July 20, 2000

CEMEX, S.A. de C.V. (NYSE: CX) announced today that its second-quarter net sales increased 14% to US$1.36 billion, compared with the year-earlier period. Net sales grew 14% in real peso terms to $13.4 billion.

The rise in quarterly net sales was attributable to strong pricing, higher domestic demand in most of the company's markets and the consolidation of acquisitions in Egypt and Costa Rica.

Second-quarter EBITDA grew 8% to US$502 million. EBITDA margin was 36.9% as a percentage of sales, compared to 38.7% last year. Quarterly EBITDA jumped 8% in real pesos to $4.9 billion.

Héctor Medina, Executive Vice President of Planning and Finance, said, "Our double-digit sales increase underscores the strength of our geographically diverse asset base. This portfolio, coupled with our proven ability to drive down costs and maximize efficiency, enable us to generate consistent growth for our investors."

Consolidated free cash flow decreased 15% year-over-year to US$229 million. Quarterly free cash flow was down 12% in real peso terms to $2.3 billion.

Operating income grew 8% for the quarter to US$416 million and rose 8% in real peso terms to $4.1 billion. As a percentage of sales, quarterly operating margin was 30.6%, compared with 32.1% a year earlier.

CEMEX's majority net income declined 9% year-over-year to US$227 million and decreased 9% in real peso terms to $2.2 billion. Second-quarter net income was negatively affected by a number of non-cash items, including a US$28 million decrease in net monetary gains, a US$43 million reduction in foreign exchange gains and a US$33 million increase in taxes that was mostly due to a change in accounting for deferred taxes and provisions for future taxes.

Quarterly cash earnings (EBITDA minus net financial expenses) were up 11% to US$393 million. Cash earnings per ADS were US$1.44, up from US$1.43 a year earlier, and net earnings per ADS were US$0.83, down from US$1.00 a year earlier.

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) increased to 3.80 times for the trailing twelve months, compared to 3.33 times for the same period a year ago.

Leverage (net debt to trailing twelve-month EBITDA) declined to 2.35 times, versus 2.98 times last year. CEMEX cut net debt by US$485 million, compared with the same quarter last year, and by US$197 million compared with the first quarter of this year.

CEMEX's worldwide cement sales volume reached 12.7 million metric tons, up 19% versus the same quarter a year ago, and quarterly ready-mix sales volume increased 14% to 3.9 million cubic meters.

CEMEX North American region's (which includes its Mexican and U.S. operations) quarterly net sales climbed 12% to US$794 million. The region's EBITDA grew 4% to US$344 million.

The company's South America & Caribbean region's second-quarter net sales grew 9% year-over-year to US$276 million, and EBITDA rose 10% to US$93 million.

Quarterly net sales for CEMEX's Europe, Asia & Africa region surged 32% to US$314 million. The region's EBITDA grew 24% to US$117 million.

CEMEX is one of the three largest cement companies in the world with approximately 65 million metric tons of production capacity. It is also the world's largest trader of cement and the world's leading producer of white cement. CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker through operating subsidiaries in four different continents. For more information, visit www.cemex.com.