Nov 4, 2009 (GlobeNewswire via COMTEX) ----

   
   
   * Q3'09 net revenues up 25.7% year-over-year to $50.6 million;
   year-over-year growth in local currency up 42.3%
   
   * Q3'09 net income increases by 67.7% year-over-year to $9.9 million
   
   * Items sold during Q3'09 increase by 43.4% year-over-year to $8.0 million
   
   

BUENOS AIRES, Argentina, Nov. 4, 2009 (GLOBE NEWSWIRE) -- MercadoLibre, Inc. (Nasdaq:MELI) (http://www.mercadolibre.com), Latin America's leading e-commerce technology company, today reported financial results for the third quarter ended September 30, 2009.

Marcos Galperin, President and Chief Executive Officer of MercadoLibre, Inc., commented, "Our strong performance for the third quarter and the first ninth months of the fiscal year validates the continued strength of our business model as well as our ability to execute well on our strategic initiatives. Moreover, we have succeeded in further strengthening the positions of MercadoLibre and MercadoPago as the leading e-commerce sites in Latin America. Each provide excellent foundations for our growing portfolio of online businesses and continue to demonstrate enormous growth potential for the future. For these reasons, we are confident that we will be positioned to extend our terrific positive momentum into the fourth quarter holiday shopping season and beyond."

Third Quarter 2009 Financial Results Summary

MercadoLibre reported consolidated net revenues for the three months ended September 30, 2009 of $50.6 million, representing 25.7% year-over-year growth in US dollars and 42.3% year-over-year growth in local currencies.

Marketplace revenue grew 16.9% to $37.1 million in the third quarter of 2009 from $31.7 million in the third quarter of 2008. Payments revenue grew 58.3% to $13.5 million from $8.5 million in the prior year period. Year-over-year revenue growth in both platforms was impacted by unfavorable currency exchange rates. When measured in local currencies, Marketplace revenue grew 32.3% year-over-year and Payments grew 79.5% year-over-year. Strong revenue growth for both platforms was primarily attributable to positive demand for MercadoLibre services. Items sold on MercadoLibre grew 43.4% to 8.0 million, representing the sixth consecutive quarter of acceleration in this key metric has accelerated. Total payments transactions grew 69.1% to 0.9 million when compared to the third quarter of 2008.

Gross profit increased grew 25.2% to $40.2 million from $32.1 million in the prior year quarter. Third quarter 2009 gross profit margin was 79.5% when compared to 79.7% for the third quarter of 2008, as our lower gross margin Payments business grew from 21.2% to 26.7% of net revenues.

Income from operations grew 62.6% to $19.0 million in the third quarter of 2009 compared to $11.7 million in the third quarter of 2008. Operating income margin for the third quarter of 2009 was 37.5%, representing an increase from 29.0% for the same period one year earlier.

The blended tax rate for the third quarter of 2009 decreased to 20.5% from a blended tax rate of 28.9% for the third quarter of 2008 as a consequence of improvements in the Company's tax planning initiatives, efficient use of accumulated tax loss carry forward credits from previously acquired companies, and other non-recurring items.

Foreign currency losses for the third quarter of 2009 were $3.3 million, as compared to losses of $2.6 million for the prior year period. Foreign currency losses were primarily a consequence of local currency appreciation on the cash balances held by the Company's Venezuelan and Brazilian subsidiaries in U.S. dollars.

Net income for the three-month period ended September 30, 2009 increased 67.7% to $9.9 million, from $5.9 million of net income for the third quarter of 2008. Measured in local currencies, net income for the third quarter of 2009 increased 106.7% over the third quarter of 2008. Net income margin was 19.5% for the third quarter compared to 14.6% for the third quarter of 2008. Earnings per share for the third quarter were $0.22 compared to $0.13 for the prior year third quarter.

The following table summarizes certain key performance metrics for the three months ended September 30, 2008 and 2009.

Key Performance Metrics

   
   
   ---------------------------------------------------------------------
   Three months ended September 30,                               YoY
   (in millions)                               2008     2009   growth %
   ---------------------------------------------------------------------
   Total confirmed registered users at end of
   the period                                   32.0     40.2     25.6%
   ---------------------------------------------------------------------
   New confirmed registered users
   during the period                             3.9      2.4    -38.4%
   ---------------------------------------------------------------------
   Gross merchandise volume*                  $ 590.1  $ 791.0     34.0%
   ---------------------------------------------------------------------
   Succesful Items                                5.6      8.0     43.4%
   ---------------------------------------------------------------------
   Total payment volume*                      $  81.5  $ 114.0     39.8%
   ---------------------------------------------------------------------
   Total payment transactions                     0.5      0.9     69.1%
   ---------------------------------------------------------------------
   
   * Gross merchandise volume and total payments volume grew 52.1% and
   57.9% in local currencies year over year respectively.
   
