|Exhibit 99.1
|------------



|[LOGO]  Tamsa Tenaris Group | Press Release
|--------------------------- | -------------



|FOR IMMEDIATE RELEASE
|---------------------

|Gerardo Varela / José Ramón Calderón 
      Tamsa 
      011-52-55-5282-9913 
      www.tamsa.com.mx |  | Cesar Villavicencio 
      Citigate Financial Intelligence 
      (212) 688-6840 / (212) 419-8305
|---------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------



|Tamsa Announces 2002 Third Quarter and Nine
Months Unaudited Results
|--------------------------------------------------------------------



|MEXICO CITY (October 28, 2002)  Tubos de Acero
de México, S.A. (AMEX: TAM) today announced its results for the third quarter and nine
month period ended September 30, 2002.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|All figures are in thousands of Mexican pesos,
except per share/ADR data, with purchasing power as of September 30, 2002.
|-------------------------------------------------------------------------------------------------------------------------



|Third Quarter 2002 Results Highlights  (3Q02 vs.
3Q01)
|------------------------------------------------------

| | Net income grew by 33.4%
|- | ------------------------

| | Net sales increased 11.3%
|- | -------------------------

| | Total sales volume increased 5.6%
|- | ---------------------------------



|Results for the Third Quarter of 2002
|-------------------------------------



|Net income in the third quarter of 2002 totaled
to Ps.262,097, compared to Ps.196,501 in the same period of 2001. This 33.4% increase is
mainly due to higher operating profit, lower comprehensive financing cost and lower
losses from associated companies, partially offset by higher net income tax and employee
statutory profit sharing provisions. Net income corresponding to majority shareholders in
the third quarter of 2002 totaled Ps.263,817, compared to Ps.192,021 in the same period
of 2001.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Net earnings per share during the third quarter
of 2002 were Ps.0.77, compared to net earnings per share of Ps.0.58 in the same period of
2001. Net earnings per ADR (one ADR = five shares) during the third quarter of 2002 were
Ps.3.86, compared to Ps.2.90 in the same period of 2001. Net earnings per share of
majority shareholders were Ps.0.78 and Ps.0.57 in the third quarter of 2002 and 2001,
respectively.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Net sales were Ps.1,813,293 during the third
quarter of 2002, representing an increase of 11.3%, compared to Ps.1,628,812 during the
same period of 2001. This increase was mainly due to a recovery in sales volume in the
domestic petroleum market, the non-oil domestic market and the export market, and higher
average selling prices, reflecting a more favorable product mix, partially offset by
lower sales at Tubos de Acero de Venezuela, S.A. (Tavsa).
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 1 | 
| | - | 



---





|Total sales volume increased 5.6% to 173,091
metric tons during the third quarter of 2002, from 163,946 metric tons during the same
period of 2001. The increase was mainly due to higher sales volume in the domestic
petroleum and the non-oil markets, as well as in the export market, partially offset by
lower sales at Tavsa and Riga.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Domestic petroleum sales volume totaled 28,133
metric tons in the third quarter of 2002, compared to 24,914 metric tons in the same
period of 2001, representing an increase of 12.9%. This increase was mainly due to higher
exploration and production spending for petroleum and gas in the Southern region of
Mexico. Additionally, demand from the Northern region, which is related to Pemexs
strategic natural gas program, continued to grow steadily throughout the quarter and also
contributed to the increase in sales.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Sales volume to non-oil related domestic
customers was 16,148 metric tons in the third quarter of 2002, which was 23.9% higher
than the 13,029 metric tons sold during the same period of 2001. This increase was mainly
due to a slight recovery in the industrial sector, including manufacturing, non-housing
construction and automotive industries in Mexico, which had been depressed.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Export sales volume in the third quarter of 2002
totaled 119,528 metric tons, compared to 107,050 metric tons in the same period of 2001,
representing an 11.7% increase. This increase was due principally to higher demand from
Africa and the Middle East, as demonstrated by a higher average rig count in these
regions. The increase was partially offset by lower activity in Europe and Latin America
- mainly in Venezuela - when compared to the third quarter of 2001. Sales volume during
the quarter improved in Africa, the Middle East and North America.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Tavsas sales volume during the third quarter of
2002 was 3,430 metric tons, compared to 13,411 metric tons sold during the third quarter
of 2001. This significant decrease in sales by Tavsa was due to lower demand by PDVSA, as
well as the decrease in Venezuelas exploration and production activities after the
implementation of OPEC quotas at the end of 2001. This significant drop in demand forced
Tavsa to shut down operations for approximately two months during the quarter.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|During the third quarter of 2002, Rigas sales
volume was 2,405 metric tons, compared to 3,741 metric tons sold in the same period of
2001, representing a decrease of 35.7%. This decrease is mainly due to lower sales in
Rigas export market. Sales volume of steel bars increased in the quarter to 3,447 metric
tons, from 1,801 metric tons in the same period of 2001, mainly due to higher sales in
the domestic market.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Cost of products sold, expressed as a percentage
of net sales, amounted to 60.0% in the third quarter of 2002, compared to 56.6% in the
same period of 2001. This increase was mainly due to higher raw material prices, higher
electricity costs, higher labor costs resulting from wage increases granted during the
second quarter of 2002 and a higher provision for obsolete inventories.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Selling, general and administrative expenses
represented 16.9% of net sales in the third quarter of 2002, compared to 18.6% in the
same period of 2001. Selling expenses, as a percentage of net sales, increased to 11.1%
in the third quarter of 2002, from 10.6% in the same period of 2001, mainly due to export
sales to Nigeria, which has different selling conditions, as well as higher duties and
shipping costs due to an export mix which included more distant destinations. General and
administrative expenses, as a percentage of net sales, decreased to 5.8% in the third
quarter of 2002, from 8.0% in the same period of 2001, mainly due to a reduction in
personnel and general expenses.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2 | 
| | - | 



