José Antonio Fernández, Chairman and CEO of FEMSA, commented, “Despite significant competitive and raw material cost pressure, the FEMSA team was able to successfully navigate the challenges of 2004.  I am pleased to report our 10th consecutive year of operating income growth.

Beyond our positive results, we also made great strategic strides.  At Coca-Cola FEMSA, we finalized the integration of the new soft-drink territories, which include operations in seven new countries.  While there is still much work to do, we are quickly seeing the benefits of our initiatives and continuing to raise our expectations.  At FEMSA Cerveza, 2004 was a remarkable year, as we recovered 100% ownership of our beer operations, gained profitable market share in Mexico, established an alliance with Heineken to distribute our beers in the US, and began importing Coors Light into Mexico.  For the first time, our return on invested capital at FEMSA Cerveza exceeded 11%.  Finally, Oxxo continued consolidating its position as the leading convenience store chain in Mexico, becoming a powerful distribution channel for many consumer products and by far the largest client of The Coca-Cola Company in Mexico and one of its top clients in Latin America.”

Mr. Fernández added, “At FEMSA our good results are a product of a great team, doing the right things with the best technology.  In 2004, we underscored our ability to operate successfully in complex market environments such as Brazil, Venezuela, and Colombia; to serve customers in a differentiated way through improved execution at the point of sale; and to manage a broad portfolio of strong brands in a precise and effective way.

In 2005, we will remain focused on delivering high-quality growth and building long-term value for our shareholders.”

FEMSA Consolidated

Total revenues increased 6.1% to Ps. 24.625 billion during 4Q04.  This increase is primarily due to 26.1% total revenue growth at the Oxxo retail chain followed by a slight top-line increase at Coca-Cola FEMSA, which more than offset lower revenues at the beer operations.

For full year 2004, total revenues increased 17.2% to Ps. 93.956 billion.  All of FEMSA’s operations – soft drinks, beer, and retail – contributed positively to this double-digit pace.  Coca-Cola FEMSA’s total revenues increased 22.0% to Ps. 46.499 billion, mainly due to the inclusion of the territories acquired in May 2003.  The Oxxo retail chain’s total revenues increased 24.8% to Ps. 22.838 billion, due in large part to the 668 net new stores opened during the year.  Beer operations also contributed positively with total revenue growth of 3.4% to Ps. 24.970 billion, due to a 4.5% increase in total sales volume that was partially offset by a 1.2% decrease in real price per hectoliter.

Gross margin decreased 120 basis points to Ps. 11.497 billion, or 46.7% of total revenues during 4Q04.  This was primarily due to a 50 basis point gross margin contraction at Coca-Cola FEMSA and the greater contribution of lower margin Oxxo retail operations to FEMSA’s consolidated results.  Partially offsetting this contraction was a 110 basis point gross margin improvement at our beer operations, reaching 59.2% of total revenues for the quarter.

For full year 2004, gross margindecreased 120 basis points to Ps. 43.987 billion, or 46.8% of total revenues.  The downward pressure on margins resulted mainly from a gross margin contraction at Coca-Cola FEMSA and the greater contribution of lower margin Oxxo retail operations to FEMSA’s consolidated results.

Income from operationsdecreased 1.5% to Ps. 3.738 billion during 4Q04, resulting in an operating margin of 15.2%.  The 120 basis point decline in operating margin was primarily attributable to (1) the increased contribution of Oxxo in our consolidated results, and (2) operating margin contractions in both beer and soft drinks reflecting increased competition in our core markets.

2

For full year 2004, income from operations increased 8.7% to Ps. 13.738 billion.  The consolidated operating margin decreased 120 basis points from 2003 levels to 14.6% of total revenues.

Net income increased 41.1% to Ps. 2.666 billion in 4Q04.  Growth in net income was due to (1) a one-time deferred income tax benefit of Ps. 602 million resulting from a reduction in Mexican tax rates, (2) a foreign exchange gain due to the strength of the peso over dollar-denominated debt, and (3) a gain in monetary position.  These positive factors partially offset an increase in interest expense from the financing incurred for the repurchase of 30% of FEMSA Cerveza and an increase in other expenses primarily due to asset write-downs and to a lesser extent severance payments.

For full year 2004, net income increased 87.8% to Ps. 9.249 billion.  This growth was due to (1) a non-recurrent tax gain of Ps. 1.311 billion at Coca-Cola FEMSA as explained in our second quarter earnings release, (2) growth of 8.7% in consolidated income from operations, (3) a one-time deferred income tax benefit during 4Q04 from a reduction in Mexican corporate tax rates, and (4) foreign exchange gains due to the strength of the peso over our US dollar denominated debt.

Net majority income per FEMSA Unit¹ was Ps. 1.761 in 4Q04 and Ps. 5.504 for full year 2004.  Net majority income per FEMSA ADS, considering an exchange rate of Ps. 11.146 per dollar, was US$ 4.94 for 2004.  Consolidated net majority income amounted to Ps. 5.831 billion for the year, up 76.6% from 2003.

Capital expenditures increased 15.3% to Ps. 2.134 billion in 4Q04, mainly reflecting increased investment at our soft-drink operations.  For full year 2004, capital expenditures were Ps. 6.902 billion, down 3.3% from 2003 levels.

Consolidated net debt.  As of December 31, 2004, FEMSA recorded a cash balance of Ps. 6.822 billion (US$ 612 million), short-term debt of Ps. 312 million (US$ 28 million), bridge financing of Ps. 5.674 billion (US$ 509 million) and long-term debt of Ps. 39.825 billion (US$ 3,573 million), for a net debt of Ps. 38.989 billion, 20.7% higher than a year ago, reflecting new debt contracted to finance the repurchase of 30% of FEMSA Cerveza, which was partially offset by a significant debt reduction at Coca-Cola FEMSA.

Divestitures. Consistent with our beverage strategy, we have divested US$154 million of non-strategic assets.  These divestitures include COTESA (cardboard packaging), sold in 2000 for US$70 million; AYSSA (billboards), sold by FEMSA Cerveza in 2001 for US$28 million; DICASA (employee vouchers for food and other goods), sold in 2003 for US$28 million; and COMEXLA (food cans), where we sold a 49% stake and formed a joint venture in 2004.  We are now in advanced conversations to divest the remaining 51% of COMEXLA.  The combined amount for both transactions will be US$28 million, and we expect to close in the second quarter of 2005.  We are largely complete with the divestiture of non-strategic assets and will continue to pursue the sale of those that remain, under the appropriate market conditions.

Soft Drinks – Coca-Cola FEMSA

Coca-Cola FEMSA’s financial results and discussion are incorporated by reference from Coca-Cola FEMSA’s press release attached to this press release.

1FEMSA Units consist of FEMSA BD Units and FEMSA B Units.  Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares.  Each FEMSA B Unit is comprised of five Series B Shares.  The number of FEMSA Units outstanding as of December 31, 2004 was 1,059,462,090, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

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Beer – FEMSA Cerveza

Domestic sales volume increased 3.1% to Ps. 5.999 million hectoliters in 4Q04.  The increase in domestic sales volume resulted from favorable demand during the holiday season and increased sales throughout most of Mexico led by our Sol, Indio, and Tecate Light brands.

For the full year 2004, domestic sales volume increased 3.8% to 23.442 million hectoliters.  This positive sales trend seen throughout 2004 was primarily due to favorable demand across most of Mexico, broader availability of our beers, successful execution at the point of sale, and our revenue management initiatives.  We implemented micro-segmentation strategies in some territories as we increasingly leveraged the functionality of our Enterprise Resource Planning (“ERP”) system, which is currently operational in 79% of our total direct domestic volume.

We also increased the level of innovation in our packaging and product portfolio, particularly the successful re-launch of Tecate Light, the rollout of Sol Brava throughout Central Mexico, and the launching of non-returnable Sol in our Northwest Mexico territories.

Export sales volume increased 7.0% to 0.452 million hectoliters in 4Q04, partially influenced by a moderate inventory buildup related to the end of our agreement with our former US importer.  Export sales volume grew 13.0% to 2.240 million hectoliters for full year 2004, largely due to increased sales volume in the US through our Tecate and Dos Equis brands.  On January 1, we transferred our brands to Heineken USA as previously announced.

Total revenues decreased 0.2% to Ps. 6.152 billion during 4Q04.  This was mainly a result of a 0.9% increase in beer sales, resulting from a 3.3% increase in total sales volume, offset by a 2.5% decline in the domestic real price per hectoliter and a 0.5% decline in the export real price per hectoliter.  The decline in domestic real price per hectoliter was due to an increase in promotional activity in response to heightened price competition during October and November.  Compared with 3Q04, domestic real price per hectoliter declined 2.8%, or 1.0% in nominal terms.  For the most part, during the month of December, prices in the domestic market returned to second quarter levels, and we anticipate a more stable pricing environment in the domestic market in 2005.

Despite increased competitive pressures in Mexico during the 4Q04, full year 2004 total revenues increased by 3.4% to Ps. 24.970 billion.  Total sales volume growth of 4.5% and a 2.3% increase in the export real price per hectoliter more than offset a 1.4% decline in the domestic real price per hectoliter.  Domestic sales represented 91.3% of the total, while the remaining 8.7% came from exports.

Cost of goods sold decreased 2.7% to Ps. 2.513 billion in 4Q04.  Gross profit reached Ps. 3.639 billion for the quarter, up 1.6% from 4Q03, achieving a gross margin of 59.2%.  The 110 basis points of gross margin expansion resulted from a strong peso on US dollar-denominated raw materials and operating efficiencies.

For full year 2004, cost of goods sold increased 2.8%, slightly below total revenue growth.  Gross profit reached Ps. 14.695 billion, a 3.8% increase from 2003 resulting in a gross margin of 58.8%.  The 20 basis points of gross margin expansion resulted from better purchasing terms for raw materials and operating efficiencies.

4

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Income from operations (before deduction of management fees) decreased 7.1% to Ps. 1.198 billion in 4Q04.  This decrease reflects a slight decline in total revenues combined with higher operating expenses that offset improvements at the gross margin level during the quarter.  Operating expenses increased 6.4% to Ps. 2.441 billion reaching 39.7% of total revenues, 2.5 percentage points higher than in 4Q03.  Specifically, administrative expenses increased 5.1% to Ps. 713 million during the quarter, primarily due to ERP related expenses.  Selling expenses also increased, up 6.9% due to (1) an increase in expenses related to the launch of Coors Light and the re-launch of Tecate and Tecate Light in Mexico, (2) promotional materials purchased from our former importer in the US, and (3) an increase in advertising expenditures for specific programs aimed at reinforcing our brands, given the increased level of competition experienced during the quarter in the Mexican market.  The operating margin decreased 140 basis points to 19.5% of total revenues.