   

Conference Call and Webcast

MercadoLibre will host a conference call and audio webcast on November 4, 2009 at 4:30 p.m.Eastern Time. The conference call may be accessed by dialing (973) 935-8579 (Conference ID 38258486) and requesting inclusion in the call for MercadoLibre. The live conference call can be accessed via audio webcast at the investor relations section of the Company's website, at http://investor.mercadolibre.com. An archive of the webcast will be available for one week following the conclusion of the conference call.

Definition of Selected Operational Metrics

Total confirmed registered users -- Measure of the cumulative number of users who have registered on the MercadoLibre Marketplace and confirmed their registration.

New confirmed registered users -- Measure of the number of new users who have registered on the MercadoLibre Marketplace and confirmed their registration. As of September 30, 2008 the number of new confirmed registered users included 2.2 million coming from DeRemate integration.

Gross merchandise volume -- Measure of the total U.S. dollar sum of all transactions completed through the MercadoLibre Marketplace, excluding motor vehicles, vessels, aircraft, real estate, and services.

Items sold (Successful items) -- Measure of the number of items sold/purchased through the MercadoLibre Marketplace.

Total payment volume -- Measure of total U.S. dollar sum of all transactions paid for using MercadoPago.

Total payment transactions -- Measure of the number of all transactions paid for using MercadoPago.

Gross profit margin -- Defined as gross profit as percentage of net revenues.

Operating margin -- Defined as income from operations as a percentage of net revenues.

Net Income margin -- Defined as net income as a percentage of net revenues.

Blended tax rate -- Defined as income and alternative income taxes plus deferred income tax as a percentage of pre-tax income.

Effective tax rate -- Defined as the provision for income taxes as a percentage of pre-tax income.

Local currency financial metric growth -- Calculated by applying the average 2008 monthly exchange rates for each month of the period during 2008 to the results during the corresponding months in 2009, so as to calculate what the growth would have been had exchange rates been the same throughout both periods.

About MercadoLibre

Founded in 1999 and headquartered in Buenos Aires, Argentina, MercadoLibre is Latin America's leading e-commerce technology company. Through its primary platforms, MercadoLibre.com and MercadoPago.com, it provides solutions to individuals and companies buying, selling, advertising, and paying for goods online.

MercadoLibre.com serves millions of users and creates a market for a wide variety of goods and services in an easy, safe and efficient way. The site is among the top 50 in the world in terms of page views and is the leading retail platform in unique visitors in each country in which it operates according to metrics provided by comScore Networks.

MercadoLibre maintains a leadership position in 12 Latin American countries. The Company listed on Nasdaq (Nasdaq:MELI) following its initial public offering in 2007.

For more information about the company visit: http://investor.mercadolibre.com

The MercadoLibre, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4193

Forward-Looking Statements

Any statements contained in this press release that are not statements of historical fact, including statements about the company's beliefs and expectations, are forward-looking statements and should be evaluated as such. Such forward-looking statements reflect, among other things, the company's current expectations, plans, projections and strategies, anticipated financial results, future events and financial trends affecting the company's business, all of which are subject to known or unknown risk and uncertainties that may cause the company's actual results to differ materially from those expressed or implied by these forward-looking statements, including general market conditions, adverse changes in the company's markets as well as those risks and uncertainties included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in the company's Annual Report on Form 10-K for the year ended December 31, 2008 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, which are on file with the SEC and is available on the SEC website at www.sec.gov. Additional information will also be set forth in the company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, which it expects to file with the SEC in November 2009. All information provided in this release and in the attachments is as of November 4, 2009 and MercadoLibre undertakes no duty to update this information.

Because of the risks, uncertainties and assumptions, investors should not place undue reliance on any forward-looking statements.

Consolidated balance sheets

   
   
   September 30,   December 31,
   2009           2008
   -------------  -------------
   Assets                      (Unaudited)     (Audited)
   Current assets:
   Cash and cash equivalents              $  33,332,506  $  17,474,112
   Short-term investments                    19,867,077     31,639,400
   Accounts receivable, net                   4,778,842      3,856,392
   Funds receivable from customers            3,063,360      2,322,416
   Prepaid expenses                           1,041,145        426,869
   Deferred tax assets                        9,242,067      1,628,871
   Other assets                               3,067,597      2,953,164
   -------------  -------------
   Total current assets                    74,392,594     60,301,224
   Non-current assets:
   Long-term investments                     24,314,404      9,218,153
   Property and equipment, net                6,394,512      5,940,160
   Goodwill and intangible assets, net       75,525,514     72,911,546
   Deferred tax assets                        2,918,816         14,270
   Other assets                              11,938,182      8,353,396
   -------------  -------------
   Total non-current assets               121,091,428     96,437,525
   
