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(March 28, 2001) -- The Gap Inc.'s Gap division has extended its relationship with Boston-based start-up Modernista! through the end of the year. A spokesman for the San Francisco-based retailer said Modernista! will work on two additional campaigns, one for back to school and one for the 2001 holiday season.

The Gap division covers the retailer's oldest store groups, Gap, babyGap, and GapKids, and includes one newer store group, GapBody.

Modernista! was hired a year ago to help the retailer's in-house agency produce TV. Most recently, Modernista! produced spring print and TV advertising. The extension comes at a time when the Gap, like other retailers, is struggling with sales and fashion excitement.

Earlier this week, the Gap named agency veteran Peter Hempel, 42, formerly executive vice president and general manager at Interpublic Group of Cos.' Lowe Lintas & Partners, New York, as executive vice president marketing, filling a spot vacant since last fall when Jim Nevins left the company. -- Alice Z. Cuneo

Copyright March 2001, Crain Communications Inc.

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