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Research In Motion Sells Software for Small Companies (Update2)

By Ville Heiskanen

Nov. 5 (Bloomberg) -- Research In Motion Ltd. introduced software that allows smaller businesses to use its BlackBerry phones with their corporate e-mail systems.

The program can accommodate as many as 30 workers, Co-Chief Executive Officer James Balsillie said in an interview last week. Before this, companies that used the BlackBerry had to buy separate server computers, an investment too large and complicated for most small businesses, he said.

Balsillie is targeting small companies because that market is growing faster than sales to larger corporate customers. Small businesses and consumers accounted for more than half new North American subscribers for the first time last quarter. The software also allows the company to compete on another front with Palm Inc., which caters to smaller businesses.

``It's a market that hasn't really been addressed aggressively,'' Balsillie said. ``This is going to expand remarkably.'' Waterloo, Ontario-based Research In Motion added 1.45 million BlackBerry users last quarter, while Palm sold 689,000 Treos.

Research In Motion shares gained $1.02 to $127.97 at 4 p.m. New York time in Nasdaq Stock Market trading. The stock has tripled this year.

The software starts at $499 per company, and Research In Motion will initially give away the cheapest versions for free to businesses that buy five new BlackBerrys.

To contact the reporters on this story: Ville Heiskanen in New York at vheiskanen@bloomberg.net

Last Updated: November 5, 2007 16:09 EST

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