---





|Operating profit in the third quarter of 2002
was Ps.418,105, a 3.4% increase from Ps.404,297 in the same period of 2001. This increase
was due to higher net sales and lower general and administrative expenses, partially
offset by higher cost of products sold and higher selling expenses. As a percentage of
net sales, operating profit represented 23.1% in the third quarter of 2002, compared to
24.8% in the third quarter of 2001.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Operating profit plus depreciation and
amortization in the third quarter of 2002 was Ps.542,982, representing an increase of
4.8% compared to Ps.518,063 in the same period of 2001. As a percentage of net sales in
the third quarter of 2002 operating profit plus depreciation and amortization was 29.9%,
compared to 31.8% in the same period of 2001.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Comprehensive financing cost during the third
quarter of 2002 represented Ps.3,415, compared to Ps.29,036 in the same period of 2001.
This result was due to (i) a significant gain on the net monetary position of Ps.24,440
in the third quarter of 2002, resulting from a net liability monetary position, compared
to Ps.9,725 in the same period of 2001; (ii) an exchange-related loss of Ps.15,659 during
the third quarter of 2002 when the Mexican peso depreciated 1.7%, compared to Ps.23,281
in the third quarter of 2001 when the Mexican peso depreciated 5.1%; and (iii) lower net
interest expenses in the third quarter of 2002 of Ps.12,196, compared to Ps.15,480 in the
same period of 2001, due to lower interest rates.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Other expenses totaled Ps.1,387 during the third
quarter of 2002, compared to other expenses of Ps.10,200 in the same period of 2001. This
decrease was mainly due to lower expenses related to the amortization of Tavsas goodwill
which was recorded in 2001. Additionally during 2002, commissions related to trading
operations in which Tamsa sells products from other Tenaris companies started to be
recorded as other income, while during 2001 they were recorded as net sales.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Income tax, asset tax and profit sharing
provisions totaled Ps.165,307 during the third quarter of 2002, compared to Ps.130,331 in
the same period of 2001. The increase during the quarter, was due to higher income tax of
Ps.194,888, compared to Ps.122,819 in the same period of 2001, which resulted from higher
taxable income. This increase was partially offset by a higher net deferred tax credit of
Ps.76,944 that was registered in the third quarter of 2002, compared to a credit of
Ps.17,847 in the same period of 2001, which resulted from the application of Statement
D-4.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Gains from associated companies amounted to
Ps.14,101, during the third quarter of 2002, compared to a loss of Ps.38,229 in the same
period of 2001. These results were derived mainly from Tamsas 14.1% equity participation
in Consorcio Siderurgia Amazonia (Amazonia) through its subsidiary Tamsider LLC
(Tamsider). This gain in the period, was attributable to the recording of a credit of
Ps.18,209 due to a monetary gain derived from the application of Statement B-15 relating
to accounting of foreign investments, partially offset by a lower loss from associated
companies during the quarter that amounted Ps.4,108.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Tavsas net loss for the third quarter of 2002
was Ps.5,733, compared to a net gain of Ps.14,934 for the same period of 2001, due to
lower sales, lower absorption of fixed and semi-fixed costs and to an exchange related
loss resulting from the impact of the devaluation of the Venezuelan bolivar on Tavsas
U.S. dollar-denominated debt. Minority interest associated with these results represented
a loss of Ps.1,720 in the third quarter of 2002, compared to a gain of Ps.4,480 in the
same period of 2001.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3 | 
| | - | 