   Total assets                         $ 195,484,022  $ 156,738,749
   -------------  -------------
   
   Liabilities and Shareholders' Equity
   Current liabilities:
   Accounts payable and accrued expenses  $  16,530,006  $  16,941,173
   Funds payable to customers                27,312,514     14,727,891
   Social security payable                    6,608,619      4,387,943
   Taxes payable                             12,791,888      4,989,704
   Loans payable and other
   financial liabilities                     6,343,964     14,963,421
   Provisions                                    88,049        299,753
   -------------  -------------
   Total current liabilities               69,675,040     56,309,885
   Non-current liabilities:
   Social security payable                      868,201        339,854
   Loans payable                                     --      3,050,061
   Deferred tax liabilities                   5,279,199      2,556,120
   Other liabilities                          1,251,630      1,058,848
   -------------  -------------
   Total non-current liabilities            7,399,030      7,004,883
   
   Total liabilities                    $  77,074,070  $  63,314,768
   -------------  -------------
   
   Commitments and contingencies
   
   Shareholders' equity:
   
   Common stock, $0.001 par value,
   110,000,000 shares authorized,
   44,113,429 and 44,070,367 shares
   issued and outstanding at
   September 30, 2009 and
   December 31, 2008, respectively              44,114         44,071
   Additional paid-in capital               120,196,731    119,807,007
   Retained earnings /
   (Accumulated deficit)                     6,370,967    (15,552,256)
   Accumulated other comprehensive loss      (8,201,860)   (10,874,841)
   -------------  -------------
   Total shareholders' equity             118,409,952     93,423,981
   -------------  -------------
   Total liabilities and
   shareholders' equity                $ 195,484,022  $ 156,738,749
   -------------  -------------
   
   

Consolidated statements of income

   
   
   Nine Months Ended           Three Months Ended
   September 30,               September 30,
   2009           2008         2009           2008
   ------------  ------------  ------------  ------------
   (Unaudited)                (Unaudited)
   Net revenues   $123,823,576  $103,572,881  $ 50,599,276  $ 40,260,643
   Cost of net
   revenues       (25,620,134)  (21,075,044)  (10,390,671)   (8,153,862)
   ------------  ------------  ------------  ------------
   Gross profit     98,203,442    82,497,837    40,208,605    32,106,781
   
   Operating
   expenses:
   Product and
   technology
   development   (9,016,061)   (5,218,502)   (3,295,436)   (1,744,608)
   Sales and
   marketing    (31,342,260)  (30,905,222)  (11,048,799)  (11,425,168)
   General and
   administ-
   rative       (19,683,004)  (18,088,234)   (6,882,020)   (7,261,068)
   Compensation
   cost
   related to
   acquisi-
   tions                 --    (1,919,870)           --            --
   ------------  ------------  ------------  ------------
   Total
   operating
   expenses   (60,041,325)  (56,131,828)  (21,226,255)  (20,430,844)
   ------------  ------------  ------------  ------------
   Income from
   operations      38,162,117    26,366,009    18,982,350    11,675,937
   ------------  ------------  ------------  ------------
   
   Other income
   (expenses):
   Interest
   income
   and
   other
   financial
   gains          2,112,180     1,350,068       580,343       330,139
   Interest
   expense
   and
   other
   financial
   charges       (9,718,003)   (3,453,671)   (3,873,230)   (1,132,524)
   Foreign
   currency
   loss          (2,770,725)   (5,689,938)   (3,299,938)   (2,648,584)
   Other
   income,
   net                   --        41,874            --        39,587
   ------------  ------------  ------------  ------------
   Net income
   before
   income
   / asset tax
   expense         27,785,569    18,614,342    12,389,525     8,264,555
   ------------  ------------  ------------  ------------
   
   Income /
   asset tax
   expense         (5,862,346)   (7,723,778)   (2,537,257)   (2,388,763)
   ------------  ------------  ------------  ------------
   Net income     $ 21,923,223  $ 10,890,564  $  9,852,268  $  5,875,792
   ============  ============  ============  ============
   
   Nine Months Ended      Three Months Ended
   September 30,           September 30,
   ----------------------  -----------------------
   2009        2008        2009        2008
   ----------  ----------  ----------  -----------
   Basic EPS
   Basic net income
   per common share   $     0.50  $     0.25  $     0.22  $      0.13
   ==========  ==========  ==========  ===========
   Weighted
   average shares     44,079,171  44,255,985  44,088,936   44,290,540
   ==========  ==========  ==========  ===========
   
