From the Sports Network:

The Cincinnati Reds signed veteran relief pitcher Chris Hammond to a one-year contract with a mutual option for the 2007 season on Tuesday.

Financial terms of the deal were not disclosed.

The 39-year-old posted a 5-1 mark with a 3.84 earned run average in 2005 with the San Diego Padres.

I remember when Hammond was a hot prospect for the Reds back in the early 90's.  He didn't really turn out, but he's been a great reliever the past few years.  I'm a fan of this signing, assuming he didn't get ridiculous money.  The bullpen has been painful to watch the last few years, especially after being spoiled by Jim Bowden's bullpens which were always pretty solid.  Hammond is going to be 40 this year so there's a chance he'll fall off a cliff, but odds are he'll be better than Randy Keisler which is who he's effectively replacing.