Taiwanese PC maker Acer and Yahoo! (YHOO) agreed to distribute a co-branded toolbar and start page and to set Yahoo! as the default search engine on all Acer PCs sold.

Under the terms of the agreement, Acer will preload a co-branded Yahoo! and Acer toolbar and start page on Acer PCs shipped worldwide. Additionally, with the upcoming launch of

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Internet Explorer 7, Acer will also set Yahoo! as the default search engine for IE7 on all of its computers.

Acer will begin shipment of its PCs featuring the co-branded toolbar and co-branded start page on Oct. 1 in Asia Pacific, Europe, North America and South America.