Diveo Broadband Networks: Delivering broadband and Internet Infrastructure services to Latin America.

Diveo Broadband Networks, Inc. is answering Latin America's call for the best in broadband and Internet infrastructure services. Over the past four years, Diveo has successfully designed, built and deployed the largest network of Internet Data Centers in the region, as well as an expansive, panregional, high-speed, local access network, servicing businesses in the major urban markets throughout Latin America.

Through its seven state-of-the-art Internet Data Centers in Argentina, Brazil, Colombia, Mexico and Miami, Diveo provides services such as dedicated web hosting, colocation, complex hosting services and facilities-based transit under its IP Business[SM] service portfolio.

"Our Internet Data Centers focus on the needs of enterprises, carriers, regional portals and other organizations with mission-critical Internet applications," says Larry Hinz, EVP and CFO. Diveo's IP Business[SM] customers include IBM, StarMedia, Sony, Nestle, Columbia House, Silicon Graphics and Microsoft.

Diveo has established strategic partnerships with IBM and Compaq in the region. Diveo's US$120 million five-year alliance with IBM for web hosting services is one of the largest forged between an Internet infrastructure/network services provider and an information technology company in Latin America. IBM becomes Diveo's anchor tenant in its three largest Internet Data Centers in Argentina, Brazil and Mexico. IBM will provide e-commerce and security applications, as well as other managed services. In addition, Diveo and Compaq have launched the Diveo Hosting Paq[SM] to provide the Latin American corporate market with an integrated web hosting solution.

Diveo also offers its Digital Business[SM] solution, a "first mile" broadband communications service, in Argentina, Brazil, Colombia, Panama, Peru and Uruguay through its fixed wireless and fiber optic networks.

"We use fixed wireless as our primary technology to connect customer buildings to our network," says Hinz. "Then we use a combination of fixed wireless and fiber, and get the best from both technologies."

Diveo's Digital Business[SM] service offerings target three groups of customers: medium to large companies, telecom carriers, and ISPs and systems integrators. "Companies like IBM or Oracle, who have designed IT solutions, come to us for high-quality broadband access," says Hinz. "They do not want to get involved in managing local networks, so they come to us for flexible, reliable, dedicated access."

Diveo, a Washington, D.C.-based provider, was founded in 1996 by two telecom and Latin American entrepreneurs who recognized the burgeoning demand for high-quality broadband and Internet services in the region. Diveo's management team includes some of the most experienced in the industry, with top executives from WinStar, Sprint, AT&T, SBC Communications, Motorola, Hewlett Packard, Sky-Tel Latin America and other major companies.

Since 1998, Diveo has raised $873 million in financing, attracting leading telecom and technology equity investors, including GS Capital Partners III, L.P. (an affiliate of Goldman, Sachs & Co.), Texas Pacific Group/Newbridge Latin America, Alta Communications, Booth American, Columbia Management, Meritage Private Equity Fund L.P., Norwest Venture Partners, One Liberty Ventures, and the private equity arm of the Rothschild Family.

Today, Diveo's workforce includes more than 800 employees throughout the region who are native residents of the countries where Diveo has local operations. "We're a Latin American company, so our focus is supporting our in-country operations with in-country resources," Hinz says. "That's the right formula for long-term success in Latin America."

This year Diveo plans to focus on market penetration and servicing new and existing customers. "Our goal is to become the leading provider of Internet infrastructure services and broadband services in the region," Hinz says. "We expect a large portion of the Internet traffic to run through our networks in one way or another."