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Exhibit 99.1
Quepasa.com Announces Reduction of Workforce by Approximately Two Thirds
and Seeks Sale of Subsidiaries
PHOENIX--(BUSINESS WIRE) -- November 14, 2000--Quepasa.com (Nasdaq: PASA),
the premier online community for U.S. Hispanics, today announced that the
Company has reduced its workforce by approximately two thirds effective
immediately as the Company continues to consider its strategic
alternatives. As announced earlier this year, the Company has been
considering a number of strategic alternatives for quepasa.com, including
a sale of the company. The Company is now actively pursuing the sale of
one or more of its subsidiaries: Real EstateEspanol.com, Etrato.com and
Credito.com.
"We have taken these actions in order to conserve our remaining cash. We
are committed to continuing to operate the quepasa Web site which has
been achieving growth in its metrics. In fact, a recent study by Roslow
Research Group ranks quepasa.com third in terms of appeal and visitors,
ahead of Espanol.Lycos.com, Terra.com, Yupi.com, StarMedia.com and
ElSitio.com." said Gary L. Trujillo, quepasa.com's Chairman and Chief
Executive Officer. "We have spent a significant amount of effort and
capital over the past 18 months to build a strong market presence, the
infrastructure for our Web site and to achieve top-of-mind awareness in
the Hispanic community. Ad impressions for the third quarter equaled 190
million, and registered users increased to approximately 568,000 by the
end of the third quarter."
Quepasa's workforce has been reduced from 58 to 20 employees. The
reduction affects all areas of the Company. The Company will take a one
time restructuring charge of approximately $730,000 in connection with the
workforce reduction in its fourth fiscal quarter, ending December 31, 2000.
The announcement comes after the Company announced losses at the end of
the third quarter of $7.9 million on revenues of $1.0 million. At
September 30, 2000, cash and cash equivalents and liquid securities
totaled approximately $9.5 million.
About quepasa.com: Quepasa.com provides the rapidly growing U.S. Hispanic
market with information and interactive content available in both Spanish
and English. The site was founded in 1998 and includes a search engine,
free e-mail, Spanish-language news feeds, worldwide weather information,
chat rooms, games, maps and message boards. Quepasa.com has entered into
strategic alliances with leading providers of media, content and
technology including: NetZero, Inc.; Reuters NewMedia, Inc.; Associated
Press; Agencia EFE; Hispanic Business Magazine; Internet Wire, Inc.;
e-lingo; Inktomi; Egreetings Network, CriticalPath and GTE
Internetworking.
The statements in this press release regarding future performance and
growth are forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially. Factors that could cause
or contribute to such differences include, but are not limited to, those
set forth in quepasa.com's documents filed the Securities and Exchange
Commission.
