June 24, 2010

Monterrey, N.L., Mexico. June 24, 2010. ALFA, S.A.B. de C.V (“ALFA”), the Mexican company headquartered in this city, announced today the establishment, through its subsidiary Newpek, LLC (“Newpek”), of a joint venture agreement with Pioneer Natural Resources USA, Inc. (“Pioneer”) and Reliance Eagleford Upstream Holding, LP (“Reliance”) to step up the development of its natural gas business in Texas, U.S.A., on which it has been working for several years.

According to the agreement, Newpek will sell 45% of its stake in the Eagle Ford Shale, located in Southeast Texas, to Reliance, for approximately U.S. $210 million. From this amount, U.S. $42 million will be paid in cash, while the U.S. $168 million balance will be paid over a five-year period through the cover of 75% of Newpek’s capital contributions required to develop this promising formation.

“We are very satisfied to have reached this agreement”, said José de Jesús Valdez, President of Alpek, the petrochemical group of ALFA. “Given the high investments required to fully develop the Eagle Ford Shale, the capital injection Reliance will make will allow us to speed up operations. While we retain a 55% of our original stake in the formation, as well as the entirety of our stake in other fields and their respective wells, the contributions by Reliance and the expected cash flow generation by the business itself will allow for the financing of future investments on the Eagle Ford Shale without the need for further disbursements on our part.”

The low operational costs of the Eagle Ford Shale, coupled with the high level of liquid hydrocarbons found in the five horizontal wells currently in operation, as well as the excellent access to services in the region, make this unconventional formation one of most attractive plays in North America. “The plans we have with Pioneer and Reliance contemplate increasing the level of drilling to about 140 wells per year within three to four years”, added Mr. Valdez.

______________________
This press release contains forward-looking information based on numerous variables and assumptions that are inherently uncertain. They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and future business decisions, all of which are difficult or impossible to predict accurately. Accordingly, results are likely to vary from those set forth in this release.

ALFA is a Mexican company comprising four business groups: Alpek (petrochemicals), Nemak (aluminum auto components), Sigma (refrigerated food) and Alestra (telecommunications). ALFA is the world’s leading manufacturer of high-tech aluminum engine heads and blocks. It is one of the world’s largest producers of PTA, a petrochemical product, and has a leading market share in other petrochemicals in Mexico. In addition, ALFA is Mexico’s leading producer of processed meats and cheese and one of the most important telecommunications services companies in Mexico. In 2009, ALFA reported revenues of U.S. $8,536 million and EBITDA of U.S. $1,055 million. Currently, ALFA has manufacturing operations in 16 countries and employs more than 50,000 people. ALFA´s shares are quoted on the Mexican Stock Exchange and on Latibex, the market for Latin American shares of the Madrid Stock Exchange.


For further information:
Enrique Flores
Vice President, Corporate Communications
ALFA, S.A.B. de C.V.
Phone + 52 (81) 8748-1207
eflores@alfa.com.mx