Despite increased competitive pressures in 4Q04, full year 2004 operating income increased 5.7% to Ps. 5.293 billion.  The year over year growth reflects an increase in total revenues, combined with expense containment initiatives.  Operating expenses increased 2.8%, in-line with total revenue growth.  Operating margin (before management fees) increased 50 basis points to 21.2% of total revenues due to (1) solid volume growth on the back of slightly weaker pricing, (2) a reduction in cost of goods sold, and (3) a more efficient use of operating expenses.

Oxxo Stores – FEMSA Comercio

Total revenues increased 26.1% to Ps. 6.275 billion during 4Q04.  The primary reason for the increase was the opening of 207 net new Oxxo stores during the quarter and a total of 668 net new Oxxo stores for the full year.

For full year 2004, total revenues increased 24.8% to Ps. 22.838 billion.  As of December 31, 2004, we had 3,466 Oxxos nationwide, an increase of 23.9% from 2003.  2004 was the 5^th consecutive year of over 20% annual growth in the number of new stores.

Oxxo same-store sales increased an average of 9.6% during 4Q04, reflecting an increase in store traffic of 8.7%, and an increase in the average ticket of 0.8%.  This increase reflects the rapid pace of expansion as well as stronger promotional activity and category management practices that are enabling Oxxo to improve the mix of products within the store.

For the full year 2004, Oxxo same-store sales increased an average of 8.9%, reflecting an increase in the average ticket of 3.8% and an increase in store traffic of 4.9%.

Income from operations (before deduction of management fees) increased 49.1% to Ps. 360 million resulting in an 80 basis point improvement in the operating margin, reaching 5.7% of total revenues for 4Q04.  This improvement is credited to a slight decline in the cost of goods sold as a percentage of total revenues, a more efficient use of administrative expenses, and stable selling expenses.

For the full year, operating income increased 23.7% to Ps. 1.025 billion.  This increase was in-line with revenue growth, and contributed to a stable operating margin of 4.5% for 2004, in-line with 2003 levels.

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Accounting Matters

•	As indicated in our 3Q04 earnings release, in 4Q04 we integrated FEMSA Empaques’ core operations into FEMSA Cerveza, and specifically, we consolidated the glass bottle and can operations into FEMSA Cerveza.  The results presented herein provide reclassified figures for full comparability for all quarters from 2003 through 2004.  Going forward, FEMSA will provide financial results by segment for FEMSA Cerveza, Coca-Cola FEMSA, and FEMSA Comercio.  FEMSA Empaques’ results are no longer presented as a separate business segment.
•	FEMSA’s beer operations purchase packaging materials from external providers that are used to transport bottles and cans.  These materials are subsequently sold to FEMSA’s glass and can operations.  Before the merger, these sales were included in FEMSA Cerveza’s sales line and therefore, in our domestic price per hectoliter calculation.  However, due to the integration of FEMSA’s glass and can business into FEMSA Cerveza, these transactions are now eliminated in the consolidation process and no longer appear as part of FEMSA Cerveza’s sales.  For comparability purposes, we are presenting adjusted domestic price per hectoliter information for all quarters from 2003 through 2004.  For further details see the enclosed appendix.
•	During the course of the SEC review of FEMSA’s pending registration statement, it was brought to our attention that EITF 96-16 does not permit FEMSA to consolidate the financial results of Coca-Cola FEMSA under US GAAP, due to the rights of The Coca-Cola Company as a minority shareholder in Coca-Cola FEMSA.  As a result, the application of EITF 96-16 will be reflected in the notes to FEMSA’s financial statements, which present summary financial information under US GAAP and a reconciliation of net income and stockholders’ equity between Mexican GAAP and US GAAP.  There is no change in the net income and stockholders’ equity under US GAAP; therefore, earnings per share are not impacted.  The application of EITF 96-16 will have no effect on FEMSA’s financial statements under Mexican GAAP, and we will continue to consolidate Coca-Cola FEMSA as required under Mexican GAAP.
•	The new requirements of Mexican GAAP under Bulletin D-3, “Labor Obligations”, clarify that the total period cost related to the pension plan should be reported above the operating income line.  Historically, FEMSA registered financing costs related to the pension plan as part of net interest expense, and the amortization of past services in other expenses.  In compliance with the new requirements, FEMSA and its subsidiaries reclassified these costs above the operating income line and for comparability, reclassified prior periods.  For further details, please see the enclosed appendix.

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CONFERENCE CALL INFORMATION:
Our Fourth Quarter and Full Year 2004 Conference Call will be held on: Monday February 28, 2005, 4:00 P.M. New York Time (3:00 PM Mexico City Time). To participate in the conference call, please dial: Domestic U.S.: 1-800-289-0569, International: 913-981-5542.  This Conference Call will also be transmitted through live webcast at www.femsa.com/investor
If you are unable to participate live, an instant replay of the conference call will be available through March 7, 2005. To listen to the replay please dial: Domestic U.S.: 1-888-203-1112; International: 719-457-0820, Passcode: 9419579.

Set forth in this press release is certain unaudited financial information for FEMSA for the fourth quarter and audited financial information for the full year ended December 31, 2004, compared to the fourth quarter and full year ended December 31, 2003.  We are a holding company whose principal activities are grouped under the following sub-holding companies and carried out by their respective operating subsidiaries: Coca-Cola FEMSA, S.A. de C.V., which engages in the production, distribution and marketing of non-alcoholic beverages; FEMSA Cerveza, S.A. de C.V., which engages in the production, distribution and marketing of beer; and FEMSA Comercio, S.A. de C.V., which engages in the operation of convenience stores.

All of the figures in this report were prepared in accordance with Mexican Generally Accepted Accounting Principles (“Mexican GAAP”) and have been restated in constant Mexican pesos (“Pesos” or “Ps.”) with purchasing power as of December 31, 2004.  As a result, all percentage changes are expressed in real terms.

FORWARD LOOKING STATEMENTS
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 expectations and are based upon currently available data.  Actual results are subject to future events and uncertainties, which could materially impact our actual performance.

Nine pages of tables and Coca-Cola FEMSA’s press release to follow

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FEMSA

Consolidated Income Statement

		For the fourth quarter of:															For the twelve months of:
Expressed in Millions of Pesos as of December 31, 2004		2004			% Integ.			2003			% Integ.			% Incr.			2004			% Integ.			2003			% Integ.			% Incr.
Net sales			24,334			98.8			23,086			99.5			5.4			93,478			99.5			79,854			99.6			17.1
Other operating revenues			291			1.2			122			0.5			138.5			478			0.5			300			0.4			59.3
Total revenues			24,625			100.0			23,208			100.0			6.1			93,956			100.0			80,154			100.0			17.2
Cost of goods sold			13,128			53.3			12,093			52.1			8.6			49,969			53.2			41,712			52.0			19.8
Gross magin			11,497			46.7			11,115			47.9			3.4			43,987			46.8			38,442			48.0			14.4
Administrative expenses			1,673			6.8			1,596			6.9			4.8			6,621			7.0			5,725			7.1			15.7
Selling expenses			6,086			24.7			5,723			24.7			6.3			23,628			25.1			20,077			25.0			17.7
Operating expenses			7,759			31.5			7,319			31.5			6.0			30,249			32.2			25,802			32.2			17.2
Income from operations			3,738			15.2			3,796			16.4			(1.5	)		13,738			14.6			12,640			15.8			8.7
Interest expense			(1,133	)					(555	)					N.S.			(3,764	)					(2,591	)					45.3
Interest income			85						110						(22.7	)		541						743						(27.2	)
Interest expense, net			(1,048	)					(445	)					N.S.			(3,223	)					(1,848	)					74.4
Foreign exchange (loss) gain			95						(475	)					N.S.			(15	)					(2,664	)					(99.4	)
Gain (loss) on monetary position			797						490						62.7			1,952						1,017						91.9
Integral result of financing			(156	)					(430	)					(63.7	)		(1,286	)					(3,495	)					(63.2	)
Participation in affiliated companies			6						14						(57.1	)		63						31						N.S.
Other (expenses) income			(419	)					52						N.S.			(871	)					(667	)					30.6
Income before taxes			3,169						3,432						(7.7	)		11,644						8,509						36.8
Provision for taxes			(1,105	)					(1,542	)					N.S.			(4,308	)					(3,584	)					20.2
Change in tax rate			602						—						N.S.			602						—						N.S.
Non-recurring gain on tax lawsuit			—						—						—			1,311						—						100.0
Taxes			(503	)					(1,542	)					(67.4	)		(2,395	)					(3,584	)					(33.2	)
Net Income			2,666						1,890						41.1			9,249						4,925						87.8
Net majority income			1,866						1,132						64.8			5,831						3,302						76.6
Net minority income			800						758						5.5			3,418						1,623						110.6
EBITDA & CAPEX
Operating Income			3,738			15.2			3,796			16.4			(1.5	)		13,738			14.6			12,640			15.8			8.7
Depreciation			867			3.5			850			3.7			1.9			3,326			3.5			3,022			3.8			10.1
Amortization & other			793			3.2			566			2.4			40.2			3,128			3.4			2,662			3.3			17.5
EBITDA			5,398			21.9			5,212			22.5			3.6			20,192			21.5			18,324			22.9			10.2
CAPEX			2,134						1,850						15.3			6,902						7,139						(3.3	)

FINANCIAL RATIOS (Times)																	2004						2003						Var. p.p.
Liquidity(1)																		0.89						1.19						(0.30	)
Interest coverage(2)																		6.26						9.92						(3.65	)
Leverage(3)																		1.32						1.29						0.02
Capitalization(4)																		46.81	%					45.43	%					1.38

(1) Total current assets / total current liabilities. (2) Income from operations + depreciation + amortization & other / interest expense, net. (3) total liabilities/ total stockholders’ equity. (4) Bank loans / (Bank loans + total stockholders’ equity).

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FEMSA

Consolidated Balance Sheet

		(Expressed in Millions of Pesos as of December 31, 2004)
		2004			2003.			% Incr
ASSETS
Cash and cash equivalents			6,822			8,228			(17.1	)
Accounts receivable			4,515			5,069			(10.9	)
Inventories			8,009			7,284			10.0
Prepaid expenses			1,533			664			131.0
Total Current Assets			20,879			21,245			(1.7	)
Property, plant and equipment, net			44,291			44,814			(1.2	)
Intangible assets(1)			46,845			36,707			27.6
Deferred assets			6,550			6,521			0.4
Other assets			2,112			2,366			(10.7	)
TOTAL ASSETS			120,677			111,653			8.1
LIABILITIES & STOCKHOLDERS´ EQUITY
Bank loans			5,986			2,621			128.4
Current maturities long term debt			3,540			2,732			29.6
Interest payable			394			426			(7.5	)
Operating liabilities			13,575			12,118			12.0
Total Current Liabilities			23,495			17,897			31.3
Bank loans			36,285			35,171			3.2
Deferred income taxes			4,157			5,217			(20.3	)
Other liabilities			4,695			4,696			(0.0	)
Total Liabilities			68,632			62,981			9.0
Total Stockholders’ equity			52,045			48,672			6.9
LIAB. & STOCKHOLDERS’ EQUITY			120,677			111,653			8.1

(1) Includes mainly the intangible assets generated by the acquisition of Panamco and 30% of FEMSA Cerveza.

