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Aug. 8, 2007

Yesterday, Digg Inc. and Microsoft signed an agreement in which the two companies will collaborate in creating relevant advertising to about 17.1 million monthly visitors to Digg.

The initiative is a new website that harnesses the collective wisdom of the world’s online audience to prioritize the large amount of content available on the Internet.

Microsoft’s advertising technology and sales force combined with Digg’s unique and growing user community makes possible the three-year collaboration, in the companies’ commitment to technological innovation.

Overall, Microsoft will be the exclusive provider of display and contextual advertising on Digg. The two companies also agreed to work together on future technology and advertising initiatives. A timeframe wasn't immediately available.

Steve Berkowitz, senior v.p. of the Online Services Group at Microsoft said “our collaboration with Digg is about bringing our advertising technology and sales force to one of the fastest-growing destination on the Web, and a true innovator in user-generated content. We strongly believe that advertisers will welcome Microsoft and Digg’s combined strengths in merging meaningful connections online.”

Microsoft and Federated Media Publishing, Digg’s current advertising partner, plan to collaborate to bring integrated programs to Digg’s users and advertisers. “Federated Media has unique advertising sales assets that dovetail with our efforts, and we look forward to working with them,” Berkowitz added.

Jay Adelson, CEO of Digg said “we’re now strongly positioned in providing a world-class advertising solution that builds upon Digg’s philosophy of providing a great experience for users and advertisers. As the Digg audience continues to grow and diversify, we believe that this initiative with Microsoft, and the resources that it provides, will enable us to focus less on developing an advertising infrastructure and more on developing new and innovative features for the property.”

John Battelle, founder and president of Federated Media said "we are thrilled to work with these two world-class companies. Digg is truly a remarkable brand."

In the next few weeks, the companies expect to begin execution of this agreement.

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Source: Microsoft