Robbie Bach the President, Entertainment & Devices Division for Microsoft appeared on ABC Lateline Business where he talk about surface computer and a number of other things. When questioned about the rumoured Zune phone and the Courier Tablet device his response was

“Set aside the Zune phone or other things we ARE working on.”

On the face of it this sounds like a simple deflection to the question however he does clearly say the are working on something and the statement was not a direct denial.

Click on the image below if you want to see the whole interview for yourself. The the Zune Phone and Courier question is at about 1m:08s.