Grupo Mexico Pleased with Court's Decision Requiring Examiner to Monitor Bidding Process of ASARCO LLC

Business Wire, March 20, 2008

MEXICO CITY -- Grupo Mexico SAB de CV (GMexico) today announced that it is pleased that the United States Bankruptcy Court for the Southern District of Texas - Corpus Christi Division, the Court overseeing the Chapter 11 case of ASARCO LLC, agrees with Grupo Mexico that the Court reject any step ASARCO LLC might take in connection with a process to identify a potential acquirer of ASARCO LLC assets for a plan of reorganization. This ruling permits Grupo Mexico, through its affiliate ASARCO Inc, to continue with its efforts to present a plan that either pays the Creditors in full or reinstates current debts, which would be a full payment plan with financial assurances, as needed. Grupo Mexico is also gratified that the Court did not approve the stipulation of a "break-up fee," which would disincentivize higher bids to the detriment of the Creditors and ASARCO Inc.

Grupo Mexico is further pleased that the Court directed ASARCO LLC to reappear in Court for approval once it has more certainty on the process, as well as the important decision to preserve the right of interested parties, including ASARCO Inc, to object to the manner in which ASARCO LLC conducts its process.

Finally, Grupo Mexico is satisfied that the Examiner, which the Court previously directed be appointed, should play a role in monitoring the conduct of the process and reporting to the Court on the integrity of that process.

We are concerned by the position taken in Court by the majority bondholders, Harbinger Capital Partners Master Fund I, Ltd., Harbinger Capital Partners Special Situations Fund, L.P., and Citigroup Global Markets, Inc. They publicly state their intent to support the sale process initiated by the Debtor, without certainty of full payment, when the Parent has offered repeatedly to provide full payment of those bonds acquired at a discount and of defaulted interest.

More troublesome for Grupo Mexico is Citigroup and Harbinger Capital Partners position, since in the past Citigroup has acted as a banker for Grupo Mexico and now it looks to follow different directions rather than assure full payment of its bonds, as promised by its long term former client, Grupo Mexico.