CORPORACION DURANGO

                                 Press Release

Durango,  Mexico June 5, 2002. - Corporacion  Durango,  S.A. de C.V. (NYSE: CDG,
BMV:  CODUSA) (the  "Company"),  one of the largest  integrated  paper producers
based in Latin  America,  today  issued the  following  statement in response to
Moody's  Investor  Service's  decision to confirm the Company's  senior  implied
rating and lower its senior unsecured note rating.

In its  announcement,  Moody's  stated that the ratings of the senior notes were
lowered to reflect their effective  subordination to secured debt and structural
subordination  to subsidiary debt.  However,  over the past year the Company has
undertaken significant steps to improve the bondholders' position through:

o    Merging  Corporacion  Durango,  S.A. de C.V. with Grupo Industrial Durango,
     S.A. de C.V. thereby  increasing the asset base supporting our Senior Notes
     due 2003  without  increasing  the amount of debt to which the Senior Notes
     due 2006 or 2008 are effectively subordinated, and

o    Reducing  the  amount of debt to which our  Senior  Notes are  structurally
     subordinated  by refinancing  the notes issued by our  subsidiary,  Durango
     Paper Company, at the Corporacion Durango level.

"We believe that the negative outlook does not reflect the current prospects for
Durango and was based  principally on financial results for the first quarter of
2002,  which is typically our slowest  quarter of the year and which occurred at
the low point in our industry's  cycle.  Moody's decision will have no impact on
our business operations," said Miguel Rincon, Chairman of Corporacion Durango.

The Company believes that the following factors will lead to improved  operating
results during the remainder of 2002:

o    The  recent  announcement  by the  paper  industry  of price  increases  of
     approximately  8 to 10%  beginning  in  the  month  of  July.  These  price
     increases  have been  announced to the Company's  customers with respect to
     its products.

o    The increased demand for the Company's  products as a result of the gradual
     recovery in the United States and Mexican economies.

o    The  continuing  devaluation of the Mexican peso. The Mexican peso has lost
     approximately  6% of its  value  against  the U.S.  dollar in the last four
     weeks and the  Company  believes  that the Mexican  peso will remain  under
     pressure  throughout  the remainder of 2002.  The  devaluation  of the peso
     enhances the low-cost  position of the Company and further  strengthens its
     competitive position going forward.

o    The implementation of a strategic  commercial  relationship with Sweetheart
     Cup Company  that will allow the  Company to operate the St.  Marys mill at
     its full capacity beginning in the second half 2002.

"As a result of the  increased  demand for the Company's  products,  the Company
expects its financial  results for the second quarter to improve compared to the
first quarter of 2002,  with EBITDA for the second quarter  expected to increase
to more than US$40 million," Mr. Rincon said.

In addition to maintaining  its competitive  position  within the industry,  the
Company's objective has been to improve its capital structure, which the company
has accomplished by:

o    Refinancing  its Senior Notes due 2001 with the proceeds of the issuance of
     its Senior Notes due 2006 and exchanged a substantial portion of its Senior
     Notes due 2003 for its Senior Notes due 2006 and 2008.

o    Committing to disposing up to US$100 million of non-strategic assets during
     the next 12 months as part of its strategy to reduce leverage.

o    Evaluating  potential  alternatives  with regards to refinancing its Senior
     Notes due 2003 with a financial advisor.

Mr. Rincon  concluded:  "Corporacion  Durango  continues to be a strong company,
well positioned to take advantage of the industry rebound expected in the second
half of this year. In addition,  we have taken  significant steps to improve our
capital  structure  in order to increase  our ability to service our debt in the
future."

Corporacion  Durango will host a conference call on June 5, 2002 at 2 pm Eastern
Time to  discuss  this  recent  development.  Participants  may  access the live
Conference  Call by dialing (888) 318-6432 for US Participants or (334) 260-0508
for  International  Participants with DURANGO as a Security Code. Please dial in
at least 10 minutes prior to the start of the call.

This  release  contains  forward-looking   statements  that  involve  risks  and
uncertainties.   The  actual   results   achieved  by  the  Company  may  differ
significantly  from the results  discussed  in the  forward-looking  statements.
Factors that may cause such differences  include general  economic,  market,  or
business  conditions,  the opportunities (or lack thereof) that may be presented
to and pursued by the  Company and its  subsidiaries,  the  availability  of raw
materials used by the Company and its subsidiaries, competitive actions by other
companies,  changes in laws or regulations, and other factors, many of which are
beyond the control of the Company and its subsidiaries.