Messenger to use DeltaThree Net phone service

WASHINGTON: DeltaThree Inc. said on Monday it is in the final stages of

negotiating a deal for software leader Microsoft Corp. to deliver Internet

telephone services to consumers via Microsoft Messenger.

In a filing with the Securities and Exchange Commission, DeltaThree said it

believes its services will be made available to the public through Microsoft's

instant messaging service in the fourth quarter of fiscal 2001, and the

agreement should be finalized in the next several weeks. The only major part of

the deal that has not yet been worked out is the amount of consideration the New

York City-based company will pay to Microsoft in return for Microsoft's enabling

its consumers to use the service, according to the filing.

DeltaThree said its consumer division, iConnectHere.com, will deliver calls

from customers' personal computers to any phone number in the world. The deal

lasts 12 months from the date that Microsoft makes DeltaThree's services

available to the public through its instant messaging service.

(C) Reuters Limited 2001.