   Diluted EPS
   Diluted net income
   per common share   $     0.50  $     0.25  $     0.22  $      0.13
   ==========  ==========  ==========  ===========
   Weighted
   average shares     44,130,078  44,374,124  44,138,031   44,379,682
   ==========  ==========  ==========  ===========
   
   

Consolidated statements of cash flows

   
   
   Nine Months Ended
   September 30,
   2009          2008
   ------------  ------------
   (Unaudited)
   Cash flows from operations:
   Net income                               $ 21,923,223  $ 10,890,564
   Adjustments to reconcile net income
   to net cash provided by operating
   activities:
   Depreciation and amortization             2,959,277     2,475,850
   Interest expense                            343,643        58,484
   Unrealized gains on investments            (437,137)   (1,011,899)
   Stock-based compensation expense
   - stock options                              1,312         3,684
   Stock-based compensation expense
   - restricted shares                         52,706        81,875
   LTRP accrued compensation                 1,163,139       352,271
   Deferred income taxes                    (1,020,056)     (168,148)
   Changes in assets and liabilities,
   excluding the effect of acquisitions:
   Accounts receivable                    (1,537,363)    4,782,430
   Funds receivable from customers          (221,236)   (8,984,163)
   
   Prepaid expenses                         (596,311)     (513,844)
   Other assets                           (3,078,233)   (1,358,459)
   Accounts payable and
   accrued expenses                         317,019     7,790,459
   Funds payable to customers              8,169,631     4,026,062
   
   Provisions                               (195,006)     (540,629)
   
   Deferred tax liabilities                 (180,141)           --
   
   Other liabilities                      (1,102,948)   (1,696,567)
   ------------  ------------
   Net cash provided by
   operating activities                    26,561,519    16,187,970
   ------------  ------------
   Cash flows from investing activities:
   Purchase of investments                   (45,960,414)  (59,614,525)
   Proceeds from sale and
   maturity of investments                   48,767,850    90,593,742
   Payment for businesses
   acquired, net of cash acquired                    --   (39,178,449)
   Purchases of intangible assets               (946,500)      (58,238)
   Purchases of property
   and equipment                             (2,967,487)   (3,869,309)
   ------------  ------------
   Net cash used in
   investing activities                  (1,106,551)  (12,126,779)
   ------------  ------------
   Cash flows from financing activities:
   Increase in short term debt                        --        12,104
   Decrease in short term debt               (12,313,161)   (9,736,824)
   Stock options exercised                        22,530        64,859
   ------------  ------------
   Net cash used in financing activities       (12,290,631)   (9,659,861)
   ------------  ------------
   Effect of exchange rate changes
   on cash and cash equivalents               2,694,057       324,848
   ------------  ------------
   Net increase (decrease) in
   cash and cash equivalents                   15,858,394    (5,273,822)
   Cash and cash equivalents,
   beginning of the year                       17,474,112    15,677,407
   ------------  ------------
   Cash and cash equivalents,
   end of the period                         $ 33,332,506  $ 10,403,585
   ------------  ------------
   
   

Condensed consolidated statements of cash flows

   
   
   Nine Months Ended
   September 30,
   2009          2008
   -----------  -----------
   (Unaudited)
   Supplemental cash flow information:
   Cash paid for interest                     $ 8,895,023  $ 2,565,076
   Cash paid for income taxes                 $ 7,286,257  $ 6,945,183
   
   Acquisition of DeRemate and
   Classified Media Group:
   Cash and cash equivalents                  $        --  $   691,632
   Funds receivable from customers                     --      117,473
   Accounts receivable                                 --    6,755,668
   Tax credits                                         --      604,419
   Other current assets                                --      928,523
   Non current assets                                  --      496,911
   -----------  -----------
   Total assets acquired                               --    9,594,626
   -----------  -----------
   Accounts payable and accrued expenses               --    4,676,259
   Funds payable to customers                          --      123,089
   Taxes payable                                       --    1,181,607
   Social security payable                             --      395,112
   Other liabilities                                   --    1,602,269
   Non current liabilities                             --       14,000
   Provisions                                          --    1,506,447
   -----------  -----------
   Total liabilities assumed                           --    9,498,783
   -----------  -----------
   Net assets acquired                                 --       95,843
   -----------  -----------
   Goodwill                                            --   52,949,111
   Trademarks                                          --    5,622,188
   Customer lists                                      --    1,227,600
   Non Compete Agreement                               --      573,484
   Deferred income tax on intangible assets            --   (2,598,145)
   -----------  -----------
   Total purchase price                                --   57,870,081
   -----------  -----------
   Cash and cash equivalents acquired                  --     (691,632)
   -----------  -----------
   Payment for businesses acquired,
   net of cash acquired                      $        --  $39,178,449
   -----------  -----------
   Seller financing for DeRemate
   business acquisition                      $        --  $18,000,000
   -----------  -----------
   
