AOL Hits Argentina

America Online Latin America continues
its South American expansion with the launch of AOL Argentina Tuesday.

The launch marks America Online Inc.’s , continued efforts
to bring its branded services using Spanish-language local content to
foreign markets. In July, AOL Mexico went operational, just over six months after the debut of AOL Brazil.

Charles Herington, AOL Latin America president and chief executive officer,
said the launch now solidifies the popularity of the Internet service
provider in South America.

“With the launch of America Online Argentina, AOL Latin America now has
local services in the three biggest markets in Latin America,” Herington
said.

“As in Brasil and Mexico, we are committed to providing our members
in Argentina with the best interactive experience available. By providing
consumers with unique features and unsurpassed content, we are coming
another step closer to making AOL Latin America the leading service
provider in the region.”

With the launch of the Argentine branch, AOL Latin America now covers
nearly two-thirds of the available Internet market in the region. The ISPs
ability to match content with connectivity makes it a popular combination
with customers.

AOL Argentina was developed and maintained locally, offering access
to more than 100 content providers and 15 “homegrown” topic-specific
channels covering news, sports, kids, computing, entertainment and finance.

AOL Latin American has a powerful ally in its expansion through the
partnership with the Cisneros Group of
Companies, Latin America’s largest media investment company.

Gustavo Cisneros, Cisneros chairman and chief executive officer, said the
expansion benefits all Latin Americans, whether for entertainment or education.

“We are thrilled to bring the world’s best Internet online experience to
Argentina,” Cisneros said. “As we launch more and more localized services
throughout Latin America, AOL Latin America is creating a network which
will help Latin America enjoy the increased educational resources, economic
opportunity and political transparency that the Internet offers, in a way
that is easy-to-use and, most importantly, safe and secure for families.”

AOL Latin America is currently in the silent phase of its initial public
offering, started July 31. Under terms set by the Federal Communications Commission, companies
are not allowed to discuss any part of its business activities outside the
company for 45 days.

The ISP made its debut on U.S markets, opening at $8, substantially off its earlier projected range of $15 to $17. Officials hope the spinoff raises
more than $425 million in cash for continued expansion throughout Latin
America.

As expected, Banco Itau
invested heavily with a 12 percent stake in AOL Latin America. The two
co-brand a customized version of AOL Brasil to the bank’s 7 million
customers.