July 20, 1998

CEMEX, S.A. de C.V. (OTC:CMXBY) today announced that, in dollar terms, its EBITDA grew 21% to US$365 million in the second quarter versus the same period of 1997 and 28% during the first six months of 1998. In dollar terms, cash earnings (EBITDA less net interest expense) in the second quarter grew 37% versus the prior year, to US$253 million (US$0.41 per ADR). During the first six months of 1998 cash earnings increased 52% to US$482 million. The ADR ratio is 2:1 per ordinary share. Excluding shares held in trust for equity swaps, the average number of ordinary shares outstanding during the quarter totaled 1,223 million.

In the second quarter of 1998, Mexico represented 55% of the total cash flow, Spain 19%, Venezuela 13%, Colombia 3%, the United States 6% and Central America and the Caribbean 4%.

Operating income increased 25% to Ps. 2.606 billion in the second quarter 1998. Operating margin was 27.4% during the second quarter, versus 23.6% for the period year ago.

Net sales increased 8% in real terms to Ps. 9.500 billion during the second quarter of 1998 versus the same quarter of 1997. In dollar terms, net sales increased 10% in the second quarter to US$1.056 billion.

Mexico represented 43% of the net sales for the second quarter of 1998, Spain 20%, Venezuela 11%, Colombia 7%, the United States 13% and Central America and the Caribbean 6%.

Net income during the second quarter of 1998 was Ps. 1.658 billion, or US$184 million (including monetary position gains of Ps. 1.199 billion). Net income during the same period in 1997 was Ps. 1.423 billion or US$154 million (including monetary position gains of Ps. 1.186 billion). Net income per ADR in the second quarter was Ps. 2.72 (US$0.30), versus Ps. 2.30 (US$0.25) during the same period a year ago.

Rodrigo Treviño, Chief Financial Officer said: "The results from the second quarter further demonstrate the success of our geographic diversification strategy. Our portfolio of operations are on track to achieve the consolidated financial objectives established at the beginning of the year."

In dollars, interest expenses were US$121 million, a 3% decrease versus the same period a year ago. Interest plus Preferred dividend coverage (EBITDA before operating lease payments and cost restatements for inflation divided by interest expense plus dividend on Preferred Capital Securities) was 3.03 times in the second quarter and 2.75 times for the trailing twelve months. Interest plus tax coverage (EBITDA before operating lease payments and cost restatements for inflation divided by interest expense plus Preferred dividend plus cash taxes paid) was 2.47 times on a trailing twelve months basis during the second quarter of 1998.

Leverage as defined by net debt (on- plus off-balance sheet debt plus Preferred Capital Securities minus cash and cash equivalents) to EBITDA declined to 3.50 times versus 4.43 times in the second quarter of 1997.

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.