FEMSA Announces the Divestiture of Its Corrugated Subsidiary Corrugados Tehuacan, S.A. de C.V.

Monterrey, Mexico, March 30, 2000, Fomento Economico Mexicano, S.A. de C.V. ("FEMSA") today announced that its subsidiary FEMSA Empaques, S.A. de C.V. ("FEMSA Empaques") has signed a definitive stock purchase agreement with Williamette Industries North America, S.A. de C.V. a subsidiary of Williamette Industries, Inc. to sell Femsa Empaques' subsidiary Corrugados Tehuacan, S.A. de C.V. ("Cotesa") a manufacturer of corrugated boxes which owns three plants located in the states of Veracruz and Puebla, Mexico. The purchase price to be paid will be U.S. 71 million.

The Stock Purchase Agreement is subject to the satisfaction of customary conditions, including the receipt of required governmental approvals. The transaction is expected to close on or before June 15, 2000.

Willamette Industries is an integrated forest products company with 103 plants, located in the U.S., France, Ireland and Mexico. The company owns 1.7 million acres of forestland in the U.S. and manages it sustainably to produce building materials, composite wood panels, fine paper, office paper products, corrugated packaging and grocery bags.

FEMSA is Latin America's largest beverage company with exports to the United States, Canada and selected countries in Latin America, Europe and the Far East. Founded in 1890 and with headquarters in Monterrey, Mexico, FEMSA is strategically integrated and operates through the following subsidiaries: FEMSA Cerveza, which produces and distributes name brands of beer such as Tecate, Carta Blanca, Superior, Sol, XX Lager, Dos Equis and Bohemia; Coca-Cola FEMSA, one of two "Anchor Bottlers" for The Coca-Cola Company in Latin America, which produces and distributes soft drinks including Coca-Cola, Coca-Cola Light, Sprite, Fanta and Quatro; FEMSA Empaques, which supports the beverage operations by producing beverage cans, glass bottles, crown caps, labels, commercial refrigerators, and serves third party clients throughout the Americas; FEMSA Comercio, which operates OXXO, Mexico's most extensive chain of convenience stores; and FEMSA Logística, which provides logistics management services to affiliate companies, and recently to third party clients.