AOL Latin America Converts Stock

FORT LAUDERDALE, Fla. -- America Online Latin America, Inc. (Nasdaq:AOLAC), one of the leading interactive services providers in Latin America, today announced that America Online, Inc. and the Cisneros Group of Companies converted 32,328,736 and 28,508,177 shares, respectively, of preferred stock to class A common stock. The stock conversion occurred today, January 10, 2003. AOL Latin America noted that as a result of this conversion there are now 127,906,978 shares of class A common stock outstanding. This conversion was effected to support the Company's efforts to maintain its listing on the NASDAQ SmallCap Market. AOL Latin America further noted that the stock conversion did not change the aggregate number of outstanding shares for all classes of stock; however, the number of shares of class A common stock increased by the same amount that the shares of preferred stock decreased. The Company believes that the conversion benefits class A common stock holders as it includes the forfeiture of dividends, liquidation preferences, and other preferential rights associated with the converted preferred stock by the Cisneros Group of Companies and America Online, Inc. There can be no assurance that this stock conversion will result in AOL Latin America's continued listing on the NASDAQ SmallCap Market beyond January 13, 2003. In the event that the Company is no longer able to continue trading on the NASDAQ SmallCap Market, the Company expects that its class A common stock would trade on the Over-the-Counter Bulletin Board (OTCBB). The OTCBB is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information for more than 3,600 equity securities. AOL Time Warner Inc.