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<SEC-DOCUMENT>0001157523-03-000421.txt : 20030219
<SEC-HEADER>0001157523-03-000421.hdr.sgml : 20030219
<ACCEPTANCE-DATETIME>20030219130723
ACCESSION NUMBER:		0001157523-03-000421
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030219
FILED AS OF DATE:		20030219

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MEXICAN ECONOMIC DEVELOPMENT INC
		CENTRAL INDEX KEY:			0001061736
		STANDARD INDUSTRIAL CLASSIFICATION:	BOTTLED & CANNED SOFT DRINKS CARBONATED WATERS [2086]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	333-08752
		FILM NUMBER:		03572236

	BUSINESS ADDRESS:	
		STREET 1:		CUAUHTEMOC 400 SUR APERTADO POSTAL 2001
		STREET 2:		COLONIA VELLA VISTA
		CITY:			MONTERREY NL
		STATE:			O5
		ZIP:			00000
		BUSINESS PHONE:		5283286000
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>a4341900.txt
<DESCRIPTION>FEMSA 6K
<TEXT>
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 6-K


                        REPORT OF FOREIGN PRIVATE ISSUER
                      PURSUANT TO RULE 13a-16 OR 15d-16 OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                            FOR THE MONTH OF FEBRUARY
                                      2003



                    FOMENTO ECONOMICO MEXICANO, S.A. DE C.V.
             (Exact name of Registrant as specified in its charter)

                       Mexican Economic Development, Inc.
                 (Translation of Registrant's name into English)

                              United Mexican States
                 (Jurisdiction of incorporation or organization)


                           General Anaya No. 601 Pte.
                               Colonia Bella Vista
                           Monterrey, NL 64410 Mexico
                    (Address of principal executive offices)


                       (Indicate by check mark whether the
                      registrant files or will file annual
                    reports under cover of Form 20-F of Form
                                     40-F.)

                         Form 20-F x           Form 40-F
                                  ---                     ---

                       (Indicate by check mark whether the
                    registrant by furnishing the information
                     contained in this Form is also thereby
                                 furnishing the
                    information to the Commission pursuant to
                            Rule 12g3-2(b) under the
                           Securities Exchange Act of
                                     1934.)

                               Yes               No   x
                                  ---                ---

         (If "Yes" is marked, indicate below the file number assigned to
            the registrant in connection with Rule 12g3-2(b): 82--.)

<PAGE>


                                   SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

                                     FOMENTO ECONOMICO MEXICANO, S.A. DE C.V.

                               By: /s/ Federico Reyes
                               ----------------------------
                               Federico Reyes
                               Executive Vice President of Planning and Finance


Date:  February 19, 2002


<PAGE>



CONTACTS:
Juan Fonseca /  (52) 81 83 28 62 45 / juan.fonseca@femsa.com.mx
Alan Alanis / (52) 81 83 28 62 11 / alan.alanis@femsa.com.mx
Arturo Ballester / (52) 81 83 28 61 89 / arturo.ballester@femsa.com.mx


               FEMSA REPORTS SOLID RESULTS FOR FOURTH QUARTER AND
                        FULL YEAR ENDED DECEMBER 31, 2002

- -    Consolidated  total  revenues  up 5.7% for the year,  reaching  Ps.  52.941
     billion;  seventh consecutive year of double-digit  consolidated  operating
     income  growth:  11.2% for  2002,  expanding  operating  margin by 90 basis
     points to reach a record 17.9%.

- -    Policy change regarding guidance: FEMSA will no longer provide operating or
     financial targets for its operations going forward.


Monterrey, Mexico (February 19, 2003) -- Fomento Economico Mexicano, S.A. de
C.V. ("FEMSA") (NYSE: FMX; BMV: FEMSA UBD; FEMSA UB), the Leader in Latin
Beverages, reported today growth in total revenues and operating income across
its main business units for the fiscal year ending December 31, 2002, resulting
in a significant margin expansion in every major subsidiary.
<TABLE>
<CAPTION>


               ===================================================================================================
                                                     FEMSA and Subsidiaries
               --------------------------------------------------------------------------------------------------
                                      Growth compared to same period of the previous year
               ===================================================================================================
                                                Changes in %, in real peso terms
               ========================== ====================== ======================= =========================
                                              Total Revenue        Operating Income*    Operating Margin**
                             4 Qtr 02         2002  4 Qtr 02        2002         2002        change
<S>                             <C>          <C>        <C>        <C>          <C>           <C>
FEMSA Consolidated              6.7 %        5.7 %      10.3 %     11.2 %       17.9 %      + 90 bps
FEMSA Cerveza                  -1.0          0.5       -1.2         5.3         18.9        + 80
Coca-Cola FEMSA                 4.8          5.3       12.5        14.6         25.2       + 200
FEMSA Comercio                 20.9         18.7       57.2        44.3          4.6        + 80
FEMSA Empaques                 10.7          0.3       17.8         5.0         15.2        + 70
========================== ============ ========== =========== =========== ============ ============
               * Before Management Fees where applicable
               ** Operating Margin is the ratio of Operating Income to Total Revenues
</TABLE>


Jose Antonio Fernandez, Chairman and Chief Executive Officer of FEMSA commented,
"During the year 2002 we delivered solid results in spite of a challenging
business climate, as the expected economic recovery failed to materialize in
Mexico as well as abroad. We made considerable progress on our strategic goals,
and achieved record levels of profitability for the year, expanding our
operating margin to 17.9% of total revenues, and our EBITDA margin to 25.7% of
total revenues. Furthermore, we continued to strengthen our beverage model by
pursuing attractive avenues of growth in our core operations. As most of you
know, we are now in the process of completing Coca-Cola FEMSA's acquisition of
Panamco. The integration phase is already in progress, and we should be in a
position to quickly begin implementing the new strategic business plan upon
closing. We expect the transaction to provide FEMSA with access to a truly
continental platform, which we will seek to leverage fully. We are convinced
that the potential for growth that this transaction brings to our company,
clearly outweighs the challenges that we may encounter."


                                       1
<PAGE>



              AUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER AND
                FULL YEAR ENDED DECEMBER 31, 2002 COMPARED TO THE
              FOURTH QUARTER AND FULL YEAR ENDED DECEMBER 31, 2001

FEMSA Consolidated

Total Revenues

During the fourth quarter of 2002, our consolidated total revenues increased by
6.7% to Ps. 13.615 billion. For the full year, our consolidated total revenues
increased by 5.7% to Ps. 52.941 billion. Our retail subsidiary, FEMSA Comercio,
contributed significantly to the quarter's revenue growth with the opening of
216 net new Oxxo stores, while Coca-Cola FEMSA continued to drive top-line
growth with very solid volume increases and stable pricing. FEMSA Empaques
capitalized on the improving trends in demand for its main product lines and
posted strong revenue growth in the fourth quarter. On the other hand, FEMSA
Cerveza continued to face weak demand across its markets during the quarter and
posted a revenue decline of 1.0%.

Income from Operations

During the fourth quarter of 2002, our consolidated operating expenses
(including goodwill amortization and management fees paid to Labatt Brewing
Company Limited ("Labatt")) increased by 1.1% to Ps. 4.325 billion. As a
percentage of total revenues, consolidated operating expenses declined by 170
basis points to 31.8%, resulting from continued cost efficiency initiatives in
all our subsidiaries. Our consolidated income from operations after
participation in the results of affiliated companies increased by 10.3% to Ps.
2.443 billion, and our consolidated operating margin expanded by 50 basis points
to 17.9% of consolidated total revenues.

For the full year, our consolidated operating expenses (including goodwill
amortization and management fees paid to Labatt) increased by 2.7% to Ps. 17.170
billion. FEMSA Comercio's aggressive expansion in number of stores is largely
responsible for the growth in operating expenses, as our beverage subsidiaries
succeeded in reducing their operating expenses during the year. As a percentage
of total revenues, consolidated operating expenses decreased by 100 basis points
to 32.4%. Consolidated income from operations after participation in the results
of affiliated companies, increased by 11.2% to Ps. 9.491 billion, driven by
increases in profitability at all our operating units, in particular at
Coca-Cola FEMSA and FEMSA Comercio. Our consolidated operating margin increased
by 90 basis points to 17.9% of consolidated total revenues.


Net Interest Expense

During the fourth quarter of 2002, consolidated net financial expense increased
by 4.2% to Ps. 123 million. This increase relative to the fourth quarter of 2001
reflects the net effect of (i) a 19.9% increase in interest expense reflecting
higher average liabilities and the effect of the quarter's depreciation of the
peso against the dollar on our net dollar liabilities, partially compensated by
lower average interest rates, and (ii) a 37.9% increase in interest income
reflecting a significantly higher average cash position, which in turn generated
lower relative income from marginally lower interest rates in pesos.

For the full year, consolidated net financial expense decreased by 2.5% to Ps.
460 million. Consolidated interest expense decreased by 4.4% to Ps. 906 million
compared to 2001, mainly attributable to lower average real rates for our
liabilities, although our average gross liabilities increased by 3.4% in 2002
and the dollar portion was subsequently affected by the devaluation of the peso
against the dollar that occurred later in the year. This was partially
compensated by the reduction in consolidated interest income, which decreased by
6.3% to Ps. 446 million reflecting the net effect of lower interest rates earned
on our investments relative to the year 2001 and a larger average cash position
in pesos.

Foreign Exchange Variation, Result on Monetary Position and Other Expenses

Argentine Goodwill Impairment. Considering the continued deterioration and
uncertainty in the Argentine economic conditions, we decided to take a more
conservative approach in the valuation of the goodwill related


                                       2
<PAGE>

to our  investments  in that  country.  Therefore,  in the third quarter we
wrote down A$ 139 million  (US$ 37 million)  related to the  acquisition  of the
territories  of  Coca-Cola  FEMSA  de  Buenos  Aires  ("KOFBA").  In view of the
prevailing  volatility  of the  Argentine  currency,  we also  decided to take a
conservative  approach and stop  considering  our investment in KOFBA as a hedge
for  the   dollar-denominated   liabilities   incurred  in  connection  to  this
acquisition,  thereby  affecting  the integral cost of financing for 2002 in the
foreign  exchange and monetary  position  calculations.  These  adjustments were
non-cash.

Foreign Exchange. For the fourth quarter of 2002, we recorded a consolidated
foreign exchange loss of Ps. 41 million compared to a foreign exchange gain of
Ps. 219 million recorded in the comparable quarter of 2001. Though our average
net dollar liabilities were significantly reduced, the devaluation of Ps. 22
cents that occurred in the fourth quarter of 2002 produced a foreign exchange
loss, compared to an appreciation of Ps. 33 cents in the fourth quarter of 2001.

For the year 2002, we recorded a consolidated foreign exchange loss of Ps. 325
million compared to a foreign exchange gain of Ps. 230 million for the year
2001, primarily reflecting the effect of the depreciation of the Peso against
the U.S. dollar, which totaled Ps. 1.28 per dollar in the year, on our net
dollar liabilities in Mexico. This compares to an appreciation of Ps. 43 cents
on higher net dollar liabilities observed in 2001. On the other hand, the
depreciation of the Argentine Peso against the U.S. dollar on our net dollar
assets in Argentina had a positive effect on the foreign exchange variation
during 2002.

Monetary Position. For the fourth quarter of 2002, the loss on monetary position
amounted to Ps. 29 million, primarily related to our net asset position in
Mexico and an increase of 50 basis points in Mexican inflation during the
quarter, compared to the same period of 2001.

