This study describes the development of a ubiquitous cooperative learning environment using proposed annotation services, wireless communication devices, and the Jigsaw method of cooperative learning. The purpose of the study is to investigate the potential benefits of studying digital course materials with embedded annotations. The SQ3R study method is introduced during the individual study phase of a series of Jigsaw learning activities, enabling students to access and familiarize themselves with course content. In this phase, learners use the SQ3R method to enhance the quality of their annotations. It is noted that during this phase, individual students worked in separate locations. After the individual study phase, an expert group meeting process refines the annotations made by student experts and then the annotations discussed are provided to all members of the Jigsaw group during the group meeting phase. Importantly, annotations from different levels of literal meaning and connotation are assigned to different learners to help the group members develop a greater sense of context awareness of the different aspects of the topics under study. Analysis of data collected from questionnaires given to participants at the end of the study indicates that the proposed annotation services using handheld devices can enhance students' learning potential. The results also indicate the suitability and practicality of annotation services in an ubiquitous Jigsaw cooperative learning environment. (Contains 7 figures and 4 tables.)