The last to market of the bricks and mortar retailing giants to embrace the Internet with its June alliance with America Online, Inc. (NYSE: AOL), Target Stores is finally rolling out the companies' joint marketing and promotion initiatives. The Target-AOL alliance follows a cross promotion deal between Wal-Mart and AOL's CompuServe and a highly successful arrangement between Kmart and Yahoo.

Target's new promotion features a special edition CD-ROM of the AOL service with co-branded features and packaging. The CD ROMs are now available at more than 900 Target stores nationwide and provide Target customers the ability to sign-up for a co-branded version of the AOL service.

AOL members who subscribe to the service through Target are then entitled to a 10 percent discount for up to one year on merchandise purchased at target.com. The co-branded CD-ROMs are available through in-store kiosks at the front of all Target stores. Customers can also request a CD-ROM online at target.com.

The co-branded AOL service also offers direct links to target.com. Other features include a customized tool bar and a pre-populated "favorites" folder linking to target.com and other favorite sites.

In addition, target.com is now available in the Shop@AOL online shopping destinations and other areas across AOL, AOL.COM, Compuserve, Netscape Netcenter, and AOL Digital City, providing access to Target's merchandise, gift registries and other special services for customers.

The rollout marks the beginning of the companies' multi-year strategic alliance under which the companies will join to promote a range of products and services to make the online experience more convenient for consumers and Target customers.

Jerry Storch, president of Target Financial Services and New Businesses, said, "These are just the first of many exciting co-branding initiatives Target and AOL will be rolling out through this alliance. We are delighted to begin offering AOL products and services to our guests, while bringing our great selection of merchandise to the millions of users of AOL's brands. Together, Target and AOL will continue to create compelling new offers for consumers, as we at Target continue to integrate the Internet into every aspect of our business."

Barry Schuler, president of AOL Interactive Services, added, "Already, we've seen a great response to the target.com promotions across Shop@AOL, and by offering AOL software in Target stores, we can introduce millions of Target's loyal guests to all the benefits that AOL and the Internet have to offer. These new online and offline promotions are focused squarely on creating more value for our customers, and we will continue to leverage the potential of our powerful brands to make the online experience more fun, innovative and convenient for our consumers."

LATEST NEWS

UCSD Plans First Flash-Based Supercomputer
Digging Into N.Y.'s Antitrust Suit Against Intel
Analyst: Sony-Ericsson's Android Bid Is Late
Coupon Site Targets Black Friday, Cyber Monday
Microsoft Sites Up Big in Time Spent Online

The Target/AOL alliance is now being promoted extensively through a wide variety of marketing channels. These include visibility in all Target marketing channels, including the company's Sunday circular, broadcast and print advertising, and other marketing programs; and promotion of Target across several AOL brands.

An upscale discount retailer, the Minneapolis-based Target is the largest division of Target Corp. (NYSE: TGT). The company has 942 stores in 45 states and maintains a Web site at http://www.target.com.

Founded in 1985, Dulles, Va.-based AOL, operates two worldwide Internet services, America Online, with more than 23 million members, and CompuServe, with more than 2.8 million members; several leading Internet brands including ICQ, AOL Instant Messenger and Digital City, Inc.; the Netscape Netcenter and AOL.COM portals; the Netscape Navigator and Communicator browsers; AOL Moviefone; Spinner.com; and NullSoft's Winamp. Perhaps the world's best Web address, the company has a site at http://www.aol.com.