July 3, 1998

CEMEX, S.A. de C.V. (CMXBY:OTC) announced today that the Indonesian government has selected the company as the preferred bidder for the privatization of market leading cement producer PT Semen Gresik (SMGR: Indonesian Exchange).

CEMEX has offered to purchase 35% of the Government interest in Semen Gresik at US$1.38 per share, or a total cash consideration of US$287 million. CEMEX has also offered to purchase the remaining 30% owned by the Indonesian government during the next five years, but after August 1999, at the same price in US Dollars plus a premium of 8.2% per annum. In addition, CEMEX has agreed to make a further payment to the Indonesian Government in the year 2006 of up to US$129 million should the operating cash flow performance significantly exceed current projections for Semen Gresik.

From now until the week of August 17, the Ministry of State-Owned Enterprises in Indonesia and its financial advisors will actively solicit offers from other qualified strategic investors. CEMEX, as the preferred bidder, will have the option to match the highest bid within five business days of the close of this period.

CEMEX´s offer would also include its intent to purchase up to 16% of Semen Gresik shares from the public at US$1.38 per share.

The acquisition would be funded with the proceeds received from the plant and related assets sold in Spain (US$260 million), proceeds from financial investor contributions to CEMEX Investments Holding Asia based in Singapore, and internally generated free cash flow available for geographic diversification (projected at over US$700 million during 1998).

Hector Medina, CEMEX´s Executive Vice President of Planning and Finance, commented, "Despite the current economic outlook, Indonesia is an attractive market for CEMEX and offers favorable long-term growth prospects. This investment is congruent with our strategy of prudent international diversification within emerging markets and meets our previously stated investment criteria."

Semen Gresik is the leading cement producer in Indonesia with a 39% of the market and annual installed capacity of 12.7 million metric tons. Current investments in progress will increase the installed capacity to 17.2 million metric tons by December 1998. Gresik has net debt of approximately US$285 million.

Founded in 1906, CEMEX is the largest cement producer in the Americas and one of the three largest cement producers in the world, with a production capacity of approximately 51 million metric tons per year. CEMEX is the market leader in its operations in Mexico, Spain, Venezuela, Panama, and the Dominican Republic; the company has a significant presence in the markets of Colombia, the Caribbean, the southwest region of the United States of America, and the Philippines.