RadioShack and Skype, the Global Internet Communications Company, today announced an agreement to distribute Skype-certified hardware and software in approximately 3,500 RadioShack stores. This makes RadioShack the first U.S. retailer to offer this new Internet phone service.

According to Skype officials, Skype has successfully brought free Internet calling to over 66 million people around the world since its launch in 2003, with an average of 175,000 new people joining each day. People with Internet connectivity can load Skype's free software enabling unlimited, high-quality voice calls to other Skype users anywhere in the world. Unlike other Internet phone services, Skype's unique software resides directly on a computer or mobile device to facilitate communications. Skype runs on Windows, Linux, Mac OS X, and Pocket PC platforms. Skype also offers premium services providing enhanced functionality for its users to make calls to regular phones for as little as two cents a minute.

This agreement with RadioShack supports Skype's growing presence in the U.S. market as a leading Internet communications company. RadioShack's convenient network of neighborhood stores staffed by knowledgeable sales associates will help expose Skype's unique worldwide free call service to a broad new audience of potential customers. Further, these retail stores will provide consumers with a place to shop for new Skype-certified products such as the Motorola Wireless Headset and Internet Calling Kit - the world's first Skype-certified Bluetooth offering.

Skype-certified phones and headsets at RadioShack include:

- New Motorola H500 Bluetooth headset and PC850 USB Adapter bundled in the Internet Calling Kit - a RadioShack limited exclusive with a suggested price of $99.99
- Linksys CIT200 Skype-enabled Cordless Internet Telephony Kit with a suggested price of $129.99 (with a limited time $15 mail-in rebate)
- Logitech Premium USB Headset 250 with a suggested price of $39.99
- VoIP Voice Cyberphone K USB Internet phone with a suggested price of $39.99
- Skype Starter Packs: the Skype Starter Pack, priced at $4.99 until Dec. 24, 2005, allows anyone to get started with free Skype software, a Skype-enabled headset and 30 SkypeOut minutes to call any number anywhere in the world

"RadioShack is known for helping make the market for new technologies, and by all indicators Skype is poised to resonate with U.S. customers after experiencing huge success overseas," said Jim Hamilton, RadioShack's senior vice president and chief merchandising officer. "Customers should love how they can cut their phone bill without cutting their phone line, making unlimited free calls to other Skype users around the world."

"Skype is looking at innovative retail channels for distribution, and with 94 percent of the U.S. population living or working within five minutes of a RadioShack, we see them as an ideal partner through which to offer consumers access to Skype accessories," said Saul Klein, Skype's vice president of marketing.