological capabilities.