Compaq, Yahoo! Ink Technology, Marketing Pact

Personal computer and server manufacturer Compaq will provide technology
to Yahoo! in return for a “substantial commitment” by Compaq to advertise on
the Santa Clara, Calif.-based portal’s properties.

Under the terms of the agreement, Compaq becomes Yahoo!’s preferred
provider for servers, host-attached storage, desktops, laptops, PDAs and
related professional services. Compaq also will provide the servers running
Yahoo!’s most heavily-trafficked areas.

Financial terms of the agreement were not disclosed.

In addition to the bragging rights Compaq gets from this arrangement (the
sites will indicate that they’re “Powered by Compaq”), the Houston,
Texas-based computer maker also has signed on as a client of Yahoo!’s Fusion
Marketing program, which works to integrate offline brands with online
marketing efforts.

“By choosing to work with Compaq, we are entering into a broad
relationship that leverages the combined strengths of our leading brands to
provide an optimal experience for users. Compaq’s award-winning Internet
infrastructure solutions will take Yahoo! to the next level in supporting
our vast network,” said Yahoo! chairman and chief executive officer Tim Koogle. “In
addition, Compaq’s deeply integrated Yahoo! Fusion Marketing program and
Yahoo! Full Service data targeting and analysis will enable Compaq to
connect in a meaningful way with Yahoo!’s global audience.”

Few details were released about the two’s joint marketing plan, but
previous Yahoo! Fusion Marketing clients have included Pepsi Cola, which
launched pepsi.yahoo.com and a PepsiStuff points redemption program with
Yahoo!, and Subway Restaurants, which launched a similar incentive marketing
effort. The deal stands as a sizable resume-builder for Yahoo!, which is
seeking to boost ad revenue and prove that it can serve as a viable
marketing platform.

Compaq’s promotional program will include prime placement on Yahoo!
Shopping’s front page and shopping categories. The companies said they also
would work to create other interactive marketing elements.

“This agreement teams two of the Internet’s most powerful players,” said
Compaq chairman and CEO Michael Capellas. “We are very pleased that Yahoo!
selected Compaq to help build and maintain its Internet infrastructure. …
This alliance with Yahoo, coupled with similar sized “powered by” agreements
with other leading Internet properties, clearly indicates that Compaq is the
technology vendor of choice for the most powerful and popular Web
companies.”

“In addition, the Yahoo! global network is a pervasive platform to market
the Compaq brand and our industry-leading Internet technology and
solutions — from the most powerful servers to the coolest Internet access
products like the iPAQ Pocket PC,” Capellas said.

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