Grupo Salinas Companies' Solid Performance Reflects Passion for Adding Value to Society

-Also Signals Growth Across the Economic Sectors in Which Grupo Salinas Participates- 


MEXICO CITY, Jan. 3  /PRNewswire/ -- Grupo Salinas, a group of dynamic, fast-growing and technologically advanced companies deeply committed to the modernization of Mexico, stated today that 2005 represented a year of growth and profitability for most of the businesses that are part of the organization.

"Throughout 2005, we have seen a solid performance across a number of businesses, including Banco Azteca, Iusacell, Unefon, Elektra, TV Azteca and Azteca America," said Ricardo B. Salinas, Chairman and Founder of Grupo Salinas.  "The sectors in which we participate were dynamic, and we outgrew many of these industries because the direction of our businesses was clear: to maximize return through adding the highest value to society."

"We have a passion for successful businesses, and, in the process, we make customers benefit from our high-quality products and services; thus a good year for Grupo Salinas is a good year for Mexico and its consumers," added Mr. Salinas. "And the size and dynamism of our Group has a positive impact on the performance of the overall economy."

The combined 2005 sales from all of Grupo Salinas' companies equaled more than US$4 billion, representing 0.6 percent of Mexico's Gross Domestic Product and accounting for the employment of 50,000 individuals, making the group of companies one of the largest private employers in the nation.

In 2005, a major trend was the continued popularity of Spanish-language television among U.S. Hispanic audiences. Indeed, Azteca America -- a subsidiary of TV Azteca -- achieved national network status in the U.S., as defined by Nielsen, thus creating a long-term distribution platform that will help to increase audience share and advertising.  Azteca America has presence in 43 markets that are home to 80 percent of U.S. Hispanics.  A recent affiliation agreement with Comcast as well as plans for new affiliates across the country promises to make 2006 another record year for Azteca America.

From a financial perspective, TV Azteca continued to distribute cash to its shareholders and in 2005 made disbursements of US$80 million.  Adding this to prior cash distributions since June 2003, total disbursements under the plan have been US$405 million, equivalent to a 20 percent yield, on current market prices.

In the financial sector, Banco Azteca celebrated its third year in operation with an increase of more than 20 percent in its credit portfolio and deposits, and the balance of over 7 million savings accounts and 5 million credit accounts. The credit portfolio and deposit growth was well in excess of the national average, making it one of the ten largest banks in Mexico, and the second largest in terms of its distribution network.

Grupo Salinas' financial division also continued its strong support of the traditionally under-banked segments of the Mexican population. Banco Azteca opened 50,000 savings accounts per week, granted 60,000 credit accounts weekly, and developed the Empresario Azteca credit program, consisting of microfinancing to allow small entrepreneurs to form a business, employ themselves, and create jobs for others.

Working with Banco Azteca to deliver much needed services to an under- served population, Elektra, a retail chain store, grew to more than 1,000 outlets in 2005. Door-to-door sales campaigns and in-store Banco Azteca branch offices brought services to consumers with entrepreneurial and consumer needs.

Additionally, the money transfer business handled nearly 10 percent of the transfers from the U.S. to Mexico, which in aggregate account for about US$20 billion. Grupo Elektra enjoyed a growing presence in five Latin American countries as well, with plans to enter additional markets in the new year.

Mobile telephony companies Grupo Iusacell and Unefon reported also solid numbers in 2005; together they reached 3 million subscribers in Mexico.  And just as Iusacell achieved double digit EBITDA growth, and state-of-the-art 3G applications for corporations and individuals, Unefon continued to attract a growing customer base by offering the lowest pre-paid mobile service in Mexico.

"We are tremendously excited about 2006 and look forward to continuing to put our strategy for growth into place," Mr. Salinas continued. "With the innovative new programs we have planned, we are predicting another year of growth for our organization, our partners, our customers, and Mexico."

Grupo Salinas Profile

Grupo Salinas is a group of dynamic, fast-growing, and technologically advanced companies focused on creating shareholder value, building the Mexican middle class, and improving society through excellence. Created by Mexican entrepreneur Ricardo B. Salinas, Grupo Salinas operates as a management development and decision forum for the top leaders of member companies: TV Azteca, Azteca America, Grupo Elektra, Banco Azteca, Afore Azteca, Seguros Azteca, Circulo de Credito, Unefon, Iusacell, Movil@ccess, Todito.com and Telecosmo. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. However, member companies share a common vision, values and strategies for achieving rapid growth, superior results and world-class performance. 

DATASOURCE: Grupo Salinas



CONTACT:  Tristan Canales, Corporate Communications, +011-5255-1720-1441,

or , or Daniel McCosh, International Communications,

+011-5255-1720-0059, or , both of Grupo Salinas; or

Melissa Maslar, Press Liaison, Levick Strategic Communications,

[phone], or mobile, [phone], or , for Grupo

Salinas

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