Correction - Fitch Assigns IMPSA Local & Foreign Currency IDR 'B'.

BUENOS AIRES, Argentina -- (This is a correction for a press release that was published earlier today. It corrects the family and company name in the last paragraph.)

Fitch Ratings has assigned a foreign and local currency Issuer Default Rating (IDR) of 'B' to Industrias Metalurgicas Pescarmona S.A.I.C. Y F (IMPSA). In conjunction with this rating action, Fitch has assigned an expected rating of 'B' and 'A-(arg)' to the company's proposed US$250 million amortizing notes due in 2017. These notes have also been assigned a Recovery Rating (RR) of 'RR4', which is consistent with an anticipated recovery of 30%-50% in the event of a default. Concurrent with these actions, Fitch has affirmed IMPSA's National Scale Rating at 'A-(arg)'. IMPSA ratings have a Stable Outlook.

IMPSA's credit ratings are supported by strong global demand for hydroelectric and wind technology and equipment. The increased attractiveness of renewable energy sources has boosted IMPSA's backlog to US$1.7 billion as of May 2007 from $481 million as of April 2006. Also considered in the company's ratings are IMPSA's geographic revenue and asset diversification, and its ability to generate funds in hard currency. For the fiscal year ended January 31, 2007, U.S. dollar denominated sales accounted for approximately 65% of its total income. This percentage should increase in the future due to the composition of most of the company's backlog.

Balanced against these strengths are the company's high leverage, the concentration of its cash generation in a few large projects and the correlation of IMPSA's cash flow with the strength of the local economies in its key markets - namely Brazil, Venezuela, Colombia, and Malaysia. While market conditions are considered favorable for IMPSA at this moment, a sudden downturn in the industry would negatively impact IMPSA's ability to add new contracts. Additionally, even though Argentina is not an important sales market for IMPSA, an increase in economic uncertainty in that country could lead to a decline in backlog as potential customers shy away from doing business with the company due to concerns about its ability to finance working capital needs.

For the twelve months ended January 31, 2007, IMPSA's revenues grew to $267 million from $236 million. This growth in sales was a result of the maturation of several projects. For the fiscal year (FY) ended January 31, 2007, IMPSA generated $57 million of EBITDA, an increase from $42 million in FY 2006. During this time period the company's funds flow from operations (FFO) remained relatively flat at $25 million. IMPSA's cash flow from operations (CFO), was negative $32 million due to large working capital requirements that were needed to fund the development of several projects. To finance this shortfall IMPSA obtained funds from private placements.

As of January 31, 2007, IMPSA had $282 million of total debt and US$28 million of cash and marketable securities. These figures translate into a total debt-to-capitalization of 75% and a net debt-to-EBITDA ratio of 4.5x. This high level of leverage is consistent with the 'B' rating category. IMPSA intends to use the proceeds of the proposed US$250 million notes to: (i) repurchase $134 million of series 8 and 11 bonds at their call price of 85%, (ii) cancel series 9 and 12 bonds, and (iii) repay approximately US$ 100 million private placements and bank loans. The balance of the proceeds will be used to repay other bank debt.

IMPSA's total debt-to-EBITDA ratio should drop to below 2.5x during 2009 and its debt service ratio (capital + interest) should climb above 1.0x. This improvement in credit metrics should result from an increase in the company's EBITDA levels to above US$65 million for FYE January 2008 and above US$120 million for FY ending January 2009. The growth in EBITDA should come from the completion of several projects. The main hydro projects are Porce III (Colombia), Bakun (Malaysia), Dardanelos (Brazil), Simplicio (Brazil), Macagua (Venezuela) and Tocoma (Venezuela). IMPSA major wind projects are Caera and Santa Catarina, both located in Brazil.

The Pescarmona family owns 93.73% of Industrias Metalurgicas Pescarmona S.A.I.C. y F (IMPSA) through Corporacion IMPSA S.A. IMPSA is engaged in providing integrated solutions for renewable energy, including hydroelectric and wind power projects and associated equipment, as well as in the Port Systems, auto parts and environmental services industries. IMPSA has a solid international presence, marketing and distributing its products and services from its branches and representation offices in Argentina, Brazil, China, Colombia, Ecuador, USA, the Philippines, India, Malaysia and Venezuela.

Fitch's Recovery Ratings (RR) are a relative indicator of creditor recovery prospects on a given obligation within an issuers' capital structure in the event of a default. A broad overview of Fitch's RR methodology as it relates to specific sectors can be found at www.fitchratings.com/recovery.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.