Terremark Worldwide, Inc. Announces Completion of a Private Exchange Offer for a Majority of its Outstanding 9% Senior Convertib

  
    
  
  
    
      Terremark Worldwide, Inc. (the “Company”) 
      (AMEX:TWW) announced that it has completed a private exchange offer with 
      a limited number of holders for $57.2 million aggregate principal amount 
      of its outstanding 9% Senior Convertible Notes due 2009 (the “Outstanding 
      Notes”) in exchange for an equal aggregate 
      principal amount of the Company’s newly issued 
      6.625% Senior Convertible Notes due 2013 (the “New 
      Notes”). After completion of the private 
      exchange offer, $29.1 million aggregate principal amount of the 
      Outstanding Notes remain outstanding. The private exchange offer was 
      made pursuant to Section 3(a)(9) of the Securities Act of 1933, as 
      amended.
    
    
      Today the Company also announced that it will initiate a public exchange 
      offer to the remaining holders of its Outstanding Notes to exchange any 
      and all of their Outstanding Notes for an equal aggregate principal 
      amount of New Notes. The public exchange offer will be made pursuant to 
      Section 3(a)(9) of the Securities Act of 1933, as amended.
    
    
      The terms of the New Notes are substantially similar to the terms of the 
      Outstanding Notes except that the New Notes do not have a Company 
      redemption option, the early conversion incentive payment that is 
      applicable to the Outstanding Notes does not apply to the New Notes, and 
      the New Notes provide for a make whole premium payable upon conversions 
      occurring in connection with a change in control in which at least 10% 
      of the consideration is cash, while the Outstanding Notes provide for 
      certain cash make whole payments in connection with a change of control 
      in which at least 50% of the consideration is cash.
    
    
      This press release is for informational purposes only and is not an 
      offer to purchase, a solicitation of an offer to purchase, or a 
      solicitation of an offer to sell securities. The public exchange offer 
      may be made only pursuant to the terms of an offering memorandum, letter 
      of transmittal and related exchange offer materials. The Company intends 
      to file a Schedule TO, including the offering memorandum and letter of 
      transmittal, describing the exchange offer with the Securities and 
      Exchange Commission. Holders of the Outstanding Notes are encouraged to 
      read the Schedule TO and its exhibits carefully when they become 
      available before making any decision with respect to the exchange offer 
      because it will contain important information. When filed, the Schedule 
      TO, offering memorandum, letter of transmittal and other related 
      exchange offer documents will be available free of charge at the website 
      of the Securities and Exchange Commission — www.sec.gov. 
      In addition, when filed, the Company will provide copies of the Schedule 
      TO and related documents upon request free of charge to holders of its 
      Outstanding Notes.
    
    
      About Terremark Worldwide, Inc.
    
    
      Terremark Worldwide, Inc. (AMEX:TWW) is a leading operator of integrated 
      Internet exchanges and a global provider of managed IT infrastructure 
      solutions for government and private sectors. Terremark delivers its 
      portfolio of services from seven locations in the U.S., Europe and Latin 
      America and from four service aggregation and distribution locations, 
      which aggregate network traffic and distribute network-based services in 
      Europe and Asia to meet specific customer needs. Terremark's flagship 
      facility, the NAP of the Americas®, 
      is the model for the carrier-neutral Internet exchanges the company has 
      in Santa Clara, California (NAP of the Americas/West), in Sao Paulo, 
      Brazil (NAP do Brasil) and in Madrid, Spain (NAP de las Americas - 
      Madrid). The carrier-neutral NAP of the Americas is a state-of-the-art 
      facility that provides exchange point, colocation and managed services. 
      Terremark is headquartered at 2601 S. Bayshore Drive, 9th Floor, Miami, 
      Florida USA, 305-856-3200. More information about Terremark Worldwide 
      can be found at http://www.terremark.com.
    
    
      Statements contained in this press release may constitute 
      "forward-looking statements" within the meaning of the Private 
      Securities Litigation Reform Act of 1995. Terremark's actual results may 
      differ materially from those set forth in the forward-looking statements 
      due to a number of risks, uncertainties and other factors, as discussed 
      in Terremark's filings with the SEC. These factors include, without 
      limitation, Terremark's ability to obtain funding for its business 
      plans, uncertainty in the demand for Terremark's services or products 
      and Terremark's ability to manage its growth. Terremark does not assume 
      any obligation to update these forward-looking statements.