FOURTH QUARTER 2001 RESULTS*

Fourth Quarter 2001 Hiighlliights*: · Total sales volume** increased 4.0% in 4Q01 compared to 4Q00. · Net sales grew 7.1% in real terms to Ps. 3,070 million in 4Q01 from Ps. 2,865 million in 4Q00. · Operating income, excluding extraordinary expenses related to the merger, reached Ps. 495 million, an increase of 46.1% over 4Q00. · Operating margin was 16.1% in 4Q01 compared to 11.8% in 4Q00. · Net income, excluding extraordinary expenses related to the merger, rose 120% to Ps. 270 million in 4Q01 from Ps. 123 million in 4Q00. · The tender offer for Argos shares and the reciprocal subscription of Arca shares took place on December 13, 2001, during which 235.5 million Argos shares were swapped out of a total of 236.4 million shares in the market. · Arca received a syndicated bank loan of US$180 million in December 2001.

Fullll Year 2001 Hiighlliights*: · Total sales volume** declined 4.4% in 2001 compared to 2000. · Net sales grew 2.1% in real terms to Ps. 13,099 million in 2001 compared to Ps. 12,836 million in 2000. · Operating income, excluding extraordinary expenses related to the merger, remained flat year-over-year at Ps. 2,617.1 million (20.0% of net sales) in 2001 compared to Ps. 2,618.2 million (20.4% of net sales) in 2000. · EBITDA, excluding extraordinary expenses related to the merger, rose to Ps. 3,316 million (25.3% of net sales) in 2001 from Ps. 3,268 million (25.5% of net sales) in 2000. · Net income, excluding extraordinary expenses related to the merger, dropped 1.5% to Ps. 1,391 million in 2001 compared to Ps. 1,412 million in 2000.

*Based on the pro-forma results for 2000 and 2001. See note on page 2. **Total sales volume equals the sum of soft drinks and single serve water

Monterrey, Mexico, February 27, 2002 – Embotelladoras Arca, S.A. de C.V. (“Arca” or the “Company”), the second-largest Coca-Cola bottler in Mexico, announced today its unaudited results for the fourth quarter and full year ended December 31, 2001. All figures are expressed in constant Mexican pesos as of December 31, 2001.

***NOTE***

Due to the recent integration of Arca, the financial statements reported to the Mexican Stock Exchange (Bolsa Mexicana de Valores or “BMV”) for the full year of 2001 are irregular – they include twelve months of Procor, five months of Arma and Premarsa and one month of Argos, all of which are Arca’s predecessors. These financial statements will be audited by PriceWaterhouse Coopers. Financial statements for the year 2000 were not reported due to the fact that the Company had not yet been established as an independent legal entity.

However, to facilitate the analysis of Arca’s results, the Company has prepared pro forma financial statements compatible with those included in the prospectus of the public tender offer of Argos shares and reciprocal subscription of Arca Shares Prospectus registered with the BMV on December 13, 2001. These pro forma financial statements will be included in the notes to the audited financial statements.

Statement from the CEO:

“2001 marked the beginning of a new era for the Coca-Cola bottling system in Mexico. What began as a simple conversation between family friends resulted in one of the most attractive and successful transactions in Mexico – the merger of the three largest bottlers in Northern Mexico. We feel proud to have completed this merger, but at the same time, we feel responsible for continuing to create value for our shareholders,” stated Mr. Miguel Fernandez Iturriza, Chief Executive Officer of Arca.

He added, “Despite the adverse economic conditions faced in Mexico, mainly in the territories in which we operate, Arca was able to increase its net sales and EBITDA.”

Operattiing Resulltts

During 2001, total sales volume reached 406.5 million unit cases (“MUCs”), 4.4% less than in 2000. Soft drink volume sold was 403.7 MUCs in 2001, which represents a drop of 4.6% when compared to 2000. Water sales continued to increase during 2001, up 18.0% and 7.9% year-over-year for single serve and jug sales, respectively.

For the fourth quarter of 2001, total sales volume rose 4.0% to 94.1 MUCs from 90.5 MUCs sold in the fourth quarter of 2000. This was mainly due to the warmer climates recorded in 4Q01. Soft drink sales volume rose 3.7%, while single serve water rose 49.7% and jug water rose 17.8%.

