**NEWS**
Thursday August 19, 5:07 pm Eastern Time
Company Press Release
StarMedia and LatinGrocer Announce an E-Commerce Partnership
Exclusive Marketing Agreement Enables US Hispanics to Obtain Their Favorite Latin Brands
NEW YORK--(BUSINESS WIRE)--Aug. 19, 1999--StarMedia Network Inc. (Nasdaq:STRM - news; www.starmedia.com), the leading global online network for
Spanish and Portuguese-speaking audiences, and LatinGrocer (www.latingrocer.com), the leading online vendor of Hispanic foods and products, announced
today an e-commerce partnership with an exclusive marketing agreement which will provide StarMedia's users with direct access to LatinGrocer's great variety of
products.
As a premier partner of StarMedia, LatinGrocer will be featured on the StarMedia Shopping channel and its products will also be promoted across the entire
StarMedia network, and its site will be directly accessible to StarMedia users residing throughout the US and Puerto Rico.
''We believe this is a wonderful partnership between two companies that are committed to the US Hispanic Market,'' said Giraldo Leyva, Chairman of
LatinGrocer. ''LatinGrocer, similar to StarMedia, is a first mover and leader in a growing market niche. In addition, both companies are truly dedicated to
customer service, which enables them to better serve their loyal customer base.''
''This new alliance highlights StarMedia's serious commitment to the US Hispanic market and its leadership in the development of e-commerce and content for
Spanish speakers in the US,'' said Fernando Espuelas, CEO and Chairman of StarMedia Network. ''Our relationship with LatinGrocer enables our users to shop
for Latin products which can't be found at other online stores, but that are an essential part of the Latin culture.''
According to a survey of StarMedia users conducted by the Laredo Group in December of 1998, over 54% of StarMedia users in the US have already made a
purchase on the Internet. According to the US Bureau of the Census, 30 million Hispanics currently reside in the US, which represents 11% of the total U.S.
population; by the year 2005, Hispanics will become the largest minority group in the US.
36% of the total Hispanic households in the US are online as compared to 34% of Caucasian American households and 23% of African American, as per Forrester
Research. In addition, 70% of US Hispanics report that Spanish is the language that they speak most frequently at home (Strategy Research Corporation).
As part of the agreement, both companies will also develop and implement cross-promotional efforts, which may include banner, television, print, radio, and
billboard advertising.
LatinGrocer recently announced free delivery of non-perishable goods to customers in the US and Puerto Rico.
About LatinGrocer
Founded in 1998, LatinGrocer is the first online grocery to target Hispanics and other ethnic segments longing for Latin food products on the Internet.
LatinGrocer features more than 1,000 products, including frijoles, sofrito, mojo criollo, tortillas, cafe, guayaba and Spanish jamon serrano, among others.
LatinGrocer carries well-known brand names such as Iberia, Cachita, Conchita, Molinera, Goya, La Cena, Gilda, Cafe Pilon, Macabi Cigars; Materva, Jupina
sodas, and others. LatinGrocer also carries other products such as CDs, electronics, gifts, and more.
About StarMedia Shopping
StarMedia Shopping acts as a virtual central plaza for online Spanish-speaking consumers. Users are able to purchase a variety of merchandise, including
computers, books, and CDs, from a host of global and local retailers like barnesandnoble.com, CDNow, CIM, Viajo.com, Sports Superstore, and Outpost.
Products from the stores located in StarMedia Shopping also appear throughout the StarMedia network, allowing users to seamlessly find and shop for products
while online.
About StarMedia Network
StarMedia is the leading global online network for Spanish- and Portuguese-speaking audiences. StarMedia offers Latin Americans, U.S. Hispanics and Iberians a
pan-regional community experience, combined with a broad array of Spanish and Portuguese content, tailored for regional dialects and local cultural norms.
StarMedia provides advertisers and merchants targeted access to Spanish- and Portuguese-speaking Internet users, an audience with a highly desirable
demographic profile.
Some of StarMedia's strategic relationships include Netscape Communications, Real Networks, Ziff-Davis, Fox Sports Latin America, CDNow, Reuters, eBay,
National Broadcasting Company, Hearst Communications, and Fininvest.
Founded in 1996, the company employs approximately 400 people with operations in Sao Paulo and Rio de Janeiro, Brazil; Mexico City, Mexico; Buenos Aires,
Argentina; Bogota, Colombia; Santiago, Chile; Montevideo, Uruguay; Caracas, Venezuela; Madrid and Barcelona, Spain; New York City, NY; Miami, FL; Los
Angeles, CA; Dallas, TX; and San Juan, Puerto Rico.
This press release contains statements of a forward-looking nature relating to future events or future financial results of StarMedia. Investors are cautioned that
such statements are only predictions and that actual events or results may differ materially. In calculating such statements, investors should specifically consider
various factors which could cause actual events or results to differ materially from those indicated from such forward-looking statements, including the matters set
forth in StarMedia's reports and documents filed from time to time with the Securities and Exchange Commission.
Contact:
StarMedia Network
Pedro Robles, 212/548-9600
or
Alexander Ogilvy Public Relations
Rebecca Bassin, 415/923-1660 |
