Vitro Reports Highest EBITDA Ever

Vitro  S.A. de C.V. (BMV: VITROA; NYSE: VTO) one of the world's largest producers  and distributors of glass products, today announced 3Q'06 unaudited  results.

Year over year consolidated sales increased 7.9 percent and EBITDA  rose 10.6 percent.

The consolidated EBITDA margin was up 40 basis points to  16.9 percent for the quarter. Excluding the divestiture of Quimica M in  March 2006 and the acquisition of Vidrios Panamenos (VIPASA) in April 2006,  consolidated sales rose 8.0 percent and consolidated EBITDA also excluding  the flat glass inventory reduction effect increased 13.4 percent year over  year.

Alvaro Rodriguez, Chief Financial Officer,  commented "This was a very solid quarter  from both an operational and a financial  standpoint. We achieved the all-time  highest comparable consolidated EBITDA  and reported the lowest comparable total  gross debt level.”

Mr. Rodriguez continued, "We expected for  things to start to slowdown at Glass  Containers, but our very strong  management team has continued to report  outstanding results, with sales up 16  percent and EBITDA up 18 percent. In fact,  comparable EBITDA was at an all-time  high for a third quarter.

“Trends at Flat Glass also remain very  positive, with the business unit reporting  the highest third quarter EBITDA since  3Q04. On a comparable basis, sales rose  2.3 percent and EBITDA, excluding the  effect of the inventory reduction, rose 12  percent for the quarter and 31 percent for  the first nine months."  "We continued to make progress with our strategy to reduce holding company debt. Year over year, we lowered  gross debt at the holding company level by US$103 million and consolidated gross debt by US$231 million to  US$1.209 billion, the lowest level ever on a comparable basis. In addition, consolidated net debt declined by  US$88 million during the same period. We also made headway with the sale of real estate. At the beginning of  the year we said we would close US$40 million in real estate sales and I am pleased to report that so far we have  exceeded our target and closed real estate sales for a total of US$43 million. As part of this process we have sold  one of the buildings from our corporate headquarters complex, which once again proves that there are no sacred  cows at Vitro” commented Mr. Rodriguez.

We continue to focus and strengthen our core businesses by assuming full control of Vitro Flex. In relation to this  transaction Hugo Lara, President of the Flat Glass business unit, commented “On September 29, 2006 Vitro  assumed 100 percent control of Vitro Flex, ending its joint venture agreement. This transaction provides Vitro  Plan with the required flexibility to optimize its auto-safety glass manufacturing system. We intend to use this  additional capacity to complement Vitro Automotriz, Vitro Plan’s largest auto-glass subsidiary, and to further  expand our business and strengthen our relationship with our customers.”

Mr. Rodriguez closed “We continue to deliver on the financial plan established during mid-2005 to move Vitro  forward to become a company with lower cost of capital, long term funds, higher cash flow generation and a solid  3Q'06 3Q'05 % Change.

600450 Vitro Reports Highest EBITDA Ever glassonweb.com
Date: 27 October 2006
Source: Vitro

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