Microsoft Corp. says it has acquired Lookout Software, the developer of the Lookout personal search tool that offers a free, downloadable search engine for Microsoft's Outlook email software.

The terms of the deal were not disclosed.

The Lookout tool would provide Microsoft Office Outlook 2003 users with a fast way to search for email, files and desktop data within Outlook.

"Lookout has developed an innovative technology for searching email that is aligned with our own MSN Search efforts," says Yusuf Mehdi, corporate vice president of MSN, in a statement. "Our vision is to take search beyond today's basic Internet search services to deliver direct answers to people's questions, and help them find information from a broad range of sources."

The acquisition of Lookout, founded by Mike Belshe and Eric Hahn, adds expertise to the MSN vision of offering the best search tools to help people find information. Lookout founder and software developer Belshe will become a full-time employee on the MSN Search team.

"It's truly exciting to be joining the MSN Search team," says Belshe. "With Microsoft's focus in the search arena, we feel this is a great opportunity to expand on the technology we have built in a way that will really help consumers. MSN's own cutting-edge technology combined with Lookout and other upcoming products is going to fundamentally change this industry in a very positive way."