Medscape Signs $33 Million Placement Deal with AOL

Health and medical information company Medscape Inc. signed a three-year, $33
million placement deal with America Online.

The deal will increase exposure for Medscape’s array of consumer-oriented
health information — including its soon-to-be-launched consumer health site,
CBS Medscape, developed with CBS Corp.

The deal also includes placements on CompuServe,, Netscape Netcenter and Digital City.

The two companies said
they expect to introduce Medscape content across these AOL brands by late

Medscape will pay AOL over three years, and AOL will also receive warrants to
purchase shares in Medscape.

In addition, the companies will leverage
Medscape’s alliance with CBS (now merging with Viacom) through
cross-promotional opportunities involving the consumer health site scheduled
for launch this month.

Medscape will develop customized, co-branded sites for each of the AOL brands
and will integrate with AOL’s calendaring and instant messaging tools.

Medscape content is driven by an editorial staff led by Editor in Chief
George D. Lundberg, MD, former editor of the Journal of the American Medical

Separately, online software retailer, the Internet division of
Electronics Boutique, signed an e-commerce agreement with America Online
under which EBWorld will be a Gold tenant in the Electronic Games category of
the new [email protected],, CompuServe and Netscape online shopping

Financial arrangements were not disclosed. offers video and PC
game titles and accessories as well as office productivity software and
educational and children’s software.

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