*Schwab Becomes Exclusive Financial Service Partner to AOL

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Charles Schwab & Co. Inc. and America Online Inc. inked a multiyear international alliance yesterday that makes Schwab the main financial services and brokerage firm across America Online's newly redesigned personal finance channels.


The partnership gives 28 million members of America Online's AOL and CompuServe and users of other AOL sites access to Schwab investment information and tools. Initial rollout is planned for the United States, followed by expansion into select European and Asian markets.


Financial terms of the deal were not disclosed.


Schwab, San Francisco, is one of the largest online financial services firms, and America Online, led by its AOL brand, is the largest Internet service provider in the United States and worldwide. America Online, Dulles, VA, is waiting for regulatory approval to merge with media and entertainment giant Time Warner Inc.


Both marketers will exploit the relationship in co-branded marketing efforts, including print and broadcast. Schwab will use "AOL Keyword: Schwab" in its online and offline initiatives. AOL will plug Schwab through its online and offline channels.


In addition, Schwab and America Online will integrate content across broadband, wireless, offline and online platforms. Users of America Online brands who enroll as Schwab customers will be eligible to receive special offers, programs and incentives.
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