   

The following tables summarize the financial results of our reporting segments

   
   
   Nine Months Ended September 30, 2009
   ------------------------------------------------------
   Marketplaces
   ------------------------------------------------------
   Brazil       Argentina      Mexico       Venezuela
   ------------  ------------  ------------  ------------
   
   Net revenues   $ 37,963,430  $ 17,136,120  $  9,853,059  $ 22,118,467
   Direct costs    (22,850,813)   (6,404,058)   (5,657,139)  (11,038,145)
   ------------  ------------  ------------  ------------
   Direct
   contribution    15,112,617    10,732,062     4,195,920    11,080,322
   
   Operating
   expenses
   and
   indirect
   costs
   of net
   revenues
   Income from
   operations
   
   Other income
   (expenses):
   Interest
   income
   and other
   financial
   gains
   Interest
   expense
   and other
   financial
   results
   Foreign
   currency
   loss
   Other
   income,
   net
   
   Net income
   before
   income /
   asset tax
   expense
   
   
   Nine Months Ended September 30, 2009
   ------------------------------------------------------
   Marketplaces
   --------------------------
   Other
   Countries       Total        Payments    Consolidated
   ------------  ------------  ------------  ------------
   
   Net revenues   $  7,003,962  $ 94,075,038  $ 29,748,538  $123,823,576
   Direct costs     (3,314,818)  (49,264,973)  (15,824,655)  (65,089,628)
   ------------  ------------  ------------  ------------
   Direct
   contribution     3,689,144    44,810,065    13,923,883    58,733,948
   
   Operating
   expenses
   and indirect
   costs of net
   revenues                                                 (20,571,831)
   ------------
   Income from
   operations                                                38,162,117
   ------------
   
   Other income
   (expenses):
   Interest
   income
   and other
   financial
   gains                                                    2,112,180
   Interest
   expense
   and
   other
   financial
   results                                                 (9,718,003)
   Foreign
   currency
   loss                                                    (2,770,725)
   Other
   income,
   net                                                             --
   ------------
   Net income
   before
   income /
   asset tax
   expense                                                 $ 27,785,569
   ============
   
   
   Nine Months Ended September 30, 2008
   ------------------------------------------------------
   Marketplaces
   ------------------------------------------------------
   Brazil       Argentina      Mexico       Venezuela
   ------------  ------------  ------------  ------------
   Net revenues    $40,447,913   $13,184,145    $9,609,505  $ 15,581,777
   Direct costs    (26,239,812)   (6,248,223)   (6,230,842)   (8,373,177)
   ------------  ------------  ------------  ------------
   Direct
   contribution    14,208,101     6,935,922     3,378,663     7,208,600
   
   Operating
   expenses
   and indirect
   costs of net
   revenues
   Income from
   operations
   
   Other income
   (expenses):
   Interest
   income
   and other
   financial
   gains
   Interest
   expense
   and other
   financial
   results
   Foreign
   currency
   loss
   Other
   income,
   net
   Net income
   before income
   / asset tax
   expense
   
   
   Nine Months Ended September 30, 2008
   ------------------------------------------------------
   Marketplaces
   --------------------------
   Other
   Countries       Total        Payments    Consolidated
   ------------  ------------  ------------  ------------
   Net revenues     $4,709,996   $83,533,336  $ 20,039,545  $103,572,881
   Direct costs     (2,847,890)  (49,939,944)  (12,814,364)  (62,754,308)
   ------------  ------------  ------------  ------------
   Direct
   contribution     1,862,106    33,593,392     7,225,181    40,818,573
   
   Operating
   expenses and
   indirect costs
   of net
   revenues                                                (14,452,564)
   ------------
   Income from
   operations                                                26,366,009
   ------------
   
   Other income
   (expenses):
   Interest
   income and
   other
   financial
   gains                                                    1,350,068
   Interest
   expense
   and other
   financial
   results                                                 (3,453,671)
   Foreign
   currency
   loss                                                    (5,689,938)
   Other
   income,
   net                                                         41,874
   ------------
   Net income
   before income
   / asset tax
   expense                                                 $18,614,342
   ============
   
   
   Three Months Ended September 30, 2009
   ------------------------------------------------------
   Marketplaces
   ------------------------------------------------------
   Brazil       Argentina      Mexico       Venezuela
   ------------  ------------  ------------  ------------
   Net revenues    $15,481,697    $6,621,213    $3,676,709    $8,450,839
   Direct costs    (8,617,810)    (1,965,224)   (1,992,722)   (3,938,725)
   ------------  ------------  ------------  ------------
   Direct
   contribution     6,863,887     4,655,989     1,683,987     4,512,114
   
