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(Continued)     The RFS Newsletter, Sept. 3, 2005. Page 6
"Because we had been one of their AdWords advertisers, they thought we would be a good candidate to try their new advertising" effort. The experiment, as it is described by the companies buying the ads, is Google's latest foray into display advertising and another big step toward becoming a one-stop shop for ad sales, whether online or offline. The trial also marks the first time the company has ventured offline with any of its products, according to industry watchers. The move is another significant step for Google toward becoming a one-stop shop for ad sales--whether online or offline.

In other news on Thursday, Google asked a judge in California to rule that Kai-Fu Lee's original contract with Microsoft is invalid and that Lee should be allowed to work at Google, unaffected by the conditions of his employment deal while he was employed at Microsoft. The two competing companies are embattled in a complex legal process over the hiring of Kai-Fu Lee, a computer researcher. Google announced on July 19 that it was hiring Lee to head up a new China research center. The same day, Microsoft sued Google over Lee's hiring in Washington state court. Google countersued in a California state court, saying that the case should be heard there.

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