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Enertec Mexico Obtains a Syndicated Loan for US$160 Million

13 September 1999

Enertec Mexico Obtains a Syndicated Loan for US$160 Million

    MONTERREY, N.L., Mexico, Sept. 10 -- Grupo IMSA (IMSA)
, today announced that it has obtained, through its subsidiary
Enertec Mexico, a syndicated loan for US$160 million.
    Enertec Mexico, a joint venture between Grupo IMSA and Johnson Controls
Inc., produces automotive batteries in Mexico for the domestic and export
markets.
    The five-year facility with a three-year grace period has a spread over
LIBOR of 212.5 basis points for the first two years, 225 basis points for year
three, 237.5 basis points for year four, and 250 basis points for year five.
    Enertec Mexico will use all of the proceeds to liquidate an account
payable it owes to Grupo IMSA in the amount of US$160 million related to the
formation of the joint venture in December 1998 under which Grupo IMSA and
Johnson Controls Inc. merged their Mexican automotive battery operations.
Grupo IMSA will use all of the proceeds to pay down short-term debt.
Consequently, an approximate of only US$40 million of Grupo IMSA's long term
debt will mature in the next 20 months, substantially reducing the Company's
refinancing risk.
    The syndicate was comprised of: ING Barings, Chase Securities Inc.,
Salomon Smith Barney, Deutsche Bank Alex Brown and Comerica Bank as Joint
Arrangers, Fortis (USA) Finance LLC as Lead Manager, and ABN AMRO Bank N.V.,
Bank One and Wachovia Bank as Managers.
    GRUPO IMSA, a holding company, was founded in 1936 and is today one of
Mexico's leading diversified industrial companies.  The Group operates in four
core businesses consisting of steel processing products; automotive batteries
and autoparts; aluminum and other related products; and, construction and
related products.  With manufacturing and distribution facilities in Mexico,
the U.S. and throughout Central and South America, Grupo IMSA currently
exports to over 30 countries worldwide.  In 1998, the Group's revenues reached
US$1.5 billion, of which 40 percent were generated outside Mexico.  Grupo
IMSA's shares trade on the Mexican Stock Exchange and, in the U.S., on the
NYSE.