: STARMEDIA NETWORK, 1STUP.COM, CMGI, CHASE CAPITAL PARTNERS AND FLATIRON JOIN
FORCES TO BRING FREE INTERNET ACCESS TO LATIN AMERICA NEW COMPANY Formed:
GRATIS1 to Introduce New Technology to Make Free Internet Access Easy to Use
and More Personal
MIAMI, Feb 16, 2000 /PRNewswire via COMTEX/ -- StarMedia Network, Inc.
(Nasdaq: STRM) (http://www.starmedia.com), 1stUp.com
(http://www.1stUp.com), CMGI Inc. (Nasdaq: CMGI), Chase Capital
Partners, and Flatiron Partners today announced their intention to
bring free Internet access to Latin America through the creation of
GRATIS1, Inc. GRATIS1 will offer Latin Americans pan-regional unlimited
free Internet access with no registration fees, subscription fees or
computer purchase requirements. The GRATIS1 service is expected to
launch following the completion of details of the arrangement by the
founding parties.
GRATIS1 will run as a fully independent company with its own operations
and management, and will be headed by Alejandro Cosentino who will
serve as Chief Executive Officer. The company will be formed by
StarMedia Network, 1stUp.com, CMGI, Chase Capital Partners, and
Flatiron Partners, each of which will hold an equity interest in the
new business. GRATIS1 will operate on the core strengths of its
founders, with StarMedia Network's Chairman and CEO, Fernando Espuelas,
to serve as GRATIS1's Chairman, and will receive financing and
strategic counsel from CMGI, Chase Capital Partners, and Flatiron
Partners.
GRATIS1 will offer Latin American consumers free unlimited Internet
access, browsing capabilities, and a full range of content, community
and commerce services, while providing advertisers with a highly
effective means of targeting users. The new company will leverage
StarMedia Network's content, branding, marketing and sales operations
and years of experience in the Latin American Internet market as well
as 1stUp.com's existing free Internet access technology. GRATIS1
expects to generate revenues through its value-added targeted
advertising platform and through its e-commerce offerings.
"StarMedia is very proud to join forces with world class partners to
help democratize the Internet in Latin America by opening a new world
of online opportunities to users who have previously been excluded by
high access costs," said Fernando Espuelas, Chairman and CEO of
StarMedia Network. "We intend to leverage our demonstrated success
among users and advertisers with the strengths of our founding partners
to create an unparalleled product offering."
"Our investment in GRATIS1 will allow us the opportunity to expand our
free Internet access technology and services to the growing Latin
American market," said Charles Katz, President and CEO of 1stUp.com.
"The combination of Latin American consumers' enthusiastic adoption of
new technologies with rapidly growing regional and local online
advertising markets, contrasted with the region's history of high
Internet access costs creates an environment ripe for the adoption of
the free Internet access model."
"Free Internet access is the prevalent trend throughout the ISP markets
in the United States and Europe, and we see Latin America as a fertile
marketplace for this business model," said David Andonian, President of
Corporate Development, CMGI. "GRATIS1 will mark a great addition to our
roster of Internet investments, and we are excited to play a role in
the creation of this new company that will offer benefits to both users
and advertisers in Latin America."
"Chase Capital Partners' involvement in GRATIS1 stems from our strong
interest in fostering the growth of new companies in the Internet
industry and in Latin America," said Susan Segal, General Partner and
Latin American Group Head, Chase Capital Partners. "We believe the
concept of GRATIS1 will be very well received by Latin American
consumers and feel very confident about the company's prospects given
the level of industry expertise, brand recognition and dedication of
the founding parties."
The service is expected to first launch in Sao Paulo, Brazil, and then
extend to the rest of Brazil, Argentina and Mexico before rolling out
throughout Latin America. GRATIS1 will promote its free ISP brand
through a series of online and off-line campaigns targeting users
throughout the region.
GRATIS1 is expected to accelerate the development of what today is one
of the fastest growing Internet markets in the world. According to a
1998 Audits & Survey Worldwide study, there are currently 15 million
Internet users in Latin America. Nazca Saatchi & Saatchi expects this
number to grow to approximately 34 million by the end of 2000. The
region's online advertising market is also expected to grow
dramatically, from $51 million in 1999 to over $1.6 billion in 2004,
according to a 1999 study by Forrester Research. Additionally, a 1999
study by eMarketer expects e-commerce revenues for the region to soar
to over $84 billion in 2003.
