Microsoft Revises Partnership with WebMD

Microsoft Corp. and New Jersey-based WebMD Corporation today announced that they have executed a letter of intent pursuant to which they will execute definitive documents to revise their comprehensive strategic partnership, which was originally entered into in May 1999.

Under the terms of this relationship, the companies will work together to promote WebMD as the primary provider of health programming on MSN and other Microsoft-affiliated sites as well as promote Microsoft technology as the core platform for WebMD’s new wireless handheld products for physicians.

WebMD will also work with Microsoft to enable Intergy, WebMD’s next-generation practice management system, to run on Windows 2000 & SQL Server 2000.

The relationship has been revised to align both the strategic and economic interests of Microsoft and WebMD for both the professional and consumer markets.

“I am extremely pleased that WebMD and Microsoft have found a mutually beneficial way to continue and enhance our long-term strategic partnership,” said Martin J. Wygod, CEO of WebMD.

According to Wygod, WebMD will continue to be the primary provider of all healthcare content on MSN and Microsoft’s affiliate sites, but under this new agreement, WebMD will have a majority share of the revenue generated by the health channel. This is a result of the substantial responsibility WebMD will have for programming the MSN health channel and managing related revenue streams.

Microsoft will provide performance-based funding tied to the roll out of WebMD’s new wireless and portal services for physicians, which integrate with The Medical Manager physician office management information systems.

WebMD has adopted the PocketPC and other Microsoft technology as its portal and wireless development platform.

The company will also make its new relational database product, Intergy, available to run on Windows 2000 and SQL Server 2000.

Finally, WebMD will transition its portal to certain Microsoft technologies. Microsoft has agreed to provide consulting services, support, and other resources in connection with these undertakings.

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