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NIC jumps on AOL deal

National Information Consortium Inc. (Nasdaq: EGOV) shot up 29 percent Tuesday after it announced a three-year agreement with America Online, Inc. (NYSE: AOL) to deliver state government information, services and applications through AOL's Government Guide.

Shares in NIC were up 2 to 8 31/32, still far off their 52-week high of 78.

Under the agreement, NIC will work with all 50 states, including its existing portal and application partners, to give AOL's 23 million members access to state government information and services.

AOL is currently redesigning its Government Guide. The companies will incorporate NIC technologies and services into the State Government Guide to allow universal access to government services in compliance with ADA requirements.

Financial details of the deal were not released.