Mexico City, March 29, 2007 - DESC, S.A.B. DE C.V. (BMV: DESC) announced today that DINE, S.A.B. de C.V. (“DINE”), has been incorporated, thereby completing the spin-off of the real estate business of DESC, S.A.B. de C.V., which was approved at the General Ordinary and Extraordinary Shareholders Meeting held on December 5, 2006.

As announced in recent months, DINE´s spin-off was subject to two conditions, which have already been met: (i) the approval of certain bank creditors, required under the terms of their debt covenants, and (ii) obtaining the financing necessary for the operation of DINE.

Furthermore, as had been previously announced, as of today, DESC´s company name has been changed to GRUPO KUO, S.A.B. de C.V. (“KUO”), which will operate the industrial and commercial businesses.

As part of the spin-off agreement, DINE was assigned a net debt of US $90 million, which will be reduced from KUO´s net debt that reached US $490 million as of December 31, 2006. DINE shares will be delivered to DESC´s current shareholders on the date and terms that will be outlined in forthcoming announcements. This spin-off creates two companies whose specialized management teams may capitalize, rapidly and efficiently, on the opportunities that they present in their respective markets. DESC is one of the largest industrial groups in Mexico with annual sales of approximately US$1.9 billion and more than 10,500 employees. Through its subsidiaries, it is a leader in the Chemical, Consumer, Automotive and Real Estate sectors.
 

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