The gain on monetary position for the year 2002 amounted to Ps. 389 million,
compared to a loss of Ps. 40 million in 2001. This gain was mainly generated as
a result of the inflation rate for the twelve months in Argentina over the debt
incurred in connection with the acquisition of Coca-Cola FEMSA Buenos Aires. The
Argentine inflation rate for 2002 was 41.2%.

Other Expenses. Our consolidated other expense for the fourth quarter of 2002
amounted to Ps. 171 million, consisting mainly of severance payments, asset
write-offs, and losses on the sale of assets. Our consolidated other expense for
the year 2002 amounted to Ps. 858 million, including a non-deductible impairment
of a portion of the goodwill on our investments in Argentina representing Ps.
402 million charged in the third quarter, plus severance payments and asset
write-offs.

Taxes

For the fourth quarter of 2002, we recognized consolidated income tax, tax on
assets and employee profit sharing expense ("taxes") of Ps. 862 million, an
increase of 97.3% relative to the fourth quarter of 2001. The main reasons for
such a difference are (i) a tough comparison versus the fourth quarter of last
year, when we had a one-time benefit from a reduction in the tax rate as
provided by a new law, and (ii) a large provision for employee profit sharing
during the fourth quarter of 2002.

For the year 2002, our taxes amounted to Ps. 3.624 billion, an increase of 23.1%
relative to the year 2001. Our average tax rate, excluding the one time charge
related to the impairment of the goodwill of our Argentine operations, was
41.9%.

Net Income

During the fourth quarter of 2002, our consolidated net income decreased by
28.3% to Ps. 1.217 million from Ps. 1.698 billion in the fourth quarter of 2001.
The non-operating charges that impacted this result as described above were
mainly (i) a foreign exchange loss of Ps. 41 million compared to a gain of Ps.
219 million obtained in the fourth quarter of 2001, and (ii) an increase of
97.3% in income tax, tax on assets and employee profit sharing expenses.

For the year 2002 our consolidated net income decreased by 7.4% to Ps. 4.613
billion from Ps. 4.980 billion in the same period of 2001. The increase of 11.2%
in our consolidated income from operations was more than


                                       3
<PAGE>

offset  by  adverse  non-operating  charges  consisting  mainly  of  (i) an
increase of 40.4% in our consolidated  integral result of financing loss, (ii) a
significant  increase in non-deductible  other expenses related primarily to the
impairment  of a portion of the  goodwill in our  Argentine  investments,  which
occurred  in  the  third   quarter  of  2002,   and  (iii)  the  effect  of  the
fourth-quarter non-operating charges, as described above.

Consolidated Net Majority Income

Consolidated net majority income amounted to Ps. 725 million for the fourth
quarter of 2002 compared with Ps. 1.183 million  recorded in the fourth  quarter
of 2001.  Consolidated net majority income amounted to Ps. 2.837 billion for the
year 2002 compared with Ps. 3.393 billion recorded in the year 2001.
<TABLE>
<CAPTION>
==================================================

                              Per FEMSA Unit(1)
                                    Pesos
<S>                          <C>           <C>
4TH QTR                      2002         2001
- --------------------------------------------------

Net Majority Income          0.684       1.117
- --------------------------------------------------

EBITDA(2)                    3.269       2.991
==================================================

YEAR ENDED
December 31,
- --------------------------------------------------

Net Majority Income          2.678       3.203
- --------------------------------------------------

EBITDA(2)                   12.820      11.616
==================================================
</TABLE>


(1)  FEMSA Units consists of FEMSA UBD units and FEMSA UB units.  Each FEMSA UBD
     unit is  comprised  of one  Series B share,  two  Series D-B shares and two
     Series D-L shares. Each FEMSA UB unit is comprised of five series B shares.
     The  number  of  FEMSA  Units  outstanding  as of  December  31,  2002  was
     1,059,462,090,  equivalent  to the total  number  of shares of the  Company
     outstanding as of December 31, 2002 divided by 5.

(2)  EBITDA is  calculated  as income  from  operations  plus  depreciation  and
     amortization  plus non-cash charges.  Please note that the U.S.  Securities
     and  Exchange  Commission  does not  endorse  the use of  EBITDA.  However,
     FEMSA's management has chosen to present EBITDA because it believes it is a
     useful measure.


Announcement: Change in Guidance Policy

FEMSA is changing its policy regarding guidance, and will no longer provide
operating or financial targets for any of its operations going forward.

Federico Reyes, FEMSA's Chief Financial Officer, explained: "We believe the
strategic direction of a company should be determined with a long-term horizon.
We also believe that establishing short-term guidance may distract management
teams from focusing on the strategic initiatives that will ultimately determine
a corporation's ability to succeed in the long run.

"In addition, the integration of Panamco's territories and operations will
require the focus of senior management and the entire Coca-Cola FEMSA
organization. Considering the magnitude of the task at hand, it will be
difficult for Coca-Cola FEMSA in particular and FEMSA in general to provide
accurate short term guidance with respect to operating and financial metrics.

"We will continue to provide the market with perspective on the progress of
strategic initiatives and other factors that may be critical to understanding
our business and operating environment, and we will remain committed to offering
timely and comprehensive disclosure of the highest quality. This way, we will
measure our progress as we achieve it, instead of setting short-term forecasts
and focusing on their attainment, to the potential detriment of the company's
long-term strategy," concluded Mr. Reyes.


FEMSA Cerveza

Accounting  Pronouncement:  As mentioned  in our second  quarter 2002 press
release,  we are in  compliance  with EITF No.  01-09  recently  issued by FASB,
"Accounting for Consideration Given By a Vendor to a Customer or Reseller of the
Vendor's Products". This consensus requires certain selling expenses incurred by
FEMSA Cerveza to be reclassified as deductions from revenue.  Amortizations that
were  previously  classified  as selling  expenses  in the  amount of Ps.  176.9
million,  Ps. 229.8 million,  Ps. 224.7 million and Ps. 219.5  million,  for the
first, second, third and fourth quarters of 2001 respectively, were reclassified
as  a  reduction  in


                                       4
<PAGE>

net sales in accordance with this EITF consensus.  Correspondingly,  during
2002 we reclassified Ps. 210.0 million, Ps. 248.7 million, Ps. 240.9 million and
Ps.  231.6  million  for the first,  second,  third and fourth  quarters of 2002
respectively.

Total Revenues

For the fourth quarter of 2002, FEMSA Cerveza's total revenues amounted to Ps.
5.171 billion, a 1.0% decrease compared to the same period last year, resulting
from a decline of 1.0% in total sales volume and a decline of 0.6% in total real
revenue per hectoliter. Domestic sales volume fell by 1.3% to 5.534 million
hectoliters, as demand dipped all across Mexico during the quarter reflecting
the continued sluggishness in the economy. Export sales volume increased by
3.0%. Demand for beer in the United Stated slowed down slightly during the
quarter, mainly due to consumption anomalies linked to the geopolitical climate
and adverse weather in certain regions.

For the full year 2002, FEMSA Cerveza's total revenues increased by 0.5% to Ps.
20.815 billion, reflecting a 0.2% decrease in total sales volume and a 0.6%
increase in the total real revenue per hectoliter. Domestic volume declined by
0.7%, as FEMSA Cerveza continued to experience an adverse effect caused by the
deterioration in disposable income in the northern region of Mexico, where it
has a higher market presence. Employment in the manufacturing and retail
industries in the north declined approximately 4.6% in 2002, compared to an
estimated decline of 0.3% and 0.4% in the center and southern regions,
respectively. Concurrently, our sales volumes in the north declined 2.9%, while
those in the rest of the country grew by approximately 1.9%. Pricing in the
domestic market increased by 0.9% in real terms, attributable mostly to the
price increase implemented in the first quarter. Export volume increased by 6.1%
to 1.955 million hectoliters, which now represent 8.2% of total sales volume.

In 2002 FEMSA Cerveza made strides in the development of its business model,
most notably in the implementation of advanced tools to access the marketplace,
but also in the transformation of cultural aspects of the organization that are
conducive to the development of key competencies. Through the year domestic
volume under presale was brought to 75.4%, while approximately 30,000
specialized coolers were installed across the country, and successful
negotiations with third party distributors were conducted in an effort to make
our primary distribution network more efficient. FEMSA Cerveza's marketing
organization increased its brand visibility effort with innovative and
cost-efficient propositions, and further developed the breadth and depth of its
market research and analysis capabilities. Our Sol brand was supported
throughout the year with the "Tomando Sol" image campaign and the soccer
sponsorships, yielding excellent brand health and volume growth indicators. And
in the context of the company-wide transformation, significant progress was made
in the design and configuration of the process-driven enterprise resource
planning ("ERP") platform, which is currently conducting its first full-fledged
trials in preparation for the national rollout throughout 2003 and 2004.

Income from Operations

During the fourth quarter of 2002, FEMSA Cerveza's gross income decreased by
2.4% compared to the fourth quarter of 2001, as a result of a slight increase in
the cost of goods sold reflecting (i) the depreciation of the peso against the
dollar on dollar-denominated variable costs, and (ii) tougher comparables as the
headcount rationalization began in the fourth quarter of 2001. The gross margin
contracted 50 basis points to 57.2% sales. Administrative expenses decreased by
1.1% to Ps. 522.6 million during the period, due to the continued expense
containment practices across the organization, and remained constant as a
percentage of total revenues at 10.1%. Selling expenses decreased by 2.0% to Ps.
1.474 billion, approximately in line with the contraction in domestic sales.
Participation in affiliated companies resulted in a gain of Ps. 58.2 million for
the quarter. FEMSA Cerveza's income from operations, after participation in the
results of affiliated companies and before deduction of management fees paid to
FEMSA and to Labatt, decreased by 1.2% to Ps. 983.4 billion compared to the
fourth quarter of 2001, yielding an operating margin before deduction of
management fees identical to last year's quarter, at 19.0% of total revenues.

For the year 2002, FEMSA Cerveza's income from operations increased by 5.3% to
Ps. 3.938 billion. Operating margin before management fees increased by 80 basis
points to 18.9% of total revenues. This increase was driven by improvements at
the gross margin level and the successful containment of operating expenses.


                                       5
<PAGE>

Gross margin expanded by 30 basis points to 57.6% of sales, reflecting important
enhancements in manufacturing productivity and savings in the plant-to-warehouse
logistics. Operating expenses as a percentage of total revenues decreased 40
basis points to 38.6%.

Recent Events
As of January 1, 2003, FEMSA's 70%-owned subsidiary Logistica CCM has been
integrated back into FEMSA Cerveza. FEMSA Cerveza was Logistica CCM's only
client, and both companies shared identical ownership. It was determined that
this move would make FEMSA Cerveza more comparable with the rest of the beer
industry. The financial statements of FEMSA Cerveza will reflect the effects of
this change starting in fiscal 2003. We expect the net effect to be a small
improvement in FEMSA Cerveza's operating margin.



Coca-Cola FEMSA

Total revenues increased 4.8% in the fourth quarter of 2002, as Coca-Cola FEMSA
achieved solid volume performance in its Mexican territories (5.5% growth,
including KIN light) and the first quarterly volume recovery in its Argentine
operation in five quarters (3.0% growth). Boosted by increases in the cola and
still water categories, as well as by a shift in the presentation mix towards
the higher-priced one-way packages, total revenues in the combined Mexican
operations grew by 4.6%. The recently introduced 5-liter jug presentation of
Ciel has enjoyed great success in the Valley of Mexico, already representing a
significant portion of the water portfolio of Coca-Cola FEMSA. For the year
2002, revenues in our Mexican territories grew by 6.7%, with increases of 5.6%
in sales volume and of 1.1% in average revenue per unit case.

