Therefore, we continue to recommend turning to other investment alternatives

			1999 Fourth Quarter Results AHMSA
	Sumant Vasal (52) 5325-2898				March 14, 2000

During 4Q99, Ahmsa’s total sales fell 15% due to lower real steel prices as a result of the inflation/revaluation effect. This was partially offset by an increase of 5% in total volume. However, gross profit and operating income improved 11% and 26% respectively, as a result of margin expansion derived mainly from the company’s cost control programs. Operating results in 4Q99 continued to improve compared to the previous quarters due to a better pricing environment and cost savings- EBITDA margins continue on the rise. However, there are certain items at the operating level which seem quite low for both quarters, specifically operating expenses. We believe this is probably due to some kind of reclassification. Due to the difficult financial situation, in late May the company declared itself in suspension of payments, a form of legal protection under Mexican law. Consequently, trading of the company’s stock was halted in Mexico and the US. In mid October, IMSA and GAN (the majority stakeholder of Ahmsa) agreed to form a strategic alliance between their subsidiaries IMSA Acero and Ahmsa. However, in late February negotiations terminated between both parties as Ahmsa announced that it is quite close to reaching an agreement with Aceralia- a Spanish steel maker. Ahmsa expects this strategic alliance to be complete by the end of March. From a financial standpoint, we believe this is a better deal for Ahmsa’s stakeholders, although we are not totally convinced that Aceralia is a better alternative than Imsa from a strategic point of view.