July 31, 2008
:: Sigma acquires processed meats company in Peru

Monterrey, Mexico, July 31, 2008. - ALFA, S.A.B. de C.V. (ALFA), the leading Mexican company, announced today that its subsidiary Sigma Alimentos, S.A. de C.V. (Sigma), the leading producer of refrigerated food in Mexico, has signed a definitive agreement to acquire Braedt, S.A., a Peruvian company which produces and distributes processed meats. The amount of the transaction was not disclosed.

Braedt has more than 50 years of history in the production of top quality processed meats, which it commercializes under the Braedt® brand. The company operates a plant in Lima, and employs 450 people. The company estimates it will report sales of close to U.S. $30 million in 2008.

“This transaction is in line with a strategy aimed at geographically expanding Sigma’s operations to capitalize on the competitive advantages it has been developing in the markets it currently serves,” commented Dionisio Garza Medina, ALFA’s Chairman of the Board and CEO.

Regarding the transaction, Mario Páez, Sigma’s President, stated: “The acquisition we announced is very attractive. We are entering into a high growth market, based on its potential per capita consumption and on Peru’s favorable economic condition. This, along with the leadership of the Braedt® brand, will allow Sigma to replicate the successful business model it has developed in Mexico and other countries.”
 

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ALFA is a Mexican company comprised of four business groups: Alpek (petrochemicals), Nemak (aluminum auto components), Sigma (refrigerated food) and Alestra (telecommunications). ALFA is the world’s leading manufacturer of high-tech aluminum engine heads and blocks. It is one of the world’s largest producers of PTA, a petrochemical product, and has an outstanding position in the market for other petrochemicals in Mexico. In addition, ALFA is the leader in the production of processed meats and cheese and one of the most important telecommunications service companies in Mexico. In 2007, ALFA reported revenues of $106,833 million (U.S. $9.6 billion), including foreign sales of U.S. $5.2 billion, and assets of $99,331 million (U.S. $9.1 billion). Currently, ALFA has manufacturing operations in 16 countries and employs more than 50,000 people. ALFA shares are quoted on the Mexican Stock Exchange and Latibex, the Latin American market in the Madrid Stock Exchange.

Sigma is the leader in the Mexican refrigerated food business. Besides Mexico, Sigma is present in the U.S. Hispanic market, Central America and the Caribbean. Its product offering includes cold cuts, cheese, yogurt and prepared meals, among other. In 2007, Sigma reported sales of U.S. $2.1 billion. Currently, it employs almost 26,000 people.



For further information:

Enrique Flores
Vice President, Corporate Communications
ALFA, S.A.B. de C.V.
Phone +52 (81) 8748-1207
eflores@alfa.com.mx