Terremark Worldwide Reports Third Quarter FY 2007 Results.

MIAMI -- Terremark Worldwide, Inc. (AMEX:TWW):

* Revenues increase 31% year over year

* Adds 39 new customers including Banco di Caribe, Sapin Ltd.,and YouBet.com

* Existing customer expansions include the U.S. Federal Government, Miami-Dade County, CBS Sportsline and XO Communications

* Obtained initial financing to partially fund expansion plan in Silicon Valley and Virginia

* Announced planned expansion site in Culpeper County, Virginia

Terremark Worldwide, Inc. (AMEX:TWW), a leading operator of integrated Internet exchanges and a global provider of managed IT infrastructure solutions for government and private sectors, today reported its results for the quarter ended December 31, 2006.

Total revenues for the quarter ended December 31, 2006 were $24.7 million, which was consistent with previously announced guidance and represented an increase of 31% over the same period last fiscal year. Project type revenues related to the resale of equipment and consulting projects for the quarter ended December 31, 2006 were $1.2 million compared to $3.7 million for the prior quarter. Excluding these project type revenues, revenue increased to $23.5 million for the quarter ended December 31, 2006 representing an increase of $3.0 million, or 15%, from $20.5 million the prior quarter.

EBITDA, as adjusted, for the quarter ended December 31, 2006 was $4.8 million, compared to EBITDA, as adjusted, of $3.2 million the prior quarter. EBITDA, as adjusted, for the quarter ended December 31, 2006 included $640,000 related to project type revenue. EBITDA, as adjusted, is defined as income (loss) from operations less depreciation, amortization and share-based payments, including share-settled liabilities. EBITDA, as adjusted, should be considered in addition to, but not in lieu of, income (loss) from operations reported under GAAP.

"We are very pleased with the results of the quarter, both our operating performance and the progress we made in executing on our strategic initiatives," said Manuel D. Medina, Chairman and CEO of Terremark Worldwide, Inc. "We posted another strong quarter in our core colocation and managed services business with the vast majority of our growth coming from our recurring business. We also expanded our managed services offerings, obtained the initial financing to partially fund our expansion plan and announced the expansion site in Virginia. We remain very excited about the opportunities ahead for Terremark, and look for our momentum to continue in the fourth quarter and fiscal year 2008," Mr. Medina concluded.

Data center expenses were $13.0 million for the quarter ended December 31, 2006. Gross profit margins, excluding depreciation and amortization, were 47% during the December 31, 2006 quarter.

As of December 31, 2006, Terremark's cash and cash equivalents were $13.4 million and working capital was approximately $6.5 million.

Total colocation space utilization increased to 17.4% as of December 31, 2006 from 15.7% as of September 30, 2006. Utilization of built-out colocation space increased to 62.2% as of December 31, 2006 from 56.3% as of September 30, 2006. Additionally, utilization of total net colocation space based on both deployed and yet to be deployed customers was 18.1% at December 30, 2006, an increase from 16.2% at September 30, 2006.

Cross connects billed to customers increased to 5,271 as of December 31, 2006 from 4,865 the previous quarter and 3,724 a year earlier, representing an increase of 8% and 42%, respectively.

During the quarter ended December 31, 2006, Terremark added 39 new customers, for a total of 600 customers at the end of the period.

Terremark booked $11.5 million of new annual contract value during the quarter ended December 31, 2006. Over 80% of the bookings during the December 2006 quarter were generated from existing customers.

For the quarter ended December 31, 2006, revenue churn was less than 1% for the commercial sector and 0% churn for the federal government sector. The Company defines churn as annualized revenue lost as a percentage of annualized revenue for the most recent quarter.

Medina added, "The third quarter was an important period, as we demonstrated the predictability and continued strengthening of our recurring business as we continue to benefit from the leverage in our model."

Business Outlook

For the quarter ending March 31, 2007, the Company expects revenue to range from $30.2 million to $32.2 million and EBITDA, as adjusted, to range from $7.2 million to $8.2 million. These revenue estimates include approximately $5.0 million to $7.0 million of project related revenues.

For the full 2007 fiscal year, the Company expects revenues to be in the range of $100.0 million to $102.0 million and EBITDA, as adjusted, to range from $18.0 million to $19.0 million.

The Company is also providing financial guidance for the full 2008 fiscal year, and expects revenues to be in the range of $135 million to $140 million, EBITDA, as adjusted, to range from $35 million to $40 million and capital expenditures to range from $30 million to $32 million. These capital expenditures figures include approximately $20.0 million for the planned expansion and the build-out of infrastructure at the current Santa Clara facility. These expenditures are being funded by their recently announced financing with Credit Suisse.

The Company will hold a conference call today, February 8, 2007 at 5:00 p.m. ET, to discuss all of the above. To hear the conference call live, please dial 866-831-6162 (domestic) or 617-213-8852 (international) five to ten minutes before the call and reference the passcode: TWW Call. A simultaneous live Webcast of the call will be available over the Internet at http://www.terremark.com, under the Investor Relations heading.

A replay of the call will be available beginning on Thursday, February 8, 2007 at 7:00 p.m. (ET) by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and providing the following replay code: 95781576. In addition, the Webcast will be available on the Company's web site at http://www.terremark.com.

Additional information regarding the Company's financial performance as of and for the quarter ended December 31, 2006 and a comparison to the quarter ended December 31, 2005 can be found on the attached balance sheet and statement of operations and in the Company's Quarterly Report on Form 10-Q.

About Terremark Worldwide, Inc.

Terremark Worldwide, Inc. (AMEX:TWW) is a leading operator of integrated Internet exchanges and a global provider of managed IT infrastructure solutions for government and private sectors. Terremark delivers its portfolio of services from seven locations in the U.S., Europe and Latin America and from four service aggregation and distribution locations, which aggregate network traffic and distribute network-based services in Europe and Asia to meet specific customer needs. Terremark's flagship facility, the NAP of the Americas, is the model for the carrier-neutral Internet exchanges the company has in Santa Clara, California (NAP of the Americas/West), in Sao Paulo, Brazil (NAP do Brasil) and in Madrid, Spain (NAP de las Americas - Madrid). The carrier-neutral NAP of the Americas is a state-of-the-art facility that provides exchange point, colocation and managed services. Terremark is headquartered at 2601 S. Bayshore Drive, 9th Floor, Miami, Florida USA, [phone]. More information about Terremark Worldwide can be found at www.terremark.com.

Statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Terremark's actual results may differ materially from those set forth in the forward-looking statements due to a number of risks, uncertainties and other factors, as discussed in Terremark's filings with the SEC. These factors include, without limitation, Terremark's ability to obtain funding for its business plans, uncertainty in the demand for Terremark's services or products and Terremark's ability to manage its growth. Terremark does not assume any obligation to update these forward-looking statements.

Non-GAAP Financial Measures

Terremark continues to provide all information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Terremark uses non-GAAP financial measures, such as EBITDA, as adjusted. In presenting these non-GAAP financial measures, Terremark excludes certain items that it believes are not good indicators of the Company's current or future operating performance. These items are depreciation, amortization and share-based payments, including share-settled liabilities.

Terremark intends to calculate the various non-GAAP financial measures in future periods on a basis consistent with its calculation of those measures for the three months ended December 31, 2006 and 2005 and September 30, 2006, presented within this press release.

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