December 4, 1996

Valenciana de Cementos (Valenciana), Spanish affiliate of CEMEX S.A. de C.V., successfully completed the funding of a multiple currency syndicated loan for 108.375 billion pesetas (approximately US$850 million). The loan is for a seven-year term and is underwritten by the following national and international banks: Argentaria Banco de Negocios, Banco Bilbao Vizcaya, Citibank, Deutsche Morgan Grenfell, J.P. Morgan and The Chase Manhattan Bank. The following banks act as co-insurers: Banco Central Hispano, Bank of America, Banque Paribas, ING, Societé Générale and Union Bank of Switzerland.

The transaction is the largest amount tendered in the Spanish private sector and involved 44 financial entities and is a part of CEMEX´s previously announced 1996 refinancing plan.

Rodrigo Treviño, CEMEX´s CFO, said, "The success of this syndicated facility underscores the confidence financial institutions have in CEMEXâs financial strategy. The very high level of acceptance and bank participation surpassed our expectations and led to a pro-rata underwriting."

The loan will not constitute new debt for CEMEX, since the proceeds will be used to refinance Valencianaâs current debt, consisting primarily of the existing syndicated loan, and through a series of intercompany transactions to repay debt at the holding company level.

CEMEX is one of the three largest cement producers in the world, with a production capacity of close to 50 million metric tons per year. Valenciana is Spain´s largest cement company, with a 28% market share and a presence in 70% of the country.