Acer Computec Latino America, S.A. de C.V. 3rd Quarter 1997 Results.

MEXICO CITY--(BUSINESS WIRE)--Oct. 20, 1997--

-- 28.5% increase in US Dollars Sales reported for 3rd Quarter

1997

-- Company achieve the number one position in the Latin American

notebook market

-- Operating Income increased by 19.3% as compared with previous

quarter

All figures are expressed in Million of Constant Pesos as of

September 30, 1997, except for per share data, operating data, and

US dollar figures.

Net Sales of Acer Computec Latino America, S.A. de C.V. (ACLA) totaled US$ 130.8 during the third quarter of 1997, representing a 28.5% increase over the same period of the previous year. Leading this growth were the company's subsidiaries in Argentina, Brazil, and Venezuela, along with an overall strong sales growth reported by the company's portable computing division. Net Sales for the nine months ended September 30, 1997, totaled US$ 338.9 millions, 14.1% higher than a 1996 figure of US$ 297.1 millions.

Including Mexican GAAP inflation adjustments, Consolidated Net Sales for the first nine months totaled Ps. 2,765.8, as compared with a previous year figure of Ps. 2,838.3. The variation in constant pesos sales is fundamentally due to the 18.5% inflation rate reflected in 1996 results. The company sales, on the other hand, are generated primarily out of dollar based selling prices. At the same time, the variation in the exchange rate recorded at the closing of both periods was of 3.1%.

According to the latest International Data Corporation (IDC) market research, the company was ranked as the number one notebook computer vendor in Latin America for the second quarter of 1997. Also according the the study, ACLA now shares the number two position in the overall Latin American PC market for the second quarter of 1997.

Gross Margin for the third quarter of 1997 increased to 17.7%, up from a 17.2% recorded during the previous quarter, and a 15.9% reported for the first quarter of 1997. Gross Margin for the nine months ended September 30, 1997 was of 17.0%, as compared with a 19.3% recorded during the same period in 1996. Gross Profit for the first three quarters totaled Ps. 470.6, as compared with a Ps. 548.6 reported for the nine months ended September 30, 1996 (or Ps. 462.9, excluding Mexican GAAP inflation adjustments).

Third quarter Operating Expenses represented 12.7% of Net Sales, flat from a 12.7% reported during the previous quarter, and higher than a 1997 first quarter figure of 11.5%. The increase in Operating Expenses reported during the last two quarters is primarily due to the company's newly acquired Brazilian operation, along with higher operating expenses related to Portable Computers sales. Operating Expenses for the first nine months of 1997 totaled Ps. 342.2, as compared with a previous year figure of Ps. 336.3. As a percentage of sales, Operating Expenses for the nine months ended September 30, 1997, represented 12.4% of Net Sales, versus 11.8% reported in 1996.

Following the above mentioned events, the company's Operating Income totaled Ps. 51.4 during the third quarter of 1997, a 19.3% improvement over the figure reported for the previous quarter. Operating Margin for 1997's third quarter increased to 5.0%, up from a 4.5% reported during the previous quarter, and 4.3% reported during the first quarter of 1997. For the nine months ended September 30, 1997, Operating Income totaled Ps. 128.3, as compared with Ps. 212.3 reported during the previous year (or Ps. 179.1, excluding Mexican GAAP inflation adjustments). Operating Margin for the three quarters ended September 30, 1997, was of 4.6% as compared with a 7.5% reported during the previous year.

The company's Net Financing Cost resulted in a loss of Ps. 24.6 during the first nine months ended September 30, 1997, as compared with a loss of Ps. 20.6 reported for the previous year. Net Interest Expense improved from a Ps. 41.5 reported for the first three quarters of 1996 to a Ps. 25.5 reported in 1997. Foreign Exchange Gain (Loss) for the same period also improved to a Net Gain of Ps. 0.4 during 1997, as compared with a Net loss of Ps. 26.3 reported in 1996. Monetary Position Gains decreased from a Ps. 47.2 gain reported for the first nine months of 1996, to a lower Ps. 0.5 recorded in 1997.

Net Income for the three months ended September 30, 1997, totaled Ps. 36.7, or Ps. 0.38 per share, as compared with a previous quarter Net Income figure of Ps. 31.1, and Ps. 21.7 reported for the first quarter of 1997. Net Income without Monetary Position resulted in Ps. 34.1 for the third quarter of 1997, as compared with Ps. 34.6 reported for the same period of 1996 (or Ps. 29.2, excluding Mexican GAAP inflation adjustments). For the first nine months of 1997, Net Income totaled Ps. 89.5, as compared with Ps. 168.3 for the previous year. Excluding Monetary Position Gains, Net income for the first three quarters of 1997 totaled Ps. 89.0, as compared with Ps. 121.1 in 1996 (or Ps. 102.2, excluding Mexican GAAP inflation adjustments).

The Company

Acer Computec Latino America, S.A. de C.V., (ACERLA(a)) a Mexican Corporation, and its subsidiaries assembles and markets personal computer products in Latin America under the "Acer" brand name. Since the second quarter of 1997, the company also sells portable computers under "Texas Instruments" brand name. Based on PC units shipped in 1996, the company had the largest market share in Spanish Speaking Latin America and the third largest market share in the region as a whole. Latin America, along with the Asian market, is one of the fastest growing regional computer markets in the world. ACERLA has subsidiaries in Mexico, Brazil, United States, Argentina, Colombia, Chile, Peru and Venezuela. The company has assembly plants in all those countries except Peru. In the rest of the region, the company operates through exclusive independent distributors.

The company has over 800 employees, representing more than 28 nationalities, as well as, close to 1,000 authorized independent service centers.

CONTACT: Acer Computec Latino America

Amit Mappa, Investor Relations Manager

Tel: [phone] Miami

[phone] Mexico

Fax:[phone] Miami

[phone] Mexico