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Yahoo Netscape guide goes live

Netscape officially unveils a revamped guide to Web sites, courtesy of Yahoo.

Netscape Communications (NSCP) officially unveiled a revamped guide to Web sites today, courtesy of Yahoo (YHOO).

Netscape Guide by Yahoo is the product of a deal, announced in March, under which Yahoo will produce a section of Netscape's heavily trafficked Web site that tells surfers where to locate news and other information resources on the Net.

Yahoo is paying Netscape handsomely for the privilege of producing the guide. The search service shelled out a $5 million one-time fee and committed to generating at least $25 million for Netscape in advertising revenue over the next two years.

By leasing space on Netscape's site, Yahoo may be tapping a lucrative vein of new advertising opportunities. Users can access Netscape Guide by Yahoo simply by clicking the Destinations button on their Navigator 3.0 toolbar. (The same button is called Guide in Communicator.)

A Yahoo spokeswoman said Netscape has guaranteed that the site will receive a certain amount of visits from Net surfers, but she would not elaborate on how many.

Under the agreement with Netscape, Yahoo will also produce the Yellow Pages, People Search, What's News, and What's Cool pages of the company's site.