SOURCE: Grupo TMM

September 24, 2007 08:35 ET

Grupo TMM Announces Settlement and Termination of All Controversies With Kansas City Southern

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.

Contact Information

  • TMM COMPANY CONTACT:
    Juan Fernandez
    Chief Financial Officer
    011-5255-5629-8778
    Email Contact

    Brad Skinner
    Senior VP, Investor Relations
    011-5255-5629-8725
    1-203-247-2420
    Email Contact

    Monica Azar
    Manager, Investor Relations
    011-525-55-629-8866 ext. 3421
    1-917-597-5361
    Email Contact

    AT DRESNER CORPORATE SERVICES:
    Kristine Walczak (investors, analysts, media)
    1-312-726-3600
    Email Contact