Yahoo spices up webmail with new features

Sunnyvale (CA) - Yahoo Mail now gives users a more advanced search filter, an easier contacts manager, and the ability to send instant and text messages from the webmail application.

The biggest update is a universal messaging client that makes it possible for users to send an e-mail, mobile phone text message, or an instant message, all from the same message box.

The new features are the final version of a beta program Yahoo started last year. The Internet giant claims this is the "most significant" change in its e-mail service since its introduction in 1997.

In March, Yahoo announced its biggest move to compete with Google’s high capacity e-mail provider Gmail when it gave unlimited storage to Yahoo Mail users.

Yahoo will continue to run its previous webmail service, which it will now call "Yahoo Mail Classic".