January 20, 2004

CEMEX, S.A. de C.V. (NYSE: CX) announced today that its consolidated net sales for the fourth quarter of 2003 were US$1.8 billion, up 10% in dollar terms compared with the same period of 2002. The growth in sales was due to the overall improvement in economic conditions during the second half of the year. Our operations in Mexico, the United States and Spain, our three largest markets, saw increased public spending in infrastructure and housing. In real peso terms, net sales grew 8%, to MXP20.1 billion.

Our consolidated cement sales volume during the quarter was 16.3 million metric tons, up 4% compared with the fourth quarter of 2002, while ready-mix volumes were 11% higher at 5.5 million cubic meters.

Free cash flow for the fourth quarter decreased 19% in dollar terms compared with the same quarter of 2002, reaching US$247 million. EBITDA (operating income plus depreciation and amortization) grew 22% to US$509 million. Our consolidated EBITDA margin grew to 29% in the fourth quarter of 2003 from 26% during the same period of last year. The three percentage-point increase is due mainly to higher sales volumes and lower SG&A expenses. In real peso terms, EBITDA was MXP5.7 billion, up 19% compared with the same quarter of 2002.

Hector Medina, Executive Vice President of Planning and Finance, said "Twelve months ago, we faced a global economy burdened by uncertainty and volatility, offering few visible growth opportunities and subject to important downside risks. The reality was, however, better than expected. Demand in markets such as the United States, whose outlook was negative a year ago, grew significantly during the second half of 2003. Led by the U.S. economic expansion, the global economic environment has also moderately improved and offers better prospects for the year ahead. For example, Mexico and Spain, our other two major markets, grew at twice the rate of GDP growth or more. In fact, visibility has improved for most of the markets in our portfolio. These are growth markets on the upswing, and we feel that we are well prepared to capitalize on their accelerating development during 2004. For all of these reasons I've just mentioned, we approach 2004 with optimism".

Fourth-quarter operating income increased 33% in dollar terms, to US$342 million. In real peso terms, operating income grew 31% to MXP3.8 billion. Our selling, general and administrative (SG&A) expenses decreased 1% versus the fourth quarter of 2002, but remained flat for the full year. As a percentage of net sales, SG&A decreased 2.6 percentage points versus the same period in 2002 and 2.1 percentage points for the full year versus 2002. The improved SG&A and SG&A margin is due to our ongoing cost-reduction initiatives which lowered costs significantly at the corporate and plant levels.

Other net expenses for the quarter were US$188 million, versus US$109 million in the fourth quarter of 2002. Of the US$188 million, US$17 million were cash expenses. The increase in the non-cash portion of these expenses was due mainly to the impairment of some assets in Asia.

Majority net income for the fourth quarter was US$91 million (US$0.28 per ADR), versus US$166 million in the year-ago quarter. The decrease was due mainly to losses in foreign exchange and marketable securities, as well as higher other non-cash charges. In real peso terms, majority net income decreased 46% to MXP1.03 billion.

At the end of the quarter, our net debt was US$5,641 million, representing a reduction of 8% versus the fourth quarter of 2002. Free cash flow in the amount of US$150 million was used to reduce debt during the quarter; when expressed in dollar terms, however, net debt decreased by US$35 million due to the appreciation of the yen and the euro versus the U.S. dollar during the quarter.

Our net debt to EBITDA ratio reached 2.7 times, versus 3.2 times at the end of the 2002. CEMEX's interest coverage (EBITDA divided by interest expense plus preferred dividends, all for the last twelve months) was 5.3 times, versus 5.2 times a year ago.

CEMEX's Mexican operations reported net sales of US$664 million in the fourth quarter, a 5% growth versus the same period of 2002. EBITDA was down 1%, to US$275 million. Domestic cement sales volumes increased 2% for the quarter and 4% for the full year 2003 versus comparable periods of last year. The industrial and commercial sectors of the economy remain stable, with infrastructure projects and social housing driving most of the demand growth.

In constant Mexican Pesos, CEMEX Mexico's net sales were MXP 6.96 billion, down 6% versus fourth quarter 2002. For the full year, net sales were MXP 29.54 billion, up 4% versus 2002. Gross profit was down 8% for the quarter at MXP 4.0 billion, and up 1% at MXP 17.0 billion for the full year. Operating income reached MXP 2.51 billion, down 8% from fourth quarter 2002, and MXP 17.04 billion for the full year, an increase of 1% versus 2002.

In the United States, CEMEX's net sales were US$446 million, an increase of 14% compared to the year-earlier period. Quarterly EBITDA was 15% higher year-over-year, reaching US$99 million. Cement sales volumes increased 10% during the fourth quarter of 2003 and 2% for the full year, compared to the year-earlier periods. The public works - particularly streets and highways - and residential sectors were particularly strong in the second half of 2003, while the industrial and commercial sector reversed its downward trend and is now stable. Ready-mix volumes increased 1% for the quarter.

In constant Mexican Pesos, our CEMEX U.S. operations posted net sales of MXP 4.83 billion, up 5% versus fourth quarter 2002. For the full year, net sales were MXP 19.47 billion, down 3% versus 2002. Gross profit was up 12% for the quarter at MXP 1.65 billion, and down 11% at MXP 6.23 billion for the full year. Operating income reached MXP 660 million, up 24% from fourth quarter 2002, and MXP 2.30 billion for the full year, a decrease of 26% versus 2002.

In Spain, CEMEX's net sales and EBITDA for the fourth quarter grew 18% and 13%, reaching US$275 and US$79 million, respectively, compared with the same quarter of 2002. Domestic cement and ready-mix volumes increased 4% for the quarter versus the year-earlier period, and 5% for the full year 2003. Residential construction activity was high during the quarter, while spending in public works remained strong due to Spain's infrastructure program.

