Grupo Famsa de CV : Financial strengthening of Groupo Famsa in 2017

FINANCIAL STRENGTHENING OF GRUPO FAMSA IN 2017

Monterrey, N.L., Mexico, January 26, 2017 - Grupo Famsa, S.A.B. de C.V. (BMV: GFAMSA) and Mr. Humberto Garza Gonzalez, controlling shareholder of the Company, have outlined an optimal structure so that the accounts receivable guaranteed in December 2015 by Mr. Humberto Garza Gonzalez and his real estate companies will be amortized, reported Mr. Luis Gerardo Villarreal Rosales, COO of the Company. It is expected that the implementation process of said structure will be duly completed during April, prior to the originally established term limit of June 2017.

The structure consists of the creation of two trusts that enhance the guarantee contributed by Mr. Humberto Garza Gonzalez and his real estate companies in December 2015, which ensures 100% coverage of said payment guarantee.

First of all, the real estate companies owned Mr. Humberto Garza Gonzalez, Desarrollos Inmobiliarios Garza Valdez, S.A. de C.V., Inmobiliaria Garza Valdez, S.A. de C.V., Inmobiliaria Garza Valdez de la Laguna, S.A. de C.V., and Inmobiliaria Logar de Monterrey,

S.A. de C.V., will establish a Management and Payment Source Trust (MPST), towards a cession of rights, to properly contribute the collection of future incomes from the leases of certain properties until the account receivable be settled in its entirety. The beneficiary in first position of the MPST will be Famsa Mexico, S.A. de C.V., subsidiary of Grupo Famsa. Thus, the account receivable from related parties recorded in Grupo Famsa's consolidated statement of financial position will be amortized in line with the disbursement of leases, explained Mr. Villarreal.

Secondly, the aforementioned real state companies will constitute a Guarantee Trust (GT) in which they will jointly contribute the real estate whose value will add to the guaranteed amount of collection rights, and whose primary beneficiary will also be Famsa Mexico, S.A. de C.V.

In parallel, over the last few months Mr. Humberto Garza Gonzalez has moved forward alongside Grupo Famsa´s management team in establishing an action plan for monetizing the real estate properties incorporated in the guarantee trust, which is in its implementation phase. The market will be kept informed as this plan execution gets traction.

"We are looking for the company to obtain an additional source of liquidity in 2017, as well as the substantial decrease of the collection term of future leases that will be established in the MPST" commented Mr. Villarreal. The resources obtained will be allocated largely to settle liabilities with short-term maturities.

Separately, in 2017 Grupo Famsa expects to achieve superior efficacy in its operational and business structure as result of: i) incremental quarterly savings of Ps. 60 million in addition to what was already achieved in 2016, which will be derived from the implementation of a cost-reduction program for operational expenses; and, ii) investment limited only to maintenance of the current network of existing stores, as there will be no openings in Mexico nor the United States during the year.

With these actions taken, during 2017 Grupo Famsa´s profitability and generation of operating cash flow will boost, thus allowing to significantly improve its financial structure; in particular, Banco Famsa's equity which will also be strengthened, summarized Mr. Villarreal.

About Grupo Famsa

Established in 1970 in Monterrey, Nuevo León, Grupo Famsa has consolidated its position as a publicly-traded company with a solid presence in the retail sector, focusing its efforts on satisfying families' diverse consumption, financing and savings needs. Its target market is in the Mexican low-middle income households and the Hispanic population of the states where it operates in the USA. Retail sales of Grupo Famsa in Mexico comprise furniture, electronics, appliances, mobile phones, computers, motorcycles, clothing and other durable goods, which are mainly sold within the stores network of Grupo Famsa. In Texas and Illinois, in the USA, Grupo Famsa's offering comprises furniture, electronics, appliances, computers, and other durable goods through the operation of its subsidiary Famsa, Inc.

Contact:

Investor Relations Paloma E. Arellano Bujanda [e-mail]

Phone: + 52 (81) 8389-3400 ext. 1419