HispanicBusiness

MEXICO CITY, June 6 /PRNewswire-FirstCall/ -- Universidad CNCI, S.A. de C.V. and TV Azteca, S.A. de C.V. announced today the division of Grupo Todito, S.A. de C.V., a leading Internet and telecommunications company for North American Spanish-speakers, into two independent companies. As of today, TV Azteca and UCNCI own each, 50% of Grupo Todito. The Board of Directors of TV Azteca and UCNCI unanimously approved the transaction that will result in TV Azteca owning 100% of Todito.com's network of sites and UCNCI as sole owner of Todito Card's pre-paid businesses. The division will be effective as of the second quarter of 2005.

Todito.com was constituted in August 1999 by Universidad CNCI, S.A. de C.V. (then operating as Dataflux, S.A. de C.V.), as an Internet portal whose business model was based on the sale of internet advertising. In February 2000, TV Azteca acquired 50% of Todito's capital in exchange for a five-year services agreement that included television advertising, exclusive use of TV Azteca content online and advertising sales support, valued at US$100 million. A year later, in an effort to diversify revenue and take advantage of the rapid increase in residential internet connections in Mexico, the Company launched Todito Card-a pre-paid dial-up ISP. Todito Card was an immediate success, offering an alternative to Mexican consumers who did not want to sign long-term contracts for more expensive Internet connection services such as those offered by Terra, Telmex and AOL.

At the end of 2004, Todito.com's network of sites had established itself as one of the most-visited by Mexican Internet users, with 1.8 million average daily page views and two million active registered users. In addition to online advertising sales, Todito.com generates revenue from the sale of online premium content and services, such as Todito TV (online video clip library) and AmigosyMas (online dating service). In 2004, Todito.com reported sales of Ps.137.9 million (US$12.2 million).

In the four years since its launch, Todito Card has become the leading multi-services pre-paid card in North America. It is the leading pre-paid ISP in Mexico by a wide margin and the second largest dial-up ISP, surpassed only by Telmex's ISP, Prodigy. Todito Card's business extends to pre-paid long-distance telephone services and to being an increasingly widely-accepted form of payment for online content and services. Todito Card is distributed in over 40,000 points of sales in Mexico and the U.S. In 2004, Todito Card reported sales of Ps.99.2 million (US$8.8 million) and currently has over 500,000 active users (clients with credit remaining on their Todito Card) of its services in Mexico and the U.S.

Todito.com will be combined with tvazteca.com, TV Azteca's popular network of content sites derived from TV Azteca programs and talent, to form a new operating subsidiary-Azteca Internet.

"It is a good and logical business for TV Azteca to wholly-own a strong online media business," commented Mario San Roman, TV Azteca's Chief Executive Officer. "Internet use in Mexico and among U.S. Hispanics has grown rapidly since TV Azteca became a shareholder of Todito. Azteca Internet's network of sites will provide TV Azteca viewers with an opportunity to access interactive online content associated with our programs. We will monetize Azteca Internet's large and growing audience through our current sales channels-internet advertising is simply another option that we can offer TV Azteca clients."