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U.S. and Iranian officials announced that two American hikers imprisoned as spies in Iran for more than two years were released on bail.

The news of their release comes a day before Iran's President Mahmoud Ahmadimejad is expected to speak at the United Nations General Assembly.

In July 2009, Fattal and Bauer were arrested along with a third hiker, Sarah Shourd after apparently straying over an unmarked border between Iraqi Kurdistan and Iran. Shourd was freed almost exactly a year ago on medical grounds.

Shane Bauer and Josh Fattal, both 29, were convicted last month of entering Iran illegally and spying for the United States, and each sentenced to eight years in prison.