AHMSA Announces an Exclusivity Agreement With IMSA To Explore the Possibility of Forming a Strategic Alliance.

MONCLOVA, Coahuila, Mexico--(BUSINESS WIRE)--June 28, 1999--

Altos Hornos de Mexico, S.A. de C.V. (AHMSA) announced that its majority shareholder, Grupo Acerero del Norte, S.A. de C.V. (GAN) reached an agreement with Grupo IMSA, S.A. de C.V. to explore the possibility of forming a strategic alliance between their respective affiliates, AHMSA and IMSA ACERO.

The agreement contemplates an exclusivity period of 90 days, during which the parties will conduct reciprocal due diligence in order to evaluate the feasibility of formalizing a business alliance.

Such alliance would seek to maximize the synergies between IMSA ACERO and AHMSA, and does not exclude the possibility of other future alliances.

The alliance between IMSA ACERO and AHMSA, if consummated, would be subject to, among others, the approval of the governing bodies of the parties involved as well as the Mexican Comision Federal de Competencia.

In parallel to this agreement, AHMSA will continue its debt restructuring process and will implement a new business plan, which will align the company's operations with current market conditions.

Located in Monclova, in the state of Coahuila, AHMSA the largest integrated steel producer in Mexico and produces a wide spectrum of products. AHMSA owns and operates iron and coal mines that produces raw material used in the company's steel making process, making it one of the lowest cost producers worldwide. Through its subsidiary MICARE, the company is also engaged in the production and sale of steam coal for power generation. Visit AHMSA's website at www.ahmsa.com.

This press release contains forward-looking information, and actual results may vary from those expressed or implied herein. Factors that could affect these results include those mentioned in the Company's Form 20-F and other forms, which are filed with the U.S. Securities and Exchange Commission.