   Operating
   expenses and
   indirect costs
   of net
   revenues
   Income from
   operations
   
   Other income
   (expenses):
   Interest
   income and
   other
   financial
   gains
   Interest
   expense
   and other
   financial
   results
   Foreign
   currency
   loss
   Other income,
   net
   
   Net income
   before income
   / asset tax
   expense
   
   
   Three Months Ended September 30, 2009
   ------------------------------------------------------
   Marketplaces
   --------------------------
   Other
   Countries       Total        Payments    Consolidated
   ------------  ------------  ------------  ------------
   
   Net revenues     $2,880,098   $37,110,556  $ 13,488,720  $ 50,599,276
   Direct costs     (1,227,900)  (17,742,381)   (6,311,654)  (24,054,035)
   ------------  ------------  ------------  ------------
   Direct
   contribution     1,652,198    19,368,175     7,177,066    26,545,241
   
   Operating
   expenses
   and indirect
   costs of
   net revenues                                              (7,562,891)
   ------------
   Income from
   operations                                                18,982,350
   ------------
   
   Other income
   (expenses):
   Interest
   income
   and other
   financial
   gains                                                      580,343
   Interest
   expense
   and other
   financial
   results                                                 (3,873,230)
   Foreign
   currency
   loss                                                    (3,299,938)
   Other
   income,
   net                                                             --
   ------------
   Net income
   before income
   / asset tax
   expense                                                  $12,389,525
   ============
   
   Three Months Ended September 30, 2008
   ------------------------------------------------------
   Marketplaces
   ------------------------------------------------------
   Brazil       Argentina      Mexico       Venezuela
   ------------  ------------  ------------  ------------
   
   Net revenues    $14,922,939    $5,405,752    $3,560,840    $6,112,651
   Direct costs    (10,316,048)   (2,375,980)   (2,023,418)   (3,202,864)
   ------------  ------------  ------------  ------------
   Direct
   contribution     4,606,891     3,029,772     1,537,422     2,909,787
   
   Operating
   expenses and
   indirect costs
   of net
   revenues
   Income from
   operations
   
   Other income
   (expenses):
   Interest
   income and
   other
   financial
   gains
   Interest
   expense
   and other
   financial
   results
   Foreign
   currency
   loss
   Other
   income,
   net
   
   Net income
   before income
   / asset tax
   expense
   
   
   Three Months Ended September 30, 2008
   ------------------------------------------------------
   Marketplaces
   --------------------------
   Other
   Countries       Total        Payments    Consolidated
   ------------  ------------  ------------  ------------
   
   Net revenues     $1,740,073   $31,742,255    $8,518,388   $40,260,643
   Direct costs    (1,263,202)   (19,181,512)   (5,020,589)  (24,202,101)
   ------------  ------------  ------------  ------------
   Direct
   contribution       476,871    12,560,743     3,497,799    16,058,542
   
   Operating
   expenses and
   indirect costs
   of net
   revenues                                                  (4,382,605)
   ------------
   Income
   from
   operations                                                11,675,937
   ------------
   
   Other income
   (expenses):
   Interest
   income
   and other
   financial
   gains                                                      330,139
   Interest
   expense
   and other
   financial
   results                                                 (1,132,524)
   Foreign
   currency
   loss                                                    (2,648,584)
   Other
   income,
   net                                                         39,587
   ------------
   Net income
   before income
   / asset tax
   expense                                                   $8,264,555
   ============
   
   

Non-GAAP Measures of Financial Performance

This press release includes certain non-GAAP financial measures as defined under Securities and Exchange Commission (SEC) Rules to supplement the company's consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP.

These measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with MercadoLibre's results of operations as the corresponding GAAP measures.

Reconciliation to the most comparable GAAP measure of all non-GAAP financial measures included in this press release can be found in the tables included at the end of this press release.

These non-GAAP measures are provided to enhance investors overall understanding of the company's current financial performance. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain compensation expenses and unusual foreign currency effects that may not be indicative of its core operating results, thereby enhancing an investor's ability to make period over period comparisons of the company's results. The company believes the inclusion of these non-GAAP measures provides an element of consistency in the company's financial reporting and uses these measures in internal budgets and models and in determining executive compensation benchmarks.

In this press release MercadoLibre also includes each of income from operations, net income, earnings per basic and diluted share, blended and effective tax rates and certain margin percentages for the quarter ended September 30, 2009 after excluding (or adding back) the following charges required by GAAP:

   
   
   *   Compensation Costs Related to Acquisitions: This amount relates
   to the purchase price of the shares of CMG and its subsidiaries.
   Under US GAAP we have recognized a contingent consideration paid
   to former shareholders as compensation for services. As of
   September 30, 2008 the year to date total accrued compensation
   costs amounted to $1.9 million. The following tables show a
   reconciliation of this exclusion from the GAAP measures to the
   non-GAAP measures.
   
