Monterrey, Mexico
February 23,  2001

Savia S.A. de C.V. (NYSE: VAI) (BMV: SAVIA) announced today results for the three- and twelve-month period ended December 31, 2000. 

Consolidated Results

TWELVE-MONTH CONSOLIDATED RESULTS

Net Consolidated Sales 

Net consolidated sales for the year amounted to US$ 3,211 million, a 13% increase from 1999. To facilitate the analysis, Savia segregates results in two segments: the industrial and commercial sector (ICS) and the financial services sector (FSS). The ICS includes agrotechnology, packaging and other business operations. The FSS includes Seguros Comercial America (SCA) and its subsidiaries. ICS's sales for the year amounted to US$925 million, a 9% decline compared with the previous year. This decline was the result of the contraction in the North American market, divestiture of non-core agrotechnology operations and a weakening of the Euro. FSS' sales for the period amounted to US$2,286 million, an increase of 25% when compared with 1999. Consolidated 1999 results for FSS only take into account the March- December period. Foreign currency denominated sales for the period at FSS reached US$1,204 million, representing 37% of total sales. 

Consolidated Operating Income 

For the year, Savia registered a consolidated operating loss of US$267, as a result of non-recurring extraordinary charges and the negative impact of the volatility of the Mexican stock market upon SCA's financial revenues. 

The ICS reported an operating loss of US$78 million pesos, compared with operating income of US$22 million for the same period last year. The FSS reported an operating loss of US$189 million, versus a US$ 26 million profit during 1999. 

Consolidated Net Income 

During the period, the Company posted a net consolidated loss of US$440 million. In addition to the extraordinary charges mentioned before, results for the year were also negatively impacted by the mandatory implementation of rule "Boletin D-4" (deferred taxes) effective from the beginning of 2000. Results for the year also included a US$293 million non-cash charge in connection with the absorption of the goodwill generated by the acquisition of businesses and joint ventures. Majority loss for 2000 reached US$318 million, equivalent to a US$ 0.68 loss per share or US$2.71 per ADR. 

TWELVE-MONTH RESULTS BY SUBSIDIARY

Financial Services Sector

Seguros Comercial America 

Seguros Comercial America S.A. de C.V. (BMV: SEGCOAM) and its subsidiaries contributed US$ 2,286 million in sales, representing a 25% over 1999. The company posted an operating loss of US$189 million versus a US$26 million profit in 1999. Consolidated results for 1999 only take into account the period from March through December. 

As stated by SCA in its annual report, "underwriting income, main indicator of the company's strength, increased to US$147 million, an 18% improvement compared with fiscal year 1999." As mentioned in previous announcements, the loss reported in the period was mainly due to a decline in SCA's financial income as a result of unrealized losses resulting from the volatility in the Mexican stock exchange. Despite this, the fundamental structure of the business remained unaffected. 

Industrial and Commercial Sector

Seminis 

During the second half of 2000, Eugenio Najera Solorzano was named President and Chief Operating Officer of Seminis (NASDAQ: SMNS), the world's leading producer, developer and marketer of fruit and vegetable seeds. Mr. Najera developed and initiated the implementation of an operating optimization plan and restructuring initiatives aimed at returning the company to profitability. Results for the fourth quarter of 2000 show the first signs of improvement as a result of these measures. Excluding foreign exchange losses and the impact of divestitures of non-core businesses, sales for that period increased 6.1%. Simultaneously, operating costs, excluding non-recurring charges resulting from the restructuring, declined 12%. 

Seminis' sales for the January-December 2000 period reached US$481 million, a 13% decline over the same period of 1999. Operating loss amounted to US$39 million, compared with a US$ 73 million operating income for 1999. The decline in sales was mainly due to the divestiture of non-core assets, the contraction in the North American fruit and vegetable seed market and the devaluation of the Euro. As of December 31, 2000, Seminis was not in compliance with certain financial covenants under its US$317 million loan agreement. Seminis requested and obtained a waiver with respect to these covenants that extends through April 30, 2001. 

