Grupo Imsa Obtains Financing of One Billion Pesos.

Business Editors

MONTERREY, N.L., Mexico--(BUSINESS WIRE)--May 30, 2002

Grupo Imsa, S.A. de C.V. (NYSE:IMY) (BMV:IMSA) announced today that it has successfully placed two certificados bursatiles (peso bonds) totaling one billion Mexican pesos.

These placements are part of a bond program for issuing up to three billion Mexican pesos that was set up on May 24 with the Comision Nacional Bancaria y de Valores (Mexican National Banking and Securities Commission). The program will remain valid for four years, during which time the Company is entitled to make several different placements.

One of the issues of promissory notes was for 700 million pesos at a fixed interest rate of 10.22%, while the other issue for 300 million pesos bears an interest rate of 115 basis points over six-month CETES. Both issues mature in five years and are payable in one installment. Standard & Poor's and Fitch gave a credit rating of AA to these bond issues.

Since Grupo IMSA's revenues are closely tied to the U.S. dollar, the Company swapped to convert the total amount of these issues to US$104.4 million bearing interest at a rate of 116 basis points over six-month LIBOR. The resources obtained from the issues will mainly be used to pay Company liabilities. The arranger for these issues was JP Morgan Casa de Bolsa.

Mr. Marcelo Canales, Chief Financial Officer for Grupo Imsa, stated, "This transaction is very important since it has enabled us to extend the life of our debt and reduce its cost, while at the same time diversifying our sources of financing. Placing the issues in Mexican pesos and then converting them to U.S. dollars through a swap has given us a very attractive financing cost." Mr. Canales added: "One of our most important commitments to our creditors and shareholders is to ensure that Grupo Imsa continues to have the solid financial position it has had for more than 65 years."

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: steel processed products; automotive batteries and related products; aluminum and other related products; and steel and plastic construction products. With manufacturing facilities in Mexico, the United States, and throughout Central and South America, Grupo Imsa currently exports to all five continents. In 2001 Grupo Imsa's sales reached US$2.3 billion, of which more than 45% was generated outside Mexico. Grupo Imsa's shares trade on the Mexican Stock Exchange (IMSA) and, in the United States, on the NYSE (IMY).