Grupo Elektra Issues Ps. 400 Million in Short Term 'F2(mex)' Rated Certificados Bursatiles

Grupo Elektra Issues Ps. 400 Million in Short Term 'F2(mex)'
Rated Certificados Bursatiles
- In Accordance With Our Financial Strategy, Funds Will Be Used to Redeem the
Company's US$ 275 Million Senior Notes Due on 2008 -


MEXICO CITY, March 31  /PRNewswire-FirstCall/ -- Grupo Elektra S.A. de C.V.
(NYSE: EKT; BMV: Elektra*), Latin America's leading specialty retailer, consumer
finance and banking services company, announced today that it successfully
placed Ps. 400 million in unsecured short-term Certificados Bursatiles. The
issue has a total term of 336 days and yields a rate of 28-day TIIE+250 basis
points per year. Scotia Inverlat Casa de Bolsa was the placement agent. The
issue carries an "F2(mex)"credit rating for local currency issues from Fitch
Mexico.

On March 22 2004, Grupo Elektra announced it would redeem on April 21 2004, four
years in advance, all of the outstanding 12% US$ 275 million Senior Notes due on
2008, at a 106% premium over its face value, plus accrued interests, totaling
US$ 293 million. The sources for the redemption of the Senior Notes are US$ 218
million of the net amount received from the unsecured long-term Certificados
Bursatiles issued on March 19 2004, US$ 36 million (Ps. 400 million) from this
successful unsecured short-term issuance; and US$ 39 million from our current
cash position.

The redemption should allow Grupo Elektra to eliminate its US-dollar denominated
liabilities, to obtain savings in financial expenses of approximately US$ 40
million during the next four years, and to substantially reduce its foreign
exchange exposure.

Rodrigo Pliego, Chief Financial Officer of Grupo Elektra, commented: "We are
extremely pleased by the positive response on both our long-term and short-term
unsecured notes which is a reflection of the trust the market has built on Grupo
Elektra, and has surpassed our initial expectations. This, together with our
cash position, will allow us to eliminate the Company's financial mismatch
represented by thepayment of interests in US$ dollars and the earning of
revenues in Pesos".

Visit our award-winning corporate website at http://www.grupoelektra.com.mx/

Except for historical information, the matters discussed in this press release
are forward-lookingstatements and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
projected.  Risks that may affect Grupo Elektra are identified in its Form 20-F
and other filings with the US Securities and Exchange Commission.

Grupo Elektra - Tradition with Vision

Grupo Elektra is Latin America's leading specialty retailer, consumer finance
and banking services company. Grupo Elektra sells retail goods and services
through its Elektra, Salinas y Rocha and Bodega de Remates stores and over the
Internet. The Group operates almost 900 stores in Mexico, Guatemala, Honduras
and Peru.  Grupo Elektra also sells and markets its consumer finance and banking
products and services through its Banco Azteca branches located within its
stores. Financial services include consumer credit, personal loans, money
transfers, extended warranties, savings accounts and term deposits.

   Contacts:

   Esteban Galindez, CFA
   Director of Finance & IR
   Grupo Elektra, S.A.de C.V.
   Tel. [phone]
   Fax. [phone]
   

   Rolando Villarreal S.
   Head of Investor Relations
   Grupo Elektra S.A. de C.V.
   Tel. [phone]
   Fax. [phone]
   

   Samantha Pescador
   Investor Relations
   Grupo Elektra S.A. de C.V.
   Tel. [phone]
   Fax. [phone]
   

DATASOURCE: Grupo Elektra S.A. de C.V.



CONTACT:  Esteban Galindez, CFA, Director of Finance & IR,

[phone], Fax. [phone], , or Rolando

Villarreal S., Head of Investor Relations, [phone],

Fax. [phone], , Samantha Pescador, Investor

Relations, [phone], Fax. [phone], ,

all of Grupo Elektra, S.A. de C.V.



Web site:  http://www.grupoelektra.com.mx/ 

Copyright