By Yuval Dror

Yahoo! launched Yahoo! Games on Demand this week, a premium broadband service based on technology developed by Exent Technologies of Petah Tikva.

Exent Technologies' EXEtender software platform powers the Yahoo! Game Launcher, the technology engine that allows users of the service to stream games directly onto their desktops.

"In launching Yahoo! Games on Demand, we required a scalable and secure engine to support one of the largest games communities on the Web," said Daniel Hart, senior director of Yahoo! Games and Entertainment. "We're very pleased to have selected Exent Technologies as a primary technology provider for Yahoo! Games. The Exent streaming platform will provide an immersive, real-time experience to casual and devoted game players alike."

The new service provides access to about 40 games and is available under three pricing arrangements, ranging from $4.95 to $14.95 per month.

"Yahoo! is a pioneer in providing online services and one of the most popular games destinations on the Internet." said Zvi Levgoren, CEO of Exent Technologies. "We are extremely pleased to be trusted by an industry leader to power their new service and will continue to leverage this success into the consumer and corporate markets."

The deal with Yahoo! is considered Exent's largest yet, though Levgoren refused to divulge the financial terms of the agreement.

Michael Goodman, an analyst from the Yankee Group, said Yahoo! is the first large portal offering this type of service. "The move opens a new market for the games industry," he said. According to the Jupiter research firm, some 59 million Internet users play online games and this number is projected to grow to about 90 million in the next few years.

Exent Technologies was founded by Levgoren in 1992 and has raised $27.5 million. The company currently employs about 70 people, including 60 at its Petah Tikva R&D center. Corporate headquarters are in Bethesda, Maryland.

Yahoo! operates the most popular Internet portal, serving about 220 million distinct users each month and earning revenues through advertisements. With the economic slowdown, it is now exploring additional revenues sources. Yahoo! is traded on Nasdaq at a value of $5.45 billion. Its sales during the past four quarters totaled $773 million.