Vitro Reaches Agreement with Libby Inc. to Sell Its Stake in Vitrocrisa

Vitro S.A. de C.V. has announced that it has reached an agreement to sell its 51-percent interest in Vitrocrisa Holdings S de R.L. de C.V. and related companies to Libbey Inc.

Libbey Inc. currently owns 49 percent of the Mexican joint venture formed in 1997.

According to the Vitro announcement, the equity sale for $80 million plus an additional $23 million of inter-company payables and account receivables, will represent a total inflow of $103 million to Vitro. As of December 31, 2005, Vitrocrisa had a total debt of $67 million, which will be refinanced by Libbey. The deal also includes a real estate swap.

Upon completion of the transaction, Libbey Inc. will become the sole owner of the operation.

"We are very pleased with this important transaction. The sale is consistent with Vitro's strategic plan, aimed at reducing the holding company debt and strengthening our financial position and operations," said Frederico Sada, Vitro's chief executive officer.

"We have had a strong and solid partnership with Libbey for the past eight years and I believe that this transaction serves the strategic goals of both companies," he added.

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