Contact Information: TMM COMPANY CONTACT: Juan Fernandez Chief Financial Officer 011-5255-5629-8778 Brad Skinner Senior VP, Investor Relations 011-5255-5629-8725 1-203-247-2420 Monica Azar Manager, Investor Relations 011-525-55-629-8866 ext. 3421 1-917-597-5361 AT DRESNER CORPORATE SERVICES: Kristine Walczak (investors, analysts, media) 1-312-726-3600
Grupo TMM Announces Settlement and Termination of All Controversies With Kansas City Southern
| Source: Grupo TMM
MEXICO CITY--(Marketwire - September 24, 2007) - Grupo TMM, S.A.B. (NYSE : TMM ) (BMV: TMM A)
("TMM"); a Mexican multimodal transportation and logistics company,
announced today that it has reached a settlement with Kansas City Southern
("KCS") in connection with the arbitration procedure instituted under the
terms of the Amended and Restated Acquisition Agreement ("AAA") dated
December 15, 2004, between TMM and KCS. This settlement terminates any and
all controversies under the AAA and its ancillary documents, and provides
for mutual releases between the parties.
Under the terms of the settlement, KCS will pay TMM $54.1 million in cash
and the obligations of KCS under the Indemnity Escrow Note and the Tax
Escrow Note, which was payable in 2010, will terminate. In TMM's financial
statements, these Notes were presently valued at $91.7 million, as they
were registered at face value.
Javier Segovia, president of Grupo TMM, said, "We are pleased with this
settlement as it will allow TMM to pay down financial obligations and
increase its financial flexibility going forward. TMM's management will now
be able to focus all its efforts on its operations and growth to increase
shareholder value."
Headquartered in Mexico City, TMM is a Latin American multimodal
transportation Company. Through its branch offices and network of
subsidiary companies, TMM provides a dynamic combination of ocean and land
transportation services. Visit TMM's web site at www.grupotmm.com. The site
offers Spanish/English language options.
Included in this press release are certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such forward-looking statements speak only as of the date they are
made and are based on the beliefs of the Company's management as well as on
assumptions made. Actual results could differ materially from those
included in such forward-looking statements. Readers are cautioned that all
forward-looking statements involve risks and uncertainty. The following
factors could cause actual results to differ materially from such
forward-looking statements: global, US and Mexican economic and social
conditions; the effect of the North American Free Trade Agreement on the
level of US-Mexico trade; the condition of the world shipping market; the
success of the Company's investment in new businesses; the ability of the
Company to reduce corporate overhead costs and the ability of management to
manage growth and successfully compete in new businesses These risk factors
and additional information are included in the Company's reports on Form
6-K and 20-F on file with the United States Securities and Exchange
Commission.