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(July 18, 2001) -- Information Resources Inc. has received a lump-sum cash payment of $10.9 million from Kraft Foods as part of a renegotiation of its market research services agreement with Nabisco, IRI revealed today in its earnings release.

A new agreement with Kraft announced Monday replaces IRI's former contract to provide Nabisco with scanner data and other services, which was to have run through 2005. In addition, the contract calls for IRI to provide Kraft with research, analytic and other services, though Kraft has consolidated its scanner data account, along with Nabisco's, and the bulk of its market research services at VNU's ACNielsen.

IRI reported a net loss of $1.2 million for the second quarter, more than the $1 million loss a year ago. Before restructuring charges, IRI had net earnings of $1.5 million, compared with $300,000 a year ago. Sales were up 5% to $140.9 million in the quarter.

"While I remain optimistic about the balance of the year, my optimism is tempered somewhat by the impact of the current economic conditions on our industry," IRI Chairman-CEO Joseph Durrett said.

IRI's stock was down 10.8% to $9.32 in trading today. -- Jack Neff

Copyright July 2001, Crain Communications Inc.

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