Grupo Imsa, SA de CV’s Board of Directors has approved submission of a proposal to shareholders for delisting its American Depositary Shares (representing American Depositary Receipts or ADRs) from the New York Stock Exchange (NYSE) and the simultaneous termination of its ADR program with The Bank of New York (the Depositary). The proposal will be submitted as part of a general extraordinary shareholders meeting,

Grupo Imsa believes that by concentrating trading of its shares in one market — the Mexican Stock Exchange (BMV) — it will increase the overall liquidity of its stock. However, there can be no assurances that the actions will have such effect.

Marcelo Canales Clariond, Chief Financial Officer, commented, "Grupo Imsa maintains its commitment of information and transparency as a public company, and will continue to comply with its reporting obligations in the United States and Mexico. The company will sustain its investor relations efforts in Mexico and abroad with information of the highest quality, and will maintain a corporate governance of world-class excellence."

The delisting is subject to approval by the general extraordinary shareholders meeting that will take place on January 27, 2005. The meeting will be called by publication the El Norte newspaper (Monterrey, Nuevo Leon), and the Reforma and El Financiero newspapers (Mexico City).

If the delisting is approved at the shareholders’ meeting, the company will comply with the requirements of the Securities and Exchange Commission and the NYSE in order to obtain the de-listing authorizations. The company's ADR program would terminate simultaneously with the de-listing. ADR holders will be notified of the procedure by which their ADRs can be exchanged for BC Equity Units of the company. Grupo Imsa will pay the costs which would be imposed on its ADR holders by the Depositary in order to replace the ADRs with BC Equity Units.

Grupo Imsa, a holding company, dates back to 1936 and is today one of Mexico's leading diversified industrial companies, operating in three core businesses: steel processed products; steel and plastic construction products; and aluminum and other related products. With manufacturing and distribution facilities in Mexico, the United States, Europe and throughout Central and South America, Grupo Imsa currently exports to all five continents.