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BestBuy.com Leads $22 Million Investment in etown.com

Online electronics retailer etown.com Tuesday received $22 million in second round of financing, led by BestBuy.com, the online arm of Best Buy Co., Inc. and ZDNet.

BestBuy.com (BBY) and ZDNet (ZDZ) were joined by investors including Sands Brothers, Gruber & McBaine Capital Management, Bedford Oak Partners, LP, and Valor Capital Management, LP. With this round of financing, etown has been injected with a total of $25.5 million.

etown.com said it will use the funding to add more tools and functionality to its online store. Features are set to include enhancements to the IDA Shopping Advisor, as well as expansion of its editorial content. In addition, etown.com will launch a consumer advertising campaign to increase awareness of its offerings.

As part of the investment agreement, etown.com's editorial content will be integrated into ZDNet's Equip site and Tech Life channel.

"etown.com's editorial content meets ZDNet's high standards, and will allow our technology-interested audience to receive the best buying advice. etown.com's content will add significant value to the Equip site, which enables visitors to evaluate, buy and use consumer electronics products to their fullest potential," said Vince Broady, general manager of ZDNet's Consumer Division.