					2004									2003
DEBT MIX					Ps.			% Integ.			Average Rate			Ps.			% Integ.			Average Rate
Trade in:
Mexican pesos						31,793			69.4	%		9.5	%		20,185			49.8	%		7.7	%
Dollars						13,342			29.1	%		5.8	%		19,720			48.7	%		5.3	%
Colombian pesos						676			1.5	%		10.1	%		619			1.5	%		1.5	%
Total Debt						45,811			100.0	%		8.5	%		40,524			100.0	%		6.6	%
Fixed rate						29,414			64.2	%					28,825			71.1	%
Variable rate						16,397			35.8	%					11,699			28.9	%

% of Total Debt		2005			2006			2007			2008			2009			+ 2010
DEBT MATURITY PROFILE (1)			9.6	%		11.5	%		8.6	%		20.9	%		20.4	%		29.1	%

(1) Excludes bridge financing

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Coca-Cola FEMSA

Results from Operations

		For the fourth quarter of:
Expressed in Millions of Pesos as of December 31, 2004		2004			% Integ.			2003			% Integ.			% Incr.
Net sales			12,300.7			99.5			12,185.2			99.2			0.9
Other revenues			62.3			0.5			101.6			0.8			(38.8	)
Total revenues			12,363.0			100.0			12,286.8			100.0			0.6
Cost of goods sold			6,341.1			51.3			6,245.9			50.8			1.5
Gross margin			6,021.9			48.7			6,040.9			49.2			(0.3	)
Administrative expenses			687.5			5.6			674.9			5.5			1.9
Sales expenses			3,071.1			24.8			3,065.9			25.0			0.2
Operating expenses			3,758.6			30.4			3,740.8			30.4			0.5
Income from operations			2,263.3			18.3			2,300.1			18.7			(1.6	)
Depreciation			306.9			2.5			287.2			2.3			6.9
Amortization & other			290.8			2.3			41.3			0.4			604.1
EBITDA			2,861.0			23.1			2,628.6			21.4			8.8
Capital Expenditures			682.8						190.7						257.9
Sales Volumes (1) (Millions of Unit Cases)
Mexico			248.3			50.6			243.9			50.7			1.8
Central America			29.8			6.1			29.3			6.1			1.6
Colombia			45.1			9.2			45.1			9.4			(0.1	)
Venezuela			45.9			9.3			45.8			9.5			0.2
Brazil			80.3			16.3			77.3			16.1			3.9
Argentina			41.8			8.5			39.4			8.2			6.0
Total KOF			491.2			100.0			480.8			100.0			2.2

		For the twelve months of:
Expressed in Millions of Pesos as of December 31, 2004		2004					% Integ.						2003						% Integ.						% Incr.
Net sales			46,290.2					99.6						37,876.2						99.4						22.2
Other revenues			208.8					0.4						245.6						0.6						(15.2		)
Total revenues			46,499.0					100.0						38,121.8						100.0						22.0
Cost of goods sold			23,963.6					51.5						19,367.3						50.8						23.7
Gross margin			22,535.4					48.5						18,754.5						49.2						20.2
Administrative expenses			2,705.0					5.8						2,090.7						5.5						29.3
Sales expenses			12,133.6					26.1						9,564.4						25.1						26.9
Operating expenses			14,838.6					31.9						11,655.1						30.6						27.3
Income from operations			7,696.8					16.6						7,099.4						18.6						8.4
Depreciation			1,238.7					2.7						1,040.1						2.7						19.1
Amortization & other			1,084.6					2.2						723.1						1.9						50.0
EBITDA			10,020.1					21.5						8,862.6						23.2						13.1
Capital Expenditures			1,929.1											2,006.5												(3.9		)
Sales Volumes (1) (Millions of Unit Cases)
Mexico			989.8					53.3						1,001.6						54.9						(1.2		)
Central America			110.6					6.0						107.3						5.9						3.1
Colombia			167.1					9.0						171.8						9.4						(2.7		)
Venezuela			172.7					9.3						151.6						8.3						13.9
Brazil			270.8					14.6						265.1						14.5						2.2
Argentina			144.3					7.8						126.6						7.0						13.9
Total KOF			1,855.3					100.0						1,824.0						100.0						1.7

(1) For comparison purposes the 2003 sales volumes of the acquired Panamco territories, were included.

10

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FEMSA Cerveza

Results from Operations

		For the fourth quarter of:
Expressed in Millions of Pesos as of December 31, 2004		2004			% Integ.			2003			% Integ.			% Incr.
Domestic beer sales			5,102.3			82.9			5,074.3			82.3			0.6
Export beer sales			356.5			5.8			334.8			5.4			6.5
Beer sales			5,458.8			88.7			5,409.1			87.7			0.9
Packaging sales			626.4			10.2			701.2			11.4			(10.7	)
Net sales			6,085.2			98.9			6,110.3			99.1			(0.4	)
Other revenues			66.4			1.1			54.6			0.9			21.6
Total revenues			6,151.6			100.0			6,164.9			100.0			(0.2	)
Cost of goods sold			2,512.5			40.8			2,581.8			41.9			(2.7	)
Gross margin			3,639.1			59.2			3,583.1			58.1			1.6
Administrative expenses			712.5			11.6			677.7			11.0			5.1
Sales expenses			1,728.4			28.1			1,616.3			26.2			6.9
Operating expenses			2,440.9			39.7			2,294.0			37.2			6.4
Income from operations before management fee			1,198.2			19.5			1,289.1			20.9			(7.1	)
Management fee			155.1			2.5			130.8			2.1			18.6
Income from operations			1,043.1			17.0			1,158.3			18.8			(9.9	)
Depreciation			372.4			6.1			389.4			6.3			(4.4	)
Amortization & other			497.1			8.0			546.3			8.9			(9.0	)
EBITDA			1,912.6			31.1			2,094.0			34.0			(8.7	)
Particip. in affiliated companies			6.0						14.0						(57.1	)
Capital Expenditures			950.6						1,154.6						(17.7	)
Sales volumes (Thousand hectoliters)
Domestic			5,999.0			93.0			5,820.0			93.2			3.1
Exports			452.0			7.0			422.3			6.8			7.0
Total			6,451.0			100.0			6,242.3			100.0			3.3
Price per hectoliter
Domestic			850.5						871.9						(2.5	)
Exports			788.9						792.8						(0.5	)
Total			846.2						866.5						(2.3	)
Total presentation mix (%)
Returnable			4,222.2			65.4			4,236.6			67.9			(0.3	)
Non Returnable			600.5			9.3			558.1			8.9			7.6
Cans			1,628.3			25.3			1,447.6			23.2			12.5
Total			6,451.0			100.0			6,242.3			100.0			3.3

		For the twelve months of:
Expressed in Millions of Pesos as of December 31, 2004		2004			% Integ.				2003		% Integ.			% Incr.
Domestic beer sales			20,439.7			81.9			19,969.7			82.7			2.4
Export beer sales			1,800.0			7.2			1,557.0			6.4			15.6
Beer sales			22,239.7			89.1			21,526.7			89.1			3.3
Packaging sales			2,511.2			10.1			2,444.9			10.1			2.7
Net sales			24,750.9			99.1			23,971.6			99.3			3.3
Other revenues			219.5			0.9			178.8			0.7			22.8
Total revenues			24,970.4			100.0			24,150.4			100.0			3.4
Cost of goods sold			10,275.4			41.2			9,995.9			41.4			2.8
Gross margin			14,695.0			58.8			14,154.5			58.6			3.8
Administrative expenses			2,698.1			10.8			2,544.0			10.5			6.1
Sales expenses			6,704.3			26.8			6,603.8			27.3			1.5
Operating expenses			9,402.4			37.7			9,147.8			37.9			2.8
Income from operations before management fee			5,292.6			21.2			5,006.7			20.7			5.7
Management fee			548.5			2.2			522.0			2.2			5.1
Income from operations			4,744.1			19.0			4,484.7			18.5			5.8
Depreciation			1,470.0			5.9			1,486.3			6.2			(1.1	)
Amortization & other			2,030.9			8.1			1,961.1			8.1			3.6
EBITDA			8,245.0			33.0			7,932.1			32.8			3.9
Particip. in affiliated companies			63.0						31.0						N.S.
Capital Expenditures			3,170.9						3,731.0						(15.0	)
Sales volumes (Thousand hectoliters)
Domestic			23,442.0			91.3			22,582.0			91.9			3.8
Exports			2,240.0			8.7			1,982.4			8.1			13.0
Total			25,682.0			100.0			24,564.4			100.0			4.5
Price per hectoliter
Domestic			871.9						884.3						(1.4	)
Exports			803.6						785.4						2.3
Total			866.0						876.3						(1.2	)
Total presentation mix (%)
Returnable			16,810.4			65.5			16,767.3			68.3			0.3
Non Returnable			2,474.7			9.6			2,128.2			8.7			16.3
Cans			6,396.9			24.9			5,668.9			23.0			12.8
Total			25,682.0			100.0			24,564.4			100.0			4.5

11

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FEMSA Comercio

Results from Operations

 

		For the fourth quarter of:
Expressed in Millions of Pesos as of December 31, 2004		2004			% Integ.			2003			% Integ.			% Incr.
Net sales			6,275.2			100.0			4,976.6			100.0			26.1
Other revenues
Total revenues			6,275.2			100.0			4,976.6			100.0			26.1
Cost of goods sold			4,558.9			72.6			3,644.3			73.2			25.1
Gross margin			1,716.3			27.4			1,332.3			26.8			28.8
Administrative expenses			102.2			1.6			96.9			1.9			5.5
Sales expenses			1,254.1			20.0			994.0			20.0			26.2
Operating expenses			1,356.3			21.6			1,090.9			21.9			24.3
Income from operations
before management fee			360.0			5.7			241.4			4.9			49.1
Management fee			27.8			0.4			29.2			0.6			(4.8	)
Income from operations			332.2			5.3			212.2			4.3			56.5
Depreciation			65.4			1.0			37.5			0.8			74.5
Amortization & other			64.0			1.1			39.1			0.7			63.9
EBITDA			461.6			7.4			288.8			5.8			59.9
Capital Expenditures			400.1						455.1						(12.1	)
Information of Convenience Stores
Total stores
New convenience stores			207						257						8.6
Same stores data: (1)
Sales (Thousands Pesos)			576.7						526.1						9.6
Traffic			21.8						20.0						8.7
Ticket			26.5						26.2						0.8

		For the twelve months of:
Expressed in Millions of Pesos as of December 31, 2004		2004			% Integ.			2003			% Integ.			% Incr.
Net sales			22,838.4			100.0			18,303.7			100.0			24.8
Other revenues
Total revenues			22,838.4			100.0			18,303.7			100.0			24.8
Cost of goods sold			16,775.1			73.5			13,492.1			73.7			24.3
Gross margin			6,063.3			26.5			4,811.6			26.3			26.0
Administrative expenses			425.6			1.9			309.6			1.7			37.5
Sales expenses			4,613.1			20.2			3,673.9			20.1			25.6
Operating expenses			5,038.7			22.1			3,983.5			21.8			26.5
Income from operations
before management fee			1,024.6			4.5			828.1			4.5			23.7
Management fee			113.8			0.5			91.9			0.5			23.8
Income from operations			910.8			4.0			736.2			4.0			23.7
Depreciation			215.5			1.0			137.7			0.7			56.5
Amortization & other			234.3			1.0			141.3			0.8			65.8
EBITDA			1,360.6			6.0			1,015.2			5.5			34.0
Capital Expenditures			1,648.0						1,273.1						29.4
Information of Convenience Stores
Total stores			3,466						2,798						23.9
New convenience stores			668						582						14.8
Same stores data: (1)
Sales (Thousands Pesos)			578.8						531.6						8.9
Traffic			22.5						21.4						4.9
Ticket			25.8						24.8						3.8

(1) Monthly average information per store, considering same stores with 13 months of operations.

