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Medscape Signs $33 Million Placement Deal with AOL

Health and medical information company Medscape Inc. signed a three-year, $33 million placement deal with America Online.

The deal will increase exposure for Medscape's array of consumer-oriented health information -- including its soon-to-be-launched consumer health site, CBS Medscape, developed with CBS Corp.

The deal also includes placements on CompuServe, AOL.com, Netscape Netcenter and Digital City.

The two companies said they expect to introduce Medscape content across these AOL brands by late fall.

Medscape will pay AOL over three years, and AOL will also receive warrants to purchase shares in Medscape.

In addition, the companies will leverage Medscape's alliance with CBS (now merging with Viacom) through cross-promotional opportunities involving the consumer health site scheduled for launch this month.

Medscape will develop customized, co-branded sites for each of the AOL brands and will integrate with AOL's calendaring and instant messaging tools.

Medscape content is driven by an editorial staff led by Editor in Chief George D. Lundberg, MD, former editor of the Journal of the American Medical Association.

Separately, online software retailer EBWorld.com, the Internet division of Electronics Boutique, signed an e-commerce agreement with America Online under which EBWorld will be a Gold tenant in the Electronic Games category of the new Shop@AOL, AOL.com, CompuServe and Netscape online shopping destinations.

Financial arrangements were not disclosed.

EBWorld.com offers video and PC game titles and accessories as well as office productivity software and educational and children's software.