For the first time in twelve months Coca-Cola FEMSA Buenos Aires's operation
achieved revenue growth, mainly as a result of its successful strategy to
increase returnable presentations as a percentage of the package mix. These
presentations, which feature the new 1.25-liter returnable glass bottles of
Coca-Cola and Sprite, have jumped from 5.8% of the mix to 12.4% during the year
2002. Revenues in Buenos Aires grew by 7.6% in the fourth quarter of 2002,
resulting from increases of 3.0% in volume and of 4.1% in average price per unit
case. For the year 2002, revenues in Argentina decreased 8.2%, with an
accumulated decline in volumes of 11.0%. We believe that the damage containment
executed in Argentina was quite successful and it highlights Coca-Cola FEMSA's
ability to design and implement profitable marketing strategies in extremely
depressed markets.

Coca-Cola FEMSA's consolidated operating income grew 12.5% in the fourth quarter
and 14.6% in the year 2002. This outcome primarily reflects the absolute
reduction in selling expenses in Mexico and the fact that consolidated
administrative costs have remained virtually flat as a percentage of revenues
throughout the year. The operating margin expanded by 180 basis points in the
quarter and by 200 basis points in the full year 2002.


Recent Events
On December 23, 2002, Coca-Cola FEMSA entered into an agreement to acquire
Panamerican Beverages, Inc (NYSE: PB, "Panamco"). The acquisition is expected to
close during the second quarter of 2003, subject to the satisfaction or waiver
of certain conditions. For more information on the transaction, please visit
FEMSA's investor relations website at http://ir.femsa.com.

Coca-Cola FEMSA's financial results and discussion are incorporated by reference
from Coca-Cola FEMSA's press release attached to this press release. Please note
that the figures expressed in this report do not integrate any operation from
Panamco and its bottling franchises nor any financing considerations related to
the acquisition transaction. The acquisition of Panamco by Coca-Cola FEMSA has
not yet closed.



                                       6
<PAGE>



FEMSA Comercio

During the fourth quarter of 2002, FEMSA Comercio added 216 net new Oxxo stores,
thus ending the year with 2,216 total stores. This accomplishment reflects our
intent to penetrate the convenience segment of our markets as quickly as
possible, by securing the best available store locations. In parallel, we have
consistently searched for ways to improve our value proposition to our
customers, testing attractive enhancements to our stores such as automatic
coffee machines, larger and better-equipped fast-food areas and open fridges, as
well as by offering a reliable payment center where our customers can pay in one
stop, most home utilities.

For the fourth quarter of 2002, FEMSA Comercio's total revenues increased by
20.9% as a result of the increase in selling space. Same store sales, however,
declined by 1.9% in the quarter, as a moderate recovery in some northern markets
was offset by a deterioration of the retail climate in the center and southeast
markets. FEMSA Comercio's gross margin expanded by 190 basis points mainly as a
result of successful category management and our growing ability to work jointly
with our supplier partners to design differentiated assortment, pricing and
promotions. This way, we are able to develop programs on a city-by-city basis,
or on a seasonal basis, allowing our supplier partners to benefit from revenue
management by working with us. Again, higher absorption of fixed costs and more
efficient use of distribution centers yielded a remarkable growth in operating
income of 57.2%, which represents an operating margin expansion of 110 basis
points to 4.5% of total revenues in the quarter.

For the full year 2002, FEMSA Comercio's total revenues increased by 18.7% as a
result of the aggressive expansion of the Oxxo Convenience Store Chain, which
added 437 net new stores during the year. Average same store sales, however,
declined by 1.6% compared to 2001, reflecting mainly the lackluster performance
of key border town markets where there is a heavy Oxxo presence. Nevertheless,
FEMSA Comercio's operating income increased by 44.3% in 2002. The operating
margin before management fees paid to FEMSA increased by 80 basis points to 4.6%
of total revenues.



FEMSA Empaques

FEMSA Empaques closed the year strongly with a surge in demand in beverage cans
and glass bottles coupled with the favorable effect of the weaker peso on its
dollar revenues. The ensuing increase in capacity utilization has resulted in
operating margin expansion as fixed costs are absorbed over larger volumes. On
the other hand, during the year FEMSA Empaques saw a declining trend in the
price of its main products, which has been partly offset by declining prices of
its raw materials.

For the fourth quarter of 2002, FEMSA Empaques observed an increase in revenues
of 10.7%, driven primarily by volume growth of 14.2% and 16.9% in the glass
bottle and beverage can units, respectively. The glass bottle operation
increased its supply of bottles to FEMSA Cerveza, albeit at the reduction of
third party clients. Sales to Coca-Cola FEMSA lapped the rollout of the 8-oz
Coca-Cola bottle one year ago, but still exceeded the volumes purchased in the
fourth quarter of 2001. Sales of beverage cans also increased following
increases in demand from FEMSA Cerveza, particularly in connection with the
growing sales of the 16-oz can. Overall, FEMSA Empaques benefited from a reduced
payroll (including central office overhead) and higher productivity indicators
in the manufacturing lines. Operating income before management fees increased by
17.8%, representing an operating margin expansion of 80 basis points to 13.4% of
total revenues for the fourth quarter.

For the year 2002, FEMSA Empaques' total revenues grew by 0.3%, and operating
income increased by 5.0%. As a result, FEMSA Empaques' operating margin before
management fees paid to FEMSA increased by 70 basis points to 15.2% of total
revenues for the year. The recovery in profitability is partly related to the
depreciation of the peso against the dollar during the second half of the year,
which reduced the relative weight of the peso-denominated cost structure in the
metallic product units. In addition, virtually all of FEMSA Empaques' operations
have observed increases in productivity linked to the implementation of ERP
systems across all productive processes, which have also permitted reductions of
personnel.


                                       7
<PAGE>



Set forth below is certain audited financial information for FEMSA for the
fourth quarter and full year ended December 31, 2002, compared to the fourth
quarter and full year ended December 31, 2001. We are a holding company whose
principal activities are grouped under the following subholding companies (the
"Subholding Companies") and carried out by their respective operating
subsidiaries: FEMSA Cerveza, S.A. de C.V. ("FEMSA Cerveza"), which engages in
the production, distribution and marketing of beer; Coca-Cola FEMSA, S.A. de
C.V. ("Coca-Cola FEMSA"), which engages in the production, distribution and
marketing of non-alcoholic beverages; FEMSA Empaques, S.A. de C.V. ("FEMSA
Empaques"), which engages in the production and distribution of packaging
materials; and FEMSA Comercio, S.A. de C.V. ("FEMSA Comercio"), which engages in
the operation of convenience stores.

All of the figures in this report have been restated in constant Mexican pesos
("Pesos" or "Ps.") with purchasing power as of December 31, 2002 and were
prepared in accordance with Mexican Generally Accepted Accounting Principles
("Mexican GAAP"). As a result, all percentage changes are expressed in real
terms. The restatement was determined as follows:

- -    For the results of the Mexican  operations,  using factors derived from the
     Mexican  National  Consumer Price Index ("NCPI").  To restate December 2001
     pesos to December 2002 pesos, we applied an inflation  factor of 1.0570 and
     to restate September 2002 pesos to December 2002 pesos, we applied a 1.0169
     inflation factor.

- -    For the results of the Buenos Aires operations,  using factors derived from
     the Argentine  National  Consumer Price Index. To restate  December 2001 to
     December 2002 Argentine Pesos, we applied an inflation factor of 1.4122 and
     to restate  September 2002 Argentine Pesos to December 2002 Argentine Pesos
     we applied a 1.0101 inflation factor;  to convert constant  Argentine Pesos
     into Pesos,  we used the December 31, 2002  exchange rate of Ps. 3.1036 per
     Argentine Peso.




This report may contain certain forward-looking statements concerning our future
performance that should be considered as good faith estimates made by us. These
forward-looking statements reflect management expectations and are based upon
currently available data. Actual results are subject to future events and
uncertainties, which could materially impact our actual performance.


IMPORTANT NOTICES:

We invite you to register in our Investor Relations Site located at
http://ir.femsa.com to receive notification of all of our press releases,
earnings releases and IR Events automatically through our e-mail alert service.

Please contact FEMSA's Investor Relations officers if you wish to have your name
added or removed from this distribution list or to receive this press release
through a specific medium only.


       Four pages of tables and Coca-Cola FEMSA's press release to follow


                                       8
<PAGE>
<TABLE>
<CAPTION>

                                 OPERATING DATA
            For the three months and twelve months ended December 31:

FEMSA Cerveza
- -------------------

(Thousand             For the IV quarter of:      For the twelve months of
 hectoliters)
                   ----------------------------------------------------------
                       2002     2001    %Var       2002    2001     %Var
- -----------------------------------------------------------------------------
<S>                   <C>      <C>         <C>   <C>     <C>            <C>
Domestic              5,534    5,608       (1.3) 21,856  22,018         (0.7)
Exports                 407      395        3.0   1,955   1,843          6.1
- -----------------------------------------------------------------------------
Total Volume          5,941    6,003       (1.0) 23,811  23,861         (0.2)
- -----------------------------------------------------------------------------

Presentation Mix      For the IV quarter of:      For the twelve months of
 (%)
                   ----------------------------------------------------------
                       2002     2001  Var p.p.     2002    2001   Var p.p.
- -----------------------------------------------------------------------------
Returnable             69.0     71.7       (2.7)   69.5    71.8         (2.3)
Non Returnable          8.6      7.3        1.3     8.0     7.0          1.0
Cans                   22.4     21.0        1.4    22.5    21.2          1.3
- -----------------------------------------------------------------------------
Total volume          100.0    100.0          -   100.0   100.0            -
- -----------------------------------------------------------------------------

- -----------------------------------------------------------------------------
Exports   Millions
 revenues: Ps.        271.9    252.4        7.7 1,275.9 1,230.0          3.7
          US
           Millions    26.4     25.8        2.3   127.4   122.8          3.7
=============================================================================