12

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FEMSA Cerveza, Including Core Packaging Business (excl. “Six”)

Quarterly Results from Operations

 

		2003
Expressed in Millions of Pesos as of December 31, 2004		I			II			III			IV
Domestic volume			4,840.6			6,120.4			5,801.0			5,820.0
Domestic Price			888.3			893.6			883.7			871.9
Export volume			361.5			598.3			600.3			422.3
Export Price			773.2			787.2			786.0			792.8
Domestic beer sales			4,299.9			5,469.0			5,126.4			5,074.3
Export beer sales			279.5			471.0			471.8			334.8
Beer sales			4,579.4			5,940.0			5,598.2			5,409.1
Packaging sales			536.7			601.8			605.2			701.2
Net sales			5,116.1			6,541.8			6,203.4			6,110.3
Other revenues			38.5			35.6			50.0			54.6
Total revenues			5,154.6			6,577.4			6,253.4			6,164.9
Cost of goods sold			2,246.1			2,645.4			2,522.5			2,581.8
Gross margin			2,908.5			3,932.0			3,730.9			3,583.1
Administrative expenses			622.3			623.4			620.7			677.7
Sales expenses			1,530.5			1,773.9			1,683.0			1,616.3
Operating expenses			2,152.8			2,397.3			2,303.7			2,294.0
Income from operations before management fee			755.7			1,534.7			1,427.2			1,289.1
Management fee			129.2			131.6			130.4			130.8
Income from operations			626.5			1,403.1			1,296.8			1,158.3
Depreciation			361.7			362.9			372.2			389.4
Amortization & other			411.6			502.7			500.7			546.3
EBITDA			1,399.8			2,268.7			2,169.7			2,094.0
EBIT before management fee to Total sales			14.7	%		23.3	%		22.8	%		20.9	%
EBIT to Total sales			12.2	%		21.3	%		20.7	%		18.8	%
EBITDA to Total sales			27.2	%		34.5	%		34.7	%		34.0	%

		2004
Expressed in Millions of Pesos as of December 31, 2004		I			II			III			IV
Domestic volume			5,122.0			6,273.0			6,048.0			5,999.0
Domestic Price			870.9			890.2			875.0			850.5
Export volume			480.2			699.0			608.8			452.0
Export Price			780.5			824.9			808.3			788.9
Domestic beer sales			4,460.8			5,584.4			5,292.3			5,102.3
Export beer sales			374.8			576.6			492.1			356.5
Beer sales			4,835.6			6,161.0			5,784.4			5,458.8
Packaging sales			569.4			665.6			649.7			626.4
Net sales			5,405.0			6,826.6			6,434.1			6,085.2
Other revenues			37.1			57.1			59.0			66.4
Total revenues			5,442.1			6,883.7			6,493.1			6,151.6
Cost of goods sold			2,367.5			2,725.6			2,669.8			2,512.5
Gross margin			3,074.6			4,158.1			3,823.3			3,639.1
Administrative expenses			660.4			664.5			660.8			712.5
Sales expenses			1,544.9			1,758.8			1,672.2			1,728.4
Operating expenses			2,205.3			2,423.3			2,333.0			2,440.9
Income from operations before management fee			869.3			1,734.8			1,490.3			1,198.2
Management fee			135.6			134.8			122.9			155.1
Income from operations			733.7			1,600.0			1,367.4			1,043.1
Depreciation			355.2			373.0			369.4			372.4
Amortization & other			472.3			566.7			494.7			497.1
EBITDA			1,561.2			2,539.7			2,231.5			1,912.6
EBIT before management fee to Total sales%			16.0	%		25.2	%		23.0	%		19.5	%
EBIT to Total sales%			13.5	%		23.2	%		21.1	%		17.0	%
EBITDA to Total sales%			28.7	%		36.9	%		34.4	%		31.1	%

13

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FEMSA Cerveza, Including Core Packaging Business (excl. “Six”)
Accumulated Results from Operations

		2003
Expressed in Millions of Pesos as of December 31, 2004		March			June			September			December
Domestic volume			4,840.6			10,961.0			16,762.0			22,582.0
Domestic Price			888.3			891.2			888.6			884.3
Export volume			361.5			959.8			1,560.1			1,982.4
Export Price			773.2			781.9			783.5			785.4
Domestic beer sales			4,299.9			9,768.9			14,895.3			19,969.6
Export beer sales			279.5			750.5			1,222.3			1,557.1
Beer sales			4,579.4			10,519.4			16,117.6			21,526.7
Packaging sales			536.7			1,138.5			1,743.7			2,444.9
Net sales			5,116.1			11,657.9			17,861.3			23,971.6
Other revenues			38.5			74.2			124.2			178.8
Total revenues			5,154.6			11,732.1			17,985.5			24,150.4
Cost of goods sold			2,246.1			4,891.6			7,414.1			9,995.9
Gross margin			2,908.5			6,840.5			10,571.4			14,154.5
Administrative expenses			622.3			1,245.6			1,866.3			2,544.0
Sales expenses			1,530.5			3,304.5			4,987.5			6,603.8
Operating expenses			2,152.8			4,550.1			6,853.8			9,147.8
Income from operations before management fee			755.7			2,290.4			3,717.6			5,006.7
Management fee			129.2			260.8			391.2			522.0
Income from operations			626.5			2,029.6			3,326.4			4,484.7
Depreciation			361.7			724.6			1,096.9			1,486.3
Amortization & other			411.6			914.2			1,414.8			1,961.1
EBITDA			1,399.8			3,668.4			5,838.1			7,932.1
EBIT before management fee to Total sales			14.7	%		19.5	%		20.7	%		20.7	%
EBIT to Total sales			12.2	%		17.3	%		18.5	%		18.6	%
EBITDA to Total sales			27.2	%		31.3	%		32.5	%		32.8	%

		2004
Expressed in Millions of Pesos as of December 31, 2004		March			June			September			December
Domestic volume			5,122.0			11,395.0			17,443.0			23,442.0
Domestic Price			870.9			881.5			879.3			871.9
Export volume			480.2			1,179.2			1,788.0			2,240.0
Export Price			780.5			806.8			807.3			803.6
Domestic beer sales			4,460.8			10,045.2			15,337.4			20,439.7
Export beer sales			374.8			951.4			1,443.5			1,800.0
Beer sales			4,835.6			10,996.6			16,780.9			22,239.7
Packaging sales			569.4			1,235.0			1,884.8			2,511.2
Net sales			5,405.0			12,231.6			18,665.7			24,750.9
Other revenues			37.1			94.1			153.1			219.5
Total revenues			5,442.1			12,325.7			18,818.8			24,970.4
Cost of goods sold			2,367.5			5,093.1			7,762.9			10,275.4
Gross margin			3,074.6			7,232.6			11,055.9			14,695.0
Administrative expenses			660.4			1,324.9			1,985.6			2,698.1
Sales expenses			1,544.9			3,303.6			4,975.8			6,704.3
Operating expenses			2,205.3			4,628.5			6,961.4			9,402.4
Income from operations before management fee			869.3			2,604.1			4,094.5			5,292.6
Management fee			135.6			270.5			393.4			548.5
Income from operations			733.7			2,333.6			3,701.1			4,744.1
Depreciation			355.2			728.2			1,097.6			1,470.0
Amortization & other			472.3			1,039.0			1,533.8			2,030.9
EBITDA			1,561.2			4,100.8			6,332.5			8,245.0
EBIT before management fee to Total sales			16.0	%		21.1	%		21.8	%		21.2	%
EBIT to Total sales			13.5	%		18.9	%		19.7	%		19.0	%
EBITDA to Total sales			28.7	%		33.3	%		33.6	%		33.0	%

14

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Impact of Reclassification of Pension Plan Expenses

		COCA-COLA FEMSA						FEMSA CERVEZA						FEMSA COMERCIO						FEMSA CONSOLIDATED
Millions of 2004 4th Quarter 2004		2004			2003			2004			2003			2004			2003			2004			2003
Cost of good sold									31.2			12.7									33.0			14.4
Administrative expenses			0.0			6.8			7.7			4.4			0.2			0.0			14.2			18.3
Sales expenses			5.3			1.0			1.1			0.6			0.2			0.0			6.6			1.6
Income From operations effect			5.3			7.8			40.0			17.7			0.4			0.0			53.8			34.3
Integral result of financing			(5.8	)		(7.9	)		(31.0	)		(11.4	)		(0.4	)		(0.3	)		(43.3	)		(26.3	)
Other expenses (income)			0.5			0.1			(9.0	)		(6.3	)		0.0			0.3			(10.6	)		(8.0	)
Net income effect			—			—			—			—			—			—			—			—

		COCA-COLA FEMSA						FEMSA CERVEZA						FEMSA COMERCIO						FEMSA CONSOLIDATED
Millions of Pesos Accumulated 2004		2004			2003			2004			2003			2004			2003			2004			2003
Cost of good sold									61.3			50.8									68.6			57.6
Administrative expenses			12.3			10.5			24.5			17.7			0.6			0.3			68.4			56.8
Sales expenses			9.3			3.8			3.4			2.4			0.6			0.3			13.4			6.6
Income From operations effect			21.6			14.3			89.2			70.9			1.2			0.6			150.4			121.0
Integral result of financing			(22.9	)		(15.0	)		(64.2	)		(45.7	)		(1.3	)		(1.0	)		(117.5	)		(89.0	)
Other expenses (income)			1.3			0.7			(25.0	)		(25.2	)		0.1			0.4			(32.9	)		(32.0	)
Net income effect			—			—			—			—			—			—			—			—

