Claxson Interactive Group Files Preliminary Merger Proxy/Prospectus.

Claxson Interactive Group, the new entity to be formed from the proposed business combination of the media businesses of Ibero-American Media Partners (IAMP), a joint venture of the Cisneros Group of Companies and Hicks, Muse, Tate & Furst Incorporated, and parent company of Cisneros Television Group, with El Sitio LCTO, filed a preliminary proxy statement/ prospectus related to the transaction in a registration statement on Form F-4 with the Securities and Exchange Commission.

The preliminary proxy statement/prospectus is subject to SEC review, after which El Sitio will hold a special meeting of El Sitio shareholders to vote on the transaction. If approved by the El Sitio shareholders, upon completion of the transaction Claxson Interactive Group is expected to trade on the Nasdaq National Market under the new symbol “CLSN”. As previously announced, El Sitio shareholders owning a majority of the outstanding El Sitio common shares have agreed to vote in favor of the combination.

Under the terms of the merger agreement, which has been approved by IAMP and the board of directors of El Sitio, each outstanding El Sitio common share will be exchanged for one new Class A common share of Claxson Interactive Group. The ownership of the combined company’s shares will be: 37% by members of the Cisneros Group of Companies; 29% by funds affiliated with Hicks, Muse, Tate & Furst Incorporated; and 34% by current shareholders of El Sitio (excluding IAMP).

The parties to the transaction currently anticipate that it will be completed before the end of March 2001.