Grupo Imsa Announces Second Quarter 2003 Results

MONTERREY, Mexico--July 25, 2003--Grupo Imsa, S.A. de C.V. (BMV:IMSA) today announced results for the second quarter of 2003. Unless otherwise stated, all figures are presented in millions of June 30, 2003 pesos (Ps), or in millions of nominal U.S. dollars(a) (US$).

    Second Quarter 2003 Highlights

    --  Second quarter revenues in peso terms rose year-over-year by
        1.9% and quarter-over-quarter by 10.1% to Ps 7,354.
        Year-to-date revenues increased 8.5% compared to the previous
        year.

    --  IMSA ACERO's second-quarter sales volume fell 5.7%
        year-over-year but grew 8.2% quarter-over-quarter.

    --  In the second quarter ENERMEX's sales volume increased by 1.9%
        over the second quarter of 2002 and by 15.6% vs. the first
        quarter of 2003.

    --  Grupo Imsa's operating margin for the quarter was 8.5%,
        compared to 10.3% for the second quarter of 2002 and 7.2% for
        the first quarter of 2003.

    --  Operating expenses as a percent of sales were 11.0% in the
        second quarter of 2003, compared to 11.6% the previous year
        and 12.3% the previous quarter.

    --  Second quarter EBITDA in pesos totaled Ps 955, 8.5% below that
        of the same period of 2002 but 17.3% above the first quarter
        of 2003. Year-to-date EBITDA increased 1.7% compared to 2002.

    --  EBITDA for IMSA ACERO, ENERMEX and IMSATEC grew compared to
        the first quarter of 2003.

    --  Second quarter net income of $452 was significantly above that
        of the same period of 2002 and of the first quarter of 2003.
        Year-to-date net income grew 10.8% compared to 2002.

    --  Net interest coverage - defined as EBITDA divided by net
        interest expense - was 11.0 times for the twelve months ended
        June 2003.

    --  During the quarter Grupo Imsa obtained financings for an
        amount equivalent to US$215 which was used to pay existing
        debt and thereby improve the life and average cost of Company
        debt.

    --  IMSA ACERO inaugurated a new galvanized steel line in
        Guatemala, thereby consolidating its leadership position in
        Central America.

For a full version of Grupo Imsa's second quarter of 2003 earnings release please visit our Web site at www.grupoimsa.com. ------------

(a) Nominal dollars result from the translation of nominal pesos using the average exchange rate of each month.

A conference call with Marcelo Canales Clariond, Chief Financial Officer of Grupo Imsa, will be held on Monday, July 28, 2003 at 10:00am US ET. To participate in the conference, please dial 719-457-2625 ten minutes prior to the call. Confirmation Code: 548793