Digital River Signs Marketing Pact With Kmart

Minneapolis-based electronic software delivery company Digital River entered a distribution
and marketing agreement with Kmart Corp. making Digital River the exclusive
provider of downloadable software products on Kmart’s Web site.


Digital River’s marketing and merchandising services also will be used by
Kmart to offer special discounts on software sold through its online store.
Financial terms of the arrangement were not disclosed.


Kmart will offer all of Digital River’s more than 131,000 software and other
digital products through its online store. In addition, Digital River will now
reach a larger audience of consumers with its software inventory while
offering Kmart shoppers weekly
promotions on best selling software.


“The addition of Kmart to Digital River’s network of online retailers marks a significant win for the company,” said Digital River CEO Joel Ronning. “This
agreement represents the forging of ESD with the general public. Consumers are
now more than ever exposed to the opportunities and flexibility of purchasing
software online.”


“Digital River presents us with the largest selection of software available on
the Internet,” said Marisha Geraghty, Kmart divisional vice president of
electronic commerce. “Kmart recently added more than 100,000 music titles to
its online store, and it is important that we offer our loyal customer base
the same breadth of choice in software.”


Kmart launched secure online shopping in May 1998. Kmart.com features an array of specialty
shops, including familyandfitness.com, musicfavorites.com, finallyhome.com and
thatperfectgift.com.

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