Bachoco Reaches Agreement with Grupo Agra to Expand its Table Eggs Business

Dec 18, 2007, 00:00 ET from Industrias Bachoco S.A.B. de C.V.

    CELAYA, Mexico, Dec. 18 /PRNewswire-FirstCall/ -- ("Bachoco" or "the
 Company") (NYSE:   IBA; BMV: Bachoco B), Mexico's leading producer and
 processor of poultry products, today announced that it has reached an
 agreement with "Grupo Agra", a table eggs company located in the states of
 Nuevo Leon and Coahuila in Northeast Mexico. The agreement establishes a
 rent scheme of the facilities, which include laying hens farms with a
 capacity of approximately 1.0 million hens, a table eggs processing plant,
 distribution centers, and the Agra brands. In addition, Bachoco will
 acquire all the working capital.
     Cristobal Mondragon, Industrias Bachoco CEO, said, "This agreement
 brings flexibility to our business and reinforces our table eggs business
 line in the northeast market of the country. We will immediately focus on
 the integration of this operation with our table eggs operation located in
 the state of Coahuila and take advantage of synergies."
     The agreement will be financed with internal resources and Bachoco will
 take control of the facilities immediately.
     Company Description
     Industrias Bachoco S.A.B. de C.V. (also referred to in this report as
 Bachoco or the Company) was founded by the Robinson Bours family in 1952,
 in the state of Sonora. Since then, it has grown into the largest poultry
 company in Mexico, with over 700 production and distribution facilities
 currently organized in seven complexes throughout the country. Bachoco's
 main business lines are chicken, eggs, and swine, and the Company is also
 an important player in the balanced feed industry in Mexico. The Company's
 headquarters are based in Celaya, Guanajuato, located in Mexico's central
     Industrias Bachoco made an initial public stock offering in September
 1997. Its securities are listed and traded on the Mexican Stock Exchange
 (Bolsa Mexicana de Valores or BMV) under the ticker symbol Bachoco B, and
 on the New York Stock Exchange (NYSE) under the ticker symbol IBA.
     The Company posted net sales of U.S. $1.39 billion for 2006, divided
 among the Company's four main product lines as follows: 77.6% chicken, 9.2%
 table eggs, 9.0% balanced feed, and 4.2% swine and other lines.
     Industrias Bachoco's shares are listed on the Mexican Stock Exchange
 and its American Depositary Shares (ADS) are listed on the New York Stock
 Exchange. One ADS represents twelve B Shares. For more information, please
 visit Bachoco's website at
     This press release contains certain forward-looking statements that are
 subject to a number of uncertainties, assumptions and risk factors that may
 influence its accuracy. Actual results may differ. Factors that could cause
 these projections to differ, include, but are not limited to: supply and
 demand, industry competition, environmental risks, economic and financial
 market conditions in Mexico and operating cost estimates. For more
 information regarding Bachoco and its outlook, please contact the Company's
 Investor Relations Department.

SOURCE Industrias Bachoco S.A.B. de C.V.