Coca-Cola FEMSA
- -------------------
Sales Volumes
(Millions of Unit     For the IV quarter of:      For the twelve months of
 Cases)
                   ----------------------------------------------------------
                       2002     2001    %Var       2002    2001     %Var
- -----------------------------------------------------------------------------
Valley of Mexico       96.8     92.0        5.2   378.3   356.3          6.2
Southeast              32.3     30.4        6.3   126.4   121.6          3.9
- -----------------------------------------------------------------------------
Mexico                129.1    122.4        5.5   504.7   477.9          5.6
Buenos Aires           35.9     34.8        3.0   115.6   129.9        (11.0)
- -----------------------------------------------------------------------------
Total                 165.0    157.2        4.9   620.3   607.8          2.1
=============================================================================
</TABLE>
<TABLE>
<CAPTION>
Presentation Mix
 (%)
                             ------------------------------------
(Returnable/Non-Returnable)      2002     2001     2002     2001
- -----------------------------------------------------------------
<S>                             <C>      <C>      <C>      <C>
Valley of Mexico                30/70    37/63    34/66    39/61
Southeast                       44/56    42/58    44/56    45/55
- -----------------------------------------------------------------
Valley of Mexico                34/66    38/62    36/64    41/59
Buenos Aires                    19/81     4/96    12/88     6/94
- -----------------------------------------------------------------
Total                           30/70    31/69    32/68    33/67
=================================================================
</TABLE>
<TABLE>
<CAPTION>
FEMSA Empaque
- -------------------
Total Sales Volume
(Millions of           For the IV quarter of:      For the twelve months of
 pieces)
                   ----------------------------------------------------------
                        2002     2001    %Var        2002     2001    %Var
- -----------------------------------------------------------------------------
<S>                      <C>      <C>       <C>     <C>      <C>         <C>
Cans                     784      671       16.9    3,000    2,808       6.8
Crown caps             3,307    3,354       (1.4)  14,287   14,028       1.8
Glass Bottles            298      261       14.2    1,053      972       8.3
- -----------------------------------------------------------------------------
Export    Cans
 volumes:                147       52      185.7      432      217      99.0
          Crown
           caps        1,793    1,748        2.6    7,866    7,154      10.0
- -----------------------------------------------------------------------------
Exports   Millions
 revenues: Ps.         207.7    145.8       42.5    720.4    642.1      12.2
          US
           Millions     20.2     14.9       35.6     71.7     63.8      12.4
=============================================================================


Percentage of sales revenue by client category:
by client category:    For the IV quarter of:      For the twelve months of
                   ----------------------------------------------------------
                        2002     2001  Var p.p.      2002     2001  Var p.p.
- -----------------------------------------------------------------------------
Intercompany sales      54.2     57.8       (3.6)    58.3     56.4       1.9
- -----------------------------------------------------------------------------
    FEMSA Cerveza       37.3     40.1       (2.8)    40.9     43.5      (2.6)
    Coca-Cola FEMSA     16.9     17.7       (0.8)    17.4     12.9       4.5
- -----------------------------------------------------------------------------
Third-party sales       45.8     42.2        3.6     41.7     43.6      (1.9)
- -----------------------------------------------------------------------------
    Domestic            33.3     33.1        0.2     30.6     34.1      (3.5)
    Export              12.5      9.1        3.4     11.1      9.5       1.6
- -----------------------------------------------------------------------------
Total                  100.0    100.0               100.0    100.0
=============================================================================




FEMSA Comercio
- -------------------
                       For the IV quarter of:      For the twelve months of
                   ----------------------------------------------------------
                        2002     2001    %Var        2002     2001    %Var
- -----------------------------------------------------------------------------
Total stores                                        2,216    1,779      24.6
New stores               216      103      109.7      437      328      33.2
Comparative same stores: (1)
   Average monthly sales
     (Ths. Ps.) (2)    541.5    551.8       (1.9)   554.1    563.0      (1.6)
=============================================================================

(1)  Stores with more than 18 months of operations.

(2)  Based on comparative same stores in each period.
</TABLE>



                                       9
<PAGE>
<TABLE>
<CAPTION>

                                Income Statement
                           For the fourth quarter of:
                 Millions of year end pesos of December 31, 2002

                                       FEMSA            Coca-Cola            FEMSA
                                      Cerveza             FEMSA            Empaques
                                ---------------------------------------------------------
                                    2002      2001    2002       2001    2002       2001
- -----------------------------------------------------------------------------------------
<S>                              <C>       <C>     <C>        <C>     <C>        <C>
Net sales                        5,104.2   5,190.8 4,478.5    4,268.4 1,707.5    1,544.1
Other revenues                      66.9      34.6    28.8       30.9     5.2        2.8
- -----------------------------------------------------------------------------------------
Total revenues                   5,171.1   5,225.4 4,507.3    4,299.3 1,712.7    1,546.9
Cost of good sold                2,249.3   2,232.7 2,127.0    1,938.3 1,313.6    1,220.7
- -----------------------------------------------------------------------------------------
Gross margin                     2,921.8   2,992.7 2,380.3    2,361.0   399.1      326.2
- -----------------------------------------------------------------------------------------
Administrative expenses            522.6     528.3   366.6      333.8    53.9       40.0
Sales expenses                   1,474.0   1,504.7   836.4      960.6   115.2       91.0
Management fee paid to Labatt        0.0       0.0     0.0        0.0     0.0        0.0
Goodwill amortization                0.0       0.0     5.1       24.2     0.0        0.0
- -----------------------------------------------------------------------------------------
Operating expenses               1,996.6   2,033.0 1,208.1    1,318.6   169.1      131.0
- -----------------------------------------------------------------------------------------
Operating income                   925.2     959.7 1,172.2    1,042.4   230.0      195.2
Participation in affiliated
 companies                          58.2      35.3     0.0        0.0     0.0        0.0
- -----------------------------------------------------------------------------------------
Comparable EBIT                    983.4     995.0 1,172.2    1,042.4   230.0      195.2
Management fee                      96.6     105.5     0.0        0.0    26.0       23.1
- -----------------------------------------------------------------------------------------
Total EBIT                         886.8     889.5 1,172.2    1,042.4   204.0      172.1
Depreciation                       265.2     229.9   116.5      151.4    83.8       57.7
Other non-cash charges             394.3     286.4    95.0      106.0    28.9       22.8
- -----------------------------------------------------------------------------------------
EBITDA                           1,546.3   1,405.8 1,383.7    1,299.8   316.7      252.6
- -----------------------------------------------------------------------------------------

Comparable
- -----------------------------------------------------------------------------------------
EBIT/Revenues                       19.0      19.0    26.0       24.2    13.4       12.6
- -----------------------------------------------------------------------------------------
EBITDA/Revenues                     31.8      28.9    30.7       30.2    20.0       17.8
- -----------------------------------------------------------------------------------------

Total
- -----------------------------------------------------------------------------------------
EBIT/Revenues                       17.1      17.0    26.0       24.2    11.9       11.1
- -----------------------------------------------------------------------------------------
EBITDA/Revenues                     29.9      26.9    30.7       30.2    18.5       16.3
- -----------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------
Capital Expenditures                 894       874     557        310     106         24
- -----------------------------------------------------------------------------------------


                                       FEMSA              FEMSA              FEMSA
                                     Comercio*          Logistica         Consolidado
                                ---------------------------------------------------------
                                   2002       2001  2002         2001     2002      2001
- -----------------------------------------------------------------------------------------
Net sales                       3,400.8    2,812.2 347.4        375.5 13,554.0  12,720.0
Other revenues                      0.0        0.2  (0.5)         2.1     61.0      36.0
- -----------------------------------------------------------------------------------------
Total revenues                  3,400.8    2,812.4 346.9        377.6 13,615.0  12,756.0
Cost of good sold               2,446.3    2,076.0 303.3        333.8  6,905.0   6,298.0
- -----------------------------------------------------------------------------------------
Gross margin                      954.5      736.4  43.6         43.8  6,710.0   6,458.0
- -----------------------------------------------------------------------------------------
Administrative expenses            76.8       57.2  14.3         31.9  1,132.9   1,083.2
Sales expenses                    725.4      582.3   0.0          0.0  3,158.0   3,140.0
Management fee paid to Labatt       0.0        0.0   0.0          0.0     29.0      31.7
Goodwill amortization               0.0        0.0   0.0          0.0      5.1      24.2
- -----------------------------------------------------------------------------------------
Operating expenses                802.2      639.5  14.3         31.9  4,325.0   4,279.0
- -----------------------------------------------------------------------------------------
Operating income                  152.3       96.9  29.3         11.9  2,385.0   2,179.0
Participation in affiliated
 companies                          0.0        0.0   0.0          0.0     58.0      36.0
- -----------------------------------------------------------------------------------------
Comparable EBIT                   152.3       96.9  29.3         11.9  2,443.0   2,215.0
Management fee                     26.2       48.5   0.0          0.0      0.0       0.0
- -----------------------------------------------------------------------------------------
Total EBIT                        126.1       48.4  29.3         11.9  2,443.0   2,215.0
Depreciation                       26.4       22.8   8.0          9.3    496.1     469.7
Other non-cash charges             22.1       26.4   1.1          1.3    524.5     483.7
- -----------------------------------------------------------------------------------------
EBITDA                            174.6       97.6  38.4         22.5  3,463.6   3,168.4
- -----------------------------------------------------------------------------------------

Comparable
- -----------------------------------------------------------------------------------------
EBIT/Revenues                       4.5        3.4   8.4          3.2     17.9      17.4
- -----------------------------------------------------------------------------------------
EBITDA/Revenues                     5.9        5.2  11.1          6.0     25.4      24.8
- -----------------------------------------------------------------------------------------

Total
- -----------------------------------------------------------------------------------------
EBIT/Revenues                       3.7        1.7   8.4          3.2     17.9      17.4
- -----------------------------------------------------------------------------------------
EBITDA/Revenues                     5.1        3.5  11.1          6.0     25.4      24.8
- -----------------------------------------------------------------------------------------

- -----------------------------------------------------------------------------------------
Capital Expenditures                123        485   225           10    1,867     1,696
- -----------------------------------------------------------------------------------------
</TABLE>


                                       10
<PAGE>
<TABLE>
<CAPTION>

                                Income Statement
                            For the twelve months of
                Millions of year end pesos of December 31, 2002



                                ----------------------------------------------------------
                                       FEMSA            Coca-Cola            FEMSA
                                      Cerveza             FEMSA             Empaques
                                ----------------------------------------------------------
                                    2002      2001     2002      2001       2002     2001
- ------------------------------------------------------------------------------------------
<S>                             <C>       <C>      <C>       <C>         <C>      <C>
Net sales                       20,631.9  20,550.7 17,491.6  16,612.3    6,581.2  6,569.0
Other revenues                     182.7     152.1    128.5     117.2       18.0      7.7
- ------------------------------------------------------------------------------------------
Total revenues                  20,814.6  20,702.8 17,620.1  16,729.5    6,599.2  6,576.7
Cost of good sold                8,926.4   8,926.7  8,130.1   7,737.8    4,994.3  5,056.5
- ------------------------------------------------------------------------------------------
Gross margin                    11,888.2  11,776.1  9,490.0   8,991.7    1,604.9  1,520.2
- ------------------------------------------------------------------------------------------
Administrative expenses          2,175.0   2,190.2  1,396.7   1,287.2      185.8    176.1
Sales expenses                   5,859.7   5,879.1  3,616.0   3,730.9      414.5    387.4
Management fee paid to Labatt        0.0       0.0      0.0       0.0        0.0      0.0
Goodwill amortization                0.0       0.0     37.3     100.7        0.0      0.0
- ------------------------------------------------------------------------------------------
Operating expenses               8,034.7   8,069.3  5,050.0   5,118.8      600.3    563.5
- ------------------------------------------------------------------------------------------
Operating income                 3,853.5   3,706.8  4,440.0   3,872.9    1,004.6    956.7
Participation in affiliated
 companies                          84.1      32.7      0.0       0.0        0.0      0.0
- ------------------------------------------------------------------------------------------
Comparable EBIT                  3,937.6   3,739.5  4,440.0   3,872.9    1,004.6    956.7
Management fee                     391.8     413.1      0.0       0.0       99.3    101.3
- ------------------------------------------------------------------------------------------
Total EBIT                       3,545.8   3,326.4  4,440.0   3,872.9      905.3    855.4
Depreciation                     1,113.6     990.3    520.9     594.6      262.2    244.8
Other non-cash charges           1,396.1   1,174.1    454.3     471.8       80.2     53.1
- ------------------------------------------------------------------------------------------
EBITDA                           6,055.5   5,490.8  5,415.2   4,939.3    1,247.7  1,153.3
- ------------------------------------------------------------------------------------------

