GRUPO ELEKTRA ANNOUNCES EBITDA GROWTH OF 6% TO Ps.1,622 MILLION IN 3Q07

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1 GRUPO ELEKTRA ANNOUNCES EBITDA GROWTH OF 6% TO Ps.1,622 MILLION IN 3Q07 Revenue Increases 13% to a Record of Ps.9,860 Million in the Quarter Gross Profit Rises 12% to Ps.4,880 Million in 3Q07 Banco Azteca Deposits* Grow 20% to Ps.41,796 Million and Gross Credit Portfolio* Increases 9% to Ps.21,892 Million Mexico City, October 24, 2007 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 third quarter of Consolidated revenue continues with its upward trend this quarter, as a result of the outstanding dynamism of the financial division, and the positive performance of the commercial segment, said Carlos Septién, CEO of Grupo Elektra and Banco Azteca. Our commitment to offer the financial services and the merchandise that optimally satisfies the preferences of our customers, under the best market conditions, boosts our growth and translates into higher revenue and EBITDA. The perspectives of our operations are very positive, and we are looking to further strengthen them through a broader geographic expansion, added Mr. Septién. During the quarter we started to operate Banco Azteca in Honduras, and in the past few months we obtained a banking license to operate in Brazil and the authorization to organize Banco Azteca in Peru. This complements the solid expansion this quarter, and brings additional dynamism to the financial results going forward. * Figures of Banco Azteca Mexico. 1

2 Financial Highlights: Millions of pesos of constant purchasing power as of September 30, Change Change 3Q06 3Q07 $ % 9M06 9M07 $ % Consolidated Revenue 8,732 9,860 1,128 13% 25,760 27,775 2,015 8% Gross Profit 4,359 4, % 12,624 14,172 1,548 12% EBITDA 1,523 1, % 4,257 4, % Net Income (394) (45%) 2,768 3, % EPS (Pesos per Share) (1) (1.71) (46%) % (1) Calculation based on 237,872,167 Elektra* at September 30, 2006 and 244,111,868 Elektra* outstanding at September 30, Consolidated Revenue +13% Consolidated Revenue +8% $9,843 $9,860 $27,775 $9,248 $25,760 $8,732 $8,666 3Q06 4Q06 1Q07 2Q07 3Q07 9M06 9M07 Gross Profit & Margin +12% Gross Profit & Margin +12% $4,359 $4,541 $4,767 $4,525 $4,880 $12,624 $14,172 50% 46% 55% 49% 49% 49% 51% 3Q06 4Q06 1Q07 2Q07 3Q07 9M06 9M07 EBITDA & Margin +6% EBITDA & Margin +10% $1,523 17% $1,885 19% $1,601 18% $1,452 16% $1,622 16% $4,257 $4,675 17% 17% 3Q06 4Q06 1Q07 2Q07 3Q07 9M06 9M07 2

3 Financial Division Banco Azteca Mexico During the third quarter, revenue of Banco Azteca was Ps.4,244 million, 22% higher than Ps.3,492 million reported a year ago. The increase results from 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.1,583 million, compared with Ps.818 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 of Banco Azteca was Ps.21,892 million, 9% higher than the Ps.20,003 million reported as of September 30, At the end of the quarter, Banco Azteca had a total of 8 million active accounts, a 31% increase compared with 6.1 million accounts a year ago. The average term of the credit portfolio on the main credit lines consumer, personal loans and Tarjeta Azteca was 61 weeks at the end of 3Q07, up from 59 weeks in the prior year. Savings Accounts and Term Deposits Net deposits of Banco Azteca were Ps.41,796 million at the end of 3Q07, 20% higher than the Ps.34,945 million of the previous year. At the end of the quarter, Banco Azteca had a total of 7.4 million active accounts, a 29% increase compared with 5.7 million accounts a year ago. Seguros Azteca Revenue in the quarter was Ps.339 million, 32% higher than Ps.256 million reported in 3Q06. 3Q06. EBITDA in the quarter was Ps.65 million, a 12% increase compared with Ps.58 million in At the end of the quarter, Seguros Azteca s investments were Ps.1,112 million, 24% higher than Ps.894 million reported in 3Q06. The stockholder s equity was Ps.631 million, 78% higher than Ps.355 million reported a year ago. Afore Azteca As of September 30, 2007, Siefore Azteca s assets under management were Ps.12,496 million. Total Assets were Ps.322 million and the stockholder s equity was Ps.233 million. 3

