America Online Latin America Outlines Initiatives to Strengthen Business Fundamentals.

Business Editors/Hi-Tech Writers

Company Focusing on Optimizing Member Acquisition Channels through

Agreements with Top Retailers and PC Manufacturers and Improving

Validation and Collections

America Online Latin America (NASDAQ:AOLA) today outlined a range of initiatives the Company has been implementing to strengthen its long-term business fundamentals.

Over the past six months, AOL Latin America has launched a number of new initiatives to better target higher value members and to focus on improving collections. The Company has developed software tools and support systems designed to improve the validation of registration data provided by members who select the cash payment option. The Company has also taken steps to encourage credit card payment methods and reduce the number of members who do not pay on a timely basis.

As previously indicated, these initiatives will result in a decline in AOL Latin America's membership base in the second quarter of approximately 10%, and on subscriber growth in the near term. However, the Company also expects that these initiatives will improve its overall performance over time by decreasing the turnover rate in its membership base, reducing member acquisition and marketing-related expenses, and strengthening collections. AOL Latin America stated it has already seen significant cost savings in the areas of its network and marketing.

At the same time, the Company has expanded its partner-marketing efforts through agreements with respected global brands such as Wal-Mart, Hewlett-Packard, and Office Depot, as well as leading local companies. These agreements are aimed at strengthening the Company's acquisition efforts by facilitating the registration process, expanding access to point-of-sale locations, and improving the distribution channels for AOL software CDs.

The Company has also reached agreements for co-branded, affinity-based initiatives with well-known companies such as Credicard, American Express, and MasterCard. Credicard is the largest credit card company in Brazil with 8.3 million credit card holders.

As a result of these initiatives, combined with the implementation of these cost-savings strategies and tight fiscal controls, the Company also reported that it will have sufficient cash to last it through the early part of 2003.

Charles Herington, President and CEO of AOL Latin America, said: "AOL Latin America has been successful in establishing itself as one of the leading interactive services providers in the region. Our key near-term objectives include improving the revenue contribution of our membership base and achieving further operating efficiencies. While the initiatives we are implementing will result in a decline in our membership base in the second quarter, they are designed to strengthen our business fundamentals and respond to the current economic conditions in the region."

About AOL Latin America

America Online Latin America, Inc. (NASDAQ:AOLA) 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 of AOL Time Warner Inc. (NYSE: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 34 million members worldwide can access content and offerings from AOL Latin America through the International Channels on their local AOL services.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding (i) the magnitude of the expected decline in the Company's membership base in the second quarter, (ii) the expected impact of the Company's newly implemented initiatives (i.e. the improvement of the Company's overall performance over time through a decrease in the turnover rate in its membership base, the reduction of its member acquisition and marketing-related expenses, and the strengthening of its collections), (iii) the expected effect of its partner-marketing agreements, and (iv) the Company's liquidity. These forward-looking statements are subject to a number of risks and uncertainties, which are described in our Annual Report on Form 10-K for the period ended December 31, 2001, and from time to time in other reports we file with the SEC, as well as the following risks and uncertainties: our limited cash position, our ability to maintain the listing of our stock on the Nasdaq SmallCap Market, the impact that our continued losses will have on our ability to finance our operations, our limited operating history, uncertainty relating to our ability to convert our subscribers into paying subscribers, uncertainty regarding the success of our targeting marketing initiatives and technology designed to improve validation, the actions of our competitors, and our ability to penetrate our markets. Actual results could differ materially from those described in the forward-looking statements.