StarMedia Network Announces the Creation of StarMedia Mobile.

NEW YORK--(BUSINESS WIRE)--Sept. 21, 1999--

First Wireless Initiative in Latin America to Allow Web Users to Carry

the Power of the Internet Anywhere

Cornerstone for New Division is Formed with Agreement to Acquire

PageCell International Holdings, Inc.

StarMedia Network, Inc. (Nasdaq:STRM) (www.starmedia.com), the leading global Internet media company for Spanish- and Portuguese-speaking audiences, announced today the creation of StarMedia Mobile, advancing its strategy to provide its users worldwide a richer Internet experience by allowing them to bring the power of the Internet to a wide range of wireless devices. StarMedia Network has entered into an agreement to acquire the business of PageCell International Holdings, Inc., which will form the new division's cornerstone.

StarMedia Mobile will integrate PageCell International Holdings' advanced mobile technologies and services, and enable StarMedia Network users to handle their wireless and mobile communications needs through one central service. This one-stop solution will also allow users to tailor content drawn from the StarMedia Network of Web properties to their wireless devices.

StarMedia Mobile, along with the recently announced StarMedia Broadband initiative, is part of the company's strategy to become a global full-services media company meeting all of the entertainment, communication, and information needs of the Spanish- and Portuguese-language online community. The initiative also reaffirms StarMedia's commitment to expand its brand and make its services more accessible to users from anywhere at any time.

StarMedia Mobile will leverage PageCell International Holdings' "entumovil" mobile software technologies including its mobile Internet platforms, wireless portal services and open carrier-class Messaging Services. The new division will deliver StarMedia's content and features such as email, weather, horoscopes, sports, finance and other personalized information to its users' wireless devices, including pagers, cellular phones, PCS handsets, GSM handsets and PDA's.

"Spanish- and Portuguese-language consumers have rapidly adopted wireless technology, which is changing the communications landscape," stated Fernando Espuelas, Chairman and CEO of StarMedia Network. "StarMedia Mobile is poised to take advantage of this growth by providing users of wireless devices a portable `StarMedia' Internet experience."

According to a recent report by market research firm Pyramid Research, the Latin American cellular and personal communications market has increased from 12.2 million subscribers in 1997, to more than 19.5 million at the end of 1998.

StarMedia Mobile will leverage PageCell International Holdings' presence in the Spanish- and Portuguese-speaking markets, where it will be introducing co-branded portals with wireless carriers in various markets throughout the Spanish- and Portuguese- speaking world.

"Latin America's growing wireless market is ready for a new wireless Internet experience," said Enrique Narciso, new Vice President of Operations for StarMedia Mobile. "We are very excited to provide Latin American and other Spanish- and Portuguese-speaking world with a comprehensive solution to their

information needs."

About StarMedia Network

StarMedia Network is the leading Internet media company targeting Latin America and other Spanish- and Portuguese-speaking markets worldwide. The company is committed to providing Spanish and Portuguese speakers with a complete selection of services and products that take full advantage of Internet technologies. StarMedia Network operates StarMedia (www.starmedia.com), the leading global online community for Spanish and Portuguese speakers; Periscopio (www.periscopio.com), a new, powerful information portal for Spanish speakers worldwide; StarMedia Acceso/Acesso, a premium Internet access service in Latin America; StarMedia Broadband, StarMedia Network's new broadband services arm providing streaming media services and programming; LatinRed (www.latinred.com), one of the largest Spanish language online communities; OpenChile (www.openchile.cl), a local Chilean portal; Zeek! (www.zeek.com.br) and Cade? (www.cade.com.br), two of the leading online directories in Brazil. StarMedia Network provides advertisers and merchants targeted access to Spanish- and Portuguese-speaking Internet users. Some of StarMedia Network's strategic relationships include Netscape Communications, Real Networks, CDNOW, Reuters, eBay, National Broadcasting Company, Hearst Communications, and Fininvest. Founded in 1996, the company employs over 450 people with operations in Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico, Spain, Uruguay, Venezuela, and major U.S. cities.

PageCell International Holdings, Inc.

PageCell International Holdings, Inc. is a leading provider of mobile software applications to wireless telecommunication carriers in Latin America. PageCell International Holdings' "entumovil" technology is comprised of mobile Internet server platforms and wireless portal services, enabling Internet content to be delivered to a variety of wireless devices.

Note: The acquisition is subject to certain conditions and is expected to close by September 30, 1999.

This press release contains statements of a forward-looking nature relating to future events or future financial results of StarMedia Network, Inc. Investors are cautioned that such statements are only predictions and that actual events or results may differ materially. In evaluating such statements, investors should carefully consider various factors which could cause actual events or results to differ materially from those indicated from such forward-looking statements, including the matters set forth in StarMedia Network's reports and documents filed from time to time with the Securities and Exchange Commission

Note to Editors: StarMedia, StarMedia Network and StarMedia's logos, product and service names are registered trademarks of StarMedia Network, Inc.