4 Commercial Division Revenue of the commercial division in the quarter was Ps.4,624 million, 1% higher than Ps.4,579 million in 3Q06. The gross profit was Ps.1,449 million compared with Ps.1,562 million reported the prior year. During the quarter the company made important sales of discontinued merchandise, which translated into an increased efficiency in the management of our inventories. Total Debt and Net Debt As of September 30, 2007, the commercial division s total debt with cost was Ps.5,875 million, compared with Ps.5,526 million reported a year ago. Despite this increase, the net debt of the commercial division had a negative balance of Ps.4,212 million, compared with a negative balance of Ps.3,623 million as of September 30, Consolidated Financial Results Consolidated Revenue Total consolidated revenue was Ps.9,860 million in 3Q07, 13% higher than the Ps.8,732 million reported in the same period a year ago. Gross profit During the third quarter, consolidated gross profit was Ps.4,880 million, 12% higher than the Ps.4,359 million reported in 3Q06. The gross margin was 49%. Operating Expenses During the quarter, consolidated expenses were Ps.3,262 million, compared with Ps.2,830 million in the same period a year ago. The increase was primarily due to higher advertising expenses resulting from initiatives to further strengthen the positioning of the company with current and potential customers, operating expenses of the financial division resulting from increased business volumes outlays related with the expansion in Mexico and Latin America, as well as the development of new projects. Operating Profit During the third quarter, operating profit increased 6%, as a result of the combination of a 13% rise in total revenue, a 14% growth in total costs and a 14% increase in total operating expenses, including depreciation and amortization. EBITDA Consolidated EBITDA was Ps.1,622 million, a 6% increase compared with Ps.1,523 million in 3Q06. The EBITDA margin was 16% in the period. 4

5 EBITDA & Operating Profit Millions of Pesos of constant purchasing power as of September 30, Change Change 3Q06 3Q07 $ % 9M06 9M07 $ % EBITDA 1,523 1, % 4,257 4, % Operating Profit 1,173 1, % 3,198 3, % Comprehensive Cost of Financing (CIF) The company reported a financial cost of Ps.500 million in 3Q07, compared with a Ps.187 million a year ago. The higher financial cost primarily resulted from the Ps.650 million increase in net interest expense, mainly as a consequence of a lower yield in the company s temporary investments. This was partially offset by an increase in the market value of the underlying assets in derivate instruments. Provision for taxes year. Provision for taxes was Ps.207 million in the quarter, compared with Ps.267 million in the prior Discontinued Operations During 3Q07, there was no balance registered from discontinued operations, while in 3Q06, these operations represented a loss of Ps.60 million. Revenue, cost and expense lines exclude the operation of Elektricity and Bodega de Remates formats, including only the results of the Elektra and Salinas y Rocha formats for both periods. During the fourth quarter of 2006, the company discontinued the operations of such formats, 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 loss in equity income of CASA this period, net income was Ps.490 million in 3Q07, compared with Ps.883 million in the same quarter a year ago. CAPEX As of September 30, 2007, capital expenditures were Ps.1,405 million, mainly reflecting the expansion in points of sale in Mexico and Latin America. At the end of the quarter, Grupo Elektra had 1,799 points of sale, a 5% increase from the previous year. Cash and Cash Equivalents As of September 30, 2007, total cash and cash equivalents were Ps.37,748 million, 24% higher than the Ps.30,464 million at the end of 3Q06. The increase was due to a 30% growth to Ps.27,660 million, in the cash balance of the financial division in line with the increase in deposits as well as a 10% increase in the cash balance of the commercial division, to Ps.10,087 million. The 5

6 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, Banco Azteca Panama, Banco Azteca Guatemala, Banco Azteca Honduras and Elektrafin Latin America, as of September 30, 2007, was Ps.24,575 million, 15% higher than Ps.21,282 million in the same period of last year. Consolidated Equity Consolidated equity as of September 30, 2007 was Ps.16,121 million, 25% higher than Ps.12,936 million of the previous year. Expansion in Latin America During July, Banco Azteca Honduras began operations with the simultaneous opening of 46 points of sale in the main cities of that country, becoming the third banking subsidiary outside Mexico, in addition to Panama and Guatemala. During August, we were authorized by the Brazilian government to operate Banco Azteca do Brasil, and afterwards, the company announced that it will start financial and commercial operations in that country at the beginning of next year. In addition, during the quarter we obtained the authorization from Peruvian authorities (Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones) to organize Banco Azteca in that country. As of September 30, 2007, Latin America had 331 points of sale, 14% higher than the 290 reported a year ago. Tender Offer During the quarter, Grupo Elektra made a tender offer to repurchase shares of the company, in the Mexican Stock Market at a price of Ps.238 per share which resulted in the acquisition of approximately 4.2% of the outstanding shares. The company considers that the purchase operation represents an optimal use for its cash balance, and a superior investment opportunity. Company Profile: Grupo Elektra ( is Latin America's leading specialty retailer, consumer finance and banking services company. The Group operates more than 1,700 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 and Honduras. Grupo Elektra is a member company of Grupo Salinas ( 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. Dinorah Macias Grupo Elektra S.A. de C.V. Tel. +52 (55) Fax. +52 (55) dmacias@elektra.com.mx Tristán Canales Grupo Salinas Tel. +52 (55) tcanales@gruposalinas.com.mx Investor Relations Press Relations Bruno Rangel Grupo Salinas Tel. +52 (55) Fax +52 (55) jrangelk@tvazteca.com.mx Daniel Mc.Cosh Grupo Salinas Tel. +52 (55) dmccosh@tvazteca.com.mx 6

