Urbi Desarrollos Urbanos SA de CV : URBI announces new organizational structure

? Urbi will begin this year with a new organizational structure focused on five regions and the vertical housing and licensee managers division, resulting from the consolidation process initiated in 2H12.

? The new operational structure is consistent with the goal of adjusting growth and working capital needs; strengthening profitability and cash flow generation as well as its position as the company best suited to capture the opportunities available in the industry's new stage of sustainable development.

? Urbi will maintain its focus on generating affordable entry-level and low-middle income housing nationwide in the 22 states where the company operates.

Javier Moreno, Urbi's Chief Operating Officer (COO), mentioned that Urbi has created five regional divisions -Baja California, Sonora, Sinaloa, North, Bajío, Metro-South- and the Vertical Housing and Licensee Managers Unit, which will allow us to satisfy market needs more efficiently in 2013.
During the second half of 2012, the Company began its operational consolidation process, adjusting its growth with the goal of generating neutral or close to neutral cash flow during the next six quarters. From the second half of 2013, Urbi expects to start a gradual growth of its free cash flow to reach by the end of 2015 a positive free cash flow generation of MX$1 billion.
In this regard, Mister Moreno said: "During the past 31 years, Urbi has reached a leading position thanks to the effort and commitment of all its employees, partners, suppliers, customers and investors. These organizational changes are another step of our commitment to consolidate and make our operational processes more efficient to further strengthen our leadership in the industry by providing innovative and high quality products".
The company also reorganized the operational functions of its Central Unit in four areas: Commercial Development, Value Chain, Management and Planning. The implemented changes serve three fundamental principles: the city is the central units of the business, the commitment to strengthen a culture of transparency and accountability, and costs reduction.

Cuauhtémoc Pérez, Urbi's Chairman and CEO, concluded: "These measures reinforce our competitive position and set the foundation for Urbi to resume its growth maintaining its profitability and consistent generation of free cash flow, once the 6 quarters operational consolidation period ends. The actions that are being carried out will allow Urbi to remain as the company best suited to capture the available opportunities in the Mexican housing industry's new stage of sustainable growth."

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Urbi Desarrollos Urbanos S.A.B. de C.V. (MSE: URBI*) is a leading company in innovation and sustainable development in the construction of communities in Mexico. Currently, Urbi is present in 39 cities, covering the main metropolitan areas and the most dynamic medium-size cities in the country. In more than 31 years of operations, Urbi has developed over 400,000 homes, and has always conducted its business with a strong emphasis on financial performance, making it one of the most profitable companies in the sector.

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This document contains forward-looking statements of the Company, including statements about its financial condition and of the Company's future results of operations, its strategy, plans, objectives and targets, and other data that is not historical information. Such forward-looking statements are based on assumptions, plans, intentions and expectations of the Company's management, and involve risks, uncertainties and other factors, known and unknown, some of which are beyond the control of the Company. Such statements should not be interpreted based on past trends and activities, as if they were to continue in the future. Forward-looking statements contained herein are valid at the date of this document.

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