AOL LatAM Finalizes $150 M Funding Package.

America Online Latin America, Inc. announced that it has finalized terms of a $150 million funding package from principal stockholders America Online, Inc., a wholly owned subsidiary of AOL Time Warner Inc.; the Cisneros Group of Companies; and Banco Itau.

America Online and the Cisneros Group of Companies are purchasing a combined total of $130.1 million in redeemable convertible preferred stock. Banco Itau is purchasing $19.9 million of Class A common stock.

Charles Herington, President and Chief Executive Officer of AOL Latin America, said: “AOL Latin America is rapidly growing into a major force in the Latin American Internet market, having established a base of more than half a million members in less than a year and a half. This $150 million investment from our three principal stockholders — America Online, the Cisneros Group of Companies and Banco Itau — underscores their commitment to AOL Latin America and their great belief in the future of the interactive medium in Latin America. This funding provides us with additional capital to build on our early accomplishments and move toward our goal of becoming the leading interactive services provider in Latin America.”

Under the terms of the funding package, which was first announced on February 14, 2001, America Online is purchasing $66.3 million of redeemable convertible preferred shares and the Cisneros Group of Companies is purchasing $63.8 million in redeemable convertible preferred shares. The purchase price for both preferred stock transactions is $4.6875 a share.

Payments under both transactions will be made in three equal installments, the first was completed on Monday and the next two are scheduled for June 1, 2001 and August 1, 2001. Banco Itau’s $19.9 million Class A common stock purchase was completed Monday at a price of $4.6875 a share.