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AT&T;, Excite Hook Up on Net Services Deal

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Bloomberg News

AT&T; Corp. said it will sell online phone and multimedia services to customers of Excite Inc. in a three-year agreement, the second such AT&T; alliance with an Internet company this week. The companies said they will introduce a new service, Excite Online Powered by AT&T; WorldNet Service, which will offer customers access to Excite’s online search directory. Excite and AT&T; also will offer Internet-based multimedia services such as click-to-dial directories and conference calling. AT&T;, the No. 1 U.S. phone company, is focusing on the fast-growing Internet market to boost sales and earnings, while Excite is trying to reach more users at home. Excite, based in Redwood City, rose 63 cents to close at $67.38 on Nasdaq, while New York-based AT&T; fell $1.63 to $59.56 on the NYSE.

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