L’Oréal And Starmedia Unite To Create Cadamujer.Com, The Online Destination For "Every Woman" That Speaks Spanishor Portuguese. Group

Destination To Empower Latina Women on the Web Worldwide

StarMedia Network (NASDAQ: STRM) (www.starmedia.com), the leading Internet media company for Spanish- and Portuguese-speaking audiences worldwide, and L'Oréal (www.loreal.com), the world's leading cosmetics company, today announced the creation of Cadamujer.com, a new premium Internet destination and community for Latina women around the world. In commemoration of International Women's Day, Cadamujer.com will launch today in Mexico (www.cadamujer.com.mx), followed by market rollouts in Argentina and Brazil in the months to come.

Cadamujer.com, which translates to "every woman" in English, combines the synergy and expertise of two leading international companies with strong Latin American presence. L'Oréal, the leading cosmetics group in the region provides cosmetic services, prestigious brands and high quality beauty products to more than 250 million Latin American women. StarMedia Network, the leader in reaching Spanish- and Portuguese-speaking audiences on the Web, provides the ultimate Internet experience through community offerings, cutting-edge products and sophisticated technology and services.

Cadamujer.com will target Spanish- and Portuguese-speaking women, as well as women throughout the world who identify with Latin culture. The new destination provides women with a wide array of relevant information, comprehensive community services, and commerce solutions to enhance their professional and personal lives. In addition to pan-regional content, Cadamujer.com offers culture-tailored destinations for each region served. Local editorial staffs will develop and update content on a daily basis to serve the cultural diversity and informational needs of that specific region. Users will also have direct online access to the local sites of the leading L'Oréal Group brands, L'Oréal Paris, Lancôme, Maybelline, and Biotherm, where women are informed of new product arrivals and obtain professional advice on hair care, skin care and color cosmetics.

"Our partnership with StarMedia will play a major role in our strategy by helping us to understand and fulfill the needs of Latin American consumers," said Jean-Jacques Lebel, General Manager of the L'Oréal Group, Latin America. "It marks our commitment to take advantage of the Internet to provide information, to communicate with consumers, to promote our products and conduct e-commerce transactions," added Jean Pierre Valériola, Vice President of the L'Oréal Group, in charge of Corporate Communications and Public Relations.

"L'Oréal is the world's leading cosmetics company with a strong market presence in Latin America, making them the ideal partner for cadamujer.com, " said Fernando Espuelas, Chairman and CEO of StarMedia Network. "They share our mission of empowering Spanish- and Portuguese-speaking audiences by providing women with a reason and a place to go online to share ideas, purchase products and access information relevant to their lives."

Cadamujer.com is organized into seven areas to meet the vast array of its audience's needs and interests: Belleza (Beauty), Moda (Style), Amor y Pareja (Love and Partners), Actualidad (Current Events), Salud (Health), Familia (Family), and Carrera (Career). Women can log on to Cadamujer.com to immediately access the day's most important news headlines and receive helpful tips on everything from climbing up the corporate ladder to finding affordable alternatives to designer fashions. In addition to providing top quality content, Cadamujer.com's chat rooms enable Latina women to speak openly about their concerns and interests, and seek advice from other Spanish and Portuguese-speaking women. Cadamujer.com will host on-line chats in each region with leading experts who can address specific questions and provide personalized advice.

StarMedia and L'Oréal will provide marketing and other resources in support of the new service through online and offline activities. L'Oréal will provide title sponsorship, promotional activities, and top quality beauty and personal care information. StarMedia will provide Cadamujer.com's content, applications and technology.

According to Nazca Saatchi & Saatchi and Audits & Surveys Worldwide, there are approximately 6 million women online in Latin America. (1) A recent survey of StarMedia users indicates that women have an overwhelming interest in the community applications available online. Additionally, 75% of females use the Web to get information about products and services, and three out of four are likely to purchase online in the next 12 months. (2)

(1) Nazca Saatchi & Saatchi, 1999 Latin America Internet Study, June 1999
Audits & Surveys Worldwide, Telecommunications in Latin America, 1998, April 1998
(2) StarMedia user survey conducted by The Laredo Group, January 2000

About the L'Oréal Group

L'Oréal, the world's leading cosmetics company was founded in Paris in 1907. Over the past ten years the group has significantly strengthened its presence in the major international markets, and has some 42,000 employees in 150 countries. Four-fifths of sales (83%) are now achieved outside France, and 43% outside Europe. L'Oréal worldwide consolidated sales amounted, in 1999, to FF 70.5 billion (10.7 billion Euro). The Group has a selling record of 85 cosmetic products per second, representing 13% of the total cosmetic product sales in the world. L'Oréal launched its first operations in Latin America during the 1920's. Today the Group is present in nearly all Latin American countries with 9 subsidiaries and 5 plants. L'Oréal has operations in Brazil, Argentina, Mexico, Uruguay, Venezuela, Chile, Colombia, Guatemala and Peru, and production plants in Mexico, Brazil, Chile, and Argentina. L'Oréal is making a significant investment in Internet activities: 19 sites are already operating around the world, including two e-commerce sites, www.ccb-paris.com and ww1.lancome.com/x4/.

About StarMedia Network, Inc.

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 is the owner of 10 leading brands: StarMedia.com, LatinRed, OpenChile, Panoramas.cl, Zeek!, Cade?, AdNet, Guia SP, Guia RJ, and Paisas.com. It also operates StarMedia Broadband, StarMedia Network's broadband services arm, and StarMedia Mobile, the Company's wireless division. Some of StarMedia Network's strategic relationships include Netscape Communications, RealNetworks, Billboard, CDNOW, Reuters, eBay, National Broadcasting Company, Hearst Communications, and Fininvest. Founded in 1996, the Company has operations in Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico, Spain, Uruguay, Venezuela, and major U.S. cities, and has over 700 employees.