B) BASIS OF PRESENTATION

The accompanying Parent company-only financial statements have been
prepared in order to comply with legal requirements in Mexico. The Company
also presents consolidated financial statements.

The accompanying financial statements have been prepared in accordance with
accounting principles generally accepted in Mexico (Mexican GAAP), which
include the recognition of the effects of inflation on the financial information
and the use of constant pesos, in accordance with Bulletin B-10, as amended.

Through February 1995, the National Consumer Price Indices (NCPI) published
by Banco de Mexico used to recognize the effects of inflation were
calculated on a 1978 year basis. On April 10, 1995, the Diario Oficial de la
Federaci—n published the new NCPI calculated based on the year 1994. In
order to convert NCPI of 1978 basis to a NCPI on a 1994 basis, the 1978 inflation
index must be divided by 37,394.134.

The main NCPI used to recognize the effects of inflation were as follows:

                December
                31, 1995    ...............................................   156.9150
                December
                31, 1994    ...............................................   103.2566
                December
               31, 1993      ...............................................    96.4550