El Sitio’s Board Of Directors Approves A 1-For-10 Reverse Share Split For Its Common Shares.

El Sitio, Inc. (Nasdaq: LCTO) announced that its Board of Directors has approved a 1-for-10 reverse share split for its common shares. The split will be effective on August 22, 2001. Shareholder approval of the split is not required.

The reverse share split is being undertaken in an effort to enable El Sitio to comply with the minimum share price requirements of The Nasdaq National Market and to preserve the listing of El Sitio’s common shares. El Sitio expects to receive a delisting notice from the Nasdaq next week because the minimum bid price for its common shares has continued to be below the required $1.00 per share. However, prior to actual delisting, El Sitio understands that it will have an opportunity to appeal and anticipates that the reverse share split will bring its common shares back into compliance with Nasdaq’s bid price requirements.

As previously disclosed, El Sitio has signed a definitive agreement to merge with Ibero American Media Partners, a combination that will form Claxson Interactive Group. The merger will be completed on the basis of the number of El Sitio common shares outstanding after the reverse share split, which will not change the percentage ownership interest in Claxson to be held by El Sitio’s shareholders.