Grupo Elektra Introduces "FAW" Automobiles in Mexico

MEXICO CITY, Nov. 22 /PRNewswire-FirstCall/ -- Grupo Elektra S.A. de C.V. (BMV: ELEKTRA*; Latibex: XEKT), Latin America's leading specialty retailer, consumer finance and banking services company, announced that it will introduce "FAW" automobiles into the Mexican market -- with state of the art technology, and top safety and emission control standards -- oriented to new customers in the marketplace in the first quarter of 2008.

The company completed a strategic alliance with First Automobile Works Group (FAW Group) -- the largest automobile group in China, and partner of Volkswagen/Audi, Toyota and Mazda -- which allows Grupo Elektra to sell cars in Mexico that are produced in China. As part of the alliance, within the next three years, Grupo Elektra and FAW Group will build an assembly plant in the state of Michoacan, with important geographical and logistic advantages, to produce cars in Mexico in 2010, with which it will supply the Mexican and Central American demand.

The investment to build the plant and purchase equipment will be approximately US$150 million over the three-year period, and the plant will have the capacity to assemble 100,000 vehicles annually. After the three years, the company will analyze the possibility of increasing the production capacity.

The vehicles' prices are 5% to 10% lower than the current average in Mexico, allowing large segments of the population that currently cannot afford to be customers of this industry to participate in that market.

The company considers the demand for the new cars to be substantial. Other transportation products of Grupo Elektra -- like motorcycles -- have an outstanding performance, with sales over 400,000 units in a period shorter than three years. Just as with the motorcycles, the company will develop an efficient infrastructure of after-sales service for cars, with world-class quality.

Grupo Elektra will make the cars even more accessible through Banco Azteca's financing, as part of the company's commitment to improve the quality of life of an increasing number of families in the communities in which it operates.

Company Profile:

Grupo Elektra (http://www.grupoelektra.com.mx/) is Latin America's leading specialty retailer, consumer finance and banking services company. The Group operates more than 1,700 points of sale in Mexico, Guatemala, Honduras, Peru, Panama, El Salvador and Argentina. Grupo Elektra also sells and markets its consumer finance, banking and financial products and services through Banco Azteca branches located in Mexico, Panama, Guatemala and Honduras. Grupo Elektra is a member company of Grupo Salinas (http://www.gruposalinas.com/), a group of dynamic, fast-growing, and technologically advanced companies focused on creating shareholder value, building the middle class of the countries in which it operates, and improving society through excellence.

Except for historical information, the matters discussed in this press release are forward-looking statements and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Other risks that may affect Grupo Elektra and its subsidiaries are identified in documents sent to securities authorities.

Investor Relations Dinorah Macias Bruno Rangel Grupo Elektra S.A. de C.V. Grupo Salinas Tel. [phone] Tel. [phone] Fax. [phone] Fax [phone]Press Relations Tristan Canales Daniel McCosh Grupo Salinas Grupo Salinas Tel. [phone] Tel. [phone]