Quepasa.com Returns To Online Search Services For The U.S. Hispanic Market.

Quepasa.com Inc. announced a definitive agreement to acquire privately held Vayala Corp. of Phoenix. Vayala is a developer of intelligent search and indexing technologies for the public Internet.

This acquisition represents Quepasa’s return to Internet search services for the U.S. Hispanic market, the fastest growing ethnic group online, according to market research firm Nielsen/Netratings in a study released July 16, 2002. In addition, this acquisition represents Quepasa’s entry to the international Spanish language search marketplace.

In connection with the agreement, Quepasa will issue approximately 32 million shares of its common stock, and options to purchase an additional 65 million shares of common stock, to Vayala’s shareholders. As part of the agreement, Quepasa’s board of directors have agreed to effect a reverse split of one share for each 20 shares of quepasa stock outstanding.

With Vayala’s technology, Quepasa as a business will, for the first time, be able to operate its own proprietary database of Internet search results. In the past, Quepasa had licensed its search results from Inktomi Corp. (INKT) .

In addition, Quepasa will be able to extend its business model and offer its search results for licensing to others, to meet the evolving needs of the rapidly growing online Latino population.

In addition, Vayala’s technology introduces new intelligent services that significantly reduce the costs associated with, and establish a benchmark for “private-label” Internet search products which have not historically been available to both the domestic and international Spanish language online community.