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Digital River Signs Marketing Pact With Kmart

Minneapolis-based electronic software delivery company Digital River entered a distribution and marketing agreement with Kmart Corp. making Digital River the exclusive provider of downloadable software products on Kmart's Web site.

Digital River's marketing and merchandising services also will be used by Kmart to offer special discounts on software sold through its online store. Financial terms of the arrangement were not disclosed.

Kmart will offer all of Digital River's more than 131,000 software and other digital products through its online store. In addition, Digital River will now reach a larger audience of consumers with its software inventory while offering Kmart shoppers weekly promotions on best selling software.

"The addition of Kmart to Digital River's network of online retailers marks a significant win for the company," said Digital River CEO Joel Ronning. "This agreement represents the forging of ESD with the general public. Consumers are now more than ever exposed to the opportunities and flexibility of purchasing software online."

"Digital River presents us with the largest selection of software available on the Internet," said Marisha Geraghty, Kmart divisional vice president of electronic commerce. "Kmart recently added more than 100,000 music titles to its online store, and it is important that we offer our loyal customer base the same breadth of choice in software."

Kmart launched secure online shopping in May 1998. Kmart.com features an array of specialty shops, including familyandfitness.com, musicfavorites.com, finallyhome.com and thatperfectgift.com.



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