15

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FEMSA

Other Financial Information

MACROECONOMIC INFORMATION

		Inflation						Exchange Rate
		Dec-Dec04			IV Qtr.			Per USD			Per Mx. Peso
Mexico			5.19	%		1.76	%		11.1460			1.0000
Colombia			5.31	%		0.38	%		2,389.7500			0.0047
Venezuela			19.19	%		3.93	%		1,920.0000			0.0058
Brazil			5.66	%		0.98	%		2.6544			4.1991
Argentina			4.90	%		0.90	%		2.9800			3.7403

16

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2004
FOURTH-QUARTER AND FULL-YEAR RESULTS

		Fourth quarter									Fourth quarter							Full Year
		2004			2003			%			2004			2003			2004
Total Revenues			12,363			12,287			0.6	%		% of Tot. Rev.						46,499
Gross Profit			6,022			6,041			-0.3	%		48.7	%		49.2	%		22,535
Operating Income			2,263			2,300			-1.6	%		18.3	%		18.7	%		7,697
Majority Net Income			1,410			1,001			40.9	%		11.4	%		8.1	%		5,404
EBITDA(1)			2,861			2,628			8.8	%		23.1	%		21.4	%		10,020
Net Debt (2)			21,385			27,629												21,385
EBITDA (1) / Interest Expense			4.20			6.65												3.96
Earnings per Share			0.76			0.54												2.93
Average Shares Outstanding (million)			1,846.5			1,846.4												1,846.4

Expressed in million of Mexican pesos with purchasing power as of December 31, 2004, except for per share amount.

(1) EBITDA = Operating income + Depreciation + Amortization & Other Non-cash Charges. See reconciliation table on page 11.

(2) Net Debt = Total Debt - Cash

•	Total revenues for the fourth quarter and the full year were Ps.12,363 million and Ps. 46,499 million, respectively.
•	Consolidated operating income was Ps.2,263 million, and operating margin was 18.3% in the fourth quarter of 2004. For the full year of 2004, consolidated operating income was Ps. 7,697 million, and operating margin was 16.6%.
•	Consolidated majority net income was Ps. 1,410 million, resulting in earnings per share of Ps. 0.76, in the fourth quarter of 2004. For the full year of 2004, majority net income was Ps. 5,404 million, resulting in earnings per share of Ps. 2.93.
•	Total net debt at the end of 2004 was approximately U.S.$1,915 million.

Mexico City (February 25, 2005), Coca-Cola FEMSA, S.A. de C.V. (BMV: KOFL, NYSE:KOF) (“Coca-Cola FEMSA” or the “Company”), the largest Coca-Cola bottler in Latin America and the second-largest Coca-Cola bottler in the world in terms of sales volume, announces results for the fourth quarter and full year of 2004.

“As we look forward, we believe our geographic diversification will enable us to foster better balanced top and bottom-line growth. Indeed, now that we have successfully finished the integration process and restructured our debt maturity profile, we can focus even more of our attention ongrowing our company’s top and bottom line,” said Carlos Salazar, Chief Executive Officer of the Company.

Stock Listing Information

Mexican Stock Exchange
Ticker: KOFL

NYSE (ADR)
Ticker: KOF

Ratio of KOF L to KOF = 10:1

For Further Information:

Investor Relations

Alfredo Fernández
alfredo.fernandez@kof.com.mx
(5255) 5081-5120 / 5121

Julieta Naranjo
julieta.naranjo@kof.com.mx
(5255) 5081-5148

Oscar Garcia
oscar.garcia@kof.com.mx
(5255) 5081-5186

Website:
www.coca-colafemsa.com

Page 17

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Consolidated Results

CONSOLIDATED RESULTS

Our consolidated revenues were Ps. 12,363 million in the fourth quarter of 2004; a slight increase of 0.6% over the same period of 2003, despite lower average prices per unit case in Mexico and Central America, which resulted in a consolidated average price per unit case of Ps. 25.04 (U.S.$2.25)².

Our gross profit in the fourth quarter of 2004 was Ps. 6,022 million, a decline of 0.3% compared with the fourth quarter of 2003. However, our cost per case decreased from Ps. 12.56 to Ps. 12.26 due to cost efficiencies achieved from the consolidation of our manufacturing facilities, better procurement practices, and synergies realized in our Mexican operations.

Our consolidated operating income was Ps. 2,263 million, a decline of 1.6%, resulting in an operating margin of 18.3% as compared to an operating margin of 18.7% in the fourth quarter of 2004. Excluding non-recurrent items³ in the amount of Ps. 269 million recorded in the fourth quarter of 2003, our operating income would have grown 11.4% in the fourth quarter of 2004 as compared to the fourth quarter of 2003, driven mainly by selling expenses reduction derived from better commercial practices.

Despite higher interest expenses, our integral cost of financing decreased 68.8% compared with the fourth quarter of 2003. This reduction mainly resulted from a shift in the foreign-exchange loss for the fourth quarter 2003 to a gain for the same period of 2004, generated by the appreciation of the Mexican peso versus the U.S. dollar as applied to our U.S. dollar-denominated debt.

During the fourth quarter of 2004, income tax, tax on assets, and employee profit sharing as a percentage of income before taxes was 31.0%, impacted positively by a one-time benefit in Mexico in the amount of Ps. 172 million due to a reduction in deferred tax liabilities driven by a decline in the Mexican income tax rate going forward.

Our consolidated majority net income increased 40.9% to Ps. 1,410 million in the fourth quarter of 2004 compared with the same period in 2003, resulting in earnings per share (“EPS”) of Ps. 0.76 (U.S.$0.69 per ADR) computed on the basis of 1,846.5 million shares outstanding (each ADR represents 10 local shares).  Excluding the above-mentioned tax benefit, our majority net income would have been Ps. 1,238 million, an increase of 23.7% compared with the fourth-quarter of 2003, resulting in EPS of Ps. 0.67 (U.S.$0.60 per ADR).

2 Assuming a foreign exchange rate of Ps.11.146 per U.S. dollar

3 As we mentioned in our fourth quarter 2003 press release, several changes in the accounting policies were booked during that quarter which impacted our results for 2003. These changes were related to (i) the cancellation of reserve provisions accumulated during the first-nine months of 2003 in relation to the excise tax on sparkling water and diet products in Mexico (“Excise Tax Impact”) that impacted positively total revenues in the fourth quarter of 2003 in the amount of Ps.136.7 million, (ii) an increase in the useful life of the coolers in our original territories in Mexico from three to five years that decreased our amortization expense by Ps.72.6 million  in the fourth quarter of 2003, and (iii) the change in accounting policies related to the treatment of bottles and cases in the countries comprising our Latincentro division that reduced the operating expenses by Ps.60 million, decreasing  non-cash items in the same amount in the fourth quarter of 2003.

Page 18

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Consolidated Balance Sheet

BALANCE SHEET

As of December 31, 2004, Coca-Cola FEMSA had a cash balance of Ps. 3,603 million (U.S.$323 million), total short-term debt of Ps. 3,272 million (U.S.$294 million), and long-term debt of Ps. 21,716 million (U.S.$1,949 million).

During the quarter, the company increased its debt balances denominated in local currency from 68% in the third quarter of 2004 to 77% in the fourth quarter of the same year.  This increase was attributed, in large part, to the establishing of cross currency swaps that increased synthetically our debt balance denominated in local currency by 630 basis points. Weighted average cost of debt during the quarter was 9.03%.

The following charts set forth the Company’s debt profile by currency and interest-rate type as of December 31, 2004:

Currency			% Total Debt			% Interest Rate Floating			Average Rate(1)
U.S. dollars			23.3	%		5	%		7.66	%
Mexican Pesos			73.1	%		18	%		9.45	%
Colombian Pesos			2.8	%		100	%		10.10	%
Venezuelan Bolivares			0.3	%		100	%		11.00	%
Argentine Pesos			0.5	%		100	%		5.36	%

(1) Annualized average interest rate per currency as of December 31, 2004

Page 19

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Consolidated Statement of Changes in Financial Position and Operating Results by Territory

Consolidated Statement of Changes in Financial Position
Expressed in million of Mexican pesos and U.S. dollars as of December 31, 2004

		Jan - Dec 2004
			Ps.			USD(1)
Net income			5,427			487
Non cash charges to net income			2,060			185
			7,487			672
Change in working capital			441			40
NRGOA(2)			7,928			711
Capital expenditures			(1,929	)		(173	)
Dividend payments			(539	)		(48	)
Financial transactions			(5,496	)		(493	)
Others			618			55
Increase in cash and cash equivalents			582			52
Cash and cash equivalents at begining of period			3,021			271
Cash and cash equivalents at end of period			3,603			323

(1) Expressed in US$ millions assuming a foreign exchange rate of Ps. 11.1460 per US Dollar

(2) Net Resources Generated by Operating Activities

OPERATING RESULTS BY TERRITORY

During the second quarter of 2003, we began consolidating the results of our new territories in accordance with Mexican GAAP. Corporación Interamericana de Bebidas S.A. de C.V., formerly known as Panamerican Beverages, Inc. (“Panamco”), had historically prepared its financial statements in accordance with U.S. GAAP and presented financial information in U.S. dollars. We have historically prepared and continue to prepare our financial statements in accordance with Mexican GAAP and present financial information in Mexican pesos.  The results of our new territories in Mexican GAAP and Mexican pesos are different from and may not be comparable to those reported by Panamco for prior periods. In addition, Panamco’s results have not been included in our financial statements for periods prior to May 2003.

Financial information for the fourth quarter of 2004 is comparable with the fourth quarter of 2003; however, for the full year, it is not comparable as Panamco is only included for eight months of 2003. On an annual basis, the information will not be comparable until the end of 2005.

For purposes of the full-year volume comparison, we have included the sales volume figures recorded by Panamco from January through April 2003.

As part of an accounting standardization process implemented in Coca-Cola FEMSA territories during 2004, certain expenses that were classified as administrative expenses during 2003 are now classified as selling expenses during 2004. For comparison purposes, we reclassified 2003 figures without impacting total operating expenses in 2003. These reclassifications were Ps.97.0 million and Ps.438.9 million for the fourth quarter of 2003 and the full year ended in December 31, 2003, respectively.

As we mentioned in our fourth quarter 2003 press release, several changes in the accounting policies were recorded during that quarter which impacted our results for 2003. These changes were related to (i) the cancellation of reserve provisions accumulated during the first-nine months of 2003 in relation to the excise tax on sparkling water and diet products in Mexico (“Excise Tax Impact”) that impacted positively total revenues in the fourth quarter of 2003 in the amount of Ps. 136.7 million, (ii) an increase in the useful life of the coolers in our original territories in Mexico from three to five years that decreased our amortization expense by Ps. 72.6 million  in the fourth quarter of 2003, and (iii) the change in accounting policies related to the treatment of bottles and cases in the countries comprising our Latincentro division that reduced the operating expenses by Ps. 60 million, decreasing non-cash items in the same amount in the fourth quarter of 2003.

