El Sitio acquires Mexican site; reports 1999 results

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MIAMI--Latin American Internet network El Sitio has signed a letter of intent to acquire Mexican e-commerce company DeCompras.com in an effort to accelerate the expansion of its own e-commerce strategy. The purchase price was not disclosed.

DeCompras.com sells a broad range of consumer products, including electronics, technology products, gifts and jewelry. It also delivers products to consumers outside Mexico, such as Mexican-Americans living in the U.S.

Separately, the company reported 1999 revenue of $6.9 million, up from$780,000 a year ago. Of the $6.9 million total, some $4.2 million was derived from advertising and related income.

Its base of active advertising clients grew to 113 by the fourth quarter, versus just 23 at the end of 1998.

The company derived additional revenue from ISP dial-up operations in Brazil and Argentina, which launched during the fourth quarter. By yearend 1999, its audience had reached 2.75 million average monthly unique users, according to El Sitio.

The network's net loss for the year widened to $36.3 million, versus a loss of $3.5 million a year ago.

El Sitio also recently launched a three-dimensional multi-media browser, for which it has the ability to tailor advertising by country.

Copyright March 2000, Crain Communications Inc.

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