Earthlink Network Inc has pulled out of its distribution deal with Microworkz Computer Corp, citing breach of contract as the reason. Earthlink signed a deal with Microworkz in March to distribute the $499 Webzter Jnr PC, which offered a year’s free internet access through the ISP. However, Microworkz has now announced that it be dropping the Webzter range. Both companies have said that the 1,000 customers who signed on for the PC will be fully supported. The Washington State Better Business Bureau reports that it has opened a file on the company’s poor business practices.
Neither company is really saying much about this sudden parting of the ways. Microworkz CEO, Rick Latman, issued an open letter on Friday, in which he commented: As goals change, relationships alter too. Microworkz.com and Earthlink are now going their separate ways. While an Earthlink spokesperson reiterated the company line that the fallout was over a breach of contract, presumably the dropping of the Webzter range.
In the interim, Microworkz had brought out the $199 iToaster, which garnered a lot more publicity, overshadowing the Webzter line. The iToaster was also offered as $19.95 a month package with internet access; Earthlink was not the featured ISP. Microworkz currently hosts its own services under the Microworkz.com in collaboration with Verio Northwest, formerly known as Accessone.
Separately, Microworkz has introduced an upgraded version of the $199 network computer, the iToaster Plus. The new box offers instant messaging, MP3 and Palmpilot connectivity.
