Embotelladoras Arca: Fourth Quarter and Full Year 2005 Results

• Total sales volume grew 6.8% in 4Q05 vs. 4Q04.
• Operating income increased 11% to Ps. 501 million in 4Q05.
• Operating margin rose from 13.6% in 4Q04 to 14.2% in 4Q05.

Fourth Quarter 2005 (4Q05) Highlights:

• In 4Q05, total sales volume¹ increased 6.8% to 106.4 million unit cases (“MUC”), compared to 99.6 MUC in 4Q04.

• Net sales were Ps. 3,527 million in 4Q05, an increase of 5.7% when compared to 4Q04.

• Operating income² increased 10.7% to Ps. 500.8 million, representing a margin of 14.2%.

• EBITDA^2,3 reached Ps. 665 million, 2.2% higher than in 4Q04, representing an EBITDA margin of 18.9%.


Full Year 2005 (FY05) Highlights:

• Total sales volume¹ increased 4.5% to 436 MUC.

• Net sales rose 2.2% to Ps. 14,647 million.

• Operating income² in FY05 increased by 9.7% when compared to FY04, to Ps. 2,774 million, representing an operating margin of 18.9%.

• EBITDA^2,3 reached Ps. 3,443 million, 3.8% higher than in FY04, representing an EBITDA margin of 23.5%.

¹Total sales volume includes soft drinks and single serve water. It does not include jug water.

²Excluding non-recurring expenses

³Operating Profit + Depreciation + Goodwill Amortization


Monterrey, Mexico, February 21, 2006 – Embotelladoras Arca, S.A. de C.V. (“Arca” or “the Company”) (BMV: ARCA), the second-largest Coca-Cola bottler in Mexico and Latin America, announced today its unaudited results for the fourth quarter and full-year periods ended December 31, 2005. All figures are expressed in thousands of constant Mexican pesos as of December 31, 2005.