Grupo Imsa Announces Fourth Quarter 2003 Results

MONTERREY, Mexico--Feb. 1, 20047, 2004--Grupo Imsa, S.A. de C.V. today announced results for the fourth quarter of 2003. Unless otherwise stated, all figures are presented in millions of December 31, 2003 pesos (Ps), or in millions of nominal U.S. dollars(a) (US$).

Fourth Quarter 2003 Highlights

-- Fourth quarter revenues in peso terms rose year-over-year by 11.8% and quarter-over-quarter by 3.0% to Ps 8,400. Accumulated revenues for 2003 were 7.2% above those of the previous year.

-- IMSA ACERO's fourth-quarter sales volume grew 21.7% year-over-year and 0.1% quarter-over-quarter.

-- In the fourth quarter ENERMEX's sales volume increased 10.4% compared to the fourth quarter of 2002 and by 15.2% vs. third quarter 2003.

-- Operating expenses as a percent of sales were 10.7% in fourth quarter 2003, compared to 11.7% the previous year.

-- Fourth quarter EBITDA totaled Ps 982, 13.6% below that of the same period of 2002 and 4.0% below third quarter 2003. Accumulated 2003 EBITDA decreased 10.6% compared to 2002.

-- Grupo Imsa's net debt was reduced by US$84 during the fourth quarter of 2003, and by $56 in 2003.

-- Net interest coverage -- defined as EBITDA divided by net interest expense -- was 11.1 times in 2003.

-- In 2004 Grupo Imsa plans to invest US$130 in operating continuity, improvement and capacity expansion projects.

-- Grupo Imsa acquired 49% of the capital of Louisville Ladder Group (LLG), giving the Company 100% control of LLG through IMSALUM.

-- 2004 began with a generalized rise in global steel prices and a limited supply, reflecting increases in demand and the cost of inputs.

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