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AOL Acquires Cell Phone Message Firm

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From Associated Press

America Online Inc., which revolutionized chat by allowing customers to zap messages to one another’s computers, announced Wednesday that it has acquired Tegic Communications, a leading developer of cellular phone messaging technology, for an undisclosed sum.

The acquisition is part of Dulles, Va.-based AOL’s effort to expand wireless communications options for its nearly 20 million subscribers and the 50 million customers who use its ICQ instant messaging program.

“Instant messaging has become a social phenomenon,” said Barry Schuler, president of AOL’s interactive services. “This clearly turbocharges our effort on the wireless front.”

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Unlike wireless pagers that feature miniature typewriter keypads, Tegic’s software allows people to type messages using the numbered telephone pad. The software uses the letters assigned to each number on a cell phone--A, B, or C for the numeral 2, for example--and deciphers the numbers to guess the desired word.

Tegic’s software operates in 14 languages, including Chinese, Danish, Dutch, Finnish, Japanese, Korean, Norwegian, Portuguese and Swedish. Versions that understand Eastern European and Middle Eastern languages are in the works. The Seattle-based firm has licensed its software to more than 20 wireless-phone makers, including Nokia, Ericsson, Motorola and Panasonic, serving 90% of the world market.

AOL stock rose $3.13 to close at $76 on the New York Stock Exchange.

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