Comparable
- ------------------------------------------------------------------------------------------
EBIT/Revenues                       18.9      18.1     25.2      23.2       15.2     14.5
- ------------------------------------------------------------------------------------------
EBITDA/Revenues                     31.0      28.5     30.7      29.5       20.4     19.1
- ------------------------------------------------------------------------------------------

Total
- ------------------------------------------------------------------------------------------
EBIT/Revenues                       17.0      16.1     25.2      23.2       13.7     13.0
- ------------------------------------------------------------------------------------------
EBITDA/Revenues                     29.1      26.5     30.7      29.5       18.9     17.5
- ------------------------------------------------------------------------------------------

- ------------------------------------------------------------------------------------------
Capital Expenditures               3,166     3,533    1,341       956        245       91
- ------------------------------------------------------------------------------------------


- ------------------------------------------------------------------------------------------
Net debt millon dlls.                140       172     (286)     (162)       154      126
- ------------------------------------------------------------------------------------------




                                --------------------------------------------------------
                                      FEMSA              FEMSA              FEMSA
                                     Comercio          Logistica         Consolidado
                                --------------------------------------------------------
                                    2002     2001     2002      2001     2002      2001
- ----------------------------------------------------------------------------------------
Net sales                       12,739.5 10,730.6  1,454.8   1,532.1 52,746.0  49,952.0
Other revenues                       0.0      0.9      2.8       8.2    195.0     145.0
- ----------------------------------------------------------------------------------------
Total revenues                  12,739.5 10,731.5  1,457.6   1,540.3 52,941.0  50,097.0
Cost of good sold                9,366.5  7,976.3  1,249.2   1,329.1 26,364.0  24,871.0
- ----------------------------------------------------------------------------------------
Gross margin                     3,373.0  2,755.2    208.4     211.2 26,577.0  25,226.0
- ----------------------------------------------------------------------------------------
Administrative expenses            244.5    231.9     89.6     112.5  4,504.2   4,383.4
Sales expenses                   2,546.0  2,119.6      0.0       0.0 12,511.0  12,118.0
Management fee paid to Labatt        0.0      0.0      0.0       0.0    117.5     123.9
Goodwill amortization                0.0      0.0      0.0       0.0     37.3     100.7
- ----------------------------------------------------------------------------------------
Operating expenses               2,790.5  2,351.5     89.6     112.5 17,170.0  16,726.0
- ----------------------------------------------------------------------------------------
Operating income                   582.5    403.7    118.8      98.7  9,407.0   8,500.0
Participation in affiliated
 companies                           0.0      0.0      0.0       0.0     84.0      33.0
- ----------------------------------------------------------------------------------------
Comparable EBIT                    582.5    403.7    118.8      98.7  9,491.0   8,533.0
Management fee                      95.7    106.3      0.0       0.0      0.0       0.0
- ----------------------------------------------------------------------------------------
Total EBIT                         486.8    297.4    118.8      98.7  9,491.0   8,533.0
Depreciation                        89.9     80.8     32.6      36.5  2,025.5   1,958.8
Other non-cash charges              94.6     87.9      4.1       4.4  2,065.7   1,815.3
- ----------------------------------------------------------------------------------------
EBITDA                             671.3    466.1    155.5     139.6 13,582.2  12,307.1
- ----------------------------------------------------------------------------------------

Comparable
- ----------------------------------------------------------------------------------------
EBIT/Revenues                        4.6      3.8      8.2       6.4     17.9      17.0
- ----------------------------------------------------------------------------------------
EBITDA/Revenues                      6.0      5.3     10.7       9.1     25.7      24.6
- ----------------------------------------------------------------------------------------

Total
- ----------------------------------------------------------------------------------------
EBIT/Revenues                        3.8      2.8      8.2       6.4     17.9      17.0
- ----------------------------------------------------------------------------------------
EBITDA/Revenues                      5.3      4.3     10.7       9.1     25.7      24.6
- ----------------------------------------------------------------------------------------

- ----------------------------------------------------------------------------------------
Capital Expenditures                 824      615       12       117    5,533     5,314
- ----------------------------------------------------------------------------------------


- ----------------------------------------------------------------------------------------
Net debt millon dlls.                 56       44       (6)       (4)     (72)      108
- ----------------------------------------------------------------------------------------
</TABLE>


                                       11
<PAGE>
<TABLE>
<CAPTION>

                          CONSOLIDATED INCOME STATEMENT
              For the three months and twelve months ended December 31,:

               (Expressed in Millions of Pesos as of December 31, 2002)

                             For the IV quarter of:       For the twelve months of
                          ------------------------------------------------------------
                              2002     2001        %Var  2002     2001            %Var
- --------------------------------------------------------------------------------------
<S>                         <C>      <C>           <C> <C>      <C>               <C>
  Net sales                 13,554   12,720        6.6 52,746   49,952            5.6
  Other operating revenues      61       36       69.4    195      145           34.5
- --------------------------------------------------------------------------------------
Total revenues              13,615   12,756        6.7 52,941   50,097            5.7
Cost of sales                6,905    6,298        9.6 26,364   24,871            6.0
- --------------------------------------------------------------------------------------
Gross profit                 6,710    6,458        3.9 26,577   25,226            5.4
- --------------------------------------------------------------------------------------
  Administrative expenses    1,167    1,139        2.5  4,659    4,608            1.1
  Selling expenses           3,158    3,140        0.6 12,511   12,118            3.2
- --------------------------------------------------------------------------------------
Operating expenses           4,325    4,279        1.1 17,170   16,726            2.7
- --------------------------------------------------------------------------------------
                             2,385    2,179        9.5  9,407    8,500           10.7
Participation in
 affiliated companies           58       36                84       33
- --------------------------------------------------------------------------------------
Income from operations       2,443    2,215       10.3  9,491    8,533           11.2
- --------------------------------------------------------------------------------------
      Interest expense        (265)    (221)      19.9   (906)    (948)          (4.4)
      Interest income          142      103       37.9    446      476           (6.3)
- --------------------------------------------------------------------------------------
  Interest expense, net       (123)    (118)       4.2   (460)    (472)          (2.5)
  Foreign exchange (loss)                           N.S                           N.S.
   gain                        (41)     219              (325)     230
  Gain (loss) on monetary                                                         N.S.
   position                    (29)     (43)     (32.6)   389      (40)
- --------------------------------------------------------------------------------------
Integral result of                                  N.S
 financing                    (193)      58              (396)    (282)          40.4
Other (expenses) incomes      (171)    (138)      23.9   (456)    (297)          53.5
Adjusment to the Goodwill
 value                           -        -          -   (402)       -          100.0
- --------------------------------------------------------------------------------------
Income before taxes          2,079    2,135       (2.6) 8,237    7,954            3.6
Taxes                          862      437       97.3  3,624    2,945           23.1
Change in accounting
 principle                       -        -                 -      (29)
- --------------------------------------------------------------------------------------
Net Income                   1,217    1,698      (28.3) 4,613    4,980           (7.4)
- --------------------------------------------------------------------------------------
Net majority income            725    1,183      (38.7) 2,837    3,393          (16.4)
Net minority income            492      515       (4.5) 1,776    1,587           11.9
- --------------------------------------------------------------------------------------

                                % Total Revenues              % Total Revenues
                          ------------------------------------------------------------
                              2002     2001  Var P.P.    2002     2001    Var P.P.
- --------------------------------------------------------------------------------------
  Net sales                   99.6     99.7       (0.1)  99.6     99.7           (0.1)
  Other operating revenues     0.4      0.3        0.1    0.4      0.3            0.1
- --------------------------------------------------------------------------------------
Total revenues               100.0    100.0          -  100.0    100.0              -
Cost of sales (1)             50.9     49.5        1.4   50.0     49.8            0.2
- --------------------------------------------------------------------------------------
Gross profit (1)              49.5     50.8       (1.3)  50.4     50.5           (0.1)
- --------------------------------------------------------------------------------------
  Administrative expenses      8.6      8.9       (0.3)   8.8      9.2           (0.4)
  Sales expenses              23.2     24.6       (1.4)  23.6     24.2           (0.6)
- --------------------------------------------------------------------------------------
Operating expenses            31.8     33.5       (1.7)  32.4     33.4           (1.0)
- --------------------------------------------------------------------------------------
                              17.5     17.1        0.4   17.8     17.0            0.8
Participation in
 affiliated companies          0.4      0.3        0.1    0.2      0.1            0.1
- --------------------------------------------------------------------------------------
Income from operations        17.9     17.4        0.5   17.9     17.0            0.9
- --------------------------------------------------------------------------------------
(1) % to Net sales
</TABLE>
<TABLE>
<CAPTION>

                                  BALANCE SHEET
                              As of December 31, :




                      ------------------------------
<S>                       <C>        <C>    <C>
ASSETS                    2002       2001   % Var
- ----------------------------------------------------
Cash and cash
 equivalents            14,556      7,619      91.0
Accounts receivable      3,132      3,392      (7.7)
Inventories              4,867      4,413      10.3
Prepaid expenses           944        567      66.5
- ----------------------------------------------------
Total Current Assets    23,499     15,991      47.0
Property, plant and
 equipment, net         29,753     28,849       3.1
Deferred charges and
 other assets            6,752      6,296       7.2
- ----------------------------------------------------
TOTAL ASSETS            60,004     51,136      17.3
- ----------------------------------------------------

LIABILITIES & STOCKHOLDERS' EQUITY
- ----------------------------------------------------
Bank loans               3,127      1,198     161.0
Current maturities
 long term debt            876        367     138.7
Interest payable           152        162      (6.2)
Operating liabilities    7,639      6,979       9.5
- ----------------------------------------------------
Total Current
 Liabilities            11,794      8,706      35.5
Bank loans               9,803      7,117      37.7
Labor liabilities        1,072        800      34.0
Other liabilities        4,522      4,508       0.3
- ----------------------------------------------------
Total Liabilities       27,191     21,131      28.7
Total Stockholders'
 equity                 32,813     30,005       9.4
- ----------------------------------------------------
LIABILITIES &
 STOCKHOLDERS' EQUITY   60,004     51,136      17.3
- ----------------------------------------------------


Capital expenditures
- ----------------------------------------------------
Millions of pesos        5,533      5,314       4.1
Millions of dollars        529        579      (8.6)
- ----------------------------------------------------



FINANCIAL RATIOS                            Var P.P.
- ----------------------------------------------------
Liquidity                 1.99       1.84      0.15
Interest coverage (2)   (29.53)    (26.07)    (3.46)
Debt service coverage
 (3)                     (0.06)      0.08     (0.14)
Leverage                    83%        70%       13%
Capitalization              32%        23%        9%
- ----------------------------------------------------

(1)  % to Net sales

(2)  Income from  operations + depreciation + other non-cash  charges / interest
     expense, net

(3)  Income from operations + depreciation + other non-cash charges / Net debt
</TABLE>


                                       12
<PAGE>

FOR FURTHER INFORMATION:
Alfredo Fernandez / Julieta Naranjo
Investor Relations Department
Coca-Cola FEMSA, S.A. de C.V.
(52-555) 081-5120 / 5121 / 5148
afernandeze@kof.com.mx  / jnaranjo@kof.com.mx
- ----------------------    -------------------
WEBSITE: www.cocacola-femsa.com.mx
         -------------------------

                         COCA-COLA FEMSA Announces 14.6%
                        Operating Profit Growth for 2002

                                 FULL-YEAR 2002

- -    Consolidated  unit case  volume  increased  by 2.1% as a result of the 4.3%
     volume growth(1) in the Mexican operations, which offset the 11% decline in
     the Argentine territories.

