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In news on Friday, search engine companies seem to be embroiled in a fight, trying to outdo each other, while at the same time trying to come up with a better mouse trap. Microsoft said it is planning to extend its new Web search technology to include search for information contained on personal computers, e-mails and databases.

Google is working on a similar feature to allow searches on local hard drives on PCs, while it is already locked in competition with Yahoo in the local search segment.

Yahoo will use its community of users to deliver more customized search results, something that rivals such as Google and Microsoft will have a harder time doing, Chief Executive Terry Semel said on Thursday.

The comments come as Microsoft, Yahoo and Google position themselves for major upgrades over the next year as they try to attract more users and advertising revenue by enhancing their search services. "We will do an MSN search starting shortly with a beta and well before Longhorn ships, everything across local PC search, e-mail search, Web search, deep database search," Mehdi said at the same conference on Wednesday.

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