Grupo Elektra Announces Revenue Growth of 8% to Ps.10,832 Million In 4Q07

- Gross Profit Rises 13% to Ps.5,221 Million in 4Q07 -

MEXICO CITY, Feb. 14 /PRNewswire-FirstCall/ -- Grupo Elektra, S.A. de C.V.
(BMV: ELEKTRA*; Latibex: XEKT), Latin America's leading specialty retailer,
consumer finance and banking and financial services company, reported today
its financial results for the fourth quarter and for the full year 2007.
"2007 was a year of growth through which we implemented strategies to
further enhance our long-term expansion," said Carlos Septien, Chief Executive
Officer of Grupo Elektra and Banco Azteca. "We strengthened our leading
position as the best commercial and financing option for the mass market in
the countries where we operate; we launched our automobile business, which has
encouraging perspectives; and we started banking operations in Guatemala and
Honduras, and most recently in Peru. Additionally, we lay the foundations to
accelerate our expansion in Argentina and El Salvador, and to start operations
on the extensive Brazilian market."
"Our dynamic operations translated into solid performance of the
consolidated revenue and gross profit in 2007," added Mr. Septien. "Closely
related to the expansion efforts, towards the end of the year there were
extraordinary expenses, which will translate into an improve positioning in
Latin America, and in the consolidation of our new businesses."
* Figures of Banco Azteca Mexico.

Consolidated Results of the Fourth Quarter

4Q 2006 4Q 2007 Change
Ps. %

Consolidated Revenue Ps.9,992 Ps.10,832 Ps.840 8 %
Gross Profit Ps.4,610 Ps.5,221 Ps.611 13 %
EBITDA Ps.1,913 Ps.1,591 Ps.(322) -17 %
Net Income Ps.1,856 Ps.3,013 Ps.1,157 62 %
Earnings per Share* Ps.7.66 Ps.12.32 Ps.4.66 61 %

