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Jul. 25, 2007

AOL announced yesterday that it has entered into a definitive agreement to acquire TACODA, an online behavioral targeting advertising network.

TACODA will operate as a wholly owned subsidiary of AOL.

Founded six years ago, Tacoda employs advanced technology that enables advertisers to serve highly relevant ads based on consumers' online behaviors.

Using TACODA's technology, AOL will be able to extend its targeting capabilities to advertisers and publishers, and further extend the reach of its third-party display network, currently the largest in the U.S.

Ron Grant, AOL president and COO said "the acquisition of TACODA will build on our advertising momentum, letting us better serve advertisers by enhancing our ability to precisely target advertisements across an even broader network."

Grant added "we are committed to offering advertisers and publishers a full range of tools and services, along with the widest reach, and with TACODA we're taking another step toward that goal."

According to eMarketer, the behavioral targeting market is set to increase to $3.8 billion by 2011, from $350 million in 2006.

Curt Viebranz, CEO of TACODA said "AOL is a perfect match for TACODA. By combining our targeting capabilities with AOL's existing set of solutions, we can better serve online advertisers and publishers as the market for behavioral targeting continues to emerge."

He added "I'm also delighted to have the opportunity to work with Ron and with AOL's CEO Randy Falco, who are putting in place all the pieces needed to create a world-class advertising network."

Based in New York, TACODA employs approximately 100 people. The closing of the transaction is subject to customary conditions and regulatory approvals. Financial terms of the deal were not disclosed.

For this year, other recent corporate acquisitions by AOL include Third Screen Media, the leading mobile advertising network and software provider, and AdTech AG, the online ad-serving company based in Frankfurt, Germany.

Last year, AOL acquired Lightningcast, a leader in delivering advertising solutions for on-demand, live and downloaded video content across the Web.

Earlier in 2004, AOL acquired Advertising.com, which operates the largest third-party display network.

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Source: TACODA