7 GRUPO ELEKTRA, S.A. DE C.V. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS MILLIONS OF MEXICAN PESOS OF SEPTEMBER 30, 2007 PURCHASING POWER 3Q06 3Q07 Change Financial Revenue 4,153 48% 5,236 53% 1,084 26% Commercial Revenue 4,579 52% 4,624 47% 45 1% Total Revenue 8, % 9, % 1,128 13% Financial Cost 1,356 16% 1,806 18% % Commercial Cost 3,017 35% 3,175 32% 158 5% Total Cost 4,373 50% 4,981 51% % Gross Profit 4,359 50% 4,880 49% % Selling, General & Administrative Expenses 2,830 32% 3,262 33% % Depreciation and Amortization 356 4% 371 4% 15 4% Total Operating Expenses 3,186 36% 3,633 37% % Operating Income 1,173 13% 1,246 13% 74 6% EBITDA 1,523 17% 1,622 16% 99 6% Comprehensive Cost of Financing: Interest income 143 2% (468) -5% (611) -427% Interest expense (212) -2% (251) -3% (38) 18% (Loss) gain in Foreign exchange (111) -1% 96 1% % Monetary loss (13) 0% (75) -1% (61) 457% Gain in Derivatives 6 0% 197 2% 191 n.m (187) -2% (500) -5% (314) 168% Income before taxes % 746 8% (240) -24% Provision for taxes (267) -3% (207) -2% 60-23% Equity in income of CASA (TV Azteca) 224 3% (50) -1% (274) -122% Discontinued operations (60) -1% - 0% % Net Income % 490 5% (394) -45% PER SHARE INFORMATION Shares Outstanding (000) at the end of the quarter 237, ,112 6,240 3% Quarterly Earnings per Share (Pesos) (1.71) -46%

8 GRUPO ELEKTRA, S.A. DE C.V. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS MILLIONS OF MEXICAN PESOS OF SEPTEMBER 30, 2007 PURCHASING POWER 9M06 9M07 Change Financial Revenue 11,688 45% 14,343 52% 2,654 23% Commercial Revenue 14,072 55% 13,432 48% (640) -5% Total Revenue 25, % 27, % 2,015 8% Financial Cost 3,973 15% 4,527 16% % Commercial Cost 9,163 36% 9,076 33% (87) -1% Total Cost 13,136 51% 13,603 49% 466 4% Gross Profit 12,624 49% 14,172 51% 1,548 12% Selling, General & Administrative Expenses 8,357 32% 9,493 34% 1,136 14% Depreciation and Amortization 1,069 4% 1,059 4% (10) -1% Total Operating Expenses 9,426 37% 10,552 38% 1,126 12% Operating Income 3,198 12% 3,620 13% % EBITDA 4,257 17% 4,675 17% % Comprehensive Cost of Financing: Interest income 654 3% 188 1% (466) -71% Interest expense (630) -2% (650) -2% (20) 3% Gain in Foreign exchange 74 0% 64 0% (9) -12% Monetary gain (loss) 40 0% (71) 0% (111) -276% Gain in Derivatives 251 1% 1,686 6% 1, % 388 2% 1,218 4% % Income before taxes 3,586 14% 4,837 17% 1,251 35% Provision for taxes (1,008) -4% (1,336) -5% (328) 33% Equity in income of CASA (TV Azteca) 393 2% 1 0% (392) -100% Discontinued operations (203) -1% - 0% % Net Income 2,768 11% 3,502 13% % Last Twelve Months EBITDA 6,038 6, % Last Twelve Months Net Income 4,098 5,330 1,233 30% PER SHARE INFORMATION Shares Outstanding (000) at the end of the quarter 237, ,112 6,240 3% LTM Earnings per Share (Pesos) %