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Table 1. Sales Volume by Division and Product Type (in TUCs) 4Q01 4Q00 Var. % 2001 2000 Var. % Soft Drinks Eastern Division 51,859 51,132 1.4% 228,919 247,076 (7.3%) Western Division 42,236 39,363 7.3% 173,902 172,491 0.8% Exports NA NA NA 1,696 1,431 18.5% Third Party Sales NA NA NA 1,941 4,384 (55.7%) TOTAL SOFT DRINKS 94,095 90,496 4.0% 406,459 425,382 (4.4%)

Jug Water TOTAL JUG WATER 13,004 11,043 17.8% 59,238 54,903 7.9%

Adverse weather conditions combined with the economic slowdown and the significant increase in real prices in the Eastern Division, negatively affected soft drink volume growth in 2001. This caused a 7.3% drop in soft drink volumes in the Eastern Division from 247.1 MUCs in 2000 to 228.9 MUCs in 2001. The Western Division posted a 0.8% increase in soft drink sales from 172.5 MUCs in 2000 to 173.9 MUCs in 2001 due to more moderate real price increases than in the Eastern Division.

4Q01 results for the Eastern Division showed a recovery in volumes when compared to 4Q00, increasing 1.4%, while the Western Division posted a 7.3% increase. The milder climate at the end of 2001 when compared to 2000 was a key factor to the sales rebound in both territories.

Table 2. Sales Volume by Brand (in TUCs) 4Q01 4Q00 Var. % FY01 FY00 Var. % Coca-Cola Colas 73,308 69,779 5.1% 308,889 319,705 (3.4%) Flavors and Water 9,549 9,837 (2.9%) 44,051 47,713 (7.7) TOTAL COCA-COLA 82,857 79,616 4.1% 352,940 367,418 (3.9%)

Proprietary and Other Brands Flavors and Water 11,238 10,879 3.3% 53,519 57,964 (7.7%)

Total Soft Drink Volume 94,095 90,496 4.0% 406,459 425,382 (4.4%)

During 2001, Coca-Cola brands represented 86.8% of consolidated soft drink volume, 81.5% in the Eastern Division and 95.4% in the Western Division. Consumer preference for non-returnable products (“NR”) continued during 2001, up 9.6% over 2000, while returnable product (“R”) sales dropped 13.8%. The consolidated sales mix of R/NR was 54.1/45.9 in 2001 compared to 59.9/40.1 in 2000. The Eastern Division sales mix was 64.6/35.4 in 2001 (70.1/29.9 in 2000) while in the Western Division it was 40.8/59.2 in 2001 (45.9/54.1 in 2000).

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Table 3. Sales Volume by Presentation Type (in TUCs) 4Q01 4Q00 Var. % FY01 FY00 Var. % Returnable Single Serve 37,695 36,706 2.7% 162,480 179,364 (9.4%) Multiple Serve 13,058 16,040 (18.6%) 57,226 75,633 (24.3%) TOTAL RETURNABLE 50,753 52,746 (3.8%) 219,706 254,997 (13.8%) Non-returnable Single Serve 21,467 19,470 10.3% 94,143 86,741 8.5% Multiple Serve 21,875 18,279 19.7% 92,610 83,644 10.7% TOTAL NON-RETURNABLE 43,342 37,749 14.8% 186,753 170,385 9.6%

Total Soft Drink and 94,095 90,496 4.0% 406,459 425,382 (4.4%) Single Serve Water

Fiinanciiall Anallysiis

IIncome Sttattementt

Despite the drop in volumes, net sales increased 2.1% in real terms during 2001 and 7.1% in 4Q01 compared to the same periods in 2000. This was mainly due to the 20-25% real price increases implemented in March of 2001 in the Eastern Division territories.

Cost of Goods Sold decreased from Ps. 6,351.0 million in 2000 to Ps. 6,091.0 million in 2001. The main reason for the decline was that Promotora Industrial Juarez, S.A. de C.V. (“PIJSA”), went from being a supplier to a subsidiary during 2001. In addition, Argos stopped exporting third-party products. In the fourth quarter of 2001, cost of goods sold declined for the same reasons mentioned above and the gross margin rose from 47.3% in 4Q00 to 56.9% in 4Q01.

Selling expenses increased by 14% to Ps. 3,273 million in 2001, compared to 2000. This increase was due to an increase in pre-sale routes and promotions, as well as an increase in marketing activities. Administrative expenses rose 12.2% mainly due to the installation of new information systems and as well as salary and wage increases above the inflation rate in 2001.

As a result of the above, operating income, excluding extraordinary expenses of Ps. 53.7 million related to the merger, remained flat from Ps. 2,618 million in 2000 to Ps. 2,617 million in 2001. EBITDA1, excluding extraordinary expenses related to the merger, increased 1.5% in real terms from Ps. 3,268 million (25.5% of sales) in 2000 to Ps. 3,316 million (25.3% of sales) in 2001. The operating margin in 4Q01, excluding extraordinary expenses related to the merger rose to 16.1% compared to 11.8% in 2000.

The comprehensive cost of financing increased from an expense of Ps. 104.5 million in 2000 to an income of Ps. 7.9 million in 2001 as a result of the high cash levels that were maintained throughout the year, as well as the reduction in debt levels and the interest rates that Argos (Arca’s predecessor) paid on its loans.

