GRUPO SIDEK ANNOUNCES RESULTS FOR QUARTER ENDED MARCH 31, 1999

Press Release: Grupo Sidek, S.A. de C.V.

May 3, 1999
Grupo Sidek, S.A. de C.V. ("Sidek'') (OTC Bulletin Board: GPSAY - news and GPSBY - news) has announced
its results for the first quarter of 1999.

Sidek's revenues decreased 18% during the first quarter of 1999 as compared to the same period of 1998, falling from Ps. 1,213 million to Ps. 990 million. Sidek recorded financing income of Ps. 462 million during the first quarter of 1999 versus a financing expense of Ps. 534 million during the comparable period of 1998. As a result of the foregoing, Sidek recorded net income of majority stockholders of Ps. 176 million for the first quarter of 1999, versus a net loss of majority stockholders of Ps. 571 million in the
same period of 1998.

Revenues of Grupo Situr, S.A. de C.V. ("Situr'') decreased 18% during the first quarter of 1999 as compared to the same period of 1998, from Ps. 1,205 million to Ps. 990 million. However, revenues of Situr's Real Estate Sales Division during the first quarter of 1999 increased 24% as compared to the
same period of 1998, from Ps. 42 million to Ps. 52 million. Revenues of Situr's Hotel and Timeshare Division decreased 15% during the first quarter of 1999 as compared to the comparable period in 1998, falling from Ps. 422 million to Ps. 361 million, primarily as a result of a decrease in the average occupancy rate of Situr's hotels. Revenues of Simec decreased 10% during the first quarter of 1999 as compared to the same period in 1998, falling from Ps. 647 million to Ps. 581 million.

Sidek's cost of sales decreased 24% to Ps. 528 million during the first quarter of 1999, (constituting 53% of revenues), versus Ps. 691 million, (constituting 57% of revenues) for the comparable period in 1998. Situr's cost of sales decreased 17% during the first quarter of 1999 as compared to the same period of 1998, from Ps. 639 million, or 53% of revenues to Ps. 528 million, or 53% of revenues. Grupo Simec, S.A. de C.V. ("Simec'') direct cost of sales was Ps. 372 million during the first quarter of 1999, or 64% of revenues, versus Ps. 442 million or 68% of revenues, for the comparable period in 1998.

Sidek's general, selling and administrative expenses (excluding non-recurring expenses, reserves and contingencies) decreased 21% during the first quarter of 1999 as compared to the same period in 1998, falling from Ps. 400 million to Ps. 315 million. Situr's general, selling and administrative expenses (excluding non-recurring expenses, reserves and contingencies) were Ps. 307 million in 1999 versus Ps. 409 million in 1998. Simec's general, selling and administrative expenses (including depreciation) decreased 3% during the first quarter of 1999 as compared to the same period in 1998, falling from Ps. 119 million to Ps. 116 million.

Sidek recorded earnings from operations during the first quarter of 1999 of Ps. 118 million versus losses from operations of Ps. 12 million in the same period of 1998. Situr recorded earnings from operations of Ps. 128 million during the first quarter of 1999 as compared to earnings from operations of Ps. 145 million in the same period of 1998. Simec's earnings from operations increased 6% during the first quarter of 1999 as compared to the same period in 1998, rising from Ps. 87 million to Ps. 92 million.

At March 31, 1999, on a consolidated basis, Sidek had total debt of Ps. 7,437 million, approximately 99% of which was denominated in U.S. dollars and approximately 1% of which was denominated in pesos.

As of March 31, 1999, the financial statements reflect the positive effects of the Sidek Restructuring which closed on March 30, 1998. Although as a result of the Sidek Restructuring and certain accounting conventions Sidek has net equity of approximately Ps. 4,289 million, Sidek does not believe that significant, if any, value will be attributable to its equity after fulfilling its obligations pursuant to the Restructuring.

All figures presented were prepared in accordance with Mexican Generally Accepted Accounting Principles and are stated in constant pesos at March 31,1999.

Grupo Sidek is engaged through its subsidiaries Situr and Simec in two primary lines of business. Situr is an owner and operator of hotels in Mexico and is also engaged in real estate and timeshare sales (Sun Club/Plaza Las Glorias and Continental Villas). Situr and the majority of Sidek's other subsidiaries (excluding Simec) are in the process of selling all of their assets pursuant to the Sidek Restructuring. The proceeds of such sales will be paid to Sidek's creditors that participated in the Sidek Restructuring. Simec is a mini-mill steel producer in Mexico and manufactures a broad range of non-flat structural steel products.