Pepsi-Gemex, S.A. de C.V., (NYSE:GEM - news) has filed with the Mexican Securities and Banking Commission ("CNBV") a request to carry out a cash tender offer in Mexico for up to 100% of the shares of the capital stock of Embotelladores del Valle de Anahuac, S.A. de C.V. ("EMVASA").

Pepsi-Gemex expects to have the support of EMVASA's principle shareholders and has received the full support of PepsiCo, Inc. The all-cash tender, to be made in Mexican pesos, is valued at approximately $81,000,000 (USD), plus assumption of EMVASA's indebtedness.

The tender offer is conditioned on numerous approvals, including Mexican government authorities (the CNBV, the Competition and Antitrust Commission and the Foreign Investment Commission and others), as well as other conditions. There can be no assurance that the required approvals will be granted or that this transaction will close.

Pepsi-Gemex is the largest Pepsi bottler exclusively outside the United States and sole anchor bottler for Pepsi-Cola in Mexico. The Company's current operations encompass the Mexico City metropolitan area, and portions of the adjacent states of Mexico and Hidalgo, the southwestern states of Guerrero and Morelos, the southeastern states of Campeche, Yucatan and Quintana Roo and the central states of Aguascalientes, Zacatecas, Durango and San Luis Potosi. Since mid-1997, Pepsi-Gemex has had control of the Northeast Bottling Group, which holds the Pepsi franchise for Nuevo Leon, Coahuila and portions of the states of Chihuahua, Tamaulipas and Durango. Since January 1999, the financial results of the Northeast Bottling Group have been consolidated into those of Pepsi-Gemex.

Pepsi-Gemex is one of Mexico's largest soft drink producers. The Company produces Pepsi, Mirinda, KAS, Seven-Up, Manzanita Sol, Power Punch, Garci Crespo and San Lorenzo mineral waters and Squirt. The Company also offers Seagram products to its customers and owns Mexico's largest purified water company, Electropura. Pepsi-Gemex shares trade on the Mexican Bolsa and the New York Stock Exchange.