Microsoft and Digg Team Up in Advertising Syndication Agreement

REDMOND, Wash., and SAN FRANCISCO — July 25, 2007 — Digg Inc. and Microsoft Corp. today announced an agreement in which the two companies will collaborate to bring relevant advertising to the more than 17 million unique monthly visitors to Digg, an innovative Web site that harnesses the collective wisdom of the world’s online audience to prioritize the overwhelming amount of content available on the Web. Microsoft’s advanced advertising technology and sales force combined with Digg’s unique and growing user community make possible the three-year collaboration, grounded in the companies’ commitment to technological innovation and user experience.

As part of the relationship, 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. 

“Our collaboration with Digg is about bringing our advertising technology and sales force to one of the fastest-growing sites on the Web and a true innovator in user-generated content,” said Steve Berkowitz, senior vice president of the Online Services Group at Microsoft. “We believe advertisers will welcome Microsoft and Digg’s combined strengths to forge more 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 said. 

“We’re now positioned to provide a world-class advertising solution that builds upon Digg’s philosophy of providing a great experience for users and advertisers,” said Jay Adelson, CEO of Digg. “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 site.”

“We are thrilled to work with these two world-class companies,” said John Battelle, founder and CEO of Federated Media. “Digg is truly a remarkable brand.”

The companies expect to begin execution of the agreement in the coming weeks.

About Digg

Founded in 2004, Digg has become the leading destination for people to discover and share the best content on the Web. From the largest online destinations to the most obscure blog, Digg surfaces the best content as voted on by users.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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