Grupo Imsa Announces Second Quarter 2005 Results

MONTERREY, Mexico--July 27, 2005--Grupo Imsa (BMV:IMSA) today announced results for the second quarter of 2005. Unless otherwise stated, all figures are presented in millions of June 30, 2005 pesos (Ps), or in millions of nominal U.S. dollars(a) (US$).

Second Quarter 2005 Highlights

-- During second quarter 2005, revenues in peso terms totaled Ps 9,602, practically the same as for the second quarter of 2004. In dollar terms, revenues increased 7.2% compared to the same period of the previous year, to US$878.

-- Second quarter 2005 primary cash flow (EBITDA) in peso terms totaled Ps 891, 41.4% below that of second quarter 2004, while second quarter 2005 EBITDA in dollar terms totaled US$81, a reduction of 37.8% compared to the second quarter of 2004.

-- Net debt as of June 30, 2005 was US$357, a decline of US$76 compared to net debt presented in the balance sheet as of March 31, 2005 and of US$424 compared to net debt (including ENERMEX) as of June 30, 2004.

-- Net interest coverage defined as primary cash flow (EBITDA) divided by net interest expense was 15.3 times for the twelve months ended June 30, 2005, while the total debt to EBITDA ratio for the same period was 1.0.

-- IMSA ACERO, through Steelscape, began a project to strengthen its position in the U.S. market. The first stage of this initiative involves relocating the company's painting and metal coating lines from Richmond, California to Shreveport, Louisiana.

-- In May, Volkswagen de Mexico recognized IMSA-MEX, a subsidiary of IMSA ACERO, as one of the best steel suppliers of its plant in the state of Puebla, Mexico.

-- During the second quarter, Metl-Span, a U.S. subsidiary of IMSATEC, inaugurated a new insulated steel panel plant in Nevada, increasing its production capacity by 30%.

For a full version of Grupo Imsa's second 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 Thursday, July 28, 2005 at 10:00am US ET. To participate in the conference, please dial 913-981-5536 ten minutes prior to the call. Confirmation Code: 9416309.

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