Grupo IMSA Agrees to Acquire the Assets of VP Buildings

Business Wire, August 21, 2001

Business Editors

MONTERREY, Mexico--(BUSINESS WIRE)--Aug. 21, 2001

Grupo IMSA, S.A. de C.V. (BMV:IMSA)(NYSE:IMY), today announced that it has agreed to acquire the assets of VP Buildings Inc. (VPB) from The LTV Corporation.

Grupo IMSA will acquire the assets for US$102 million and expects to integrate VPB to its IMSATEC business segment in October of this year. The transaction is subject to the authorization of the corresponding authorities.

VPB is the second largest company in North America in the pre-engineered metal buildings market. Headquartered in Memphis, Tenn., it has eight plants in the United States that produce metal buildings and its components; and joint ventures in Brazil, India and with Grupo IMSA in Mexico. Furthermore, VPB has two fiberglass-reinforced plastic panel companies which complement Stabilit's operations in the United States. In the year 2000 VPB's revenues reached US$413 million, giving an EBITDA of US$39 million. VPB is a company that provides integral solutions for the construction of large buildings such as

manufacturing plants, warehouses, commercial facilities, offices, schools and churches.

Eugenio Clariond Reyes, Grupo IMSA's CEO, stated, "The acquisition of the assets of VP Buildings strengthens our strategy of offering integral solutions for our customers' needs in North America through technology and the manufacture of high value-added steel products." Benjamin Clariond, president of IMSATEC, added, "We see this as an excellent opportunity for IMSATEC; we understand the operations and know the people of VP Buildings and have identified significant synergies with our businesses in Mexico and more particularly in the United States. Moreover, the segments in which it (VPB) participates are very dynamic, with revenues having grown at an annual compound rate of 10% between 1996 and 2000.

Marcelo Canales, Grupo IMSA's CFO, said, "After an extensive process of analysis, the Board of Directors established very clear parameters for Grupo IMSA to participate in this transaction. Having met these criteria, we are certain that with hard work we will be able to convert this opportunity into a highly profitable business for Grupo IMSA and at the same time maintain a conservative financial position."