Monterrey, Mexico
April 6,  2001

Savia S.A. de C.V (NYSE: VAI) announced today that its packaging subsidiary, Empaques Ponderosa S.A. de C.V., has reached agreement to sell its three subsidiaries to Organizacion Editorial Mexicana. 

The transaction is valued at US$285 million, including the three subsidiaries' net debt. The three subsidiaries are Cartones Ponderosa, Ecofibras Ponderosa, and Ponder Fibers Corporation. Completion of the transaction is subject to approval by Empaques Ponderosa's shareholders and relevant authorities. 

Bernardo Jimenez, Chief Financial Officer of Savia, said, "The divestiture of Empaques' subsidiaries is a key factor in strengthening Savia's financial structure. The proceeds of this transaction will be applied primarily to reducing Savia's bank debt." 

Savia acquired Empaques Ponderosa in 1994. Under Savia's leadership, Empaques was consolidated into the leading producer of recycled boxboard in the domestic market. The company was known for the high quality of its products, productivity, and profitability. Empaques Ponderosa contributed 5 percent of Savia's annual sales during 2000. 

Savia 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. SOURCE Savia S.A. de C.V. 

Company news release
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