Page 20

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Fourth Quarter and Full-Year 2004 Summary

FOURTH QUARTER 2004 SUMMARY:

		Volume (MUC)(1)			% Total			Operating Income (million)			% Total			% Operating Margin
Mexico			248.3			50.5	%	Ps.	1,464			66.6	%		21.8	%
Central America			29.8			6.1	%		134			6.1	%		14.7	%
Colombia			45.1			9.2	%		145			6.6	%		12.7	%
Venezuela			45.9			9.3	%		165			7.5	%		12.1	%
Brazil			80.3			16.3	%		179			8.1	%		11.5	%
Argentina			41.8			8.5	%		112			5.1	%		15.5	%
Total			491.2			100.0	%	Ps.	2,199			100.0	%		18.3	%

FULL YEAR 2004 SUMMARY:

		Volume (MUC)(1)			% Total			Operating Income (million)			% Total			% Operating Margin
Mexico			989.8			53.3	%		Ps.5,520			72.8	%		20.7	%
Central America			110.6			6.0	%		419			5.5	%		12.1	%
Colombia			167.1			9.0	%		433			5.7	%		10.7	%
Venezuela			172.7			9.3	%		375			5.0	%		7.8	%
Brazil			270.8			14.6	%		458			6.0	%		8.9	%
Argentina			144.3			7.8	%		383			5.0	%		15.6	%
Total			1,855.3			100.0	%		Ps.7,588			100.0	%		16.6	%

(1) Million Unit Case – unit of measurement equivalent to 24 eight-ounce servings.

Page 21

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Mexican and Central American Operating Results

MEXICAN OPERATING RESULTS

Revenues

Revenues in our Mexican territories were Ps. 6,705 million in the fourth quarter of 2004, a decline of 4.8% compared with the same period of 2003. Average price per unit case in the fourth quarter of 2004, was Ps. 26.86 (U.S.$2.41), a decline of 6.1% compared with the fourth quarter of 2003. However, there was a quarterly sequential improvement of 1.3%, driven by a better packaging mix in the multi-serve segment and incremental volumes in single-serve presentations. Excluding Ciel water volumes in 5.0, 19.0, and 20.0-liter packaging presentations, our average price per unit case was Ps. 30.50 (U.S.$2.74).

Total sales volume grew 1.8% in the fourth quarter of 2004 compared with the same period of 2003, reaching 248.3 million unit cases (“MUC”). Carbonated soft drink (“CSD”) sales volume increased 2.0% to 202.8 MUC, mainly resulting from the solid performance of our flavored brands, which accounted for more than 70% of incremental volumes; Ciel bottled water in personal sizes and brand Coca-Cola accounted for the balance.

Operating Income

In the fourth quarter of 2004, higher sweetener and polyethylene terephtalate (“PET”) prices were partially offset by a favorable shift in sweetener mix from refined sugar to standard sugar. Gross profit decreased 6.1% as a result of the decrease in total revenues above-mentioned resulting in a 52.9% margin as percentage of total revenues, a decline of 80 basis points as compared, to the same period of 2003. However, average cost per unit case decreased 4.9% year over year due to higher productivity levels achieved through the synergies realized from the closing of manufacturing facilities, headcount rationalization, and better procurement practices. Excluding the Excise Tax Impact from the fourth quarter of 2003 in the amount of Ps. 137 million, gross profit would have decreased only by 2.6%.

Operating expenses declined 10.6% to Ps. 2,085 million, due to distribution efficiencies that drove down freight costs and lower breakage due to the introduction of fewer bottles in the quarter compared with last year, which more than offset non-recurrent expenses related to our integration process and training programs in 2004. Our operating income increased 1.1% to Ps. 1,464 million, a margin expansion of 120 basis points reaching 21.8% margin as percentage of total revenues. Excluding the non-recurrent items related to Mexico recorded in the fourth quarter of 2003, mentioned in page 4, operating income would have increased by 18.2% in the fourth quarter of 2004.

CENTRAL AMERICAN OPERATING RESULTS (Guatemala, Nicaragua, Costa Rica, and Panama)

Revenues

Our Central American territories’ total revenues reached Ps. 910 million in the fourth quarter of 2004, remaining almost flat as compared with the same period of 2003. Average price per unit case declined 1.7% to Ps. 30.47 (U.S.$ 2.73) driven by a shift in the packaging mix towards multi-serve presentations, which accounted for the volume growth in the quarter.

Total sales volume in our Central American territories reached 29.8 MUC, an increase of 1.7% compared with the same quarter of 2003. The majority of this growth came from brand Coca-Cola, which accounted for 80% of the increase.

Operating Income

Productivity improvements and headcount rationalization more than offset raw-material price increases during the fourth quarter of 2004, resulting in a gross-margin expansion of 50 basis points to 50.7%, compared with 50.2% in the same period of 2003.

We increased our operating income by 22.4% as compared with the fourth quarter of 2003, to Ps. 134 million from Ps. 109 million, reaching an operating margin of 14.7%. The increase in our operating income was a result of lower operating expenses due to better commercial and distribution practices throughout the region, such as efficiencies in pre-sale and route productivity.

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Colombian and Venezuelan Operating Results

COLOMBIAN OPERATING RESULTS

Revenues

Our Colombian operations achieved total revenues of Ps. 1,137 million for the fourth quarter of 2004, an increase of 6.5% compared with the same period of 2003, driven by the average price per unit case increase resulting from price increases implemented during the year. Our average price per unit case was Ps. 25.21 (U.S.$2.26). Sales volume of brand Coca-Cola grew 4.3% to 30.5 MUC in the fourth quarter of 2004 compared with the same period of 2003, compensating for the 6.9% decline in flavored CSDs.

Operating Income

During the fourth quarter of 2004, our gross profit grew 13.6% to Ps. 547.2 million compared with the same period of 2003, resulting in a year-over-year gross-margin expansion of 300 basis points. These improvements were mainly due to (i) lower sweetener costs, (ii) savings achieved from the consolidation of our manufacturing network, and (iii) the appreciation of the Colombian Peso against the U.S. dollar as applied to our dollar-denominated costs.

Our operating income was Ps. 145 million during the fourth quarter of 2004, a decrease of 5.9% as compared to the fourth quarter of 2003, resulting in a 12.7% operating income margin. Operating expenses increased 22.8% in the fourth quarter of 2004, driven by the change in accounting policies recorded in the fourth quarter of 2003, related to the treatment of bottles and cases, which reduced the operating expenses by Ps. 60 million, decreasing the non-cash items in the same amount in the fourth quarter of 2003. Excluding this operating expense reduction recorded in 2003, our operating income would have grown by 54.2%, driven mainly by commercial practices improvements and headcount optimization.

VENEZUELAN OPERATING RESULTS

Revenues

Total revenues increased by 10.8% in the fourth quarter of 2004 compared with the same period of 2003, reaching Ps. 1,363 million. Our average price per unit case was Ps. 29.66 (U.S.$2.66), representing an increase of 10.6% compared with the previous year, driven by price increases implemented during the year, including an additional 6% in the fourth quarter of 2004. Sales volume reached 45.9 MUC, flat compared with a strong fourth-quarter 2003 in which sales volume grew 34.7%.

Operating Income

Cost of goods increased 14.7%, driven by increases in PET prices and a shift in volume mix to non-returnable PET presentations, which were partially offset by higher revenues. Gross profit in absolute terms grew 6.1%, reaching Ps. 599 million.

Operating expenses increased 240 basis points as percentage of total revenues due to (i) higher freight costs, (ii) a more inflationary environment, and  (iii) the depreciation of the Bolivar as applied to our USD-denominated expenses. Our operating income was Ps. 165 million, a 430 basis-point decrease as percentage of total revenues over the same period of last year, due to increases in operating expenses, resulting in a 12.1% operating income margin.

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Brazilian and Argentine Operating Results

BRAZILIAN OPERATING RESULTS

Revenues

In Brazil, our total revenues reached Ps. 1,550 million for the fourth quarter of 2004, an improvement of 12.2% compared with the same period of 2003. Our average price per unit case was Ps.19.25 (U.S.$1.72), an increase of 8.3% over the fourth quarter of 2003, mainly due to the year-over-year appreciation of the Brazilian Real resulting from the economic recovery in Brazil and the implementation of revenue management initiatives.

Volume growth during the fourth quarter of 2004 was 3.6%, mainly driven by CSD growth, which represented over 90% of incremental volumes; bottled water accounted for the remaining balance. Volumes in our single-serve presentations grew 3.8% during the quarter.

Operating Income

During the fourth quarter of 2004, our gross profit totaled Ps. 587 million, an increase of 10.5% compared with the same period of 2003. Gross margin decreased from 38.4% in the fourth quarter of 2003 to 37.8% in the fourth quarter of 2004, as a result of higher PET and sugar prices for the year.

Our operating expenses as a percentage of total revenues decreased from 26.9% in the fourth quarter of 2003 to 26.3% in the same period of 2004, as a result of higher revenues combined with cost-cutting initiatives and higher operating productivity levels. Operating income was Ps. 179 million, a 12.8% increase compared with the same period of 2003, resulting in an operating income margin of 11.5%.

ARGENTINE OPERATING RESULTS

Revenues

In Argentina, our total revenues reached Ps. 723 million, a 9.6% increase over the fourth quarter of 2003, mainly as a result of the 6.1% increase in sales volume. Average price per unit case grew 3.3% to Ps. 16.51 (U.S.$1.48), despite the fact that the majority of the incremental volumes came only from Tai, the value-protection brand that has lower price per unit case. Sales volume reached 41.8 MUC during the fourth quarter of 2004, an increase of 6.1% compared with the same period of 2003. During the quarter, volumes of non-carbonated beverages almost doubled from a low base to 1.4% of total sales volume.

Operating Income

Gross profit reached Ps. 279 million during the fourth quarter of 2004, an increase of 7.2% compared with the same period of 2003. Our gross margin decreased as a percentage of sales from 39.4% in the fourth quarter of 2003 to 38.5%, mainly as a result of higher PET prices and sweetener cost.

Operating expenses increased 16.1%, driven mainly by higher introduction of returnable bottles in the market in connection with our strategy of strengthening our sales volume in returnable presentations. In spite of this increase, our operating income only decreased by 3.9% to Ps. 112 million, resulting in a 15.5% operating income margin.

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Summary of Full-Year Results and Conference Call Information

SUMMARY OF FULL-YEAR RESULTS

Financial information for full year of 2004 is not comparable with 2003; however, for volume-comparison purposes, we have included the sales volume figures recorded by Panamco from January 2003 through the end of April 2003.

