Latin America's Largest Online Travel Site Despegar.com Receives $ 10.5 Million in First-Round Financing

The private investment firm Hicks, Muse, Tate & Furst Incorporated led the round of financing, joined by Merrill Lynch Global Emerging Markets Partners and Newbridge Andean Partners L.P. (an affiliate of Texas Pacific Group and ACON Investments). The company also received a strategic investment from the Accor Group, the largest owner/operator of hotels worldwide and the co-owner of Carlson Wagonlit Travel, the second biggest travel agency in the world. This first round of financing was four times oversubscribed, emphasizing the strength of Despegar.com's business strategy and allowing the company to select from a premiere pool of investors and strategic partners such as the Accor Group.

Through Accor, Despegar.com's users will have access to the travel giant's network of global services, including hotels and specially priced vacation packages in over 140 countries. In addition, Accor's 3,000 bricks-and-mortar travel agencies will provide key customer service for Despegar.com travelers worldwide. At the same time, Accor will enjoy an additional online presence in Latin America, considered to be one of the fastest growing Internet markets in the world.

Furthermore, Accor's 300,000 corporate clients and 800,000 affiliated restaurants and stores will provide Despegar.com a considerable head start for the company's business-to-business strategy. "Accor's network and strong relationships with the region's large and mid-size companies will offer Despegar.com a unique advantage," said Jean-Louis Claveau, Managing Director for Accor Latin America.

"In today's market, this investment underscores the financial community's confidence in our vision and management team as well as our ability to maintain leadership in the region," said Roberto Souviron, CEO of Despegar.com. "The support of such significant investors will help us strengthen our capabilities, enhance our services, and build our brand as we continue our regional expansion."

Since the company's launch in December, Despegar.com has expanded rapidly, launching its online travel services in Argentina, Brazil, Chile, Colombia, Mexico and Uruguay within a span of three months. The additional funding will allow the company to expand its services to include the U.S. Hispanic market, Spain and Venezuela. Furthermore, funds will be used to target consumers in the corporate travel sector as well as to enhance Despegar.com's proprietary technology, offering users improved speed, convenience and customer service.

"Despegar.com presents a strong value proposition for Spanish- and Portuguese-speaking Internet users," said Paul Savoldelli, a Principal of Hicks, Muse, Tate & Furst. "We believe that the company's management team has developed an effective business model and, as such, Despegar.com is well positioned to capitalize upon its leadership in the high-growth Internet travel sector in Latin America."

According to Forrester Research, the online travel market will be experiencing continued growth, with an estimated $7.8 billion in transactions this year increasing to $32 billion by 2004. In 1999, 2.2 million business travelers spent $3 billion online. The bulk of business travel revenue comes from travelers who take more than four trips a year, with each spending an average total of $4,080 in 1999 and booking 40 percent of their business travel online. About Despegar.com:

Miami-based Despegar.com, the largest online travel site for Spanish and Portuguese speaking communities worldwide, launched its operations in December 1999. The company currently has operations in six Latin American countries, employing more than 80 professionals in offices throughout the region, the U.S. and Spain. Despegar.com offers its network of 120,000 registered users with comprehensive travel-related services, including access to over 500 airlines and 50,000 hotels, major car rental companies and vacation packages around the world. These products are complemented by a broad array of original editorial content, travel products and services, providing a true one-stop-shop for all travel needs. About the Investors: HICKS, MUSE, TATE & FURST

Since its formation in 1989, Hicks, Muse, Tate & Furst Incorporated has completed or currently has pending more than 350 transactions with an aggregate capital value of approximately $43 billion, including more than $3 billion in telecom and new economy investments. Headquartered in Dallas, the firm also has offices in New York, London and Buenos Aires. ACCOR GROUP

Accor, whose 129,000 associates are active in 140 countries around the world, is the European leader and worldwide group present in travel, tourism and corporate services with two principal international businesses: - Hotels: 3,400 hotels in 90 countries, and travel agencies, restaurants and casinos; - Services: cards and vouchers for companies and institutions. MERRILL LYNCH GLOBAL EMERGING MARKETS PARTNERS

Merrill Lynch Global Emerging Markets Partners, L.P. is a private equity fund managed by Merrill Lynch Global Partners, Inc. and designed to make significant minority equity investments in businesses located in emerging markets countries. NEWBRIDGE ANDEAN PARTNERS, L.P.

Newbridge Latin America and Newbridge Andean Partners (together, "Newbridge") are private equity funds formed to make direct equity investments in companies operating in Latin America. Founded by the U.S.- based investment firms, Texas Pacific Group, Blum Capital Group, and ACON Investments, Newbridge has offices in Buenos Aires, Rio de Janeiro, Mexico City, Washington, D.C., and Phoenix, Arizona and operates through co-managers in Venezuela, Colombia, Peru, Ecuador and Bolivia. With over $500 million in committed capital and 15 investment professionals, the two partnerships seek to acquire significant equity interests in companies in which they invest to enable their principals to play a meaningful role in the development and implementation of strategies aimed at maximizing shareholder value.