The other income line was separated into two parts to distinguish extraordinary from ordinary income/expenses. For this purpose, during 2001, Arca’s predecessors divested assets considered non-strategic for the merger, including real estate, shares and bonds of companies not related to Arca

1 The amount of depreciation used to calculate EBITDA was Ps. 628.8 million in 2001, which excludes the depreciation of assets written off for Ps. 62.7 million. Therefore, the depreciation that appears in the Balance Sheet is Ps. 629.0 million in 2001.

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or the soft drink industry. Therefore, due to the sale of these assets, extraordinary losses of Ps. 60.9 million were reported.

The provisions for income taxes and employee profit sharing increased by 13% to Ps. 1,229 million in 2001 from Ps. 1,088 million in 2000 due to the fact that the divested assets were sold with a fiscal profit (i.e. taxes were paid on these sales) however they were reported at an accounting loss.

Net income before extraordinary expenses and losses resulting from the merger dropped slightly, by 1.6%, from Ps. 1,412 million in 2000 to Ps. 1,391 million in 2001. Earnings per share, excluding extraordinary expenses and losses was Ps. 1.73 in 2001 compared to Ps. 1.75 in 2000.

However, for the fourth quarter of 2001, net income excluding extraordinary expenses rose 120% to Ps. 270 million, which is 8.8% of sales and earnings per share of Ps. 0.33, compared to 4.3% and Ps. 0.15 in 2000, respectively.

Ballance Sheett

The decline in Cash from Ps. 1,476.7 million at the close of 2000 to Ps. 972 million as of December 31, 2001 was mainly due to: (1) extraordinary dividend payments of Ps. 1,631 million and (2) the purchase of Coca-Cola shares in Argos and Arma for US$194 million, US$180 million of which was financed with debt. The decline in shareholders’ equity was mainly due to the extraordinary dividend payment mentioned above.

The drop in non-strategic assets in 2001 was due to the fact that these assets were completely taken off Arca’s books as agreed upon during the merger negotiations.

Arca obtained a three-year syndicated loan with a single amortization and rates of Libor + 100, 112.5 and 125 basis points for years one, two and three, respectively. The Company is complying with the covenants agreed upon at signing.

The swap of Argos shares for Arca shares resulted in a total issuance of 235,469,656 shares, which combined with the 570,550,003 shares subscribed prior to the swap, equal 806,019,659 total shares outstanding as of December 2001.

******* About Arca Embotelladoras Arca, S.A. de C.V., through its subsidiaries, produces and distributes soft drinks under The Coca- Cola Company brand names (Coca-Cola, Fanta, Sprite, Lift), proprietary brands (Topo Chico, Joya, Tipp) and third-party brands (Sangría Señorial, Elite, Squirt), as well as purified water and ice. Arca operates in the Mexican States of Baja California Norte, Baja California Sur, Chihuahua, Coahuila, Durango, Nuevo León, San Luis Potosí, Sinaloa, Sonora, Tamaulipas, and Zacatecas. With 21 bottling plants, Arca produces an annual volume of approximately 400 millon unit cases. Arca was formed through the merger of Embotelladoras Argos S.A., Proyección Corporativa, S.A. de C.V. and Empresas El Carmen, S.A. de C.V.

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EMBOTELLADORAS ARCA, S.A. DE C.V. AND SUBSIDIARIES PRO FORMA INCOME STATEMENT (In thousands of constant pesos as of December 31, 2001)

Full Year 2001 2000

Net Sales 13,099,652 12,836,257 Cost of goods sold (6,090,941) (6,350,977) Gross Profit 7,008,711 6,485,279 Gross Margin 53.5% 50.5% Selling Expenses (3,272,706) (2,869,684) Administrative Expenses (1,118,920) (997,400) Operating Profit 2,617,084 2,618,195 Operating Margin 20.0% 20.4% Merger-Related Expenses (53,781) -

Comprehensive Financing Income (expense): Net Interest Income (expense) 5,541 (115,303) Foreign Exchange Gain (loss) (22,246) 3,943 Inflationary Gain (loss) 24,649 6,841 7,944 (104,519) 2,571,248 2,513,675

Other Income (expense), net (9,372) (20,974) Other Merger-Related Gains (losses), net (60,857) - Income Before Taxes 2,501,019 2,492,701 19.1% 19.4% Provisions for: Income Taxes (928,366) (813,135) Employee profit sharing (300,800) (274,772) (1,229,167) (1,087,908)

Equity income from affiliates 4,469 7,296 Net Income 1,276,321 1,412,090 Net margin 9.7% 11.0% Net Income excl. merger-related expenses 1,390,959 1,412,090

