Coca-Cola FEMSA Announces 19.3% Operating Profit Growth for the Second-Quarter 2002

Business Wire, July 25, 2002

Business Editors

MEXICO CITY--(BUSINESS WIRE)--July 25, 2002

Coca-Cola FEMSA, S.A. de C.V. (NYSE:KOF)

SECOND-QUARTER 2002

-- Consolidated total revenues increased by 8.5% as a result of a 10.6% increase in revenues in the Mexican territories that offset the 19.3% decline in revenues in Argentina.

-- Consolidated operating income increased by 19.3% to Ps.1,181.4 million, reaching a consolidated operating margin of 26.4%, an increase of 2.4 percentage points as compared to second-quarter 2001 consolidated operating margin. Operating income in Mexico during this period increased by 20.8% as compared to the second quarter of 2001.

-- Consolidated earnings before interest, tax, depreciation, and amortization ("EBITDA")(1) increased by 15.3% over the second quarter of 2001, reaching Ps.1,436.7 million.

-- Consolidated net income increased by 49.3% to Ps.816.4 million, resulting in earnings per share (EPS) of Ps.0.573 (U.S.$0.576 per ADR).

Coca-Cola FEMSA, S.A. de C.V. (NYSE:KOF) ("KOF" or the "Company"), one of the global Coca-Cola anchor bottlers and the largest Coca-Cola bottler in Mexico and Argentina in terms of volume sales, announced today its consolidated results for the second quarter of 2002.

"Our company continues achieving outstanding results, generating incremental volumes from every segment of our portfolio of products. Brand Coca-Cola, and the introduction of new products contributed significantly to this accomplishment. We expect to continue launching new packaging presentations, targeting new consumption occasions and preparing to face the increasing competitive landscape of our industry. Coca-Cola FEMSA is stronger and more experienced than ever before to continue being the benchmark of outstanding execution in our industry," stated Carlos Salazar, Chief Executive Officer of the Company.

CONFERENCE CALL INFORMATION

Second-Quarter 2002 Conference Call will be held on: Thursday, July 25, 2002, 10:30 A.M. Eastern Time (9:30 A.M. Mexico City Time). To participate in the conference call please dial: Domestic US: 888/482-0024, International: 617/801-9702.

If you are unable to participate live, an instant replay of the conference call will be available through August 1, 2002. To listen to the replay please dial: Domestic: US 888/286-8010; International: 617/801-6888, Passcode: 52833.

Coca-Cola FEMSA, S.A. de C.V. produces Coca-Cola, Sprite, Fanta, Lift and other trademark beverages of The Coca-Cola Company in the Valley of Mexico and the Southeast Territories in Mexico and in the Buenos Aires Territory in Argentina. The Company has eight bottling facilities in Mexico and one in Buenos Aires and serves more than 255,000 retailers in Mexico and 72,000 retailers in the greater Buenos Aires area. Coca-Cola FEMSA currently accounts for approximately 4% of Coca-Cola global sales, 26% of all Coca-Cola sales in Mexico and approximately 36% of all Coca-Cola sales in Argentina. The Coca-Cola Company owns a 30% equity interest in Coca-Cola FEMSA.

Figures for the Company's operations in Mexico and its consolidated international operations were prepared in accordance with Mexican generally accepted accounting principles ("Mexican GAAP"). Figures of the Company's operations in Argentina were prepared in accordance with Argentine generally accepted accounting principles. All figures are expressed in constant Mexican pesos with purchasing power at June 30, 2002. For comparison purposes, 2001 and 2002 figures from the Company's Argentine operations have been restated taking into account Argentine inflation with reference to the Argentine consumer price index and converted from Argentine pesos into Mexican pesos using the June 30, 2002 exchange rate of Ps. 2.617 per A$1.00. In addition, all comparisons in this report for the second quarter of 2002, which ended on June 30, 2002, in this report are made against the figures for the comparable period, second quarter 2001, unless otherwise noted.

This news release may contain forward-looking statements concerning Coca-Cola FEMSA's future performance and should be considered as good faith estimates of Coca-Cola FEMSA. These forward-looking statements reflect management's expectations and are based upon currently available data. Actual results are subject to future events and uncertainties that could materially impact the Company's actual performance.

References herein to "US$" are to United States dollars. This news release contains translations of certain peso amounts into U.S. dollars at specified rates solely for the convenience of the reader. These translations should not be construed as representations that the peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated.

Please click on this link to view the full version of the Press Release on our Web Site www.cocacola-femsa.com.mx.