Millions of pesos of December 31, 2007.
* Calculation based on 242,139,508 Elektra* weighted average at December
31, 2006 and 244,469,108 Elektra* weighted average outstanding at December 31,
2007.
Consolidated Revenue
Consolidated revenue was Ps.10,832 million in 4Q07, 8% higher than the
Ps.9,992 million reported in the same period a year ago, as a result of a 13%
increase in financial revenue and 5% in commercial revenue.
Gross Profit
In 4Q07 gross profit was Ps.5,221 million, 13% higher than the Ps.4,610
million reported in 4Q06. The gross margin this quarter was 48%, compared
with 46% of the previous year.
Operating Expenses
During the quarter, consolidated expenses were Ps.3,618 million, compared
with Ps.2,692 million in the same period a year ago. The increase in expenses
mainly results from extraordinary disbursements oriented to strengthen the
expansion in Latin America and the start of the automobiles commercialization.
Additionally, we recorded advertising outlays to further strengthen the
company's positioning in its target market, as well as expenses related with
our expansion in points of sale in Mexico and Latin America, and operating
expenses of the financial division-resulting from increased business volumes.
Operating Profit
Operating profit was Ps.1,171 million in the quarter compared with
Ps.1,546 million a year ago, as a result of the combination of higher
consolidated revenue, and higher total costs and operating expenses.
EBITDA
In 4Q07 consolidated EBITDA was Ps.1,591 million, compared with Ps.1,913
million in 4Q06. The EBITDA margin was 15% in the period.
Comprehensive Cost of Financing (CIF)
The company reported a financial gain of Ps.2,869 in 4Q07, a 154% increase
compared with Ps.1,129 million a year ago. The higher financial gain mainly
resulted from increases in the market value of derivative instruments.
Provision for Taxes
Provision for taxes was Ps.1,113 million in the quarter, compared with
Ps.774 million in the prior year, in line with the income tax rate applicable
to the quarterly results.
Discontinued Operations
During 4Q07, there was no balance registered from discontinued operations,
while in 4Q06, these operations represented a loss of Ps.235 million.
Revenue, cost and expense lines in 4Q06 exclude the operation of Elektricity
and Bodega de Remates formats, thus only the results of the Elektra and
Salinas y Rocha formats are reflected in both periods.
During the fourth quarter of 2006, the company discontinued the operations
of Elektricity and Bodega de Remates, as part of the company's strategy to
grow through its most profitable store formats.
Net Income
As a result of the above mentioned changes, and the lower in equity income
of CASA this period, net income was Ps.3,013 million in 4Q07, compared with
Ps.1,856 million in the same quarter a year ago.
CAPEX
As of December 31, 2007, capital expenditures were Ps.2,013 million,
mainly reflecting the expansion in points of sale in Mexico and Latin America.
At the end of the quarter, Grupo Elektra had 1,890 points of sale, a 11%
increase from the prior year.
Cash and Cash Equivalents
As of December 31, 2007, total cash and cash equivalents were Ps.40,429
million, 22% higher than Ps.33,180 million at the end of 4Q06. The increase
was due to a 16% growth to Ps.25,366 million in the cash balance of the
financial division -- in line with the increase in deposits -- as well as a
34% increase in the cash balance of the commercial division to Ps.15,063
million. The company considers that a strong cash position in the commercial
division provides it with enough flexibility to face any growth opportunities
that could arise.
Consolidated Gross Loan Portfolio
Total consolidated gross loan portfolio of Banco Azteca Mexico and Banco
Azteca and Elektrafin Latin America, as of December 31, 2007, was Ps.24,900
million, 12% higher than Ps.22,213 million in the same period of last year.
Consolidated Equity
Consolidated equity as of December 31, 2007 was Ps.19,455 million, 28%
higher than Ps.15,213 million of the previous year.
Financial Division
Banco Azteca Mexico
During the fourth quarter, revenue of Banco Azteca Mexico was Ps.4,543
million, 17% higher than Ps.3,886 million reported a year ago. The increase
is due to a solid rise in the main credit lines of the Bank: Tarjeta Azteca
and personal loans.
The Bank's financial cost during the quarter was Ps.1,205 million,
compared with Ps.1,196 million reported last year. The main lines of the
financial cost are the creation of loan loss reserves and the interests paid
to depositors for their savings accounts.
Gross Credit Portfolio
The gross credit portfolio was Ps.21,906 million, 9% higher than the
Ps.20,090 million reported on December 31, 2006.
At the end of the quarter, the Bank had a total of 8 million active
accounts, a 23% increase compared with 6.5 million accounts a year ago. The
average term of the credit portfolio on the main credit lines -- consumer,
personal loans and Tarjeta Azteca -- was 60 weeks at the end of 4Q07, up from
59 weeks in the prior year.
During the quarter, Banco Azteca sold Ps.442 million of past due loans,
fully reserved, to an independent buyer. The transaction is an event approved
by Mexico's National Securities and Banking Commission. The selling price of
the loan portfolio was determined according to market conditions.
Savings Accounts and Term Deposits
Net deposits of Banco Azteca Mexico were Ps.43,427 million at the end of
4Q07, 13% higher than the Ps.38,321 million of the previous year.
At the end of the quarter, Banco Azteca had a total of 7.7 million active
accounts, a 26% increase compared with 6.1 million at the end of the same
period a year ago.
Seguros Azteca
EBITDA in the quarter was Ps.78 million, a 77% increase compared with
Ps.44 million in 4Q06.
At the end of the quarter, Seguros Azteca's total assets were Ps.1,358
million, 17% higher than Ps.1,164 million reported in the same quarter the
prior year. The stockholder's equity was Ps.582 million, 37% higher than
Ps.426 million reported a year ago.
Afore Azteca
As of December 31, 2007, Siefore Azteca's assets under management were
Ps.11,842 million. Total Assets were Ps.324 million and the stockholder's
equity was Ps.250 million.
Commercial Division
Revenue of the commercial division in the quarter was Ps.5,631 million, a
5% increase from the Ps.5,371 million reported a year ago. The gross profit
was Ps.1,867 million, 4% higher than the Ps.1,799 million reported the prior
year.
Total Debt and Net Debt
As of December 31, 2007, the commercial division's total debt with cost
was Ps.6,099 million, compared with Ps.5,849 million reported a year ago.
Despite this increase, the net debt of the commercial division had a
negative balance of Ps.8,964 million, compared with a negative balance of
Ps.5,378 million as of December 31, 2006.
Twelve Month Results
Total consolidated revenue in 2007 increased 8% to Ps.39,028 million,
compared with Ps.36,142 million in 2006. Consolidated expense was Ps.13,064
million, compared with Ps.11,176 million in 2006. Grupo Elektra reported
consolidated EBITDA of Ps.6,337 million, compared with Ps.6,235 million
reported in 2006. The EBITDA margin was 16% in the year. The company
registered net income of Ps.6,568 million, 41% higher than net income of
Ps.4,666 million in 2006.

