January 12, 2001

InternetMercado.com Inc. announced that it has signed a deal with FAMSA, of Mexico, to manage their promotional marketing and co-op programs in the Los Angeles market. InternetMercado will print and deliver retail circulars and catalogs to Hispanic households throughout Los Angeles and Orange Counties.

FAMSA, Mexico's largest retailer, recently opened the first of 15 stores scheduled to open in Southern California within the next three years. The company currently has 250 stores in Mexico, and other US markets are under consideration for rollout in the same time frame.

InternetMercado will deliver FAMSA co-op advertising, event promotions, credit account campaigns and other marketing material through La Bolsita, the bright yellow polybag used by national advertisers to deliver coupons, product samples and store circulars. FAMSA vendors will be invited to participate as co-op partners.

Last year, La Bolsita successfully tested a weekly door-to-door delivery program in El Paso featuring Kmart as the anchor client. "Now that we have proven that the revenue model works, a high frequency local client is just what we need to roll out our weekly program in Los Angeles," stated Marcelino Miyares, President of InternetMercado. "I can't think of a better way to accelerate our profitability than to expand to the country's most populated Hispanic market."

The door-to-door co-op program is currently scheduled for market promotion every other week in FAMSA trade areas. FAMSA inserts in La Bolsita will be targeted exclusively to 225,000 households in Hispanic areas of 70% or more Mexican-origin shoppers. By year's end it is expected that biweekly circulation will increase to 400,000 households.

"FAMSA is a highly recognized brand, particularly among Mexican immigrants," said Jorge Kim, US Advertising Director, FAMSA. "La Bolsita helps us find our target customers and will deliver the good news that we are finally open in Los Angeles and will expand throughout Southern California."

In addition to existing brand recognition, FAMSA offers Mexican shoppers the ability to buy in the US for Mexico delivery. Friends and family in Mexico can count on FAMSA's ubiquity throughout Mexico for accurate and reliable fulfillment. Other advertisers will be allowed to insert promotional material in FAMSA distribution areas.

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