FEMSA Reports US$ 9.9 billion (Ps. 105.6 billion) of Revenues for 2005

Monterrey, Mexico, February 27, 2006 -- Fomento Económico Mexicano, S.A. de C.V. ("FEMSA") today announced its operational and financial results for the fourth quarter and full year 2005.

Fourth Quarter Highlights:

• Domestic beer sales increased 8.4%, reflecting a 5.8% increase in sales volume and a 2.5% increase in real price per hectoliter.
• Export beer volumes increased 9.9%, rounding off a solid year of top-line growth driven by our sales in the United States.
• Coca-Cola FEMSA increased its total revenues by 2.9% and increased its operating income by 4.5%.
• Oxxo continued its pace of double-digit growth, increasing revenues by 17.9% driven by 359 net new stores and an 8.6% increase in same-store sales. Operating margin expanded 130 basis points.

2005 Full Year Highlights:
 

• Consolidated total revenues increased 9.0% and operating income increased 9.5%, reflecting solid top-line results across the businesses.
• Coca-Cola FEMSA increased its total revenues by 5.0% while expanding its operating margin 60 basis points to reach 17.3% of revenues.
• FEMSA Cerveza achieved strong domestic volume growth of 4.9% and U.S. export volume growth of 8.8%, which outpaced the import category.
• Oxxo again grew its store base by a record number of openings: 675 net new stores, to finish the year with 4,141 Oxxos.
• Consolidated net debt of Ps. 26.475 billion (US$ 2.5 billion), a reduction of US$ 1.026 billion from the previous year largely due to the US$ 700 million obtained from the equity offering completed in May 2005.

José Antonio Fernández, Chairman and CEO of FEMSA, commented, "Our strong performance in 2005 - and over the last decade - capitalizes on the advantages of our integrated beverage strategy. Coca-Cola FEMSA consolidated its position as Latin America's bottling leader and one of the most profitable bottlers in the world. I am particularly proud of the achievements in Mexico and Brazil where, in a challenging environment, we grew our top line while improving profitability. FEMSA Cerveza grew its total beer sales volume by almost 5%, which is twice the global beer growth average, while it expanded its operating margin for the 10th consecutive year. Finally, Oxxo finished another record-year of store openings, doubling its size since 2002. While there is much work to do, we have a strong team that is committed to continue generating value for the long-term."

This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management's expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.

FEMSA is the leading beverage company in Latin America. It controls an integrated beverage platform that comprises Coca-Cola FEMSA, the largest Coca-Cola bottler in the region; FEMSA Cerveza, one of the leading brewers in Mexico and important beer exporter to the United States; and Oxxo, the largest and fastest growing convenience store chain in Mexico with approximately 4,000 stores.