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Guard Monta Ellis, a veteran of 12 NBA seasons, including the last two with Indiana, was waived by the Pacers, the team announced Thursday.
Ellis averaged 11.3 points and 4.0 assists over 155 games (114 starts) in his two seasons with the Pacers. He has career averages of 17.8 points and 4.6 assists per game.
The release of Ellis, who had two seasons left on his contract, frees salary-cap space for the Pacers.
The NBA announced last month that Ellis will be suspended for five games next season for a violation of the league's anti-drug rules.
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