Terremark Announces Creation of Federal Government Subsidiary

July 26, 2005; 10:34 AM

MIAMI, FL., July 26, 2005- Terremark Worldwide, Inc. (AMEX:TWW) a leading operator of integrated Tier-1 Internet Exchanges and best-in- class network services, announced today the creation of Terremark Federal Group, Inc. (TFG), a wholly owned subsidiary of Terremark Worldwide Inc.  TFG will be responsible for managing Terremark’s existing U.S. Government contracts and directing Terremark’s business development strategy for all Federal Government agencies and the Federal integrator market.

Jamie Dos Santos, Terremark’s former Chief Marketing Officer will lead this effort and has assumed the new role of TFG’s Chief Executive Officer.  Mrs. Dos Santos has over 25 years experience in the telecommunications/technology industry having served in different capacities at Bell System and with SAIC’s subsidiary Telcordia prior to joining Terremark in April of 2001.

“Telecommunications and Internet infrastructure have never been more critical for the government,” said Jamie Dos Santos, CEO of TFG. “By creating TFG, we are consolidating all our experiences with the Federal market into a unified and more focused team to further exceed service expectations of our Federal government customers and position ourselves for a larger share of the overall Federal government market.”

Terremark’s exchange points provide the public and private sectors with the state-of-the-art connectivity, security and redundancy necessary to manage mission-critical systems at lower costs, increased efficiency and high quality of service. 

“This year, we have already seen great traction in the Federal government business,” said Manuel D. Medina, Chairman and CEO of Terremark Worldwide.  “With the creation of TFG, we will further concentrate our efforts in managing our existing Federal government customers, as well as directing our growth strategy in this critical market.”

About Terremark Worldwide, Inc.:
Terremark Worldwide, Inc. (AMEX:TWW) operates Internet exchange points from which it provides colocation, interconnection and managed services to the government and commercial sectors.  The company’s Internet exchange point facilities, or IXs, are strategically located in Miami, Florida; Santa Clara, California; Madrid, Spain and Sao Paulo, Brazil and allow networks to interconnect and exchange Internet and telecommunications traffic.  Terremark’s flagship facility, the NAP of the Americas, in Miami, Florida was designed and built to disaster-resistant standards with maximum security to house mission-critical systems infrastructure.  The company’s secure presence in Miami, a key gateway to North American, Latin America and European telecommunications networks, has enabled it to establish customer relationships with U.S. Federal government agencies, including the Department of State and the Department of Defense.  Terremark is headquartered at 2601 S. Bayshore Drive, 9th Floor, Miami Florida USA, (305) 856-3200.  More information about Terremark Worldwide Inc. can be found at www.terremark.com

Forward Looking Statements
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, 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.