2006 2007 Change
Ps. %

Consolidated Revenue Ps.36,142 Ps.39,028 Ps.2,885 8 %
Gross Profit Ps.17,425 Ps.19,417 Ps.1,992 11 %
EBITDA Ps.6,235 Ps.6,337 Ps.103 2 %
Net Income Ps.4,666 Ps.6,568 Ps.1,902 41 %
Earnings per Share* Ps.19.27 Ps.26.87 Ps.7.60 39 %

Millions of pesos of December 31, 2007.
* Calculation based on 242,139,508 Elektra* weighted average at December
31, 2006 and 244,469,108 Elektra* weighted average outstanding at December
31, 2007.

Introduction of the "FAW" Automobiles Line
During November 2007, the company completed a strategic alliance with
First Automobile Works Group (FAW Group) -- the largest automobile group in
China, and a partner of Volkswagen/Audi, Toyota and Mazda -- which allows to
sell state-of-the-art cars in the Mexican mass market, produced in that
country.
As part of the alliance, within the next three years Grupo Elektra and FAW
Group will build an assembly plant in the state of Michoacan to produce cars
in the country in 2010, through which it will supply the local demand and that
of numerous countries in Latin America. The investment to build the plant and
purchase equipment will be approximately US$150 million throughout the three-
year period, and it will have the capacity to assemble 100,000 vehicles
annually.
Expansion in Latin America
During January, Banco Azteca del Peru began operations, simultaneously
opening 120 branches in 33 cities in that country, becoming our fourth banking
subsidiary outside Mexico, in addition to Panama, Guatemala and Honduras.
As of December 31, 2007, the company has 373 points of sale in Latin
America, 22% higher than the 305 reported a year ago.
Public Offer of Banco Azteca Subordinated Notes
In January, Banco Azteca placed subordinated notes for Ps.720 million,
with a 10 year maturity, and an interest rate of TIIE + 1.5%. The notes
further strengthened the solid capitalization index of the Bank.
Company Profile:
Grupo Elektra (www.grupoelektra.com.mx) is Latin America's leading
specialty retailer, consumer finance and banking services company. The Group
operates more than 1,800 points of sale in Mexico, Guatemala, Honduras, Peru,
Panama, El Salvador and Argentina. Grupo Elektra also sells and markets its
consumer finance, banking and financial products and services through Banco
Azteca branches located in Mexico, Panama, Guatemala, Honduras and Peru.
Grupo Elektra is a member company of Grupo Salinas (www.gruposalinas.com), a
group of dynamic, fast-growing, and technologically advanced companies focused
on creating shareholder value, building the Mexican middle class of the
countries where it operate, and improving society through excellence.
Except for historical information, the matters discussed in this press
release are forward-looking statements and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
projected. Other risks that may affect Grupo Elektra and its subsidiaries are
identified in documents sent to securities authorities.
Investor Relations

Dinorah Macias Bruno Rangel
Grupo Elektra S.A. de C.V. Grupo Salinas
Tel. +52 (55) 1720-1339 Tel. +52 (55) 1720 9167
dmacias@elektra.com.mx jrangelk@tvazteca.com.mx

Press Relations

Tristan Canales Daniel McCosh
Grupo Salinas Grupo Salinas
Tel. +52 (55) 1720-1441 Tel. +52 (55) 1720-0059
tcanales@gruposalinas.com.mx dmccosh@tvazteca.com.mx

SOURCE Grupo Elektra, S.A. de C.V.

Investor Relations, Dinorah Macias of Grupo Elektra S.A. de C.V.,
+52-55-1720-1339, dmacias@elektra.com.mx; or Bruno Rangel of Grupo Salinas,
+52-55-1720-9167, jrangelk@tvazteca.com.mx; or Press Relations, Tristan
Canales of Grupo Salinas, +52-55-1720-1441, tcanales@gruposalinas.com.mx; or
Daniel McCosh of Grupo Salinas, +52-55-1720-0059, dmccosh@tvazteca.com.mx