Under the agreement, Compaq will invest $500,000 in Info Touch and develop kiosk marketing initiatives with the company. Compaq technology will be utilized in the majority of Info Touch kiosks and the computer company will have the right of first refusal to develop any new technology with Info Touch.

The partnership also includes a marketing and communication program that includes public relations and direct mail campaigns, and participation in trade shows.

Hamed Shahbazi, Info Touch chairman and chief executive officer, said he expects his company to benefit significantly from the new partnership.

"This alliance with Compaq, and the commitment that Compaq has made to us through its investment, represents a significant step forward for us as we establish a leadership position in the rapidly growing kiosk marketplace," Shahbazi said.

Founded in 1993, Info Touch develops Internet-based kiosk applications that are utilized by traditional retail outlets and in the development of public access Internet kiosks.

Compaq Canada was launched in 1985 and is one of 34 subsidiaries of computer and Internet technology company Compaq Computer Corp. Fellow computer manufacturer Hewlett-Packard announced late Monday that it had agreed to purchase Compaq in a deal that could be worth $25 billion. Shares in both companies fell on Tuesday on news of the prospective sales-Hewlett-Packard fell $4.34 to $18.87 while Compaq dropped $1.27 to $11.08.