The Raspberry Pi Model B features:

Model B Revision 2 Raspberry Pi with Mounting Points and 512MB RAM
The Broadcom BCM2835 ARM11 (The one that you find in most smartphones) 700Mhz 'System on Chip' Processor (Similar performance to a 300MHz Pentium 2 Processor).
Integrated Videocore 4 Graphics Processing Unit (GPU) capable of playing Full 1080p High Definition Blu-Ray Quality Video (Roughly equivalent graphical processing power of an Xbox 1).
512MB RAM
The free, versatile, and highly developer friendly Debian GNU/Linux Operating System
2 x USB Ports
HDMI Video Output
RCA Video Output
3.5mm Audio Output Jack
10/100Mb Ethernet Port for Internet Access
5V Micro USB Power Input Jack
SD, MMC, SDIO Flash Memory Card Slot
26-pin 2.54mm Header Expansion Slot (Which allow for peripherals and expansion boards)
It is clear that this tiny computer will have many other applications outside of being just a learning tool. Demos already show the Raspberry Pi running games, word processing, managing spread-sheets and playing high-definition video. With access to the internet, through Ethernet or Wi-Fi (with a USB dongle), and a high definition output, the Raspberry Pi is an incredibly versatile piece of computing kit. Most importantly the Raspberry Pi gives every child in the country a chance to own a personal computer which they can develop, learn from, and play with, at an incredibly low cost and in an unbelievably small package.