- -    Consolidated  operating  income  increased by 14.6% to Ps. 4,440.0 million,
     reaching a  consolidated  operating  margin of 25.2%,  an  increase  of 3.5
     percentage  points as compared to 2001.  This  improvement  mainly resulted
     from the 15.5% operating income increase in the Mexican territories.

- -    Consolidated earnings before interest, tax, depreciation,  and amortization
     ("EBITDA")(2) increased by 9.6% over 2001, reaching Ps. 5,415.2 million.

- -    Excluding one-time non-cash impairment  charges(3)  registered during third
     quarter  of 2002,  consolidated  net  income  grew by 34.7% to Ps.  2,965.9
     million,  resulting in earnings per share  ("EPS") of Ps. 2.081  (U.S.$1.99
     per ADR).

                               FOURTH-QUARTER 2002

- -    Consolidated  unit case  volume  increased  by 4.9% as a result of 5.5% and
     3.0% increases in sales volume in the Mexican and Buenos Aires  operations,
     respectively.

- -    Consolidated  operating  income  increased by 12.5% to Ps. 1,172.3 million,
     reaching a  consolidated  operating  margin of 26.0%,  an  increase  of 1.8
     percentage  points  as  compared  to the  fourth  quarter  of 2001,  mainly
     supported by an operating  income  increase of 12.4% in Mexico and positive
     operating income of A$8.5 million in Buenos Aires.

- -    Consolidated  EBITDA  increased  by 6.5% over the  fourth  quarter of 2001,
     reaching Ps. 1,383.8 million.

- -    Consolidated  majority net income  increased  by 7.3% to Ps.738.5  million,
     resulting in an EPS of Ps.0.518 (US$0.496 per ADR).

Mexico City (February 19, 2003) - Coca-Cola FEMSA, S.A. de C.V. (NYSE: KOF)
("KOF" or the "Company"), one of the global Coca-Cola anchor bottlers and the
largest Coca-Cola bottler in Mexico and Argentina, announced today its
consolidated results for the year ended December 31, 2002.

"Thanks to our superior portfolio of existing and new Coca-Cola trademark
beverages, our revenue management and packaging strategies, our effective
marketplace execution, and our operating flexibility, our company's Mexican
beverage sales volume eclipsed 500 million unit cases for the first time in our
history.

- --------

(1)  Excluding powdered products. We distribute Coca-Cola Co. trademark powdered
     products under the Kin light brand, a diet flavored powder.

(2)  Net income (loss) before  deductions  for  interest,  taxes,  depreciation,
     amortization, and adjustments for other non-operating items. EBITDA is used
     by management as an additional  indicator of operating  performance and not
     as a replacement of measures such as cash flows from  operating  activities
     and  operating  income as defined  and  required by  accounting  principles
     generally accepted in the United States.

(30  See Argentina Goodwill Impairment, page 16.


                                       13
<PAGE>

Moreover, we increased our company's presence and preserved our
profitability in Argentina, despite the tough economic environment", stated
Carlos Salazar, Chief Executive Officer of the Company.

CONSOLIDATED RESULTS

During 2002,  our  consolidated  volume  totaled  620.3  million unit cases
(MUC)(4),  a 2.1%  improvement  over  2001.  Volume  growth  of 4.2%  (excluding
powdered  products) in our Mexican operations offset the 11.0% decrease in sales
volume in Argentina.  Full-year 2002 consolidated  operating income increased by
14.6% over 2001.

Consolidated EBITDA grew by 9.6%, reaching Ps. 5,415.2 million for the full year
of 2002 as compared to 2001. EBITDA margin increased slightly to 30.7%, as
compared to 30.2% in 2001. This increase occurred mainly as a result of the
greater absorption of fixed costs generated by the volume growth during the
year, the price increases implemented during the first quarter of 2002 in the
Valley of Mexico and the 67% weighted average price increase implemented in
Buenos Aires during the full year.

The integral cost of financing shifted from a loss of Ps. 143.3 million in 2001
to a gain of Ps. 501.2 million in 2002 due to two main factors. First, the
impact of the depreciation of the Mexican peso against the U.S. dollar and the
devaluation of the Argentine peso on our U.S. dollar-denominated cash positions
in Mexico and Argentina, respectively, generated a foreign exchange gain that
offset the impact of the devaluation of the Mexican peso against the U.S.
dollar, as applied to the un-hedged U.S. dollar-denominated liabilities incurred
in connection with the acquisition of Coca-Cola FEMSA de Buenos Aires
("KOFBA")(5). Second, the gain on monetary position, which amounted to Ps. 385.5
million, mainly generated by the inflation rate for the year 2002, as applied to
our net monetary position in Mexico and Argentina.

Since July 2002, we discontinued using our investment in KOFBA as a hedge for
the liabilities incurred in connection with this acquisition due to the fact
that our current operations in Argentina do not represent a natural hedge of
this liability, mainly due to the current exchange rate volatility and the
elimination of the one-to-one parity of the Argentine peso against the U.S.
dollar. The Audit Committee of our Board of Directors supported this
determination.

Other expenses increased significantly, from Ps. 37.3 million in 2001 to Ps.
534.3 million in 2002, as a result of Ps. 401.8 million in goodwill impairment
recognized during the third quarter of 2002.

Income tax, tax on assets and employee profit sharing increased from Ps. 1,461.1
million in 2001 to Ps. 1,842.9 million in 2002. The Company's consolidated
effective income tax, tax on assets and employee profit sharing rate, excluding
the one-time non-cash impairment charge, decreased from 39.6% in 2001 to 38.3%
in 2002.

Excluding one-time non-cash impairment charges, consolidated net income
increased by 34.7% to Ps. 2,965.9 million for full-year 2002, resulting in EPS
of Ps. 2.081 (U.S.$1.99 per ADR) in 2002. Including these one-time non-cash
impairment charges, consolidated net income increased by 16.4% to Ps. 2,564.0
million, resulting in EPS of Ps. 1.80 (U.S.$ 0.17 per ADR).

BALANCE SHEET

On December 31, 2002, Coca-Cola FEMSA recorded a cash balance of Ps. 6,171
million (U.S.$590.02 million) and total bank debt of Ps. 3,179 million
(U.S.$303.9 million). As compared to December 31, 2001, this represents a Ps.
1,648 million (U.S.$157.6 million) increase in cash and cash equivalents.

- --------

(4)  The unit case is equal to 24 eight-ounce servings.

(5)  As  of  June  30,  2002,  the  total  amount  of  U.S.   dollar-denominated
     liabilities  incurred  in  connection  with the  acquisition  of KOFBA  was
     approximately  U.S.$300 million.  According to Mexican GAAP, the investment
     in KOFBA was designated as a hedge.  The total amount of the net investment
     in KOFBA was U.S.$118.1 million, and this is the maximum amount that should
     be  considered as a hedge;  as a result,  the  un-hedged  liabilities  were
     U.S.$181.5 million.


                                       14
<PAGE>


MEXICAN OPERATING RESULTS

Revenues
Revenues in the Mexican territories reached Ps. 16,198.5 million for 2002 and
Ps. 4,066.2 million for the fourth quarter of 2002, an increase of 6.7% and
4.7%, respectively. Excluding powdered products, sales volume for the year
reached 498.4 million unit cases, a 4.3% improvement over 2001. Fourth-quarter
2002 sales volume reached 129.1 MUC, an increase of 5.5% over fourth-quarter
2001.

The following chart sets forth sales volume and average unit price per case for
the year 2002, as well as percentage growth over the year 2001 in our Mexican
territories.
<TABLE>
<CAPTION>

                                            Excluding Kin light                     Including Kin light
                                         -----------------------                 -----------------------
                                         Total             % Growth               Total             % Growth
                                         -----             --------               -----              -------
<S>                                      <C>                    <C>               <C>                   <C>
Sales Volume (MUC)...................    498.4                  4.3               504.7                 5.6
Avg. Unit Price................... Ps.   32.37                  2.3         Ps.   31.97                 1.1
</TABLE>

During 2002, we promoted our Kin light powdered beverage brand in order to
examine better this category's potential and to evaluate consumption patterns
and price strategies. The volume of Kin light sold during the fourth quarter of
2002 was insignificant.

The 5.6% sales volume growth during 2002, including Kin light, in the Mexican
territories was mainly the result of (i) the solid performance of Mundet, (ii)
the 23.9 million unit cases sales volume reached by Ciel still and mineral
water, an increase of 27.4% as compared to 2002, (iii) the launch of new
products, such as Beat, Mickey Adventures and Nestea, and (iv) the continuous
effort to increase the market presence of the rest of the Coca-Cola trademark
beverages.

Gross Profit
Gross profit improved by 8.4% and 1.5% for full-year and fourth-quarter 2002,
respectively. Consolidated cost of sales, as a percentage of net sales,
decreased by 0.9 percentage points during 2002, due to the higher absorption of
fixed costs.

Income from Operations
As a percentage of total sales, selling and administrative expenses decreased
for both the full year and the fourth quarter of 2002 by 1.2 and 3.6 percentage
points, respectively, as compared to 2001, reflecting an improvement in
operations and the fact that administrative expenses remained flat as compared
to 2001.

The combination of improved sales volume, lower cost of sales per unit case, and
lower selling expenses, resulted in operating profit increases of 15.5% in 2002
and 12.4% in the fourth quarter of 2002, reaching an operating margin of 27.3%
and 25.2% for full-year 2002 and fourth-quarter 2002, respectively.

EBITDA totaled Ps. 5,182.8 million (U.S.$495.5 million), a 10.3% increase over
2001. EBITDA margin rose from 30.4% in 2001 to 32.0% for full-year 2002. Fourth
quarter 2002 EBITDA equaled Ps. 1,306.7 million (U.S.$124.9 million), an
increase of 6.0% as compared to the same period of 2001.


ARGENTINE OPERATING RESULTS

Revenues
In 2002, total sales volume in our Buenos Aires territory decreased by 11% as
compared to 2001. Despite the economic uncertainty in that region and our 15%
sales volume decline during the first nine months of 2002. The successful
introduction of our new 1.25 lt. glass returnable packaging for Coca-Cola,
Sprite and Fanta drove our 3.0% volume growth during the fourth quarter of 2002
as compared to the same period in 2001.

Average real price per unit case in Argentine pesos increased by 2.1% during
2002 and by 4.1% for the fourth quarter of 2002, as a result of price increases
implemented during the year that offset the effect of inflation and the lower


                                       15
<PAGE>

prices per unit case generated by the shift to returnable packages. Although our
sales volume declined by 11.0% during 2002, our net sales decreased by only 8.2%
as a result of the price improvement.

Gross Profit
Gross Profit decreased by 28.6% and 8.4% for both the full year and the fourth
quarter of 2002, respectively. These reductions were mainly due to lower sales
volume, lower absorption of fixed costs, higher prices of raw materials, and a
larger depreciation charge in Argentine pesos related to our foreign currency
denominated assets.

