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Microsoft makes pact with PhotoWorks

The photo services company announces a deal with the software giant to provide photo-finishing services through the MSN site.

Mail-order photo services company PhotoWorks announced Tuesday a deal with Microsoft to provide photo-finishing services with the software giant's MSN site.

Starting this fall, PhotoWorks customers can opt to send photos to MSN's online photo-sharing service when they send in film for developing. PhotoWorks, formerly known as Seattle FilmWorks, will scan the photos and upload them to the customer's MSN Photos folder.

Fujifilm will continue to provide printing services for digital photos stored on MSN Photos.

The announcement follows Hewlett-Packard's recent agreement with Shutterfly to provide printing services for HP's photo-sharing site.

The deals come as online photo services are struggling to stay in business. Zing.com went out of business in June, Intel closed its GatherRound photo site in October and PhotoPoint.com is demanding that customers pay extra to retrieve photos stored on the site, which shut down operations in January.