Grupo TMM and KCS Announce Favorable VAT Decision by Fiscal Court

México City and Kansas City, Mo. January 26, 2005 - Grupo TMM, S.A. (BMV: TMM A and NYSE: TMM) (“TMM”) and Kansas City Southern (NYSE: KSU) (“KCS”) announced that the Mexican Fiscal Court has issued from the bench a favorable decision upholding TFM, S.A. de C.V’s (“TFM”) claim for inflation and interest from 1997 on the value added tax (“VAT”) refund it received from the Mexican Government.

TFM received a VAT refund certificate on January 19, 2004, in the original amount of its claim (approximately 2.1 billion pesos), without any adjustment for accrued inflation or interest. As previously announced on January 6th of this year, TFM received a favorable decision from the Federal Appellate Court instructing the Fiscal Court to enter a new order consistent with the Federal Appellate Court’s decision. The Fiscal Court has now ruled in a manner consistent with the instructions from the Federal Appellate Court.

TFM has not yet been formally notified of the above-described ruling. Once the written decision is received, it will be reviewed and analyzed and a more detailed announcement may be made.

TMM and KCS continue discussions with the Mexican Government aimed at resolving the outstanding disputes between the parties over the value added tax refund and the obligation to purchase the remaining shares of TFM in accordance with the law and applicable agreements.

Headquartered in Mexico City, TMM is a Latin American multimodal transportation company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. Visit TMM’s web site at http://www.grupotmm.com and TFM’s web site at http://www.tfm.com.mx. Both sites offer Spanish/English language options.

KCS is a transportation holding company that has railroad investments in the United States, Mexico and Panama. Its primary domestic holdings include The Kansas City Southern Railway Company (KCSR), founded in 1887 and The Texas Mexican Railway Company, founded in 1885. Headquartered in Kansas City, Mo., KCSR serves customers in the central and south central regions of the United States. KCS’ rail holdings and investments, including TFM, S.A. de C.V., are primary components of a NAFTA Railway system that links the commercial and industrial centers of the United States, Canada and Mexico. Visit KCS at www.kcsi.com.