Grupo Imsa to exit automotive battery business

MONTERREY, Mexico--(BUSINESS WIRE)--July 19, 2004--Grupo Imsa, S.A. de C.V. (BMV:IMSA) (NYSE:IMY) and Johnson Controls, Inc. (NYSE:JCI) today announced an agreement whereby Grupo Imsa will exit the automotive battery business and Johnson Controls, its JV partner since 1998, will assume 100% ownership.

Grupo Imsa will obtain US$525 million, which includes absorption of debt by JCI, for its ownership of the automotive battery business. The primary use of the proceeds obtained from this transaction will be used to pay debt. This transaction is expected to close once the approval of the regulatory authorities is granted.

Mr. Eugenio Clariond, CEO of Grupo Imsa, said, "Over the last six years, we have worked in a very close and friendly relationship with Johnson Controls in order to build a strong automotive battery business, achieve lower costs, a more efficient operation and increase our market share in both the North and South American markets while at the same time protecting the environment according to our commitment with the principles of Sustainable Development. These accomplishments have led to better results year after year since the joint venture started. We at Grupo Imsa are applying the best of these experiences throughout our organization. This business will create more value as a wholly owned subsidiary of Johnson Controls who is the world's automotive battery leader. For Grupo Imsa this transaction represents an opportunity to exit the battery business at the right time and to look for opportunities to create value for its shareholders and further strengthen its balance sheet."

Grupo Imsa, a holding company, dates back to 1936 and is today one of Mexico's leading diversified industrial companies, operating in four businesses: steel processed products; automotive batteries and related products; steel and plastic construction products; and aluminum and other related products. Grupo Imsa operates manufacturing and distribution facilities in Mexico, the United States, Europe and throughout Central and South America. In 2003 the Company's sales reached US$2.8 billion, of which close to 55% was generated outside Mexico. Grupo Imsa shares trade on the Mexican Stock Exchange (IMSA) and, in the United States, on the NYSE (IMY).

Johnson Controls is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of integrated seating and interior systems, and batteries. For nonresidential facilities, Johnson Controls provides control systems and services including comfort, energy and security management. Johnson Controls (NYSE:JCI), founded in 1885, has headquarters in Milwaukee, Wisconsin.

This document may contain forward-looking statements relating to Grupo Imsa's future performance or its current expectations or beliefs. These include statements regarding the intent, belief or current expectations of the Company and its management. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties pertaining to the industries in which the Company participates. Grupo Imsa does not intend, and does not assume any obligation, to update these forward-looking statements.