Grupo Imsa Announces Second Quarter 2004 Results

MONTERREY, Mexico--July 19, 2004--Grupo Imsa, S.A. de C.V. today announced results for the second quarter of 2004. Unless otherwise stated, all figures are presented in millions of June 30, 2004 pesos (Ps), or in millions of nominal U.S. dollars(a) (US$).

Second Quarter 2004 Highlights

-- Second quarter revenues of all four business segments rose. Total sales reached a historic quarterly maximum of Ps 10,589, an increase of 34.3% year-over-year and of 20.4% quarter-over-quarter. In dollar terms, revenues grew 32.3% compared to the second quarter of 2003 to a total of US$930.

-- IMSA ACERO's second quarter 2004 sales volume was 10.2% higher than that of the same quarter of 2003.

-- Operating expenses as a percent of sales were 8.1% in second quarter 2004, down from 11.0% in second quarter 2003.

-- Operating income for second quarter 2004 reached a historic quarterly maximum of Ps 1,345, an increase of 101.3% compared to the same period of 2003 and of 115.9% quarter-over-quarter. In dollar terms, operating income grew 101.7% compared to second quarter 2003 to US$119.

-- Second quarter EBITDA also reached a historic maximum, totaling Ps 1,738, 69.7% above that of the same period of 2003 and 72.4% more than first quarter 2004. In dollar terms, EBITDA grew 69.6% compared to the second quarter of 2003 to US$153.

-- Grupo Imsa's net debt was reduced by US$16 in the second quarter of 2004, and by US$130 during the past twelve months.

-- Net interest coverage -- defined as EBITDA divided by net interest expense -- was 16.2 times for the past twelve months, while leverage -- defined as total debt divided by EBITDA -- was 2.1 times.

-- Grupo Imsa and Johnson Controls formalized an agreement whereby Grupo Imsa will exit the automotive battery business and Johnson Controls, its JV partner since 1998, will assume 100% ownership.

For a full version of Grupo Imsa's second quarter of 2004 earnings release please visit our web site at www.grupoimsa.com.