Highlights:

• Quarterly record in net sales, EBITDA and net income.
• Growth in net sales of 6 percent.
• Increase in operating profit of 10 percent.
• Growth in EBITDA of 10 percent.
• Increase in net income of 96 percent.

Despite a very difficult operating results comparison, fourth quarter results were good. Net sales grew 6 percent derived from higher volumes. Operating profit grew 10 percent, continuing with the positive trend started 7 quarters ago. Net income grew 96 percent due to an increase in operating profit and a favorable comparison versus last year.

In consumer products, our main business, net sales grew 9 percent, driven by 7 percent volume growth and 2 percent better price and mix. We achieved solid volume growth in almost all of our categories and had very strong growth in disposable diapers, bath tissue and wet wipes. Professional products recorded lower sales due to a decrease in shipments of master tissue rolls for the domestic market and finally, we had lower export sales.

During the fourth quarter we experienced higher prices for some raw materials that as of the first half of the year posted a bearish trend. This negative effect was compensated by a favorable exchange rate, as well as by our internal efforts to contain and reduce costs. In addition, our operating expenses containment efforts derived in lower operating costs. These resulted in operating profit growing more than net sales.

The comparison of net income for the quarter was favorable, due to higher operating profit and due to a favorable comparison versus fourth quarter of 2008 which was negatively affected by the recognition of exchange losses because of depreciation of the peso.

We posted record net sales, operating profit and EBITDA for the year. The results are as follows: 7 percent growth in net sales, as a result of 3 percent volume increase and 4 percent better price and mix; Operating profit grew 13 percent; and net income was higher by 25 percent.
 
An EBITDA of $7,897 million pesos was generated during 2009. This was 11 percent higher than previous year. In the last twelve months we invested $2,171 million pesos ($1,064 in capital expenditures (CAPEX) and $1,107 in the re-purchase of stock), and paid out a dividend to our shareholders of $3,208 million pesos.

As of December 31st, we ended with a cash position of $6,460 million pesos.

Under US GAAP, annual results were as follows: net sales were 12 percent below last year; operating profit was down 9 percent; and net income decreased by 1 percent.

As of December 31st 2009, and as reported in the financial statements, the company has a derivative financial instrument as a hedge to reduce the risk of the effects of its exposure to interest rates. Regardless of the market price of this instrument, its effect on the financial statements is not expected to be material.

On October 6th 2009, the company issued $2,700 million pesos in “AAA” Certificados Bursatiles (Marketable Notes) in two tranches as follows: 2,300 million pesos floating rate (TIIE + 95bps) with a 5 years maturity period, and 400 million pesos fixed rate (9.65%) with a 10 years maturity period.

The use of the funds are to prefund a maturity of Certificados Bursatiles of $2,700 million pesos due in April of 2010.

Kimberly Clark de Mexico is engaged in the manufacture and commercialization of disposable products for daily use by consumers within and away-from-home, such as: diapers and child care products, feminine pads, incontinence care products, bath tissue, napkins, facial tissue, hand and kitchen towels, wet wipes and health care products. Some of the main brands include: Huggies®, Kleen-Bebé®, Kleenex®, Kimlark®, Pétalo®, Cottonelle®, Depend® and Kotex®.

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