Consolidated sales volume reached 1,855 MUC in 2004, an increase of 1.7% versus 2003, mainly driven by CSD volume growth across most of our territories, which more than compensated for water volume declines in Mexico and volume decline in Colombia. During 2004, CSD volumes grew almost 4%, driven by volume growth from brand Coca-Cola, which accounted for 58% of the incremental volumes; the CSD flavor segment represented the balance.

During 2004, total revenues reached Ps. 46,499 million, resulting in a consolidated average unit price per case of Ps. 24.95 (U.S.$2.24). Gross margin as a percentage of total revenues was 48.5% in 2004. Consolidated operating income was Ps. 7,697 million, or 16.6% as percentage of total revenues during 2004.

Our majority net income was Ps. 5,404 million, resulting in EPS of Ps. 2.93 (U.S.$2.63 per ADS) based on 1,846.4 million shares outstanding.

CONFERENCE CALL INFORMATION

Our fourth-quarter and full year 2004 Conference Call will be held on: February 28, 2005, 11:00 A.M. Eastern Time (10:00 A.M. Mexico City Time). To participate in the conference call, please dial: Domestic U.S.: 800-599-9829 and International: 617-847-8703. We invite investors to listen to the live audiocast of the conference call on the Company’s website, www.cocacola-femsa.com.mx

If you are unable to participate live, an instant replay of the conference call will be available through March 7, 2005. To listen to the replay please dial: Domestic U.S.: 888-286-8010 or International: 617-801-6888. Pass code: 98344233.

* * *

Coca-Cola FEMSA, S.A. de C.V. produces and distributes Coca-Cola, Sprite, Fanta, Lift and other trademark beverages of The Coca-Cola Company in Mexico (a substantial part of central Mexico, including Mexico City and Southeast of Mexico), Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide), Panama (nationwide), Colombia (most of the country), Venezuela (nationwide), Brazil (greater São Paulo, Campiñas, Santos, the state of Mato Grosso do Sul and part of the state of Goias) and Argentina (federal capital of Buenos  Aires and surrounding areas), along with bottled water, beer and other beverages in some of these territories.

The Company has 30 bottling facilities in Latin America and serves approximately 1,500,000 retailers in the region. The Coca-Cola Company owns a 39.6% equity interest in Coca-Cola FEMSA.

* * *

Figures for the Company’s operations in Mexico and its consolidated international operations were prepared in accordance with Mexican generally accepted accounting principles (“Mexican GAAP”). All figures are expressed in constant Mexican pesos with purchasing power at December 31, 2004. For comparison purposes, 2003 and 2004 figures from the Company’s operations have been restated taking into account local inflation of each country with reference to the consumer price index and converted from local currency into Mexican pesos using the exchange rate as of the end of the period. In addition, all comparisons in this report for the fourth quarter of 2004, which ended on December 31, 2004, are made against the figures for the comparable period in 2003, unless otherwise noted.

This news release may contain forward-looking statements concerning Coca-Cola FEMSA’s future performance and should be considered as good faith estimates by Coca-Cola FEMSA. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, many of which are outside Coca-Cola FEMSA´s control that could materially impact the Company’s actual performance.

References herein to “U.S.$” are to United States dollars. This news release contains translations of certain peso amounts into U.S. dollars for the convenience of the reader. These translations should not be construed as representations that the peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated.

* * *

(7 pages of tables to follow)

Page 25

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Consolidated Balance Sheet

Consolidated Balance Sheet
Expressed in million of Mexican pesos with purchasing power as of December 31, 2004

Assets		Dec-04			Dec-03
Current Assets
Cash and cash equivalents		Ps.	3,603		Ps.	3,021
Total accounts receivable			2,827			3,129
Inventories			2,515			2,354
Prepaid expenses			105			215
Total current assets			9,050			8,719
Property, plant and equipment
Property, plant and equipment			30,525			29,415
Accumulated depreciation			-12,884			-11,324
Bottles and cases			1,031			1,043
Total property, plant and equipment, net			18,672			19,134
Investment in shares			418			518
Deferred charges, net			2,812			2,827
Intangibles			36,114			35,471
Total Assets		Ps.	67,066		Ps.	66,669

Liabilities and Stockholders’ Equity		Dec-04			Dec-03
Current Liabilities
Short-term bank loans and notes		Ps.	3,272		Ps.	3,194
Interest payable			314			395
Suppliers			4,144			3,670
Other current liabilities			2,957			2,943
Total Current Liabilities			10,687			10,202
Long-term bank loans			21,716			27,456
Pension plan and seniority premium			645			642
Other liabilities			3,909			4,073
Total Liabilities			36,957			42,373
Stockholders’ Equity
Minority interest			709			174
Majority interest:
Capital stock			2,793			2,793
Additional paid in capital			11,954			11,951
Retained earnings of prior years			12,019			10,095
Net income for the period			5,404			2,463
Cumulative results of holding non-monetary assets			-2,770			-3,180
Total majority interest			29,400			24,122
Total stockholders’ equity			30,109			24,296
Total Liabilities and Equity		Ps.	67,066		Ps.	66,669

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Consolidated Income Statement

Consolidated Income Statement
Expressed in million of Mexican pesos⁽¹⁾ with purchasing power as of December 31, 2004

		4Q04			4Q03			YTD04			YTD03(2)
Sales Volume (MUC)			491.2			480.8			1,855.3			1,450.5
Average price per unit case			25.04			25.34			24.95			26.11
Net revenues			12,300.7			12,185.2			46,290.2			37,876.2
Other operating revenues			62.3			101.6			208.8			245.6
Total revenues			12,363.0			12,286.8			46,499.0			38,121.8
Cost of sales			6,341.1			6,245.9			23,963.6			19,367.3
Gross profit			6,021.9			6,040.9			22,535.4			18,754.5
Administrative expenses			687.5			674.9			2,705.0			2,090.7
Selling expenses			3,071.1			3,065.9			12,133.6			9,564.4
Operating expenses			3,758.6			3,740.8			14,838.6			11,655.1
Operating income			2,263.3			2,300.1			7,696.8			7,099.4
Interest expense			681.6			395.0			2,531.4			1,624.9
Interest income			12.5			21.8			266.3			251.4
Interest expense, net			669.1			373.2			2,265.1			1,373.5
Foreign exchange loss (gain)			(69.7	)		336.1			37.7			2,136.5
Loss (gain) on monetary position			(523.1	)		(464.6	)		(1,504.5	)		(927.6	)
Integral cost of financing			76.3			244.7			798.3			2,582.4
Other (income) expenses, net			125.7			126.5			407.8			260.2
Income before taxes			2,061.3			1,928.9			6,490.7			4,256.8
Taxes			638.9			925.9			1,063.4			1,776.3
Provision for the year			638.9			925.9			2,546.4			1,776.3
Change in the statutory income tax rate			—			—			(172.0	)		—
Non-recurring gain on tax lawsuit			—			—			(1,311.0	)		—
Consolidated net income			1,422.4			1,003.0			5,427.3			2,480.5
Majority net income			1,410.3			1,001.0			5,404.0			2,462.6
Minority net income			12.1			2.0			23.3			17.9
Operating income			2,263.3			2,300.1			7,696.8			7,099.4
Depreciation			306.9			287.0			1,238.7			1,040.1
Amortization and Other non-cash charges (3)			290.8			41.30			1,084.6			723.1
EBITDA (4)			2,861.0			2,628.4			10,020.1			8,862.6

(1) Except volume and average price per unit case figures.

(2) Includes eight months from our new territories acquired from Panamco.

(3) Includes returnable bottel breakage expense.

(4) EBITDA = Operating Income + Depreciation +Amortization & Other non-cash charges.

Page 27

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Mexican and Central American operations

Mexican operations
Expressed in million of Mexican pesos⁽¹⁾ with purchasing power as of December 31, 2004

		4Q04			% Rev			4Q03			% Rev			YTD 04			% Rev
Sales Volume (MUC)			248.3						243.9						989.8
Average price per unit case			26.86						28.59						26.83
Net revenues			6,670.5						6,974.0						26,558.5
Other operating revenues			34.4						66.0						99.8
Total revenues			6,704.9			100.0	%		7,040.1			100.0	%		26,658.3			100.0	%
Cost of sales			3,156.0			47.1	%		3,260.3			46.3	%		12,617.0			47.3	%
Gross profit			3,548.9			52.9	%		3,779.8			53.7	%		14,041.3			52.7	%
Administrative expenses			447.1			6.7	%		411.3			5.8	%		1,637.1			6.1	%
Selling expenses			1,637.6			24.4	%		1,920.6			27.3	%		6,884.7			25.8	%
Operating expenses			2,084.7			31.1	%		2,332.0			33.1	%		8,521.8			32.0	%
Operating income			1,464.2			21.8	%		1,447.8			20.6	%		5,519.5			20.7	%
Depreciation, Amortization & Other non-cash charges (2)			344.8			5.1	%		228.5			3.2	%		1,326.7			5.0	%
EBITDA (3)			1,809.0			27.0	%		1,676.3			23.8	%		6,846.3			25.7	%

(1) Except volume and average price per unit case figures.

(2) Includes returnable bottle breakage expense.

(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges.

Central American operations
Expressed in million of Mexican pesos⁽¹⁾ with purchasing power as of December 31, 2004

		4Q04			% Rev			4Q03			% Rev			YTD 04			% Rev
Sales Volume (MUC)			29.8						29.3						110.6
Average price per unit case			30.47						31.01						31.23
Net revenues			908.1						908.6						3,454.2
Other operating revenues			1.7						(2.1	)					4.8
Total revenues			909.8			100.0	%		906.5			100.0	%		3,459.0			100.0	%
Cost of sales			448.3			49.3	%		451.3			49.8	%		1,788.6			51.7	%
Gross profit			461.5			50.7	%		455.2			50.2	%		1,670.4			48.3	%
Administrative expenses			70.8			7.8	%		73.5			8.1	%		274.0			7.9	%
Selling expenses			256.8			28.2	%		272.2			30.0	%		977.6			28.3	%
Operating expenses			327.6			36.0	%		345.7			38.1	%		1,251.6			36.2	%
Operating income			133.9			14.7	%		109.4			12.1	%		418.8			12.1	%
Depreciation, Amortization & Other non-cash charges (2)			62.8			6.9	%		30.9			3.4	%		242.5			7.0	%
EBITDA (3)			196.7			21.6	%		140.3			15.5	%		661.3			19.1	%

(1) Except volume and average price per unit case figures.

(2) Includes returnable bottle breakage expense.

(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges.

