AOL Latin America Announces Conversion of Preferred Stock to Class A Common Stock by America Online, Inc. and The Cisneros Group of Companies.Business Editors/High-Tech Writers FORT LAUDERDALE Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla.--(BUSINESS WIRE)--Jan. 10, 2003 America Online See AOL. Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Inc. (Nasdaq:AOLAC), one of the leading interactive services providers in Latin America, today announced that America Online, Inc. and the Cisneros Group The Cisneros Group of Companies is one of the largest, privately held media, entertainment, telecommunications and consumer products organizations in the world. The Group owns or holds interests in companies ranging from broadcast television, networks and pay television businesses of Companies converted 32,328,736 and 28,508,177 shares, respectively, of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to class A common stock. The stock conversion occurred today, January 10, 2003. AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. Latin America noted that as a result of this conversion there are now 127,906,978 shares of class A common stock outstanding. This conversion was effected to support the Company's efforts to maintain its listing on the NASDAQ SmallCap Market. AOL Latin America further noted that the stock conversion did not change the aggregate number of outstanding shares for all classes of stock; however, the number of shares of class A common stock increased by the same amount that the shares of preferred stock decreased. The Company believes that the conversion benefits class A common stock holders as it includes the forfeiture of dividends, liquidation preferences, and other preferential rights associated with the converted preferred stock by the Cisneros Group of Companies and America Online, Inc. There can be no assurance that this stock conversion will result in AOL Latin America's continued listing on the NASDAQ SmallCap Market beyond January 13, 2003. In the event that the Company is no longer able to continue trading on the NASDAQ SmallCap Market, the Company expects that its class A common stock would trade on the Over-the-Counter Bulletin Board (OTCBB OTCBB See OTC Bulletin Board (OTCBB). ). The OTCBB is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information for more than 3,600 equity securities. About AOL Latin America America Online Latin America, Inc. (Nasdaq:AOLAC) is the exclusive provider of AOL-branded services in Latin America and has become one of the leading Internet and interactive services providers in the region. AOL Latin America launched its first service, America Online Brazil, in November 1999, and began as a joint venture of America Online, Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of AOL Time Warner Inc. (NYSE NYSE See: New York Stock Exchange :AOL), and the Cisneros Group of Companies. Banco Itau, a leading Brazilian bank, is also a minority stockholder of AOL Latin America. The Company combines the technology, brand name, infrastructure and relationships of America Online, the world's leader in branded interactive services, with the relationships, regional experience and extensive media assets of the Cisneros Group of Companies, one of the leading media groups in the Americas. The Company currently operates services in Brazil, Mexico and Argentina and serves members of the AOL-branded service in Puerto Rico. It also operates a regional portal accessible at www.aola.com. America Online's 35 million members worldwide can access content and offerings from AOL Latin America through the International Channels on their local AOL services. |
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