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LookSmart and Inktomi Corp. Monday formed an alliance to develop and market customized search directories for vertical portals, and intend to use the new creation as a standard for navigation.

Under the terms of the deal, (LOOK) LookSmart will adopt Inktomi's search engine and directory engine technology and will offer customized versions of the directory. In return, (INKT) Inktomi will license and resell LookSmart's directory content as an addition to its recently launched Inktomi directory engine.

"LookSmart and Inktomi have both played critical roles in the evolution of Internet navigation and search," said David Peterschmidt, president and chief executive officer of Inktomi.

"We believe the combination of LookSmart's editorial expertise and our technology will create a tremendously valuable content infrastructure for the emerging generation of specialized Web services."

The two companies expect vertical portals to become the next popular watershed for Internet users.

LookSmart has built directories for Japan, Korea, France, Singapore and New Zealand, and is developing additional directories for seven more countries.