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sammia - 8:35 am on Sep 1, 2005 (gmt 0)
They offer more products and services than I do. My site's revenue comes mainly from advertising and AS so the link to competitors gives my visitors a place to go to buy things that I don't offer anyway.
I exchange links with several competitors on one of my sites. I've even done a homepage recipricol. The anchor text out couldn't be more relevant, the theme of the page pointing back and anchor text, couldn't be more relevant plus they have a higher homepage PR than me so... why not.