Income from Operations
In Argentina, selling expenses decreased by 25.8% and 5.3% for the full year and
the fourth quarter of 2002, respectively. As a percentage of net sales, for
full-year and the fourth quarter 2002, selling expenses declined by 5.8 and 3.0
percentage points, as a result of lower marketing expenses, and headcount
optimization combined with adjustments in salaries.

Administrative expenses in Argentina increased by 17.6% and 42.4% for the full
year and fourth quarter of 2002, respectively, as a result of a higher
depreciation charge in Argentine pesos related to our foreign
currency-denominated assets and dollar-based leasing contracts for computer
equipment.

Despite the adverse economic environment in Argentina and as a result of a well
designed commercial strategy and cost optimization efforts, we achieved a
positive operating profit of A$13.1 million during 2002, and A$8.5 for the
fourth quarter of 2002. Full-year and fourth-quarter 2002 EBITDA totaled A$74.9
million and A$24.8 million, respectively, reaching a 17.1% margin for 2002, an
increase of 1.0 percentage point as compared to 2001.

ARGENTINA GOODWILL IMPAIRMENT

Due to the uncertainty and the instability of the economic environment in
Argentina during the third quarter of 2002, we wrote down A$129.5 million
(U.S.$38.4 million) related to the goodwill generated by the acquisition of the
territories served by KOFBA, our wholly owned subsidiary, as a one-time non-cash
extraordinary event in our consolidated income statement. This non-cash
impairment charge was recorded as a non-cash extraordinary event in our
consolidated income statement.

Given the present economic situation in Argentina, we believe that the current
net asset value of our foreign subsidiary (A$288.6 million, U.S.$85.6 million)
is fairly valued and do not expect to recognize additional impairments in the
future. Under Mexican GAAP, the remaining value of goodwill will continue to be
amortized in the income statement. As a result, consolidated goodwill related to
Argentina as of December 31, 2002, amounted to A$49.0 million.

RECENT DEVELOPMENTS

     On December 23, 2002, we entered into an agreement to acquire Panamerican
     Beverages, Inc (NYSE: PB). The acquisition is expected to close during the
     second quarter of 2003, subject to the satisfaction or waiver of certain
     conditions.

     During  the  first  months  of  2003,   we  launched  the   following   new
     products/packages in our Mexican territories:

          -    2.5 lt. PET returnable presentation for brand Coca-Cola, in order
               to increase per capita  consumption  and to  reinforce  the price
               point  of this  core  multi-serving  presentation,  offering  our
               consumers a more affordable and convenient beverage experience.

          -    1.75 lt.  non-returnable PET multi-flavor  presentation for Fanta
               (Tamarindo, Mandarine, Peach and Strawberry), in order to capture
               a greater market presence within the Bodegas  supermarket  flavor
               segment.


                                       16
<PAGE>


          -    Consistent  with the integrated  water strategy that we developed
               in  conjunction  with The  Coca-Cola  Co., we launched Ciel still
               water in a 1.0 lt.  non-returnable  PET presentation with a sport
               cap  for  sports   venues  and  a  12  oz.   non-returnable   PET
               presentation targeting restaurants.

     Following the Comision Federal de Competencia, Mexican Federal Antitrust
     Commission's ("MFAC") finding against the Company in connection with
     exclusivity practices in the Mexican soft drink industry, the Company, in
     accordance with the Mexican Federal Antitrust Law, has filed an immediate
     appeal of the MFAC's decision. Due to the unfavorable outcome of this legal
     procedure, we filed another appeal, which is currently taking place before
     the Mexican Federal Court and are awaiting the decision. The Company does
     not expect that an unfavorable decision will have a material adverse effect
     on its financial results

CHANGE OF GUIDANCE PRACTICE

After a careful review and analysis we will discontinue our practice of
providing guidance with respect to operating income and volume growth. We
believe that establishing such short-term guidance will prevent a more
meaningful focus on the strategic initiatives that we are undertaking to expand
our business and grow over the long term. We are quite comfortable measuring our
progress as we achieve it.

This decision will not affect our continued commitment to remain at the
forefront of corporate disclosure, a policy that has always distinguished us in
our industry.

CONFERENCE CALL INFORMATION

Our  Fourth-Quarter  2002  Conference  Call  will  be held  on:  Wednesday,
February  19, 2003,  9:30 A.M.  Eastern  Time (8:30 A.M.  Mexico City Time).  To
participate in the conference call,  please dial:  Domestic U.S.:  800-299-9086,
International:  617-786-2903.  If you are unable to participate live, an instant
replay of the conference call will be available through March 3, 2003. To listen
to  the  replay  please  dial:  Domestic  U.S.:   888-286-8010;   International:
617-801-6888, Passcode: 15550813.

                                                                 o o o
Coca-Cola FEMSA, S.A. de C.V. produces Coca-Cola, Sprite, Fanta, Lift and other
trademark beverages of The Coca-Cola Company in the Valley of Mexico and the
Southeast territories in Mexico and in the Buenos Aires Territory in Argentina.
The Company has eight bottling facilities in Mexico and one in Buenos Aires and
serves more than 283,650 retailers in Mexico and 76,400 retailers in the greater
Buenos Aires area. Coca-Cola FEMSA currently accounts for approximately 3.3% of
Coca-Cola global sales, 26.0% of all Coca-Cola sales in Mexico and approximately
36.5% of all Coca-Cola sales in Argentina. The Coca-Cola Company owns a 30%
equity interest in Coca-Cola FEMSA.

Figures for the Company's operations in Mexico and its consolidated
international operations were prepared in accordance with Mexican generally
accepted accounting principles ("Mexican GAAP"). Figures of the Company's
operations in Argentina were prepared in accordance with Argentine generally
accepted accounting principles. All figures are expressed in constant Mexican
pesos with purchasing power at December 31, 2002. For comparison purposes, 2001
and 2002 figures from the Company's Argentine operations have been restated
taking into account Argentine inflation with reference to the Argentine consumer
price index and converted from Argentine pesos into Mexican pesos using the
December 31, 2002 exchange rate of Ps. 3.370 per A$1.00. In addition, all
comparisons in this report for the fourth quarter of 2002, which ended on
December 31, 2002, in this report are made against the figures for the
comparable period, full year 2001 and fourth quarter 2001, unless otherwise
noted.

This news release may contain forward-looking statements concerning Coca-Cola
FEMSA's future performance and should be considered as good faith estimates of
Coca-Cola FEMSA. These forward-looking statements reflect management's
expectations and are based upon currently available data. Actual results are
subject to future events and uncertainties that could materially impact the
Company's actual performance.

References herein to "U.S.$" are to United States dollars. This news release
contains translations of certain peso amounts into U.S. dollars at specified
rates solely for the convenience of the reader. These translations should not be
construed as representations that the peso amounts actually represent such U.S.
dollar amounts or could be converted into U.S. dollars at the rate indicated.

                         (4 Pages of tables to follow)


                                       17
<PAGE>
<TABLE>
<CAPTION>
Coca-Cola FEMSA, S.A. de C.V. and Subsidiaries
INCOME STATEMENT
For the three months ended December 31, 2002 and 2001
Expressed in currency with purchasing power as of  December 31, 2002

                      ---------------------- ------------------------- -----------------------
                           Consolidated       Mexican Operations        Buenos Aires Operation

                      ------------------------------------------------ -----------------------
                               (Millions of Mexican Pesos) (1)         (Millions of Argentine Pesos)(1)
                      ------------------------------------------------------------------------
                         2002    2001 % VAR        2002    2001 % VAR       2002  2001  % VAR
- --------------------- ---------------------- ------------------------- -----------------------
<S>                     <C>     <C>     <C>      <C>     <C>     <C>        <C>   <C>     <C>
Sales volume (millions
 unit cases)            165.0   157.2   4.9       129.1   122.4   5.5       35.9  34.8    3.0
Average unit price
 per case               27.15   27.15     -       31.41   31.64  (0.8)      3.81  3.66    4.1
- --------------------- ---------------------- ------------------------- -----------------------
Net revenues          4,478.5 4,268.4   4.9     4,054.9 3,873.3   4.7      136.5 127.3    7.2
Other operating
 revenues                28.8    30.9  (6.8)       11.3    15.9 (28.9)       5.6   4.8   16.7
- --------------------- ---------------------- ------------------------- -----------------------
Total revenues        4,507.3 4,299.3   4.8     4,066.2 3,889.2   4.6      142.1 132.1    7.6
Cost of sales         2,127.0 1,938.3   9.7     1,838.1 1,694.6   8.5       93.0  78.5   18.5
- --------------------- ---------------------- ------------------------- -----------------------
Gross profit          2,380.3 2,361.0   0.8     2,228.1 2,194.6   1.5       49.1  53.6   (8.4)
- --------------------- ---------------------- ------------------------- -----------------------
 Administrative
  expenses              366.6   333.8   9.8       340.6   315.4   8.0        8.4   5.9   42.4
 Selling expenses       836.4   960.6 (12.9)      736.6   855.3 (13.9)      32.2  34.0   (5.3)
- --------------------- ---------------------- ------------------------- -----------------------
Operating expenses    1,203.0 1,294.4  (7.1)    1,077.2 1,170.7  (8.0)      40.6  39.9    1.8
- --------------------- ---------------------- ------------------------- -----------------------
Goodwill amortization     5.1    24.2 (78.9)        2.0     1.9   5.3          -   1.2 (100.0)
- --------------------- ---------------------- ------------------------- -----------------------
Operating income      1,172.3 1,042.4  12.5     1,148.9 1,022.0  12.4        8.5  12.6  (32.5)
- --------------------- ---------------------- ------------------------- -----------------------
 Interest expense        93.1    78.2  19.1
 Interest income         70.8    65.7   7.8
 Interest expense,
  net                    22.4    12.4  80.6
 Foreign exchange
  loss (gain)           (47.7)  (41.5) 14.9
 Loss (gain) on
  monetary position      29.7    38.9 (23.7)
- -                     ----------------------
Integral cost of
 financing                4.4     9.8 (55.1)
Other (income)
 expenses, net           61.7    49.1  25.7
- --------------------- ----------------------
Income before taxes   1,106.2   983.5  12.5
Taxes                   367.7   295.3  24.5
- --------------------- ----------------------
Consolidated net
 income                 738.5   688.2   7.3
- --------------------- ----------------------
Majority net income     738.5   688.2   7.3
- --------------------- ---------------------- ------------------------- -----------------------
EBITDA (2)            1,383.8 1,299.8   6.5     1,306.7 1,232.5   6.0       24.8  21.7   14.3
- --------------------- ---------------------- ------------------------- -----------------------

(1)  Except volume and average price per unit case figures.

(2)  Net income (loss) before  deductions  for  interest,  taxes,  depreciation,
     amortization, and adjustments for other non-operating items. EBITDA is used
     by management as an additional  indicator of operating  performance and not
     as a replacement  of measures such as cash flow from  operating  activities
     and  operating  income  as  defined  and  required  by  generally  accepted
     accounting principles in the United States.

