Much has been written about the transformative influence of new technology on the school curriculum, but only a small number of studies have focused on the practical implications for primary literacy. The dominant paradigm seems less concerned with transformation, instead favouring a view of "technology as enrichment". This case study examines the possibilities of transformation through an electronically mediated partnership between two primary schools in the North of England. Children's digital texts are analysed alongside interview and observational data in order to document what transformation might look like in practice. The study illustrates how technology can be used to promote new literacy practices in the classroom, through the production of new kinds of texts. It also documents the emergence of peer-based learning relationships and changing perceptions of the teacher's role.