9 GRUPO ELEKTRA, S.A. DE C.V. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET MILLIONS OF MEXICAN PESOS OF SEPTEMBER 30, 2007 PURCHASING POWER Commercial Division Financial Division Grupo Elektra Commercial Division Financial Division Grupo Elektra At September 30, 2006 At September 30, 2007 Change Cash 508 4,095 4, ,747 (2,856) -62% Marketable Securities and investments 8,641 17,219 25,861 9,248 26,753 36,001 10,140 39% Commercial Loans 4,211 4,211 2,531 2,531 (1,680) -40% Consumer Loans 1,316 14,290 15,606 2,150 16,502 18,652 3,046 20% Mortgage Loans % Performing Loan Portfolio 1,316 18,938 20,254 2,150 19,685 21,834 1,580 8% Past due Commercial Loans % Past due Consumer Loans 1,019 1,019 2,669 2,669 1, % Total Past-due Loans - 1,028 1,028-2,741 2,741 1, % Gross Loan Portfolio 1,316 19,966 21,282 2,150 22,426 24,575 3,293 15% Allowance for bad Loans 236 1,536 1, ,084 3,394 1,622 91% Total Net Loan Portfolio 1,080 18,430 19,509 1,840 19,342 21,181 1,672 9% Other Current Assets 1,461 2,607 4,068 3,428 2,837 6,265 2,198 54% Inventory 3,274 3,274 2,791 2,791 (483) -15% Current assets 14,964 42,351 57,314 18,147 49,839 67,986 10,671 19% Investment in Shares 1, ,527 1, , % Goodwill % Fixed Assets 4,483 1,139 5,622 4,307 1,481 5, % Other Assets % TOTAL ASSETS 21,909 43,510 65,418 25,215 51,478 76,693 11,275 17% Demand Deposits 35,924 35,924 43,023 43,023 7,100 20% Short-Term Bank Debt 1,048 (212) 836 2,216 1,191 3,407 2, % Capitalized Lease Obligations % Short-Term Liabilities with Financial Cost 1,059 (212) 847 2,263 1,191 3,454 2, % Suppliers and Other Short-Term Liabilities 5,548 2,029 7,576 4,902 2,168 7,070 (506) -7% Short-Term Liabilities without Financial Cost 5,548 2,029 7,576 4,902 2,168 7,070 (506) -7% Total Short-Term Liabilities 6,607 37,740 44,347 7,166 46,382 53,547 9,200 21% Long-Term Bank Debt 4,450 2,117 6,568 3, ,963 (2,605) -40% Capitalized Lease Obligations % Long-term Liabilities with Financial Cost 4,466 2,117 6,584 3, ,994 (2,590) -39% Long-term Liabilities Without Financial Cost 1,694 (143) 1,551 3,518 (488) 3,031 1,479 95% Total Long-Term Liabilities 6,160 1,975 8,135 7,130 (106) 7,024 (1,111) -14% TOTAL LIABILITIES 12,767 39,715 52,482 14,296 46,276 60,572 8,089 15% Stockholders' Equity 9,141 3,795 12,936 10,920 5,202 16,121 3,186 25% LIABILITIES + EQUITY 21,909 43,510 65,418 25,215 51,478 76,693 11,275 17%

10 GRUPO ELEKTRA, S.A. DE C.V. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS MILLIONS OF MEXICAN PESOS OF SEPTEMBER 30, 2007 PURCHASING POWER INFRASTRUCTURE 3Q06 3Q07 Change Points of sale in Mexico Elektra (1) % % 23 3% Salinas y Rocha (1) 62 4% 56 3% (6) -10% Freestanding Branches (2) % % 34 6% Total 1,417 83% 1,468 82% 51 4% Points of sale in Latin America Elektra (3) 105 6% 113 6% 8 8% Freestanding Branches % % 33 18% Total % % 41 14% TOTAL 1, % 1, % 92 5% (1) Each store has a Banco Azteca branch. (2) In 3Q07, includes 37 Bodegas de Remate that continues operating only financial services. (3) In 3Q07, only 70 Latin America Elektra's store have a Banco Azteca branch. Floor Space (m²) Elektra Mexico 581,269 75% 598,712 75% 17,443 3% Elektra Latin America 90,919 12% 100,375 13% 9,456 10% Salinas y Rocha 42,803 6% 19,552 2% (23,251) -54% Freestanding Branches 55,858 7% 75,843 10% 19,984 36% TOTAL 770, % 794, % 23,633 3% Employees Mexico 13,193 34% 9,550 26% (3,643) -28% Latin America 1,619 4% 1,691 5% 72 4% Commercial Division Employees 14,812 39% 11,241 31% (3,571) -24% Mexico 20,397 53% 21,107 58% 710 3% Latin America 3,213 8% 4,170 11% % Financial Division Employees 23,610 61% 25,277 69% 1,667 7% TOTAL 38, % 36, % (1,904) -5%