Grupo Imsa Announces Preliminary Second Quarter Results; EBITDA To Exceed US$100 Million

    MONTERREY, N.L., Mexico--July 10, 2002--Grupo Imsa (BMV:IMSA) today announced that it expects to post a primary cash flow (EBITDA) in excess of US$100 million in nominal dollars for the second quarter of 2002.
    This is the highest EBITDA for a single quarter in the Company's history and it compares favorably with an EBITDA of US$68 million for the first quarter of 2002 and of US$81 million for the second quarter of 2001.
    All of Grupo Imsa's business segments reported significant quarter-over-quarter increases. IMSA ACERO benefited from a higher sales volume, better prices and of a strict control of costs and operating expenses. For IMSATEC, the second quarter is seasonally much stronger than the first since the results of the segment are closely linked to the US construction industry. This factor, combined with the good results of the recently acquired companies and of other IMSATEC businesses, gave rise to important growth during the quarter. ENERMEX benefited mainly from a higher export volume, while IMSALUM reported increased sales and significant progress with its plan to lower costs and improve efficiency.
    Mr. Marcelo Canales, Chief Financial Officer for Grupo Imsa, stated, "We are very pleased to have achieved this record level of EBITDA. We have created a solid base in our core businesses, which will allow us to continue increasing our capacity to generate cash flow. For the third and fourth quarters, we expect to continue posting very positive results." Mr. Canales added, "We expect this growth in EBITDA to translate into a net interest coverage of approximately 10 times."

    Grupo Imsa will release second quarter results on July 23.

    Grupo Imsa, a holding company, was founded in 1936 and is today one of Mexico's leading diversified industrial companies. The Group operates in four core businesses: steel processed products; automotive batteries and related products; aluminum and other related products; and steel and plastic construction products. With manufacturing facilities in Mexico, the United States, and throughout Central and South America, Grupo Imsa currently exports to all five continents. In 2001 Grupo Imsa's sales reached US$2.3 billion, of which more than 45% was generated outside Mexico. Grupo Imsa's shares trade on the Mexican Stock Exchange (IMSA) and, in the United States, on the NYSE (IMY).