   *   Long term retention plan compensation:
   (a) On August 8, 2008, the Board of Directors approved a long-term
   employee retention program (the 2008 LTRP) for certain executives
   based on 2008 performance that will be payable 50% in cash and
   50% in MercadoLibre common stock, in addition to their annual
   salary and bonus. Payments will be made during the first quarter
   on an annual basis according to the following vesting schedule:
   year 1 (2009): 17%, year 2 (2010): 22%, year 3 (2011): 27%, year
   4 (2012): 34%.
   (b) On June 10, 2009 the Board of Directors approved a long-term
   employee retention (the 2009 LTRP) program for certain executives
   based on 2009 performance. If earned, payments to eligible
   employees under the 2009 LTRP will be in addition to payments of
   base salary and cash bonus, if earned, made to these employees.
   In order to receive an award under the 2009 LTRP, each eligible
   employee must satisfy the performance conditions established by
   the board of directors for him or her. If these conditions are
   satisfied, the eligible employee will, subject to his or her
   continued employment as of each applicable payment date, receive
   the full amount of his 2009 LTRP bonus, payable as follows: (I)
   the eligible employee will receive a fixed cash payment equal to
   6.25% of his or her 2009 LTRP bonus once a year during eight
   years starting in 2010 (the "Fixed Payment"); and (II)
   on each
   date the company pays the Fixed Payment to an eligible employee,
   he or she will also receive a cash payment (the "Variable
   Payment") equal to the product of (i) 6.25% of the applicable
   2009 LTRP bonus and (ii) the quotient of (a) divided by (b),
   where (a), the numerator, equals the Applicable Year Stock Price
   (as defined below) and (b), the denominator, equals the 2008
   Stock Price, defined as $13.81, which was the average closing
   price of the Company's common stock on the NASDAQ Global Market
   during the final 60 trading days of 2008. The "Applicable Year
   Stock Price" shall equal the average closing price of the
   Company's common stock on the NASDAQ Global Market during the
   final 60 trading days of the year preceding the applicable
   payment date. For the 2008 LTRP and the Variable Payment of the
   2009 LTRP,the US GAAP compensation cost is recognized in
   accordance with the graded-vesting attribution method and is
   accrued up to each payment day. For the Fixed Payment of the 2009
   LTRP, the compensation cost is recognized in a straight-line
   basis. The non-GAAP measures were calculated with the cost for
   each year being accrued in the full fiscal year immediately
   preceding the payment date according to the same payment schedule
   in which 22% of the cost of the 2008 LTRP plan vests during the
   year ended December 31 2009, and 12.5% of the cost of the 2009
   LTRP vests during the year ended December 31, 2009. The following
   tables show a reconciliation of this cost from the GAAP measures
   to the non-GAAP measures.
   
   *   Venezuelan foreign currency re-measurement effect: This amount
   relates to re-measurement of assets and liabilities in U.S.
   dollars in the Venezuelan statutory Financial Statements. The
   Venezuelan subsidiaries have re-measured the assets and
   liabilities outstanding at September 30, 2009 in U.S. dollar
   balances at the parallel exchange rate and translated them to the
   official exchange rate. The following tables exclude the foreign
   currency re-measurement effect generated from applying different
   exchange rates in order to facilitate comparisons to other
   quarters, or year to date figures, and to highlight this exchange
   rate matter.
   
   

The following provide a reconciliation of certain Non-GAAP financial measures to the most comparable GAAP financial measures.

   
   
   ------------------------  ------------------------
   Nine Months Ended       Three Months Ended
   September 30,           September 30,
   ------------------------  ------------------------
   2009          2008         2009         2008
   -----------  -----------  -----------  -----------
   
   Net income         $21,923,223  $10,890,564  $ 9,852,268  $ 5,875,792
   Long term
   retention plan
   compensation net
   of tax effect         432,420      188,867      174,130      188,867
   Venezuelan foreign
   currency
   re-measurement
   effect             (1,482,719)          --    1,011,313           --
   Compensation cost
   related to
   acquisitions               --    1,919,870           --           --
   -----------  -----------  -----------  -----------
   Non-GAAP
   net income        $20,872,924  $12,999,301  $11,037,711  $ 6,064,659
   -----------  -----------  -----------  -----------
   