Bionova 

Bionova (AMEX: BVA) implemented the divestiture of its non-profitable assets, which will allow the company to improve its operations, albeit a short-term negative impact on sales. Bionova's sales for the year amounted to US$226 million, 9% below those reported in 1999. Operating loss for the year, however, reached US$23 million, representing an 8% improvement over the US$ 25 million loss registered in 1999. 

Empaques 

Sales for Empaques Ponderosa (BMV: EMPAQ) amounted to US$147 million, a 6% decline compared with the previous year. The decline in sales was mainly due to a reduction in the price of boxboard in real terms, as a result of higher inflation and the stronger peso. In addition, increased import of consumer products driven by the strong peso resulted in a contraction of domestic demand for boxboard. Operating income for the year declined 31% to US$ 26 million, when compared with 1999. EBITDA margin for the January-December period was 24%. The divestiture of the Aluprint subsidiary in February 2000 allowed Empaques to focus its packaging division's operations on the manufacturing of recycled boxboard and the collection and sale of secondary fiber. 

CONSOLIDATED FOURTH QUARTER RESULTS

Net Consolidated Sales 

Net sales for the fourth quarter of 2000 amounted to US$812 million, compared with US$849 million for the same period of last year. Foreign currency denominated sales reached US$267 million, representing 33% of the Company's total consolidated sales. Of total sales for the quarter, the ICS sales declined by 15% to US$174 million, while the FSS remained relatively unchanged at US$638 million. 

Consolidated Operating Income 

During the fourth quarter of 2000, Savia posted a US$112 million consolidated operating loss, compared with US$ 2 million loss for the same period of 1999. The ICS posted a US$ 36 million operating loss, versus a US$28 million loss for the same quarter last year. The FSS registered a US$75 million loss during the quarter, compared with US$25 million in operating profit last year. 

Consolidated Net Income 

For the quarter, the Company reported a US$158 million consolidated net loss, compared with a US$70 million loss for the same quarter in 1999. Majority loss for the quarter was US$113 million, representing a loss of US$0.24 per share, or a loss of US$0.96 per ADR. 

FOURTH QUARTER RESULTS BY SUBSIDIARY

Financial Services Sector 

Seguros Comercial America 

Fourth quarter 2000 consolidated revenues for SCA and its subsidiaries remained relatively unchanged year-over-year at US$638 million. During the quarter, SCA registered a US$75 million operating loss. SCA's combined ratio (technical margin before fixed costs) for the quarter, one of the company's efficiency indices, improved year-over-year by 28%. 

Industrial and Commercial Sector 

Seminis 

Seminis' total sales for the quarter amounted to US$79 million, a 6% decline from the same period last year. Excluding the negative impact of foreign exchange losses and divestitures of non-core businesses, sales for the quarter increased 6%. For the quarter, Seminis posted a US$16 million operating loss, a 3% increase from a loss of US$15 million for the same quarter of the previous year. Excluding restructuring costs, Seminis' operating expenses for the quarter improved by 12%. 

Bionova 

Bionova sales for the fourth quarter of 2000 amounted to US$58 million, an 8% decline over last year. During the period, Bionova registered a US$4 million operating loss, a 62% improvement over the US$10 million loss posted in the same period of last year. 

Empaques Ponderosa 

Net sales for the quarter declined 19% to US$33 million, from US$41 million registered in the same period the previous year. During the period, sales volume of recycled secondary fiber continued to grow, increasing year- over-year by 34%. In addition, the company exported 19% of its boxboard production. Operating income reached US$3 million, compared with US$10 million for the fourth quarter of 1999. 

Savia (www.savia.com.mx), is a diversified group of companies strategically oriented toward leadership and to the creation of value. Savia participates in industries that offer high growth potential in Mexico and abroad. Among its principal subsidiaries are: Seguros Comercial America, the largest insurance company in Mexico; Seminis, global leader in the production and marketing of fruit and vegetable seeds; Bionova, geared toward plant science to develop and improve fruits and vegetables, and Empaques Ponderosa, national leader in the production of pliable paperboard manufactured from recycled fibers.  

Company news release
N3338