Mexico, Monterrey: Fomento Economico Mexicano, S.A. de C.V. (FEMSA), the Leader in Latin Beverages, reported on April 27 strong operational and financial results for the first quarter of 2004. FEMSA Consolidated Operating Income up 43.7% reaching Ps. 2.561 billion.

FEMSA Cerveza's beer sales volume grew profitably: domestic up 5.8% to 5.122 million hectoliters and exports up 32.8% to 480 thousand hectoliters, while operating income before management fee increased 24.5% reaching Ps. 675 million. Oxxo continued its expansion and opened 99 net new stores during the quarter, totaling 2,897 locations nationwide. Operating income increased by 50.3% to Ps. 169 million.

Jose Antonio Fernandez, Chairman and CEO of FEMSA, commented, "We started the year 2004 on the right note. Our beer operations achieved significant volume growth and improved margins as we intensified our effort to grow profitably through focused market execution, efficient resource allocation, and better tailoring of our offers to the consumer. Our retail chain, Oxxo, continues its expansion, increasing its relevance for FEMSA as a valuable strategic vehicle for distributing our beverages."

Mr. Fernandez continued, "This quarter was a step in the right direction but we must keep working: I know we have the best team and have developed the right tools to continue consolidating our position as the leading beverage company in Latin America."

FEMSA is the leading beverage company in Latin America. FEMSA Cerveza is the second largest brewer in Mexico and important beer exporter to the United States.

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