Corporacion GEO Announces 2012 Guidance

MEXICO CITY, Dec. 22, 2011 /PRNewswire/ -- Corporacion GEO, S.A.B de C.V. (BMV: GEOB; CORPGEO MX, ADR Level I CUSIP: 21986V204; Latibex: XGEO), Casas GEO, Mexico's leading affordable entry-level housing developer, today announced guidance for full year 2012.

GEO expects to deliver revenue growth between 5% - 8% and EBITDA margin between 21% - 23% in 2012, driven by the Company's strategy to maintain its strong position in the low-income housing industry while continuing to make financial equilibrium and profitability a priority.

GEO´s primary focus for 2012 will be on reducing debt levels while generating Free Cash Flow to Equity above $1.5 billion pesos.

While the housing industry is currently experiencing a transition phase, which represents challenges, GEO expects to continue to benefit from its strategy that focuses on affordable housing.  This expectation is supported by:

• GEO's unique product that offers families an improved quality of life through high-quality sustainable communities
• The fact that a significant amount of GEO's annual construction will be allocated to vertical homes, which is aligned to Mexican housing policies that increase the availability of subsidies for the low affordable segments
• Operational efficiencies resulting from the "ALPHA" technology industrialization process, reducing the construction cycle and improving construction density- which results in improved land use
• The industry's most experienced management team that is committed to debt reduction and related Free Cash Flow generation

All of the above are expected to strengthen GEO's financial structure while consolidating its leadership position in the Mexican housing industry and securing its long-term vision.

Management is confident that there will be opportunities in 2012 for GEO to build on its strong position and ensure future growth. Moreover, the Company reaffirms its commitment and leadership in the housing industry by providing clients with homes that add value and improve quality of life and by ensuring improved profitability for shareholders.

About Corporacion GEO S.A.B. de C.V.
Corporacion GEO is a leading housing developer in Mexico and one of the largest in Latin America. The Company is engaged in all aspects of design, development, construction, marketing, sales and delivery of mainly low-income housing developments in Mexico. With operations in 20 states, GEO is one of the most geographically diversified homebuilders in Mexico. Since its inception GEO has sold more than 560,000 homes which currently provide housing to 2,000,000 people. GEO's Solid Business Model focuses mainly in the Affordable Entry Level and Economic segments, which are supported by government policies and by the Mexican Housing Institutions INFONAVIT and FOVISSSTE. For more information, visit www.corporaciongeo.com  

SOURCE Corporacion GEO, S.A.B. de C.V.