                      Mexican Inflation September 2002-December 2002      1.693%
                      Argentine Inflation  September 2002-December 2002   1.005%
                      Mexican Peso / U.S.Dollar at December 31, 2002      10.459
                      Argentine peso / U.S. Dollar at December 31, 2002    3.370
                      Mexican Peso / Argentine peso at December 31, 2002   3.104

</TABLE>


                                       18
<PAGE>
<TABLE>
<CAPTION>
Coca-Cola FEMSA, S.A. de C.V. and Subsidiaries
INCOME STATEMENT
For the twelve months ended December  31, 2002 and 2001
Expressed in currency with purchasing power as of December 31, 2002

                      --------------------------- ------------------------- ----------------------
                              Consolidated         Mexican                  Buenos Aires Operation
                                                   Operations
                      ----------------------------------------------------- ----------------------
                                 (Millions of Mexican Pesos) (1)            (Millions of Argentine
                                                                             Pesos)(1)
                      ----------------------------------------------------------------------------
                          2002     2001   % VAR         2002     2001 % VAR      2002  2001 % VAR
- --------------------- --------------------------- ------------------------- ----------------------
<S>                      <C>      <C>        <C>       <C>      <C>    <C>      <C>   <C>   <C>
Sales Volume (millions
 unit cases)             620.3    607.8      2.1       504.7    477.9  5.6      115.6 129.9 (11.0)
Average unit price
 per case                28.20    27.33      3.2       31.97    31.63  1.1       3.79  3.71   2.1
- --------------------- --------------------------- ------------------------- ----------------------
Net revenues          17,491.6 16,612.3      5.3    16,132.8 15,117.9  6.7      437.8 481.5  (9.1)
Other operating
 revenues                128.5    117.2      9.6        65.7     62.7  4.8       20.2  17.6  14.8
- --------------------- --------------------------- ------------------------- ----------------------
Total revenues        17,620.1 16,729.5      5.3    16,198.5 15,180.6  6.7      458.0 499.1  (8.2)
Cost of sales          8,130.1  7,737.8      5.1     7,197.6  6,874.1  4.7      300.4 278.3   7.9
- --------------------- --------------------------- ------------------------- ----------------------
Gross profit           9,490.0  8,991.7      5.5     9,000.9  8,306.5  8.4      157.6 220.8 (28.6)
- --------------------- --------------------------- ------------------------- ----------------------
 Administrative
  expenses             1,396.7  1,287.2      8.5     1,303.3  1,207.6  7.9       30.1  25.6  17.6
 Selling expenses      3,616.0  3,730.9     (3.1)    3,268.5  3,262.1  0.2      112.0 151.0 (25.8)
- --------------------- --------------------------- ------------------------- ----------------------
Operating expenses     5,012.7  5,018.1     (0.1)    4,571.8  4,469.7  2.3      142.1 176.6 (19.5)
- --------------------- --------------------------- ------------------------- ----------------------
Goodwill amortization     37.3    100.7    (63.0)        7.9      7.9    -        2.4   4.8 (50.0)
- --------------------- --------------------------- ------------------------- ----------------------
Operating income       4,440.0  3,872.9     14.6     4,421.2  3,828.9 15.5       13.1  39.4 (66.8)
- --------------------- --------------------------- ------------------------- ----------------------
 Interest expense        334.1    329.8      1.3
 Interest income         252.6    273.8     (7.7)
 Interest expense,
  net                     81.5     56.0     45.5
 Foreign exchange
  loss (gain)           (197.2)     6.3 (3,230.2)
 Loss (gain) on
  monetary position     (385.5)    81.0   (575.9)
- -                     ---------------------------
Integral cost of
 financing              (501.2)   143.3   (449.8)
Other (income)
 expenses, net           534.3     37.3  1,331.4
- --------------------- ---------------------------
Income before taxes    4,406.9  3,692.3     19.4
Taxes                  1,842.9  1,461.1     26.1
- --------------------- ---------------------------
Effect of changes in                        NA
 accounting principles
 (2)                         -    (29.0)
                      ---------------------------
Consolidated net
 income                2,564.0  2,202.2     16.4
- --------------------- ---------------------------
Majority net income    2,564.0  2,202.2     16.4
- --------------------- --------------------------- ------------------------- ----------------------
EBITDA (3)             5,415.2  4,939.3      9.6     5,182.8  4,698.3 10.3       74.9  77.7  (3.6)
- --------------------- --------------------------- ------------------------- ----------------------

(1)  Except volume and average price per unit case figures.

(2)  Issuance of bulletin C-2 "Financial  Instruments" included in first quarter
     2001. For additional information refer to first quarter 2001 Press Release.

(3)  Net income (loss) before  deductions  for  interest,  taxes,  depreciation,
     amortization, and adjustments for other non-operating items. EBITDA is used
     by management as an additional  indicator of operating  performance and not
     as a replacement  of measures such as cash flow from  operating  activities
     and  operating  income  as  defined  and  required  by  generally  accepted
     accounting principles in the United States.

                      Mexican Inflation December 2001-December 2002       5.700%
                      Argentine Inflation December 2001-December 2002    41.219%
                      Mexican Peso / U.S.Dollar at December 31, 2002      10.459
                      Argentine Peso / U.S.Dollar at December 31, 2002     3.370
                      Mexican Peso / Argentine peso at December 31, 2002   3.104

</TABLE>

                                       19
<PAGE>
<TABLE>
<CAPTION>
Coca-Cola FEMSA, S.A. de C.V. and Subsidiaries
Consolidated Balance Sheet
As of December  31, 2002 and December 31, 2001
Millions of Mexican pesos (Ps.)
Expressed in currency with purchasing power as of December  31, 2002

ASSETS                               2002         2001
- -------------------------------------------------------
Current Assets
<S>                                 <C>           <C>
 Cash and cash equivalents     Ps.  6,171    Ps.  4,523
- -------------------------------------------------------
 Accounts receivable:
  Trade                               548          588
  Notes                                10           26
  Prepaid taxes                       241            2
  Other                               203          328
- -------------------------------------------------------
                                    1,002          944
- -------------------------------------------------------
 Inventories                          747          577
 Prepaid expenses                      71           28
- -------------------------------------------------------
Total current assets                7,991        6,072
- -------------------------------------------------------
Property, plant and
 equipment
 Land                                 771          757
 Buildings, machinery and
  equipment                         8,666        8,000
 Accumulated depreciation          (3,113)      (2,638)
 Construction in progress             361          306
 Bottles and cases                    284          212
- -------------------------------------------------------
Total property, plant and
 equipment                          6,969        6,637
- -------------------------------------------------------
Investment in shares                  116          128
Deferred charges, net                 838          527
Goodwill, net                         259          896
- -------------------------------------------------------
TOTAL ASSETS                  Ps.  16,173  Ps.  14,260
=======================================================
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES & STOCKHOLDERS' EQUITY                  2002        2001
- ---------------------------------------------------------------------
CurrentLiabilities
  Short-term bank loans, notes and interest
<S>                                                   <C>         <C>
   payable                                       Ps.  81     Ps.  80
  Suppliers                                        1,586       1,511
  Accounts payable and others                        651         439
  Taxes payable                                      221         397
- ---------------------------------------------------------------------
Total Current
 Liabilities                                       2,539       2,427
- ---------------------------------------------------------------------
Long-term bank
 loans                                             3,170       2,949
Pension plan and seniority premium                   184         174
Other
 liabilities                                       1,156       1,030
- ---------------------------------------------------------------------
Total
 Liabilities                                       7,049       6,580
- ---------------------------------------------------------------------
Stockholders'Equity
Minority interest                                      0           0
Majority interest:
  Capital stock                                    2,370       2,370
  Additional paid in capital                       1,667       1,667
  Retained earnings of prior years                 6,660       5,042
  Net income for the period                        2,564       2,202
  Cumulative results of holding
   non-monetary assets                           (4,137)     (3,601)
- ---------------------------------------------------------------------
Total majority
 interest                                          9,124       7,680
- ---------------------------------------------------------------------
Total stockholders'
 equity                                            9,124       7,680
- ---------------------------------------------------------------------
TOTAL LIABILITIES & EQUITY                    Ps. 16,173 Ps.  14,260
=====================================================================

         Mexican Inflation December 2001 - December 2002        5.70%
         Argentine Inflation December 2001 - December 2002     41.22%
         Mexican Peso / U.S.Dollar at December 31, 2002        10.459
         Argentine peso / U.S Dollar  December 31, 2002         3.370

</TABLE>

                                       20
<PAGE>
<TABLE>
<CAPTION>

                              Selected Information

                 For the twelve months ended December 31, 2002

Expressed in Pesos as of  December 31, 2002

                                      2002
- -------------------------------------------
<S>                                  <C>
Depreciation (1)                     558.2
Amortization and others              417.0
Capital Expenditures (2)           1,340.9
- -------------------------------------------

(1)  Includes goodwill amortization

(2)  Includes Bottles and Cases and Deferred Charges

Sales Volume Information
Expressed in millions of unit cases

                             2002     2001
- -------------------------------------------
Mexico (3)                  504.7    477.9
Valley of Mexico            378.3    356.3
Southeast                   126.4    121.6
Buenos Aires                115.6    129.9
- -------------------------------------------
Total                       620.3    607.8
===========================================
(3)  Includes 6.3 MUC of Kin light

Product Mix by Brand
(Colas / Flavors (3) / Water)
Expressed as a percentage of total volume

                             2002     2001
- -------------------------------------------
Mexico                    72/23/5  75/21/4
Valley of Mexico          72/24/4  76/21/3
Southeast                 71/23/6  72/22/6
Buenos Aires              68/31/1  70/29/1
- -------------------------------------------
Total                     71/25/4  74/23/3
===========================================

(3)  Includes 6.3 MUC of Kin light

Product Mix by Presentation
(Returnable / Non Returnable)
Expressed as a percentage of total volume

                             2002     2001
- -------------------------------------------
Mexico                      36/64    41/59
Valley of Mexico            34/66    39/61
Southeast                   44/56    45/55
Buenos Aires                12/88     6/94
- -------------------------------------------
Total                       32/68    33/67
- -------------------------------------------

                              Selected Information

                  For the three months ended December 31, 2002

Expressed in Pesos as of  December 31, 2002

                                       2002
- --------------------------------------------
Depreciation (1)                      121.0
Amortization and others                90.6
Capital Expenditures
 (2)                                  200.7
- --------------------------------------------
(1) Includes goodwill amortization
(2) Includes Bottles and Cases and Deferred
 Charges
Sales Volume Information
Expressed in millions of unit cases
                             2002      2001
- --------------------------------------------
Mexico (3)                  129.1     122.4
Valley of Mexico             96.8      92.0
Southeast                    32.3      30.4
Buenos Aires                 35.9      34.8
- --------------------------------------------
Total                       165.0     157.2
============================================
(3)Includes 0.2 MUC of Kin light

Product Mix by Brand
(Colas / Flavors (3) / Water)
Expressed as a percentage of total volume
                             2002      2001
- --------------------------------------------
Mexico                    71/24/5   76/20/4
Valley of Mexico          71/24/5   76/21/3
Southeast                 72/22/6   73/22/5
Buenos Aires              71/28/1   69/30/1
- --------------------------------------------
Total                     71/25/4   74/23/3
========================--------------------
(3)Includes 0.2 MUC of Kin light

Product Mix by Presentation
(Returnable / Non Returnable)
Expressed as a percentage of total volume
                             2002      2001
- --------------------------------------------
Mexico                      34/66     38/62
Valley of Mexico            30/70     37/63
Southeast                   44/56     42/58
Buenos Aires                19/81      4/96
- --------------------------------------------
Total                       30/70     31/69
- --------------------------------------------
</TABLE>


                                       21
<PAGE>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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