1Q02 EBITDA UP 20% TO A RECORD OF US$53 MILLION, WITH MARGIN OF 38%

TV Azteca Reports 1Q02 9% Increase in Net Revenue, to 1Q Record. 79% Growth in Net Income

Mexico City, April 17, 2001 -- TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA), a leading producer of Spanish language television programming, today reported first quarter EBITDA of US$53 million, up 20% compared with US$44 million recorded for the same period of 2001. EBITDA margin rose 400 basis points to 38% versus a margin of 34% for the first quarter a year ago. EBITDA and EBITDA margin reached their highest first quarter levels in four years.

Our ability to expand EBITDA during the quarter reflects our strict scrutiny to determine the programming mix that delivers the highest possible return, given a soft environment," said Pedro Padilla, Chief Executive Officer of TV Azteca. We adapted our programming grids to meet our clients levels of demand for advertising, which allowed us to match costs with seasonal market conditions."

In the lower part of seasonality for advertising in Mexico, selecting and scheduling the types of shows advertisers are willing to support, together with proactive cost control is critical to enhance and improve profitability," Mr. Padilla added.

First Quarter Results

Net revenue grew to a record first-quarter level since 1998. First quarter net revenue rose 9% to US$140 million, up from US$129 million one year ago. Total costs and expenses rose 2% to US$87 million, compared with US$85 million for the same period of 2001. As a result, the Company reported EBITDA of US$53 million, 20% higher compared with US$44 million in the first quarter of last year. Net income for the quarter increased 79% to US$22 million compared with US$13 million for the same period of last year.

Millions of pesos1 and dollars 2 except percentages and per share amounts.
   1Q 2001   1Q 2002   Change
         US$   %
Net Revenue            
     Pesos   Ps. 1,162   Ps. 1,261      
     US$   US$ 129   US$ 140   11   +9%
EBITDA            
     Pesos   Ps. 400   Ps. 480      
     US$   US$ 44   US$ 53   9   +20%
Audience Share3            
     Full day   37.3   37.0      -1%
Net Income            
     Pesos   Ps. 114   Ps. 202      
     US$   US$ 13   US$ 22   9   +79%
Income per ADS4            
     Pesos   Ps. 0.60   Ps. 1.07      
     US$   US$ 0.07   US$ 0.12   .05   +79%

1 Pesos of constant purchasing power as of March 31, 2002.
2 Conversion based on the exchange rate of Ps.9.015 per US dollar as of March 31, 2002.
3 Source: IBOPE Media Quiz. Individuals, 19+, ABC+, C, D+ demographics (commercial audience). Share based on TV sets turned on, considering channels 2,5,7 and 13. Mo-Su, 6:00am--12:00am.
4 Calculated based on 188.6 million ADSs outstanding as of March 31, 2002.

Share of Commercial Audience

During the quarter, TV Aztecas full day commercial audience share recorded a 1% decrease to 37.0% from 37.3% for the first quarter of 2001.

We confirm that audience performance does not parallel revenue trends in our market, and that correlation with EBITDA is not significant," commented Rodrigo Pliego, TV Aztecas CFO. Ratings as such, are not necessarily attractive to advertisers and may remain unsold. In addition, after considering production costs, ratings often lead to a negative effect on profitability. Accordingly, to have ratings information that is useful for decision making, we have to include a detailed profitability analysis."

Offensive content can produce large ratings, but normally it does not interest advertisers. Combined with high costs it damages EBITDA," Mr. Pliego added. At TV Azteca we comply with a code of values on the Companys program selection, which further contributes to our respectful relationship with the audiences and with advertisers."

Net Revenue

The 9% increase in net revenue reflects the Companys comprehensive and effective response to the needs of our advertisers; a 9% average increase in first quarter advertising rates in real terms; and constant full-day utilization rates, compared with the same quarter of last year.

During the quarter, TV Azteca sales force kept close touch with advertisers in order to stay narrowly aligned to their needs and preferences," said Gustavo Guzmán, Director General of Sales of TV Azteca. By offering them a full array of fitting advertising options, from thorough integrated advertising to wide-ranging product promotions to complement their ad campaigns, we enabled our clients to leverage their advertising buy and enhance consumer awareness of their products and services."

First quarter net revenue includes content and advertising sales to Todito.com of US$4.3 million, and US$1.6 million in advertising sales to Unefon. In the first quarter of 2001, sales to Todito and Unefon were US$5.2 million and US$800,000, respectively.

During the quarter, Azteca America Network contributed an additional US$1.1 million to advertising sales, representing 50% of total U.S. advertising sales of Azteca America. Sales figures included ad revenue from both local advertisers and from Mexican clients eager to tap Azteca Americas high quality audiences. The contractual arrangement between Azteca America Network and its affiliate stations calls for a 50-50 revenue sharing between the network and the local station operator.

Total Costs and Expenses

The 2% increase in first quarter costs and expenses resulted from 2% growth in production programming and transmission costs, and a 5% increase in administration and selling expense, compared with the same quarter a year ago.

Programming, production and transmission costs were US$62 million, compared with US$61 million recorded for the first quarter of last year. Versus US$76 million for the fourth quarter of 2001, costs were down 19% on a sequential quarter basis.

