GEO Announces Revision of 2012 Free Cash Flow to Equity Guidance

MEXICO CITY, July 26, 2012 /PRNewswire/ -- Corporacion GEO S.A.B de C.V. (BMV: GEOB; CORPGEO MX, ADR Level I CUSIP: 21986V204; Latibex: XGEO), GEO, Mexico's leading affordable entry-level housing developer, today announced that it has reviewed its 2012 Free Cash Flow to Equity projections and, in light of the current industry environment, has revised projections.

Free Cash Flow to Equity projections have been revised to a range of 200 to 400 million pesos, from previous guidance of 1,500 million pesos. This revision has been made taking into account the recent impact of GEO's internal transition in order to comply with the Housing Registry System's new project certification process of accessing subsidies.

During the second quarter, GEO experienced a slight lag in adapting its internal processes to align with the new Registro Unico de Vivienda (RUV) scoring system criteria which certifies vertical housing projects. Corporacion GEO is the industry leader in vertical housing construction and maintains the largest market share in vertical housing.

While GEO has since successfully surpassed its initial challenges and has fully adapted its internal processes, 2012 projections have been modified to represent a more conservative outlook.

Going forward, GEO will continue improving its financial equilibrium while maintaining its long term focus on the development of sustainable communities.

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 22 states, GEO is one of the most geographically diversified homebuilders in Mexico. Since its inception GEO has sold more than 600,000 homes which currently provide housing to 2,200,000 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.