Grupo Elektra Issues Ps. 400 Million in Short Term 'F2(mex)' Rated Certificados Bursatiles - In Accordance With Our Financial Strategy, Funds Will Be Used to Redeem the Company's US$ 275 Million Senior Notes Due on 2008 - MEXICO CITY, March 31 /PRNewswire-FirstCall/ -- Grupo Elektra S.A. de C.V. (NYSE: EKT; BMV: Elektra*), Latin America's leading specialty retailer, consumer finance and banking services company, announced today that it successfully placed Ps. 400 million in unsecured short-term Certificados Bursatiles. The issue has a total term of 336 days and yields a rate of 28-day TIIE+250 basis points per year. Scotia Inverlat Casa de Bolsa was the placement agent. The issue carries an "F2(mex)"credit rating for local currency issues from Fitch Mexico. On March 22 2004, Grupo Elektra announced it would redeem on April 21 2004, four years in advance, all of the outstanding 12% US$ 275 million Senior Notes due on 2008, at a 106% premium over its face value, plus accrued interests, totaling US$ 293 million. The sources for the redemption of the Senior Notes are US$ 218 million of the net amount received from the unsecured long-term Certificados Bursatiles issued on March 19 2004, US$ 36 million (Ps. 400 million) from this successful unsecured short-term issuance; and US$ 39 million from our current cash position. The redemption should allow Grupo Elektra to eliminate its US-dollar denominated liabilities, to obtain savings in financial expenses of approximately US$ 40 million during the next four years, and to substantially reduce its foreign exchange exposure. Rodrigo Pliego, Chief Financial Officer of Grupo Elektra, commented: "We are extremely pleased by the positive response on both our long-term and short-term unsecured notes which is a reflection of the trust the market has built on Grupo Elektra, and has surpassed our initial expectations. This, together with our cash position, will allow us to eliminate the Company's financial mismatch represented by thepayment of interests in US$ dollars and the earning of revenues in Pesos". Visit our award-winning corporate website at http://www.grupoelektra.com.mx/ Except for historical information, the matters discussed in this press release are forward-lookingstatements and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Risks that may affect Grupo Elektra are identified in its Form 20-F and other filings with the US Securities and Exchange Commission. Grupo Elektra - Tradition with Vision Grupo Elektra is Latin America's leading specialty retailer, consumer finance and banking services company. Grupo Elektra sells retail goods and services through its Elektra, Salinas y Rocha and Bodega de Remates stores and over the Internet. The Group operates almost 900 stores in Mexico, Guatemala, Honduras and Peru. Grupo Elektra also sells and markets its consumer finance and banking products and services through its Banco Azteca branches located within its stores. Financial services include consumer credit, personal loans, money transfers, extended warranties, savings accounts and term deposits. Contacts: Esteban Galindez, CFA Director of Finance & IR Grupo Elektra, S.A.de C.V. Tel. +52 (55) 8582-7819 Fax. +52 (55) 8582-7822 Rolando Villarreal S. Head of Investor Relations Grupo Elektra S.A. de C.V. Tel. +52 (55) 8582-7819 Fax. +52 (55) 8582-7822 Samantha Pescador Investor Relations Grupo Elektra S.A. de C.V. Tel. +52 (55) 8582-7819 Fax. +52 (55) 8582-7822 DATASOURCE: Grupo Elektra S.A. de C.V. CONTACT: Esteban Galindez, CFA, Director of Finance & IR, +52-55-8582-7819, Fax. +52-55-8582-7822, , or Rolando Villarreal S., Head of Investor Relations, +52-55-8582-7819, Fax. +52-55-8582-7822, , Samantha Pescador, Investor Relations, +52-55-8582-7819, Fax. +52-55-8582-7822, , all of Grupo Elektra, S.A. de C.V. Web site: http://www.grupoelektra.com.mx/

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