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Commtouch to offer select MSN services

Microsoft agrees to have Commtouch Software handle some of its Microsoft Network online services, including its Web-based email and instant messaging.

Microsoft has agreed to have Commtouch Software handle some of its Microsoft Network online services, including its Web-based email and instant messaging.

Commtouch will provide integrated messaging services to select MSN partners and international markets, the company announced today. Service will be provided through its Custom Mail product, which incorporates calendaring and address books as well as email and instant messaging.

In addition, Commtouch will offer its customers instant messaging capabilities through the MSN Messenger Service and Microsoft Passport, a universal login technology.

Commtouch CEO Gideon Mantel said the deal "underscores Commtouch's leadership position as the provider of choice to the largest and most sophisticated online companies around the world."

In connection with the agreement, Commtouch has granted Microsoft a warrant, exercisable until December 29, 1999, to purchase 707,964 of Commtouch's ordinary shares at an exercise price of $28.25 per share for an aggregate exercise price of $20 million.