Grupo Imsa Announces First Quarter 2005 Results

MONTERREY, Mexico--April 25, 2005--Grupo Imsa (BMV:IMSA) today announced results for the first quarter of 2005. Unless otherwise stated, all figures are presented in millions of March 31, 2005 pesos (Ps), or in millions of nominal U.S. dollars(a) (US$). First Quarter 2005 Highlights

-- During first quarter 2005, revenues of all three business segments rose. In peso terms, sales grew 15.8% year-over-year to Ps 9,062. In dollar terms, revenues increased 18.4% compared to the first quarter of 2004 to US$808.

-- Operating income in pesos declined 29.5% in the first quarter of 2005 compared to first quarter 2004, and totaled Ps 310. In dollar terms, operating income fell 28.2% year-over-year to US$28.

-- First quarter 2005 primary cash flow (EBITDA) in peso terms totaled Ps 634, 19.0% below that of first quarter 2004, while first quarter 2005 EBITDA in dollar terms totaled US$57, a reduction of 17.1% compared to the first quarter of 2004.

-- Operating expenses fell 11.0% year-over-year and 21.2% quarter-over-quarter, largely because of Grupo Imsa's efficiency enhancing initiatives.

-- Net interest coverage defined as primary cash flow (EBITDA) divided by net interest expense was 16.7 times for the twelve months ended March 31, 2005, while the total debt to EBITDA ratio for the same period was 1.0 times.

-- The Stockholders' General Assembly agreed to the payment of a dividend of approximately Ps 394, equivalent to 0.70245 pesos per UBC and UB equity unit.

-- On April 7, 2005, Grupo Imsa completed the process of delisting its American Depositary Shares from the New York Stock Exchange, with the main objective of concentrating the Company's float in the Mexican Stock Exchange.

For a full version of Grupo Imsa's first quarter of 2005 earnings release please visit our web site at www.grupoimsa.com.

A conference call with Marcelo Canales Clariond, Chief Financial Officer of Grupo Imsa, will be held on Tuesday, April 26, 2005 at 10:00am US ET. To participate in the conference, please dial 719-457-2648 ten minutes prior to the call. Confirmation Code: 4377487

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