Grupo modelo

Grupo Modelo, S.A. de C.V. and Subsidiaries
Financial Summary for the THIRD QUARTER 1999
Amounts in millions of constant Mexican pesos as of September 30, 1999

§ §

Solid growth of 4.2% in the domestic shipments of beer Gross and operating margin expansion of 190 and 140 basis points, respectively

Mexico City, October 20, 1999. Grupo Modelo´s total shipments of beer grew 0.1%, reaching8.465 million hectoliters in the third quarter. This was mainly due to the 4.2% increase in the domestic market with a total volume of 6.650 million hectoliters. Export shipments of beer were 1.815 million hectoliters decreasing 12.7% versus third quarter last year. It is important to mention that in 3Q98 export volume grew 57.2% reaching 2.080 million hectoliters. In addition, Grupo Modeloconcluded the establishment of new export prices for its distributors in the United States of America in August, resulting in an average dollar price increase of 4.0% approximately, which was not considered in our original budget, but was implemented because of market conditions. Distributors anticipating the price increase build up inventories, however the decline in the export volume does notrepresent a trend. Net sales in the quarter were down 1.9%, amounting to 5,875 million pesos. This result was due to the growth of 7.5% in domestic sales and the reduction of 21.6% in exports. During the July-September period, the cost of good sold decreased as a percentage of net sales expanding gross margin in 190 basis points to 51.2%. This was achieved as a result of the change in the mix towards thedomestic market which represented 78.6% of the total volume compared to the 75.4% in 1998. The gross income rose 2.0% in relation to 1998, amounting to 3,010 million pesos. Operating expenses grew 0.1%, lower than the increase in gross income, influencing the 4.5% rose in the operating income. Moreover, the operating margin expanded 1.4 percentage points reaching 21.9% in the quarter. Below theoperating line, the integral cost of financing (favorable in the case of Grupo Modelo) was lower than the obtained in 1998 because of the decline interest rates, influencing the net margin which stood at 10.4% amounting 610 million pesos.

Grupo Modelo and Subsidiaries October 20, 1999

Financial Summary for the Third Quarter 1999 Page 2

Grupo Modelo, S.A. de C.V. and Subsidiaries Shipmentsof beer in million hectoliters
Market
Domestic Exports Total

3rd Quarter 1999
6.650 1.815 8.465

%
78.6 21.4 100.0

3rd Quarter 1998
6.380 2.080 8.460

%
75.4 24.6 100.0

Var. (%)
4.2 (12.7) 0.1

Grupo Modelo, S.A. de C.V. and Subsidiaries Income Statements for the Third Quarter 1999 and 1998 Amounts in millions of constant Mexican pesos as of September 30, 1999

III-99Domestic Sales Export Sales Other Income Total Net Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Integral Cost of Financing Other Expense (Income) – Net Profit Before Tax & Profit Sharing Provision for Taxes Equity in Income of Associates Extraordinary Items (Income) – Net Consolidated Net Income Net Majority Income Depreciation EBITDA 3,955 1,408 512 5,875 2,865 3,0101,725 1,285 (124) 13 1,397 579 55 (2) 875 610 310 1,595

%
67.3% 24.0% 8.7% 100.0% 48.8% 51.2% 29.4% 21.9% (2.1%) 0.2% 23.8% 9.9% 0.9% (0.0%) 14.9% 10.4% 5.3% 27.1%

III-98
3,678 1,796 517 5,990 3,037 2,953 1,723 1,230 (328) (52) 1,609 659 67 (27) 1,043 732 320 1,550

%
61.4% 30.0% 8.6% 100.0% 50.7% 49.3% 28.8% 20.5% (5.5%) (0.9%) 26.9% 11.0% 1.1% (0.4%) 17.4% 12.2% 5.3% 25.9%

Var. %
7.5%(21.6%) (0.9%) (1.9%) (5.7%) 2.0% 0.1% 4.5% (62.1%) (124.5%) (13.2%) (12.2%) (16.8%) (93.9%) (16.1%) (16.6%) (3.4%) 2.9%

Grupo Modelo and Subsidiaries October 20, 1999

Financial Summary as of September 30, 1999 Page 3

Financial Summary as of September 30, 1999
Amounts in millions of constant Mexican pesos as of September 30, 1999 § § § § Growth of 4.5% in domestic shipments of beer...