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CONTACTS:
Media: Xxxxxxx Xxxxxx Investors: Xxxx Xxxxxxx/Xxxxxxxx Xxxxxxxx
Xx Sitio, Inc. Brainerd Communicators, Inc.
(5411) 4339-3700 ext 3818 (000) 000-0000
EL SITIO, INC. AND XXXXXXXXX.XXX SIGN DEFINITIVE AGREEMENT
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El Sitio to Acquire Leading E-Commerce Player in Mexico
Miami, Florida and Monterrey, Mexico, March 14, 2000 -- El Sitio, Inc.
(Nasdaq: LCTO) announced today that it has entered into a definitive
agreement to acquire 100% of XxXxxxxxx.xxx, Inc., a leading e-commerce
company in Mexico. Under the terms of the transaction, El Sitio will issue
to shareholders of XxXxxxxxx.xxx an aggregate of 1.75 million of El Sitio
common shares, representing approximately 3.7% of the fully diluted shares
outstanding of the company, and pay $7 million in cash.
The transaction currently is expected to close by the end of April, subject
to customary conditions.
XxXxxxxxx.xxx (which means Shopping in English) has become a leader in the
Mexican e-commerce market, selling a broad range of products to consumers and
businesses including electronics, technology products, toys, gifts, jewelry,
and office supplies. XxXxxxxxx.xxx achieved over $1.0 million in net revenue
during its first eight months of operations, with a significant portion
coming in the first two months of 2000. Business-to-business transactions
currently account for 25% of XxXxxxxxx.xxx's total sales. XxXxxxxxx.xxx has
also made inroads to selling products to the 20 million US-based Mexican-
Americans who wish to deliver products in Mexico.
Xxxxxxx Xxxx-Xxxxxxxx, El Sitio's Chairman, commented, "The XxXxxxxxx.xxx
acquisition accelerates the implementation of our e-commerce strategy by
enabling us to put in place a direct e-commerce platform before mid-2000,
approximately six months ahead of our original plan. We will continue to
move quickly to roll out our pan-regional e-commerce strategy with the goal
of becoming a major participant in this industry in Latin America."
Continued...
"The ability to join forces with one of Latin America's leading Internet
networks validates the strength of XxXxxxxxx.xxx' s business," said Xxxx
Xxxxxx Xxxxxx X., Chief Executive Officer of XxXxxxxxx.xxx. " Our management
team is looking forward to working with El Sitio to continue to grow our
Mexican e-commerce business. We believe that, together, our companies have an
excellent opportunity to establish a formidable presence in what is expected
to be a dynamic market for online commerce."
Xxxxxxx Xxxxxxx-Xxxxxx, El Sitio's Chief Executive Officer, noted, "The
DeCompras acquisition is a major step in El Sitio's drive to establish a
leading e-commerce platform across Latin America. In executing this strategy
we will adhere to our strategy of building our network market by market,
recognizing the different needs and preferences of Internet users in the key
Spanish- and Portuguese-speaking markets which we target."
About El Sitio
El Sitio, Inc. (xxx.xxxxxxx.xxx and xxx.xxxxx.xxx.xx ) is a leading Internet
network providing original and proprietary country-specific content for
Spanish- and Portuguese-speaking audiences in Latin America and the United
States. El Sitio consists of country web sites for Argentina, Brazil, Mexico,
Uruguay and the United States as well as a global site. El Sitio, offers
users country-specific content and interactive community features such as
free e-mail, a search engine, chat rooms, bulletin boards, auctions,
contests, and Cupido net, an interactive meeting place. Founded in 1997, El
Sitio has a team of approximately 330 professionals in its offices in Buenos
Aires, Mexico City, Miami, Montevideo, Xxxxxxxx and Sao Paulo.
Forward-Looking Statements by El Sitio:
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This press release contains forward-looking statements relating to
future actions, events or financial performance of El Sitio. Investors should
understand that such forward-looking statements are subject to risks and
uncertainties, including, among others, the possibilities that the proposed
acquisition will not be consummated for various reasons and that El Sitio may
not realize the anticipated financial and other benefits of such acquisition.
Accordingly, investors are cautioned that the forward-looking statements
herein may not be realized.
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