About StarMedia Network StarMedia Network is the leading Internet media
company targeting Latin America and other Spanish- and
Portuguese-speaking markets worldwide. The Company is committed to
providing Spanish and Portuguese speakers with a complete selection of
services and products that take full advantage of Internet
technologies. StarMedia Network operates StarMedia (www.starmedia.com),
the leading global online community for Spanish and Portuguese
speakers; Periscopio (www.periscopio.com), a powerful information
portal for Spanish speakers worldwide; LatinRed (www.latinred.net), one
of the largest Spanish language online communities; OpenChile
(www.openchile.cl), a local Chilean portal; Zeek! (www.zeek.com.br) and
Cade? (www.cade.com.br), two of the leading online directories in
Brazil; AdNet (www.adnet.com.mx), Mexico's largest Web directory; Guia
SP (www.guiasp.com.br) and Guia RJ (www.guiarj.com.br), Brazil's
largest metropolitan Web directories; Paisas.com (www.paisas.com), a
leading online Colombian guide; StarMedia Acceso/Acesso, a premium
Internet access service in Latin America; StarMedia Broadband,
StarMedia Network's broadband services arm; and StarMedia Mobile, the
Company's wireless division. StarMedia Network provides advertisers and
merchants targeted access to Spanish- and Portuguese-speaking Internet
users. Some of StarMedia Network's strategic relationships include
Netscape Communications, Real Networks, CDNOW, Reuters, eBay, National
Broadcasting Company, Hearst Communications, and Fininvest. Founded in
1996, the Company has operations in Argentina, Brazil, Chile, Colombia,
Mexico, Puerto Rico, Spain, Uruguay, Venezuela, and major U.S. cities,
and has over 700 employees.
StarMedia and StarMedia's logos, product and service names are
registered trademarks of StarMedia Network, Inc.
About 1stUp.com 1stUp.com, a majority-owned operating company of CMGI,
Inc. (Nasdaq: CMGI), is a market leader in providing consumer-oriented
businesses with ad-supported Internet access solutions. 1stUp.com
provides patent-pending technology that enables its partners to brand,
market and distribute leading edge, cost-effective Internet services to
their customers. The 1stUp.com solution enables consumers to receive
unlimited, free Internet access in exchange for keeping a compact,
sponsor-oriented navigation bar on their computer screen. Multiple
leading ISPs support 1stUp.com's premium network, which delivers free,
reliable Internet access to over 90 percent of the U.S. and Canada.
Aggregating the end-user bases of AltaVista, Excite@Home, and over 50
additional free access brands, 1stUp.com has the buying power of
multiple providers and is able to pass along the benefits of optimal
connectivity costs and advertising revenues to its partners. Additional
information is available on the company's Web site at: www.1stup.com.
About CMGI With nearly 50 companies, CMGI, Inc. (Nasdaq: CMGI)
represents the largest, most diverse network of Internet companies in
the world. This network includes both CMGI operating companies and a
growing number of synergistic investments through its venture capital
affiliate, @Ventures. CMGI leverages the technologies, content, and
market reach of its extended family of companies to foster rapid growth
and industry leadership across its network, and the larger Internet
Economy. Microsoft, Intel, Sumitomo and Compaq hold minority positions
in CMGI.
About Chase Capital Partners Chase Capital Partners ("CCP") is a global
private equity organization with approximately $12.0 billion under
management. Since its inception in 1984, CCP has closed more than 900
individual transactions in North America, Europe, Asia and Latin
America. CCP's primary limited partner is The Chase Manhattan
Corporation ("Chase"), one of the nation's largest bank holding
companies with assets totaling approximately $366 billion. The
financial acumen and entrepreneurial diversity of the more than 120
professionals at CCP is the result of a broad base of business and
geographical investment experience.
About Flatiron Partners Flatiron Partners is one of the preeminent
Internet-focused venture capital firms. Flatiron Partners has a
strategic affiliation with Chase Capital Partners (CCP), one of the
world's leading private equity firms, whereby CCP is the exclusive
source of capital for the $300 million fund. Since its inception
Flatiron Partners has invested in 35 Internet companies throughout the
world.
This release contains forward-looking statements based on current
expectations or beliefs, as well as a number of assumptions about
future events, and these statements are subject to important factors
and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. The
forward-looking statements in this release address a variety of
subjects including: the completion of the arrangements between the
founders, the expected launch date and roll-out schedule of the GRATIS1
service, the expected benefits of the agreement to form GRATIS1, and
the expected capabilities of GRATIS1 to offer free Internet access and
related service. The following factors, among others, could cause
actual results to differ materially from those described in these
forward-looking statements: the founders may not reach agreement on all
outstanding matters regarding GRATIS1, GRATIS1 may not execute
successfully on its business plan, the launch and roll-out schedule of
the GRATIS1 service may be delayed or altered due to reasons beyond the
control of the founding parties, 1stUp's products and technologies may
not successfully interoperate with those of StarMedia, technological,
economic and regulatory risks involved with operating in Latin America,
and increased competition and technological changes in the Latin
American markets.
SOURCE StarMedia, Inc.
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Press - Romi Schutzer of StarMedia Network, Inc.,
Romi.schutzer@starmedia.net, 212-905-8269; Kendra Boccelli of
CMGI,
kboccelli@cmgi.com, 978-684-3527; Graeme Slattery Manning of
Selvage & Lee,
gslattery@mslpr.com, 415-364-3819, for 1stUp.com; Investors -
Gina Sorice,
Gina@starmedia.net, 212-905-8317, or Amy Carpi
Amy@starmedia.net,
212-905-8318, both of StarMedia Network Inc.
WEB PAGE: 1stup.com
GEOGRAPHY: Florida
INDUSTRY CODE: MLM
CPR
SUBJECT CODE: JVN |
