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Excite Acquires Online Ad Firm

Excite, Inc. announced today it will acquire online advertising services firm MatchLogic, Inc. for 3.2 million shares of Excite stock valued at $89 million.

Excite said the stock swap deal is aimed at diversifying its advertising revenue streams by adding advanced advertising campaign management services to its offerings.

The Internet media company expects the acquisition to "add significant new revenue" this year. MatchLogic, which will operate as an independent subsidiary of Excite, generated over $4 million in revenues in 1997.

Beginning in March, Excite plans to start using MatchLogic to provide advertising services, which will include ad measurement and targeting solutions, on Excite and on its WebCrawler brands. MatchLogic will continue to provide campaign management services to Internet agencies and its advertising clients.

"Whether it's managing Excite's advertising inventory or independently offering campaign management solutions to other clients, our mission remains the same," said Pete Estler, president and CEO of MatchLogic, in a statement.

"We help online advertisers deliver the right ad, to the right person, with the right offer, at the right time, and to know within seconds whether the ad was effective. The combined leverage of this merger will provide the best relationship management services, with the combined highest reach, across the Internet."