UPDATE 1-Israel's IncrediMail renews AdSense deal with Google

Wed Jul 1, 2009 7:10am EDT

* Renews AdSense deal with Google for two years

* Terms not disclosed

* Shares jump 18.7 percent

(Adds details, CEO comment, share reaction)

JERUSALEM, July 1 (Reuters) - Israeli Internet company IncrediMail Ltd MAIL.O MAIL.TA said on Wednesday it had reached a new agreement to use Google Inc's (GOOG.O) AdSense advertisement application for another two years.

Terms of the deal were not disclosed.

"We are very happy, having extended our agreement with Google," said IncrediMail CEO Ofer Adler in a statement. "This renewal reflects the positive relationship established between our companies and a relationship that has allowed IncrediMail to continue to perform well."

IncrediMail, which designs high end personal desktop software, has been using AdSense since 2006, enabling it to share advertising revenue generated from users clicking on links sponsored by Google.

"These sponsored links represent a significant revenue generating channel for IncrediMail in its efforts to monetize its user base," the company said.

IncrediMail reported in May that about 70 percent of its revenue was generated from its search business model, which includes multiple search engines.

The company's shares were up 18.7 percent in afternoon trading in Tel Aviv. (Reporting by Joseph Nasr, Editing by Hans Peters)