In constant Mexican Pesos, CEMEX Spain's net sales were MXP 3.89 billion, up 17% versus fourth quarter 2002. For the full year, net sales were MXP 13.65 billion, up 21% versus 2002. Gross profit was up 10% for the quarter at MXP 1.40 billion, and up 13% at MXP 4.86 billion for the full year. Operating income reached MXP 819 million, up 10% from fourth quarter 2002, and MXP 2.98 billion for the full year, an increase of 13% versus 2002.

CEMEX Venezuela reported a 26% growth in sales, reaching US$84 million. EBITDA increased to US$38 million, 22% higher compared with the same period of 2002. Domestic cement volumes increased 30%, while ready-mix volumes grew 36%. The level of economic activity increased during the fourth quarter, and the government increased its spending on infrastructure projects. Economic activity during December of this year was significantly stronger than December of 2002 due to the general strike in Venezuela at the end of 2002.

In constant Mexican Pesos, CEMEX Venezuela's net sales were MXP 1.03 billion, up 1% versus fourth quarter 2002. For the full year, net sales were MXP 3.58 billion, up 3% versus 2002. Gross profit was down 5% for the quarter at MXP 486 million, and down 2% at MXP 1.67 billion for the full year. Operating income reached MXP 346 million, up 6% from fourth quarter 2002, and MXP 1.20 billion for the full year, an increase of 6% versus 2002.

CEMEX Colombia's net sales were US$57 million, up 3% versus the year-ago period. EBITDA, at US$34 million, decreased 4%. Cement volume was down 6% versus the fourth quarter of 2002, while ready-mix volume grew 32%. Spending on infrastructure during the quarter was weaker than previous periods as many projects came to an end at the end of the year.

In constant Mexican Pesos, CEMEX Colombia's net sales were MXP 699 million, up 7% versus fourth quarter 2002. For the full year, net sales were MXP 2.48 billion, up 12% versus 2002. Gross profit was up 14% for the quarter at MXP 417 million, and up 13% at MXP 1.38 billion for the full year. Operating income reached MXP 321 million, up 12% from fourth quarter 2002, and MXP 1.03 billion for the full year, an increase of 11% versus 2002.

Our operations in Central America and the Caribbean reported quarterly net sales of US$135 million, down 5% vis-à-vis the fourth quarter of 2002. EBITDA grew 15%, reaching US$33 million. Both cement and ready-mix sales volumes for the quarter decreased 9%.

In constant Mexican Pesos, CEMEX's operations in Central America and the Caribbean reported net sales of MXP 1.55 billion, flat versus fourth quarter 2002. For the full year, net sales were MXP 6.67 billion, up 16% versus 2002. Gross profit was up 14% for the quarter at MXP 515 million, and flat at MXP 2.11 billion for the full year. Operating income reached MXP 287 million, up 29% from fourth quarter 2002, and MXP 1.18 billion for the full year, an increase of 9% versus 2002.

CEMEX Egypt's sales increased 12% while domestic cement volumes decreased 22% versus the fourth quarter of 2002. Investment in infrastructure during the quarter was stronger than expected, and remains as the main driver of demand. EBITDA grew 81% reached US$16 million.

In constant Mexican Pesos, CEMEX Egypt's net sales were MXP 436 million, up 1% versus fourth quarter 2002. For the full year, net sales were MXP 1.51 billion, down 12% versus 2002. Gross profit was up 123% for the quarter at MXP 226 million, and up 14% at MXP 691 million for the full year. Operating income reached MXP 105 million, up from a loss of 3 million in fourth quarter 2002, and MXP 334 million for the full year, an increase of 51% versus 2002.

Our Asian operations, which include the Philippines, Thailand, Taiwan and Bangladesh, posted net sales of US$45 million, 4% higher than the same quarter of 2002. Domestic cement volumes declined 10%. Activity in the construction sector in the Philippines remains at a low level, driven mainly by decreased government spending in infrastructure.

In constant Mexican Pesos, CEMEX's operations in Asia reported net sales of MXP 473 million, down 4% versus fourth quarter 2002. For the full year, net sales were MXP 2.08 billion, up 3% versus 2002. Gross profit was up 21% for the quarter at MXP 153 million, and up 7% at MXP 606 million for the full year. Operating income reached MXP 20 million, up from a loss of 89 million in fourth quarter 2002, and a loss of MXP 77 million for the full year, a decrease of 13% versus 2002.

CEMEX is a leading global producer and marketer of cement and ready-mix products, with operations concentrated in the world's most dynamic cement markets across four continents. CEMEX combines a deep knowledge of the local markets with its global network and information technology systems to provide world-class products and services to its customers, from individual homebuilders to large industrial contractors. For more information, visit www.cemex.com.

EBITDA is defined as operating income plus depreciation and amortization. Free Cash Flow is defined as EBITDA minus net interest expense, capital expenditures, change in working capital, taxes paid, dividends on preferred equity and other cash items. Net debt is defined as total debt plus equity obligations minus cash and cash equivalents. All of the above items are presented under generally accepted accounting principles in Mexico. EBITDA and Free Cash Flow (as defined above) are presented herein because CEMEX believes that they are widely accepted as financial indicators of CEMEX's ability to internally fund capital expenditures and service or incur debt. EBITDA and Free Cash Flow should not be considered as indicators of CEMEX's financial performance, as alternatives to cash flow, as measures of liquidity or as being comparable to other similarly titled measures of other companies.

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