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UPDATE: Dell Agrees To Install Google Software On Computers

Google Inc. on Thursday said Dell Inc. has agreed to ship 10s of millions of computers with Google software installed, a deal that takes the search engine's battle with Microsoft Corp. to the latter company's most prized territory -- the desktop.

Eric Schmidt, chief executive of the Mountain View, Calif., search engine, announced the deal during a question and answer session at the Goldman Sachs 7th Annual Internet Conference in Las Vegas, Nev. Schmidt confirmed the multi-year deal, which was reported earlier in the day by The Wall Street Journal, but gave only a few details before launching into a discussion about the online advertising market.

"It's very good for them and very good for us," said Schmidt, who declined to give financial details, other than saying, "Think of it as both companies sharing revenue."

The deal has Dell pre-installing Google's search application for scouring a computer hard drive and emails, and a Web browser toolbar linking to Google's online search engine and other services. The applications would be accessible through a side pane on Internet Explorer 6, the current version of Microsoft's Web browser.

"It's essentially a turnkey solution for search and information in general," Schmidt said.

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