Dear Fellow Shareholders:

This was a year that will go down in history due to the global effects of the crisis that started in the US financial sector and had swift repercussions in the rest of the economy. In Mexico, as in many countries around the world, the economic slowdown exerted strong pressure on consumer spending. Unemployment, higher inflation, and widespread uncertainty caused consumer confidence to drop to unprecedented levels.

Nevertheless, even in the midst of such adverse circumstances, we achieved far-reaching goals that reinforce our business model’s fundamentals and prove, once more, the great devotion and capability of all the people that make up Grupo Famsa.

The growth strategy we have implemented in the past, building a portfolio of complementary businesses aimed at exceeding various consumption, financing, and savings needs, allows us to materialize unique competitive advantages that consolidate our position. Throughout 2008, a large part of our efforts focused on developing the value of synergies existing between our subsidiaries and strengthening their operations through the implementation of specific initiatives designed to compensate the slowdown in consumer spending. This is how we succeded in mitigating refinancing risks, obtaining better implementation results than any other comparable bank in Mexico, and achieving superior growth rates than the industry of reference in the United States.

FAMSA MEXICO

We achieved the expansion of our most important business unit, the retail operation in Mexico, with the opening of 18 stores; reaching a total of 369 locations. In addition, the integration of our commercial and banking platforms advanced significantly. Furthermore, we implemented specific initiatives aimed at counteracting the adverse economic circumstances by offering incentives for consumption, savings and prompt payment.

BANCO AHORRO FAMSA

We accomplished extraordinary progress in connection with the three main objectives we established when we began Banco Ahorro Famsa’s implementation. The goal of establishing one of the largest banking branch networks in Mexico has been achieved, and the deposits and credits volume growth has exceeded expectations. Our venture into the banking business has been more successful than that of any comparable bank in Mexico. During 2008 we installed 101 banking branches in Famsa Mexico stores and established a formal relationship with some 838 thousand account holders.

By contributing to the bankarization of Mexican families, by reinforcing Famsa Mexico’s value offer, and by providing more cost-efficient and stable sources of funding, Banco Ahorro Famsa is the most impactful endeavor in Grupo Famsa’s history.

FAMSA USA

Our store network in the United States grew this year to 52 units through the opening of 13 new stores. The profitable integration of the 8 Edelstein’s Better Furniture stores in the Río Grande Valley in Texas, and the successful entry into the Austin and Chicago markets are among the most important accomplishments related to the expansion of our retail infrastructure outside of Mexico. Our personalized service, the flexible credit conditions we provide, and the Famsa brand name recognition are some of the unparalleled elements that have allowed us to limit the effects, on our own operation, of one of the most severe economic crises in the history of the United States.

The goals achieved this year in each of our three business units complement one another to strengthen Grupo Famsa’s position in the face of one of the harshest crises in recent times, and will allow us to capitalize the eventual improvement in economic conditions. We maintain a firm commitment with our shareholders to continue creating value through the disciplined growth of our business platform. For this reason, we have adopted a more conservative stance on expansion while uncertain economic conditions prevail.

We proudly conclude this year having achieved important goals that strengthen even more the solid business fundamentals Grupo Famsa has been developing for more than 38 years.

Our priority now is to underpin Grupo Famsa’s robust standing. We shall therefore dedicate all of our resources to continue exceeding our customer’s expectations and driving additional synergies among our business units. Having a highly capable and enthusiastic team, along with a unique business portfolio and the right strategy, makes us confident not only about overcoming the present crisis, but also extending the long track record of sustainable growth that has distinguished Grupo Famsa.


Sincerely,