Vitro Announces Proposed Secured Notes Issuance by Its Glass Containers Operating Company

Vitro's glass containers division, seeks to sell, subject to market and other conditions, approximately US$150 million of its senior secured guaranteed notes due 2014 (the "Notes") in a private placement pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). VENA intends to use the proceeds of the issuance to repay indebtedness.

The Notes will be issued by VENA and guaranteed by VENA's principal Mexican subsidiaries and Vitro Packaging, VENA's trading company in the United States. The Notes will be secured by first priority liens on most of VENA's and its subsidiaries' assets. The collateral may be shared with other creditors of VENA and its subsidiaries.

The Notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the current expectations of Vitro (the "Company") with respect to future market conditions, and other plans. Words such as "expects," "intends," "plans," "projects," "believes," "estimates," "may," "will," "should," "shall," and similar expressions typically identify such forward-looking statements. Even though the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.

In particular, various economic, regulatory and competitive factors, including those outside the Company's control, such as interest rates, foreign currency exchange rates, inflation rates, instability in domestic and foreign financial markets, energy costs and availability, freight costs, and changes in raw material and component costs, could cause the Company's actual results during the remainder of 2004 and future years to differ materially from the results the Company currently foresees. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Important additional information identifying risks and uncertainties is contained in the Company's most recent Annual Report filed with the Securities and Exchange Commission.