ElSitio.com Asked To Leave Nasdaq.

On May 18, 2001, El Sitio reported that it had received notification from Nasdaq that its common shares had failed to maintain a minimum bid price of $1.00 for 30 consecutive trading days and other listing requirements as required by Nasdaq rules, and that El Sitio would have until August 14, 2001 to regain compliance with Nasdaq’s continued listing requirements. On August 15, 2001, El Sitio received a Nasdaq staff determination that El Sitio had failed to comply with the minimum bid price requirement for continued listing set forth in Marketplace Rule 4310 (c)(8)(B) and other listing requirements, and that its common shares would be, therefore, subject to delisting from Nasdaq, effective as of August 23, 2001. El Sitio plans to request a hearing before a Nasdaq listing qualifications panel to review and appeal the staff determination. El Sitio anticipates that Nasdaq will stay the delisting pending resolution of this appeal, although there can be no assurance the panel will grant El Sitio’s request for continued listing. The appeal process generally takes approximately 30 days to conclude.

As reported on August 8, 2001, El Sitio’s Board of Directors has approved a 1-for-10 reverse share split for its common shares. The reverse share split will be effective on August 22, 2001 for shareholders of record as of that date. El Sitio anticipates that this action will allow it to meet Nasdaq’s minimum bid price listing requirement, as well as Nasdaq’s other listing requirements.