SAN JOSE, Calif. (AP) -- Microsoft Corp. plans to create boutiques inside Tandy Corp.'s RadioShack outlets in an effort to accelerate the acceptance of the Internet as part of everyday life and bring millions of consumers online for the first time.

The Redmond, Wash.-based company on Thursday announced it will pay an undisclosed amount for construction of as many as 7,000 ``stores within a store'' at RadioShacks nationwide to demonstrate Microsoft products and services.

The kiosks will serve as a way of explaining to consumers the various choices of connecting to the Web, including computers, hand-held devices, MSN's WebTV and other appliances.

The announcement was a bit of positive news for the software giant. It comes less than a week after a federal judge ruled the company's Windows operating system held monopoly status and that Microsoft used that power and money to stifle competition.

Microsoft has been trying to expand beyond its core software business into the increasingly lucrative fields of Internet commerce and access, investing billions of dollars in communication and technology companies, including AT&T Corp.

``This is the start of a revolution that's going to have a profound effect on our society,'' said Microsoft chairman Bill Gates. ``A key element here is this demystification -- having someone who can explain what it's all about.''

RadioShack in recent months has been forging alliances with other companies in a bid to become the place where consumers go for information and equipment in the Internet age.

To do that, the Fort Worth, Texas-based company has made similar deals with long-distance provider Sprint Corp., computer maker Compaq Computer Corp. and Thomson SA's RCA, which makes electronic devices such as televisions.

As part of the alliance, Microsoft also will make a $100 million equity investment in the newly launched RadioShack.com, to help build RadioShack into a leading e-commerce site by referring customers there for shopping needs.

RadioShack, in turn, would help drive customers to Microsoft's Web site, which is one of the most popular online destinations but has largely failed to make significant strides against competitors such as Yahoo! Inc. and America Online Inc.

Shares of Fort Worth, Texas-based Tandy soared more than 9 percent on the news, rising $6.25 to $71.43 3/4 at 5:15 p.m. on the New York Stock Exchange. Shares of Microsoft rose $2.50 to $89.62 1/2 on the Nasdaq Stock Market.

Shares of other consumer electronics chains also were boosted amid speculation by Wall Street analysts that AOL, which also was seeking to partner with RadioShack, will turn to Circuit City Group or Best Buy Co.

The new kiosks are expected to appear by the fall of 2000.

Copyright © 1999 Associated Press Information Services, all rights reserved.

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Thanks Anna!