Todito.com & Azteca America Network Form Strategic Alliance.

Todito.com, S.A. de C.V., an Internet portal and Azteca America Network announced an alliance that covers cross-marketing and the production of exclusive Hispanic-directed Internet content.

“The demand for Todito’s communication, connectivity and e-commerce services has been proven,” commented Pedro Padilla, CEO of TV Azteca. “In just two years, Todito has become one of the most visited Spanish-language sites in Mexico and one of the few Internet companies that has managed to convert its audience into positive cash flow,” he continued. “With the support of Azteca America, we expect this success to be replicated in the U.S. Hispanic market.”

Azteca America advertising on Todito will target the portal’s large U.S. Hispanic user base, while Todito will utilize television airtime under the agreement to promote its interactive online services to Azteca America viewers. Of the 35 million Spanish speakers in the United States, more than half have access to a computer and Internet connection, according to The Internet & American Life Project conducted by the Pew Research Center.

“With promotion on Azteca America and new Hispanic-directed content that Todito is developing, we believe that Todito has the potential to become the preferred Spanish-language Internet site for U.S. Hispanics,” said Luis Echarte, Azteca America’s President.

Under the 12-month agreement, Todito will receive approximately US$100,000 of television advertising per month in exchange for a comparable value of online advertising on the Todito site (www.todito.com). Azteca America’s advertising campaign will include sponsorship of a new online Hispanic Channel to be launched by Todito in December.

Azteca America is a wholly-owned subsidiary of TV Azteca, one of two broadcast television networks in Mexico and the second largest producer of Spanish-language programming in the world. TV Azteca also owns 50% of Todito’s capital stock. Azteca America will commence full network operations in Los Angeles in November of 2001. The network expects that its stations will have coverage of at least 65% of the U.S. Hispanic market by 2003.

“There are tremendous opportunities for Todito to generate cash-flow both from the large and growing U.S. Hispanic Internet market and the billions of dollars that are repatriated each year by Mexicans living in the U.S. to their families and friends in Mexico,” commented Tim Parsa, Todito’s CEO.

Todito will use part of its advertising time on the Azteca America network to promote Todito Card — Todito’s pre-paid Internet access service. Todito Card has enjoyed overwhelming acceptance in Mexico since its launch in April because it is the least expensive option in the market and allows users to connect their computers to the Internet without signing long-term contracts or using a credit card.

Todito will also promote online purchases by U.S. Hispanics of goods from stores in Todito’s Internet mall for delivery to friends and families living in Mexico. The company hopes to divert a part of the huge volume of cross border money transfers (approximately US $8 billion in 2000) to the direct online purchase of goods and payment of services on www.todito.com. Todito also expects to capture a portion of the U.S. Hispanic online advertising market, estimated at US $165 million in 2001.