Net Income excl. merger-related exp. / Share 1.73 1.75

Depreciation (operating assets) 628,826 589,370 Amortization 69,979 60,258 EBITDA 3,315,889 3,267,823 EBITDA Margin 25.3% 25.5%

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EMBOTELLADORAS ARCA, S.A. DE C.V. AND SUBSIDIARIES PRO FORMA INCOME STATEMENT (In thousands of constant pesos as of December 31, 2001)

4th Quarter 4th Quarter 2001 2000

Net Sales 3,070,030 2,865,392 Cost of goods sold (1,321,709) (1,509,333) Gross Profit 1,748,321 1,356,059 Gross Margin 56.9% 47.3% Selling Expenses (921,777) (708,262) Administrative Expenses (331,088) (308,714) Operating Profit 495,456 339,083 Operating Margin 16.1% 11.8% Merger-Related Expenses (50,106) -

Comprehensive Financing Income (expense): Net Interest Income (expense) 28,864 (3,795) Foreign Exchange Gain (loss) 11,264 3,170 Inflationary Gain (loss) 24,500 4,014 64,628 3,389 509,978 342,472

Other Income (expense) (80,089) (32,637) Other Merger Related Gains (losses) 429,889 309,835 14.0% 10.8% Provisions for: Income Taxes (175,388) (173,070) Employee profit sharing (34,320) (13,787) (209,708) (186,857)

Equity income from affiliates (283) (141) Net Income 219,899 122,836 Net margin 7.2% 4.3%

Net Income excl. merger-related expenses 270,005 122,836 Net margin excl. merger-related expenses 8.79% 4.29% Net Income excl. merger-related exp. / Share 0.33 0.15

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EMBOTELLADORAS ARCA, S. A. DE C. V. AND SUBSIDIARIES PRO FORMA CONSOLIDATED BALANCE SHEET (In thousands of constant pesos as of December 31, 2001)

December 31, 2001 2000 Assets Cash and Equivalents 971,750 1,476,736 Trade accounts receivable, net 401,967 375,697 Other accounts receivable 131,449 142,048 Inventories 1,155,370 1,200,940 Prepaid expenses 11,060 6,333 Total current assets 2,671,597 3,201,754

Investment in shares of affiliated companies 76,366 54,677

Non-strategic fixed assets - 460,339

Property, plant and equipment 7,439,274 7,175,818

Goodwill 2,190,067 1,059,816

Other assets 126,663 78,679 Total assets 12,503,967 12,031,083

Liabilities Bank loans 170,873 116,301 Suppliers 367,435 435,854 Other accounts payable and accrued expenses 900,201 748,699 Total current liabilities 1,438,510 1,300,854

Long-term bank loans 1,926,097 540,265

Pension liabilities 223,705 118,382

Deferred income tax 1,340,629 1,466,021 Total liabilities 4,928,940 3,425,522

Capital stock 1,722,100 1,735,459 Reserve for repurchase of shares 358,478 116,701 Premium on issuance of capital stock (3,832) 1,881,851 Retained earnings 7,119,173 6,077,439 Other equity accounts 9,439 - Deficit on restatement of capital (1,630,332) (1,205,889) Total stockholders’ equity 7,575,027 8,605,561 Total liabilities and stockholders’ equity 12,503,967 12,031,083

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EMBOTELLADORAS ARCA, S.A. DE C.V. AND SUBSIDIARIES CASH FLOW STATEMENT (In thousands of constant pesos as of December 31, 2001)

December 31, 2001 2000 Operating Cash Flow: Net Income 1,276,321 1,412,090 Non-Cash Items: Depreciation 691,000 589,370 Pension Liabilities (2,695) Income from other subsidiaries (7,296) Amortization of Goodwill 69,979 60,258 Deferred Taxes (57,081) (116,090) 1,980,219 1,935,637 Change in Working Capital: Trade accounts and other receivables (15,672) (38,673) Inventories (232,246) (13,536) Prepaid expenses and other assets (74,400) 10,332 Suppliers (68,418) 12,584 Other liabilities 256,825 323,062 (133,911) 293,769 Cash flow generated by operations 1,846,308 2,229,406

Financing: Bank Loans 1,650,456 (345,564) Amortization of bank loans (210,052) Increase (decrease) in capital stock (466,712) (4,008) Dividends paid (1,630,639) (528,525) Cash flow used in financing activities (656,947) (878,097)

Investments: Investment in shares (1,200,230) 9,413 Capital Expenditures (494,117) (665,148) Cash flow used in investment activities (1,694,347) (655,735)

Increase in Cash and Equivalents (504,986) 695,574 Cash and Equivalents, Begining Balance 1,476,736 781,162 Cash and Equivalents, End of Year 971,750 1,476,736

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