Page 28

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Colombian and Venezuelan operations

Colombian operations
Expressed in million of Mexican pesos⁽¹⁾ with purchasing power as of December 31, 2004

		4Q04			%Rev			4Q03			% Rev			YTD 04			% Rev
Sales Volume (MUC)			45.1						45.1						167.1
Average price per unit case			25.21						23.68						24.33
Net revenues			1,136.9						1,067.9						4,065.5
Other operating revenues			—						0.0						—
Total revenues			1,136.9			100.0	%		1,067.9			100.0	%		4,065.5			100.0	%
Cost of sales			589.7			51.9	%		586.2			54.9	%		2,175.9			53.5	%
Gross profit			547.2			48.1	%		481.6			45.1	%		1,889.6			46.5	%
Administrative expenses			57.3			5.0	%		140.9			13.2	%		203.3			5.0	%
Selling expenses			345.1			30.4	%		186.9			17.5	%		1,253.3			30.8	%
Operating expenses			402.4			35.4	%		327.7			30.7	%		1,456.6			35.8	%
Operating income			144.8			12.7	%		153.9			14.4	%		433.0			10.7	%
Depreciation, Amortization & Other non-cash charges (2)			75.1			6.6	%		(0.3	)		0.0	%		297.8			7.3	%
EBITDA (3)			219.9			19.3	%		153.6			14.4	%		730.8			18.0	%

(1) Except volume and average price per unit case figures.

(2) Includes returnable bottle breakage expense.

(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges.

Venezuelan operations
Expressed in million of Mexican pesos⁽¹⁾ with purchasing power as of December 31, 2004

		4Q04			% Rev			4Q03			% Rev			YTD 04			% Rev
Sales Volume (MUC)			45.9						45.8						172.7
Average price per unit case			29.66						26.81						27.63
Net revenues			1,361.6						1,227.8						4,771.9
Other operating revenues			1.2						2.6						3.7
Total revenues			1,362.8			100.0	%		1,230.4			100.0	%		4,775.6			100.0	%
Cost of sales			763.8			56.0	%		665.7			54.1	%		2,773.4			58.1	%
Gross profit			599.0			44.0	%		564.7			45.9	%		2,002.2			41.9	%
Administrative expenses			73.8			5.4	%		100.2			8.1	%		271.6			5.7	%
Selling expenses			360.5			26.5	%		263.1			21.4	%		1,355.9			28.4	%
Operating expenses			434.3			31.9	%		363.3			29.5	%		1,627.5			34.1	%
Operating income			164.8			12.1	%		201.4			16.4	%		374.6			7.8	%
Depreciation, Amortization & Other non-cash charges (2)			53.8			3.9	%		20.2			1.6	%		228.5			4.8	%
EBITDA (3)			218.5			16.0	%		221.5			18.0	%		603.1			12.6	%

(1) Except volume and average price per unit case figures.

(2) Includes returnable bottle breakage expense.

(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges.

Page 29

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Brazilian and Argentine operations

Brazilian operations
Expressed in million of Mexican pesos⁽¹⁾ with purchasing power as of December 31, 2004

		4Q04			% Rev			4Q03			% Rev			YTD 04			% Rev
Sales Volume (MUC)			80.3						77.3						270.8
Average price per unit case			19.25						17.81						18.91
Net revenues			1,545.5						1,376.6						5,120.2
Other operating revenues			4.7						4.5						16.9
Total revenues			1,550.2			100.0	%		1,381.1			100.0	%		5,137.1			100.0	%
Cost of sales			963.5			62.2	%		850.2			61.6	%		3,164.4			61.6	%
Gross profit			586.7			37.8	%		530.9			38.4	%		1,972.7			38.4	%
Administrative expenses			75.7			4.9	%		62.7			4.5	%		338.6			6.6	%
Selling expenses			332.1			21.4	%		309.4			22.4	%		1,175.8			22.9	%
Operating expenses			407.7			26.3	%		372.2			26.9	%		1,514.4			29.5	%
Operating income			179.0			11.5	%		158.7			11.5	%		458.2			8.9	%
Depreciation, Amortization & Other non-cash charges (2)			26.2			1.7	%		18.4			1.3	%		102.2			2.0	%
EBITDA (3)			205.2			13.2	%		177.1			12.8	%		560.5			10.9	%

(1) Except volume and average price per unit case figures.

(2) Includes returnable bottle breakage expense.

(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges.

Argentine operations
Expressed in million of Mexican pesos⁽¹⁾ with purchasing power as of December 31, 2004

		4Q04			% Rev			4Q03			% Rev			YTD 04			% Rev			YTD 03			% Rev
Sales Volume (MUC)			41.8						39.4						144.3						126.6
Average price per unit case			16.51						15.99						16.20						15.76
Net revenues			690.3						629.9						2,337.0						1,995.2
Other operating revenues			33.2						30.4						114.0						105.6
Total revenues			723.4			100.0	%		660.3			100.0	%		2,451.0			100.0	%		2,100.8			100.0	%
Cost of sales			444.9			61.5	%		400.4			60.6	%		1,492.3			60.9	%		1,342.0			63.9	%
Gross profit			278.5			38.5	%		259.9			39.4	%		958.7			39.1	%		758.8			36.1	%
Administrative expenses			26.9			3.7	%		24.6			3.7	%		89.6			3.7	%		106.0			5.0	%
Selling expenses			139.3			19.2	%		118.5			17.9	%		486.3			19.8	%		431.8			20.6	%
Operating expenses			166.2			23.0	%		143.2			21.7	%		575.8			23.5	%		537.9			25.6	%
Operating income			112.3			15.5	%		116.8			17.7	%		382.9			15.6	%		221.0			10.5	%
Depreciation, Amortization & Other non-cash charges (2)			35.0			4.8	%		31.0			4.7	%		125.6			5.1	%		162.0			7.7	%
EBITDA (3)			147.3			20.4	%		147.7			22.4	%		508.4			20.7	%		383.0			18.2	%

(1) Except volume and average price per unit case figures.

(2) Includes returnable bottle breakage expense.

(3) EBITDA = Operating Income + Depreciation + Amortization & Other non-cash charges.

Page 30

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Selected Information

For the three months ended December 31, 2004

Expressed in million Mexican pesos as of December 31, 2004

		4Q 2003			4Q 2004
Capex			191.0			682.8
Depreciation			287.0			306.9
Amortization & Others			41.3			290.8

VOLUME
Expressed in million unit cases

		4Q 2003
		Colas			Flavors			Water			Beer			Others			Total
Mexico			152.1			46.7			44.1			0.0			1.0			243.9
Central America			20.7			7.0			1.2			0.0			0.4			29.3
Colombia			29.5			9.7			5.8			0.0			0.1			45.1
Venezuela			26.5			13.0			3.5			0.0			2.8			45.8
Brazil			41.9			17.1			3.5			14.4			0.4			77.3
Argentina			27.8			11.2			0.3			0.0			0.1			39.4
Total			298.5			104.7			58.4			14.4			4.8			480.8

		4Q 2004
		Colas			Flavors			Water			Beer			Others			Total
Mexico			152.7			50.1			44.3			0.0			1.2			248.3
Central America			21.1			7.0			1.1			0.0			0.6			29.8
Colombia			30.5			9.1			5.4			0.0			0.1			45.1
Venezuela			26.3			14.6			3.3			0.0			1.7			45.9
Brazil			44.9			18.9			3.9			12.1			0.5			80.3
Argentina			27.7			13.5			0.3			0.0			0.3			41.8
Total			303.2			113.2			58.3			12.1			4.4			491.2

PACKAGE MIX BY PRESENTATION
Expressed as a Percentage of Total Volume

		4Q 2003												4Q 2004
		Ret			Non-Ret			Fountain			Jug			Ret			Non-Ret			Fountain			Jug
Mexico			28.5			56.2			1.3			14.0			28.0			57.1			1.3			13.6
Central America			50.9			44.5			4.6			—			44.9			50.4			4.7			—
Colombia			51.5			39.5			3.2			5.8			47.1			43.6			3.5			5.8
Venezuela			37.1			57.9			2.6			2.4			27.2			67.2			3.3			2.3
Brazil			9.4			87.4			3.2			—			10.4			86.7			2.9			—
Argentina			25.2			71.6			3.2			—			25.8			71.3			2.9			—

For the twelve months ended December 31, 2004
Expressed in million Mexican pesos as of December 31, 2004

		2003			2004
Capex			2,006.5			1,929.1
Depreciation			1,040.1			1,238.7
Amortization & Others			723.1			1,084.6

VOLUME
Expressed in million unit cases

		YTD 2003
		Colas			Flavors			Water			Beer			Others			Total
Mexico			598.6			187.7			209.7			0.0			5.6			1,001.6
Central America			74.4			26.5			4.5			0.0			1.9			107.3
Colombia			107.1			38.4			26.0			0.0			0.3			171.8
Venezuela			86.5			44.2			12.4			0.0			8.5			151.6
Brazil			141.6			62.8			11.0			48.1			1.6			265.1
Argentina			90.5			34.6			1.2			0.0			0.3			126.6
Total			1,098.7			394.2			264.8			48.1			18.2			1,824.0

		YTD 2004
		Colas			Flavors			Water			Beer			Others			Total
Mexico			600.2			196.1			188.7			0.0			4.8			989.8
Central America			76.8			27.5			4.5			0.0			1.8			110.6
Colombia			110.0			34.5			22.1			0.0			0.5			167.1
Venezuela			94.2			55.0			14.1			0.0			9.4			172.7
Brazil			152.1			60.7			12.9			43.4			1.7			270.8
Argentina			98.2			44.1			1.2			0.0			0.8			144.3
Total			1,131.5			417.9			243.5			43.4			19.0			1,855.3

PACKAGE MIX BY PRESENTATION
Expressed as a Percentage of Total Volume

		YTD 2003												YTD 2004
		Ret			Non-Ret			Fountain			Jug			Ret			Non-Ret			Fountain			Jug
Mexico			27.9			54.9			1.3			15.9			28.4			55.9			1.3			14.4
Central America			51.8			42.9			5.3			—			48.3			47.2			4.5			—
Colombia			53.4			36.8			3.0			6.8			50.7			39.6			3.4			6.3
Venezuela			36.4			57.6			2.7			3.3			30.1			63.4			3.0			3.5
Brazil			11.1			85.1			3.8			—			10.7			86.2			3.1			—
Argentina			24.5			71.8			3.7			—			26.9			69.6			3.5			—

Page 31

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Macroeconomic Information

December 2004
Macroeconomic Information

		Inflation						Foreign Exchange Rate (Per US Dollar)
		YTD			4Q 04			Dec 2004			Dec 2003
Mexico			5.19	%		1.76	%		11.1460			11.2350
Colombia			5.31	%		0.38	%		2,389.7500			2,778.2100
Venezuela			19.19	%		3.93	%		1,920.0000			1,853.0000
Brazil			5.66	%		0.98	%		2.6544			2.8892
Argentina			4.90	%		0.90	%		2.9800			2.9350

Page 32

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