Vulcan Purchases ICA's 50-Percent Share of Vulcan/ICA Joint Venture.

Business Editors

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Jan. 11, 2001

Vulcan Materials Company (NYSE: VMC) announced today that it has signed a letter of intent to acquire from Empresas ICA Sociedad Controladora (BMV NYSE: ICA) its portion of the Vulcan/ICA joint venture, which produces aggregates in the Yucatan Peninsula and transports and sells them in various markets primarily along the U.S. Gulf Coast.

The transaction is expected to close promptly after U.S. and Mexican regulatory approval. At that time, Vulcan will become the sole owner of the former joint venture's businesses, known collectively as the Crescent Market Companies. These businesses include: Calizas Industriales del Carmen (CALICA) a limestone quarry, aggregates processing plant, deep water harbor and other properties, located on the east coast of Mexico's Yucatan Peninsula; Vulica Shipping Company, Ltd., (VULICA) an aggregates transportation company including two Panamax class self-unloading vessels used to transport aggregates from Mexico to the U.S. and the Caribbean Basin; and Vulcan/ICA Distribution Company, Ltd. (VIDCO), a U.S. based aggregates production and distribution company with various distribution facilities. VIDCO also owns two aggregates production facilities in Florida. Shipments of stone are made to numerous markets along the Gulf Coast, particularly in Texas and Florida.

Vulcan will pay $121.1 million for ICA's 50-percent share of these businesses. The total annual earnings before interest, taxes, depreciation, and amortization (EBITDA) are between $35 and $40 million. Vulcan will own the 6,000-acre quarry site in Mexico, which has stone reserves well in excess of 20 years, based on anticipated production rates.

According to Donald M. James, Vulcan's Chairman and Chief Executive Officer, "We have benefited greatly by having ICA as our partner, and we are grateful for their many contributions to the success of the joint venture. This purchase is consistent with our long-term commitment to provide a reliable source of quality aggregates to the fast-growing U.S. Gulf Coast. We look forward to realizing the full financial benefit of being the sole owner of these operations. We expect the acquisition to be modestly accretive to earnings in 2001."

Additional comments regarding this transaction will be discussed during the Company's fourth quarter earnings release conference call scheduled for 10 a.m. CST on January 23, 2001. This call will be broadcast live over the Internet with access provided through Vulcan's home page at www.vulcanmaterials.com. Fourth quarter earnings will be released after the close of business on January 22, 2001.

Vulcan Materials Company, an S&P 500 company, is a producer of industrial materials with significant positions in two industries. It is the nation's foremost producer of construction aggregates, a major producer of other construction materials, and a leading chemicals manufacturer, supplying chloralkali and other industrial chemicals.

Certain matters discussed in this release contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These include general business conditions, competitive factors, pricing, weather, oil and energy costs, cost of hydrocarbon-based raw materials and other risks and uncertainties detailed from time to time in the Company's SEC reports, including the report on Form 10K for the year.