Microsoft Invests in CommTouch Software

Microsoft Corp. extended its
investment arm Thursday by injecting $20 million into enterprise
e-mail provider CommTouch Software Inc..

Microsoft (MSFT)
will purchase 707,964 shares of CommTouch (CTCH)
stock at $28.25. The investment equals a 4.7 percent stake in the firm,
which produces e-mail systems for corporate clients.

In addition to the investment, the two companies extended a prior agreement
to bundle each other’s services — CommTouch will offer MSN Messenger
Service and Microsoft Passport to its customers, while Microsoft will
utilize the CommTouch Custom Mail service to provide private label Web-based
e-mail solutions for its MSN partners.

“Microsoft is pleased to be working with CommTouch to offer select MSN
international customers and
affiliates a world class Web-based e-mail and messaging solution,” said
Deanna Sanford, lead product
manager, Consumer and Commerce Group, Microsoft.


“We look forward to
CommTouch continuing to
build its communications services based upon Microsoft platforms and
offering additional MSN services
such as MSN Messenger Service to its customers.”

Thursday’s agreement is the latest investment for computer giant Microsoft.
In August, the company took a $15 million
stake in DSL Internet provider DSL.net.

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