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MSN Signs barnesandnoble.com as Book Merchant

Microsoft Corp. signed a multimillion-dollar marketing and distribution agreement for its MSN Network with bookseller barnesandnoble.com.

The agreement encompasses co-marketing projects with barnesandnoble.com and Microsoft's interactive media products such as MSN Shopping, the MSN Expedia travel service, MSN Small Business and the WebTV Network service. Financial arrangements were not disclosed.

On MSN Shopping, Barnes & Noble is the exclusive online bookseller, providing customers with one-click access to its online bookstore. As a Premier Merchant, barnesandnoble.com will receive premium positioning on the MSN Shopping home page, banner ad rotations and merchandising opportunities in the Daily Specials, Buying Guides and Gift Guides departments.

Barnesandnoble.com also will be the premier bookseller integrated on MSN sites outside the United States as well as the exclusive English-language bookseller in non-English-speaking countries.

Barnesandnoble.com will feature MSN Expedia as its exclusive online travel service, giving customers of the online bookstore the ability to book travel from within the Travel section of the site. In turn, the MSN Expedia home page will feature barnesandnoble.com as the exclusive travel bookstore.

Barnesandnoble.com and Microsoft's WebTV Networks are working together on electronic-commerce opportunities that feature barnesandnoble.com in the shopping area of the WebTV Network service. The companies are also exploring other collaborative projects such as interactive television and plans to feature WebTV-based products in several Barnes & Noble retail outlet stores.

"Microsoft's approach to marketing relationships is right on target," said Carl Rosendorf, vice president of sales, marketing and business development for barnesandnoble.com. "The combination of our knowledge of books and related information with Microsoft's approach to streamlined content presentation is a win for consumers."



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