   
   -----------  -----------  -----------  -----------
   Basic net income
   per common share: $      0.50  $      0.25  $      0.22  $      0.13
   -----------  -----------  -----------  -----------
   Non-GAAP basic
   net income per
   common share:     $      0.47  $      0.29  $      0.25  $      0.14
   -----------  -----------  -----------  -----------
   
   Shares used in
   basic net income
   per share
   calculation:       44,079,171   44,255,985   44,088,936   44,290,540
   -----------  -----------  -----------  -----------
   
   
   -----------  -----------  -----------  -----------
   Diluted net income
   per common share  $      0.50  $      0.25  $      0.22  $      0.13
   -----------  -----------  -----------  -----------
   Non-GAAP diluted
   net income per
   common share:     $      0.47  $      0.29  $      0.25  $      0.14
   -----------  -----------  -----------  -----------
   
   Shares used in
   diluted net
   income per share
   calculation:       44,130,078   44,374,124   44,138,031   44,379,682
   -----------  -----------  -----------  -----------
   
   ------------------------  -----------------------
   Nine Months Ended        Three Months Ended
   September 30,            September 30,
   ------------------------  -----------------------
   2009         2008         2009         2008
   -----------  -----------  -----------  ----------
   -----------  -----------  -----------  ----------
   Income and asset
   tax expense        $ 5,862,346  $ 7,723,778  $ 2,537,257  $2,388,763
   Income taxes
   related with
   long term
   retention plan
   compensation           189,310       31,525      135,255      31,525
   Income taxes
   related with
   Venezuelan
   foreign currency
   effects               (763,825)          --      520,979          --
   -----------  -----------  -----------  ----------
   Non-GAAP income
   and asset
   tax expense        $ 5,287,831  $ 7,755,303  $ 3,193,491  $2,420,288
   -----------  -----------  -----------  ----------
   
   Income before
   income taxes       $27,785,569  $18,614,342  $12,389,525  $8,264,555
   Long term
   retention plan
   compensation           621,730      220,392      309,385     220,392
   Venezuelan
   foreign currency
   re-measurement
   effect              (2,246,544)          --    1,532,292          --
   Compensation
   cost related
   to acquisitions             --    1,919,870           --          --
   -----------  -----------  -----------  ----------
   Non-Gaap
   income before
   income taxes       $26,160,755  $20,754,604  $14,231,202  $8,484,947
   -----------  -----------  -----------  ----------
   
   -----------  -----------  -----------  ----------
   Blended tax rate (1)       21.1%        41.5%        20.5%       28.9%
   -----------  -----------  -----------  ----------
   Non-GAAP
   Blended
   tax rate (1)              20.2%        37.4%        22.4%       28.5%
   -----------  -----------  -----------  ----------
   
   -----------  -----------  -----------  ----------
   Effective
   tax rate (2) (3)          24.3%        38.4%        30.8%       37.1%
   -----------  -----------  -----------  ----------
   Non-Gaap
   Effective
   tax rate (2) (3)          25.9%        34.5%        26.9%       33.5%
   -----------  -----------  -----------  ----------
   
   1 - Blended tax rate defined as income and asset tax expense as a
   percentage of income before income and asset tax.
   2 - Effective income tax rate defined as the provision for income
   taxes as a percentage of income before income tax.
   3 - The effective tax rate does not include the effect of the
   Mexican Tax call Impuesto Empresarial a Tasa Unica (IETU).
   
   --------------------------  ------------------------
   Nine Months Ended         Three Months Ended
   September 30,              September 30,
   --------------------------  ------------------------
   2009          2008         2009          2008
   ------------  ------------  -----------  -----------
   
   -------------------------------------------  ------------------------
   Net revenue      $123,823,576  $103,572,881  $50,599,276  $40,260,643
   -------------------------------------------  ------------------------
   GAAP
   Net Income     $ 21,923,223  $ 10,890,564  $ 9,852,268  $ 5,875,792
   Earnings
   per share
   (basic)       $       0.50  $       0.25  $      0.22  $      0.13
   Earnings
   per share
   (diluted)     $       0.50  $       0.25  $      0.22  $      0.13
   -------------------------------------------  ------------------------
   Non-GAAP
   Net Income     $ 20,872,924  $ 12,999,301  $11,037,711  $ 6,064,659
   Earnings
   per share
   (basic)       $       0.47  $       0.29  $      0.25  $      0.14
   Earnings
   per share
   (diluted)     $       0.47  $       0.29  $      0.25  $      0.14
   
   

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: MercadoLibre, Inc.

CONTACT:  MercadoLibre, Inc.
   Investor Relations Contact:
   Pedro Arnt
   +541153528000
   investor@mercadolibre.com
   Media Relations Contact:
   Lorena Diaz Quijano
   +541153528026
   Lorena.diazquijano@mercadolibre.com
   

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   Inc. All rights reserved.