New Technologies and Engineering Team Complement Google's Content Targeted Advertising Programs.

SEATTLE & MOUNTAIN VIEW, Calif. - Google, developer of the largest performance-based search advertising program, today announced that it acquired Applied Semantics, a Santa Monica, Calif.-based producer of software applications for the online advertising, domain name and enterprise information management markets. Applied Semantics' products and engineering team will strengthen Google's search and advertising programs, including its fast-growing content-targeted advertising offering. Additionally, the deal will enable Google to grow its engineering presence and recruiting efforts in the Southern California region.

"Applied Semantics is a proven innovator in semantic text processing and online advertising," said Sergey Brin, Google's co-founder and president of Technology. "This acquisition will enable Google to create new technologies that make online advertising more useful to users, publishers, and advertisers alike."

Applied Semantics' products are based on its patented CIRCA technology, which understands, organizes, and extracts knowledge from websites and information repositories in a way that mimics human thought and enables more effective information retrieval. A key application of the CIRCA technology is Applied Semantics' AdSense product that enables web publishers to understand the key themes on web pages to deliver highly relevant and targeted advertisements.

The Applied Semantics team will remain in Santa Monica, where Google will establish its Southern California product development center. Google also recently opened an East Coast engineering office in New York City.