U2 lead singer Bono and guitarist The Edge stood by CEO Steve Jobs as Apple unveiled two new iPod models yesterday. At the combined press conference in San Diego, Mr. Jobs looked pleased and excited as he announced a special edition U2 iPod and a new full-color iPod Photo.

The special edition U2 iPod comes encased in black with a red click-wheel while the back features engraved signatures of each of the band’s members. In addition to the cosmetic changes, the limited edition U2 iPod also comes with a exclusive U2 poster and $50 off coupon for The Complete U2, a digital boxed set of all of U2’s impressive musical output, including the new album, How to Dismantle an Atomic Bomb and over 25 rare and unreleased tracks. The U2 model sports a 12-hour battery life and is available for Mac and PC. The 20GB U2 model will be available in November for $349.

For subscribers to Apple’s popular iTunes Music Store, The Complete U2 will be available as a special digital album set for $149. This represents the first time a major group has embraced widespread digital distribution of their work. “We see it as a next step for us and the music industry,” The Edge said.

The new iPod Photo sports a full-color screen and the ability to display images and slideshows accompanied by music. It comes with a composite AV cable, allowing users to attach the new iPod to a TV or projector, and Apple has increased the battery life to 15 hours for music or 5-hour battery life for photos, thanks in part to changes to skip protection. The iPod Photo is available in a 40GB model for $499 or a 60GB model for $599. Both iPod Photo models are currently available online at The Apple Store.