July 12, 1999

CEMEX, S.A. de C.V. (OTC:CMXBY) today announced that it has entered into shareholder and subscription agreements with institutional investors to form CEMEX Asia Holdings ("CAH"), a CEMEX subsidiary created to take advantage of attractive acquisition opportunities in Asian cement-related assets.

CAH has initial committed equity capital of US$950 million, US$150 million of which will be provided by institutional investors led by the AIG Asian Infrastructure Fund II, L.P. and GIC Special Investments Pte Ltd., the private equity arm of the Government of Singapore Investment Corporation Pte Ltd. CEMEX will commit up to US$800 million of capital.

As the initial transaction, CAH will use a portion of its capital to acquire from CEMEX its direct and economic interests in Rizal Cement and APO Cement, both cement companies in the Philippines. As a result, CEMEX´s participation in Rizal will be reduced from a 70% economic interest to close to 59% and its participation in APO will be reduced from a 99.9% economic interest to approximately 84%. The transaction is expected to close during the third quarter of 1999 and the proceeds received by CEMEX will be used to reduce debt.

CEMEX will receive a technical assistance fee from the operating affiliates of CAH as consideration for its role in supporting the acquired assets and for contributing its industry expertise.

"This agreement marks an important step in our financial strategy designed to support our business plan through the Asian region," said Rodrigo Treviño, Chief Financial Officer of CEMEX. "We continue to analyze cement assets in the region and the formation of CEMEX Asia Holdings will provide financial flexibility to pursue additional investment opportunities."

Lazard Frères & Co. LLC acted as CEMEX´s exclusive financial advisor and placement agent for CAH.

The AIG Asian Infrastructure Fund II ("Fund II"), with US$1.7 billion in commitments, makes equity and convertible securities investments in the infrastructure and infrastructure-related sectors in China, India, Korea, the Philippines, Thailand and other Asian countries. American International Group ("AIG") is the sponsor of Fund II and the Government of Singapore Investment Corporation Pte Ltd. is the principal investor.

The Government of Singapore Investment Corporation Pte Ltd. is the largest global investment institution in Singapore and manages the long-term reserves of the Government of Singapore.

Emerging Markets Partnership is the principal advisor to Fund II.

Founded in 1906, CEMEX is one of the three largest cement companies in the world with approximately 61 million metric tons of production capacity. Through operating subsidiaries positioned in three different continents, CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. In addition, the company is the world´s leading producer of white cement and the world´s largest trader of cement and clinker.