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EarthLink Dumps Cheap PC Maker Microworkz

EarthLink Network Friday announced it will drop its distribution agreement with low-cost computer Microworkz Inc.

Kirsten Kappos, EarthLink vice-president of corporate communications said EarthLink terminated the agreement with Microworkz on July 29 after the company failed to live up to its original agreement.

"Microworkz failed to meet the obligations of the distribution agreement made between the two companies. They are in breach of its contract with us."

Specifics of the contractual infraction were not disclosed. About 1,000 people have signed up for the bundle so far and their service will not be affected.

EarthLink said less than 1,000 users signed up through the Microworkz program and will continue to receive the service.

EarthLink has more than 1.3 million users and has enlisted 2,300 points of presence through its relationship with Sprint Corp.

Microworkz.com previously transformed from a software vendor to a hardware manufacturer, and now plans to change itself again into a complete Internet company.

In an effort to keep up with the newest Net trends, the PC manufacturer Friday announced it has added MP3, instant messaging services, and Palm Pilot connectivity to its iToaster PC.