In Mexico during certain periods, particularly the first quarter, the supply of gross rating points greatly exceeds advertising demand." Mr. Pliego said. Such market conditions favored budgeting revision during the quarter, which translated into improved efficiency of content production, switching to programming with higher contribution to profitability, and reducing operating expenses. This allowed us to work with the cost scale that maximizes the Companys EBITDA."

Administration and selling expense rose 5% to US$25 million, compared with US$24 million for the first quarter a year ago. On a sequential basis, these expenses were down 11% from US$28 million for the fourth quarter of 2001. They reflect restructuring charges of US$1 million, resulting from a 6% workforce reduction during the quarter.

EBITDA and Net Income

The 9% increase in first quarter net revenue combined with a 2% increase in costs and expenses resulted in EBITDA of US$53 million, up 20% from US$44 million for the first quarter of last year. The EBITDA margin rose 400 basis points to 38%, versus last years first quarter EBITDA margin of 34%.

On a proforma basis, excluding first quarter severance payments of US$1 million, EBITDA grew 23%, and EBITDA margin was 39%.

First quarter net income grew 79% to US$22 million in the quarter, compared with US$13 million for the same period of 2001. The increase in net income was positively influenced by a US$3 million decrease in depreciation and amortization, resulting from a reduction on the peso value of dollar denominated fixed assets following peso appreciation, and a US$6 million reduction in net interest expense, principally derived from US$4 million gains in portfolio investments.

Azteca America Network Shows Solid Performance

Azteca America Network, TV Aztecas wholly owned Spanish language broadcasting network focused on the US Hispanic market, has grown significantly its audience share levels since its launch in January 2002.

Azteca Americas recent ratings in Los Angeles, San Francisco-Sacramento, Houston and Reno, are as good or higher compared to Telemundos and Telefuturas stations in the same markets in some key time slots," commented Luis J. Echarte, President and Chief Executive Officer of Azteca America Network. Sports, entertainment shows and novelas are leading growth, and within this latter genre, the performance of Cuando seas Mía, has been particularly strong."

During the last week of March, Cuando seas Mía, Azteca Americas hard-hitting novela which airs at 7:00 pm, Pacific Time, gained 14% share of the Hispanic viewership watching any of the four mayor Spanish language networks in Los Angeles, based on Nielsens Hispanic market survey. This is 40% above Telemundos and Telefuturas programming in the same time slot, each with 10% share of the audience. According to coincidental independent rating surveys, Cuando seas Mía records even higher audience share levels.

Azteca America also boasts a very attractive audience profile. According to Nielsen research, compared with the average Spanish-language TV viewer, Azteca Americas viewers are younger, more likely to have a household income over $50,000 and be employed as professionals, and less likely to be retired. Additionally, Azteca America attracts a larger proportion of viewers of Mexican origin than other Spanish-language networks.

With its special appeal among Mexican-Americans, who represent approximately 60% of U.S. Hispanics and a quarter of the foreign-born U.S. population overall, Azteca America is poised to continue its growth and strengthen its position as an attractive Spanish-language viewing option," added Mr. Echarte.

We are pleased with Azteca Americas performance to date. As we further expand our knowledge of U.S. Hispanic audiences and advertisers, I am confident that we will be able to serve their needs even better," commented Mr. Echarte. At negligible operating cost for TV Azteca, we have a vast opportunity to contribute to overall profitability, with virtually no potential downside for our parent Company."

We will continue our carefully measured expansion plans as attractive market opportunities arise. We are determined to make each of our affiliate stations a major business success," Mr. Echarte added. As long as our broadcast operations in Mexico continue to be encouraging, there is enormous upside for Azteca America."

Unefon
   
Unefon is showing increasingly positive operating results, and adhering to its current business plan it is able to cover its capital needs," said Mr. Pliego. Unefon has not fully exercised the credit guarantees granted by TV Azteca last year, which makes them, together with their own cash generation a financially viable company."

As of March 31, 2002, Unefon has used US$25 million of the US$80 million financing support granted by TV Azteca in July of 2001. Also, Unefon generated positive cash flow during the fourth quarter of the prior year.

Despite Unefons positive performance, TV Azteca maintains its position to sell or spin it off to shareholders with the purpose of turning it into an independent firm in the future.

Outlook

Despite first quarters tough macroeconomic environment, we delivered robust financial results and became one of the Spanish language media companies with higher EBITDA margins," Mr. Pliego noted. For the foreseeable future, we anticipate that improving economic activity will result in even stronger operations, and superior profitability levels going forward."

Company Profile

TV Azteca is a leading producer of Spanish language television programming operating two national television networks, Azteca 13 and Azteca 7, through more than 250 owned-and-operated stations located throughout Mexico. TV Azteca also operates a national broadcast television network in El Salvador. TV Azteca affiliates include Unefon, a Mexican mobile telephony operator focused on the mass market, Todito.com, an Internet portal for North American Spanish speakers, and Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market.

Except for historical information, the matters discussed in this press release are forward-looking statements and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Risks that may affect TV Azteca are identified in its Form 20-F and other filings with the US Securities and Exchange Commission.