Grupo Imsa Announces Second Quarter 2006 Results

MONTERREY, Mexico--July 26, 2006--Grupo Imsa, S.A.B. de C.V. (BMV:IMSA) today announced second quarter 2006 results.

Second quarter 2006 highlights:

-- Grupo Imsa posted record sales volumes, operating income and primary cash flow (EBITDA) for the second quarter of 2006.

-- Second quarter 2006 revenues totaled Ps 9,882, a growth of 20.7% year-over-year. In dollar terms, revenues grew 20.9% compared to second quarter 2005 to US$884.

-- Operating income increased 204.9% in second quarter 2006 compared to the previous year, to Ps 1,427. In dollar terms, operating income grew 197.7% year-over-year to US$128.

-- EBITDA totaled Ps 1,754 in second quarter 2006, an increase of 128.4% vs. second quarter 2005, while EBITDA in dollar terms totaled US$157 for the second quarter of the year, 127.5% greater than that of the second quarter of the previous year.

-- Second quarter 2006 Net Income was Ps 742, an increase of 38.4% year-over-year.

-- Sales volume totaled 929 thousand tonnes for second quarter 2006, a growth of 33.9% year-over-year and of 2.0% quarter-over-quarter.

-- Net interest coverage defined as primary cash flow (EBITDA) divided by net interest expense was 28.2 times for the twelve months ended June 30, 2006, while the total debt to EBITDA ratio for the same period was 0.7 times.

-- On June 28, 2006, the split of Grupo Imsa came into effect. As of that date, shares of Grupo Imsa, S.A.B. de C.V. (IMSA) and of Verzatec, S.A. de C.V. (VZT) quote independently on the Mexican Stock Exchange (BMV).

-- A support presentation that elaborates the information of the 2Q06 will be available at: http://www.grupoimsa.com/2Q06Supportpresentation.pdf.

For a full version of Grupo Imsa's second quarter of 2006 earnings release please visit our web site at www.grupoimsa.com.

A conference call with Santiago Clariond, CEO of Imsa Acero and Marcelo Canales Clariond, CFO of Grupo Imsa, will be held on Thursday, July 27th, 2006 at 10:30 am US ET. To participate in the conference, please dial 719-457-2681 ten minutes prior to the call. Confirmation Code: 4427372.

Unless otherwise stated, all figures are presented in millions of June 30, 2006 pesos (Ps), or in millions of nominal U.S. dollars (US$).