---





|Results for the First Nine Months of 2002
|-----------------------------------------



|Net income during the first nine months of 2002
totaled Ps.766,429, compared to Ps.670,441 in the same period of 2001. This 14.3%
increase is mainly due to the tax benefits arising from a favorable court judgment for
tax inequality that Tamsa recorded in the second quarter of 2002, as well as reduced
losses from associated companies, which more than offset a lower operating profit and an
increased comprehensive financing cost. Net income corresponding to majority shareholders
during the first nine months of 2002 totaled Ps.806,744, compared to Ps.655,502 in the
same period of 2001.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Net earnings per share during the first nine
months of 2002 were Ps.2.26, compared to Ps.1.98 in the same period of 2001. Net earnings
per ADR (one ADR = five shares) during the first nine months of 2002 were Ps.11.29,
compared to Ps.9.88 during the first nine months of 2001. Net earnings per share of
majority shareholders were Ps.2.38 and Ps.1.93 in the first nine months of 2002 and 2001,
respectively.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Net sales were Ps.4,856,057 during the first
nine months of 2002, compared to Ps.5,230,073 in the same period of 2001. This 7.2%
decrease in net sales was attributable to lower sales volume, mainly in the export
market, at Tavsa and in the non-oil domestic market, partially offset by a recovery of
sales in the domestic petroleum pipe market.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Total sales volume during the first nine months
of 2002 amounted to 518,264 metric tons, representing an 8.1% decrease from 564,135
metric tons in the same period of 2001. This decrease was mainly due to an 8.2% reduction
in export sales volume, a 48.2% drop in Tavsas sales volume and a 16.7% decrease in
sales volume from the non-oil domestic market, partially offset by a 17.6% recovery in
the domestic petroleum pipe market.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Domestic sales volume to oil-related customers
totaled 68,234 metric tons in the first nine months of 2002, compared to 58,014 metric
tons in the same period of 2001. This increase in sales was due to higher demand at Pemex
as a result of higher levels of investment in 2002, mainly in the Northern region of
Mexico. Sales volume to non-oil related domestic customers totaled 37,156 metric tons in
the first nine months of 2002, compared to 44,618 metric tons during the same period of
2001. This decrease was due to the contraction of industrial production in the Mexican
economy, coupled with a slow recovery in the U.S. economy, affecting the automotive and
industrial sectors.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Export sales volume during the first nine months
of 2002 totaled 378,390 metric tons, compared to 412,078 metric tons during the same
period of 2001. This decrease was mainly due to reduced drilling activity in Venezuela,
partially offset by increased sales in the Middle East and Africa.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Tavsas sales volume totaled 18,675 metric tons
in the first nine months of 2002, compared to 36,034 metric tons in the same period of
2001, representing a decrease of 48.2%, as a result of low demand, due in part to a
reduction in oil production mandated by OPEC.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Rigas sales volume during the first nine months
of 2002 totaled 6,515 metric tons of weldable pipefittings, compared to 3,741 metric tons
in the same period of 2001. The increase is due to the fact that Tamsa acquired Riga on
June 20, 2001. Sales volume of steel bars remained stable at 9,294 metric tons in the
first nine months of 2002, from 9,650 metric tons in the same period of 2001.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4 | 
| | - | 



