July 20, 1999

CEMEX, S.A. de C.V. (OTC: CMXBY) announced today that its net sales increased 14% in dollar terms to US$1.198 billion for the second quarter of 1999 compared to the same quarter of 1998. In real peso terms, net sales grew 7% to $11.288 billion pesos.

EBITDA continued its upward trend and increased 27% in dollar terms to US$464 million, or 20% in real terms to $4.373 billion pesos, allowing EBITDA margin to reach a historic high of 38.7% for the quarter versus 34.7% reported in the comparable year-ago period.

Héctor Medina, Executive Vice President of Planning and Finance, said: "We are extremely pleased with this year´s second quarter results. CEMEX´s ability to meet our clients´ challenging needs has represented a competitive advantage even in adverse macroeconomic conditions in some of our markets. The quality of our products and our commitment to customer service will continue to drive CEMEX´s strong results."

CEMEX´s consolidated worldwide cement volumes for the second quarter increased 6% compared to the second quarter of 1998, while ready-mix volumes decreased 10%.

The company´s North America region (which includes the Mexican and U.S. operations) generated US$711 million in net sales for the second quarter of 1999, 20% higher in dollar terms versus the same period of 1998. EBITDA grew 31% to US$330 million.

South America & Caribbean region´s net sales posted US$253 million, a decline of 2% versus the second quarter of 1998, while EBITDA rose 3% to US$84 million.

Europe & Asia region´s net sales increased 10% to US$238 million and EBITDA 19% to US$ 94 million.

The consolidation of Rizal Cement and APO Cement in the Philippines contributed 3% to the overall increase in net sales, while the rest resulted from strong pricing and higher domestic demand in many of the company´s markets.

Cash earnings (EBITDA less net interest expense) in the second quarter grew 39% to US$353 million (US$0.58 per ADR), or 31% in real terms versus the prior year, to $3.328 billion pesos ($5.38 pesos per ADR). The ADR ratio is 2:1 per ordinary share.

CEMEX´s operating income for the second quarter in 1999 expanded 33% to US$385 million or 25% in real terms to $3.624 billion pesos. Strong pricing, higher volumes and lower costs fueled operating margin in the second quarter to 32.1%, compared to 27.4% for the same period last year.

Majority net income during the second quarter grew to US$250 million ($2.357 billion pesos), compared to US$184 million ($1.841 billion pesos) for the comparable year-ago quarter.

Earnings per ADR reported for the second quarter were US$0.40 ($3.80 pesos), versus US$0.30 ($3.02 pesos) during the same period of 1998.

Free cash flow grew 119% to US$271 million (US$0.44 per ADR) during the second quarter, or 106% in real terms to $2.553 billion pesos ($4.12 pesos per ADR) as compared to the same period last year.

Interest plus Preferred dividend coverage (EBITDA before operating lease payments and cost restatements for inflation divided by interest expense plus dividend on Preferred Capital Securities) was 3.33 times for the trailing twelve months versus 2.75 times a year ago. Leverage as defined by Net Debt to Trailing Twelve Month EBITDA was 2.98 times, versus 3.50 times reported for the second quarter 1998.

"We are pleased to report that our targets for interest coverage and net debt to EBITDA for 1999 have been met six months ahead of schedule”, commented Rodrigo Treviño, Chief Financial Officer. “We are well on track to meet our targets for the year 2000. This will provide us with the financial flexibility and capital structure that we sought to support our business plan."

Founded in 1906, CEMEX is one of the three largest cement companies in the world with approximately 61 million metric tons of production capacity. Through operating subsidiaries positioned in three different continents, CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. In addition, the company is the world´s leading producer of white cement and the world´s largest trader of cement and clinker.