L’Oréal And Starmedia Renew Partnership Group

L'Oréal, (www.loreal.com) the world's leading cosmetics company, and StarMedia Network, Inc. (Nasdaq: STRM) (www.starmedia.com), the leading integrated Internet media and solutions company for Spanish- and Portuguese-speaking audiences, today announced the renewal and expansion of their partnership to co-brand StarMedia's Cadamujer/Viamulher (Every Woman) online destination for women across Latin America.

Building on the success of the original relationship, the two leading companies have agreed to renew their partnership for the year 2001-2002, extending it throughout Latin America, and leveraging StarMedia's suite of direct online marketing solutions to capitalize on one of the fastest growing Internet markets in the world. Today, there are more than 24 million Latin Americans online, 40% of which are women1.

Since its initial launch in Mexico in March 2000, and subsequent roll-outs in Argentina, in Brazil and the US Hispanic markets, there have been approximately 20 million visits to Cadamujer/Viamulher. The co-branded online destinations are now available in Chile, Colombia, Puerto Rico, Peru, Uruguay, Venezuela, and in the countries of Central America.

Cadamujer/Viamulher combines the expertise of two international companies firmly entrenched in Latin America. The agreement enables L'Oréal, the leading cosmetics group in the region providing cosmetic services, prestigious brands and high quality beauty products to more than 250 million Latin American women, to expand and deepen its understanding of the online consumer base established through its initial investment. The partnership continues to leverage StarMedia's leading position in Latin America, with over 35 million unique users, and provides L'Oréal with comprehensive direct online marketing solutions including opt-in newsletters and promotional e-mails, user surveys and data mining capabilities.

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 48,000 employees in 150 countries. More than four-fifths of sales (85%) are now achieved outside France, and 50% outside Europe. L'Oréal worldwide consolidated sales amounted, in 2000, to 12.6 billion Euro. 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. L'Oréal has operations in Brazil, Argentina, Mexico, Uruguay, Venezuela, Chile, Colombia, Guatemala and Peru. L'Oréal is making a significant investment in Internet activities: 25 sites are already operating around the world, including two e-commerce sites, www.ccb-paris.com and www1.lancome.com/x4/.

About StarMedia Network, Inc.

StarMedia Network empowers and connects millions of Spanish- and Portuguese-speakers through the Internet, enhancing the lives of its users. StarMedia Network is the leading integrated Internet media and solutions company for Spanish- and Portuguese-speaking audiences. The Company has operations in Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico, Spain, Uruguay, Venezuela, and throughout the United States.

1 Jupiter Research, 2/01; IDC, 3/01

Contacts at L’OREAL
Shareholders and Market Authorities
François Archambault
Tel.: +33 1 47 56 83 45
[email protected]
Financial Analysts and Institutional Investors
Caroline Millot
Tel. : +33 1 47 56 86 82
[email protected]
Tel. : +33 1 47 56 40 245
[email protected]

Contacts at StarMedia
Melissa Golden
StarMedia Network, Inc
[email protected]
Tel. : +1 212-905-8296
Monique Jaramillo
StarMedia Network, Inc.
[email protected]
Tel. : +1 212-905-8272