MICROSOFT BUYS COMPANY THAT OFFERS FREE E-MAIL.(Business)

Microsoft Corp. has acquired Hotmail, a Sunnyvale, Calif., company that provides a free Web-based e-mail service.

Hotmail will become part of The Microsoft Network online service that is available free to Internet users.

Hotmail's technology lets members access a permanent e-mail address from any PC with an Internet connection.''

Hotmail currently has more than 9 million users worldwide. The service is supported by advertising.