Grupo Imsa Announces First Quarter 2006 Results

MONTERREY, Mexico--April 27, 2006--Grupo Imsa, S.A. de C.V. (BMV:IMSA) today announced results for the first quarter of 2006.

First Quarter 2006 Highlights:

-- As a result of the Company split announced on December 1, 2005, which resulted in the creation of Verzatec, S.A. de C.V., the results of the IMSATEC business segment for January and February 2006 were classified as discontinued operations, to reflect Grupo Imsa's new structure and to ensure that financial statements are comparable. The information presented below refers to Grupo Imsa, which as of now only contains operations related to the steel industry. The financial information of Verzatec is included in an appendix at the end of this report.

-- Grupo Imsa posted an increase in revenues, operating income and primary cash flow (EBITDA), despite the first quarter of the year being seasonally weaker.

-- First quarter 2006 revenues totaled Ps 8,442 a growth of 7.6% year-over-year. In dollar terms, revenues grew 15.9% compared to first quarter 2005 to US$786.

-- Operating income increased 324.5% in first quarter 2006 compared to the previous year, to Ps 1,006. In dollar terms, operating income grew 295.8% year-over-year to US$95.

-- EBITDA totaled Ps 1,320 in first quarter 2006, an increase of 144.4% vs. first quarter 2005, while EBITDA in dollar terms totaled US$124 for the first quarter of the year, 138.5% greater than that of the first quarter of the previous year.

-- First quarter 2006 Net Income was Ps 607, an increase of 235.6% year-over-year.

-- Sales volume totaled 913 million tonnes for first quarter 2006, a growth of 32.3% year-over-year and of 9.1% quarter-over-quarter.

-- Grupo Imsa has expanded the capacity of its plants, with increases resulting from capital expenditures and productivity improvements. This has enabled the Company to multiply the benefits of its Continuous Improvement and Six Sigma programs.

-- Net interest coverage defined as primary cash flow (EBITDA) divided by net interest expense was 24.4 times for the twelve months ended March 31, 2006, while the total debt to EBITDA ratio for the same period was 1.0 times.

-- The General Stockholders' Assembly decreed the payment of a dividend of approximately Ps 869, equivalent to Ps 1.5525 pesos per UBC and UB. The dividend was paid on April 17, 2006.