---





|Cost of products sold, expressed as a percentage
of net sales, was 60.6% in the first nine months of 2002, compared to 58.1% in the same
period of 2001. This increase in costs was due to higher depreciation expenses at Tamsa
and Tavsa, higher raw material and electricity prices, higher labor costs and a higher
provision for obsolescence of inventories.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Selling, general and administrative expenses in
the first nine months of 2002, as a percentage of net sales, were 17.7%, compared to
18.5% in the same period of 2001. Selling expenses in the first nine months of 2002
remained stable when compared to the same period of 2001, representing 11.0% in both
periods. General and administrative expenses in the first nine months of 2002 decreased
to 6.7% of net sales, from 7.5% in the same period of 2001, mainly due to the
aforementioned reasons. In absolute terms, general and administrative expenses were 16.1%
lower in the first nine months of 2002 than in the same period of 2001.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Operating profit was Ps.1,053,001 during the
first nine months of 2002, representing 21.7% of net sales, compared to Ps.1,227,928, or
23.5% of net sales during the same period of 2001. This reduction was due to lower sales
volume and higher cost of products sold.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Operating profit plus depreciation and
amortization in the first nine months of 2002 totaled Ps.1,396,096, or 28.8% of net
sales, compared to Ps.1,539,649, or 29.4% of net sales, in the same period of 2001.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Tavsas net loss for the first nine months of
2002 was Ps.134,382, compared to a net income of Ps.49,791 for the same period of 2001.
|-------------------------------------------------------------------------------------------------------------------------------------



|Tamsas comprehensive financing cost during the
first nine months of 2002 represented Ps.170,699, compared to Ps.27,131 in the same
period of 2001. This increase was primarily due to an exchange related loss of Ps.186,367
during the first nine months of 2002, compared to an exchange related gain of Ps.7,465
during the same period of 2001, mainly derived from the devaluation of the Venezuelan
bolivar, as Tavsas debt is denominated in U.S. dollars, as well as to the 11.2%
depreciation of the Mexican peso. However, the increase was partially offset by a
monetary gain of Ps.51,101 in the first nine months of 2002, compared to Ps.17,479 in the
same period of 2001 and by lower net interest expenses in the first nine months of 2002
of Ps.35,433, compared to Ps.52,075 in the same period of 2001, due to a lower interest
rates.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Other expenses totaled Ps.5,696 in the first
nine months of 2002, compared to Ps.7,704 in the same period of 2001. Income tax, asset
tax and profit sharing provisions totaled Ps.121,988 in the first nine months of 2002,
compared to Ps.426,921 in the same period of 2001. This significant reduction in the
first nine months of the year is due to tax benefits of Ps.343,057 from a favorable court
judgment for tax inequality obtained in May 2002. Additionally, a net deferred tax credit
of Ps.95,817 was registered in the first nine months of 2002, compared to one of
Ps.61,630 in the same period of 2001, which resulted from the application of Statement
D-4.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Gains from associated companies totaled
Ps.11,811 during the first nine months of 2002, compared to losses of Ps.84,357 during
the same period of 2001, mainly from Tamsas equity participation in Amazonia. The gain
during the first nine months of 2002, was attributable to the recording of a credit of
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 5 | 
| | - | 



---





|Ps.55,764 due to a monetary gain derived from
the application of Statement B-15 partially offset by lower losses at Sidor during the
period.
|--------------------------------------------------------------------------------------------------------------------------------------------



|Tamsas financial debt was Ps.1,698,855
(US$167.1 million) as of September 30, 2002, compared to Ps.1,408,603 (US$140.9 million)
as of September 30, 2001. Total financial debt net of cash and cash equivalents as of
September 30, 2002 decreased to Ps.620,007 (US$61.0 million), compared to Ps.1,101,124
(US$110.1 million) as of September 30, 2001.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Tamsas interest coverage ratio was 39.4 to 1 at
September 30, 2002, compared to 24.1 to 1 at September 30, 2001. As of September 30, 2002
Tamsa was in full compliance with all of its syndicated loan agreement covenants.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|During the first nine months of 2002, the
Company produced 565,835 metric tons of steel, compared to 621,489 metric tons of steel
in the same period of 2001. Tamsa produced 485,900 metric tons of finished pipes in the
first nine months of 2002, compared to 536,112 metric tons in the same period of 2001.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Some of the statements contained in this press
release are forward-looking statements within the meaning of Section 27A of the U.S.
Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act
of 1934, as amended. Forward-looking statements are based on managements current views
and assumptions and involve known and unknown risks that could cause actual results,
performance or events to differ materially from those expressed or implied by those
statements. These risks include but are not limited to risks arising from uncertainties
as to future oil prices and their impact on investment programs by oil companies.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 6 | 
| | - | 



---





|Tubos de Acero de Mexico, S.A. and Subsidiaries
|-----------------------------------------------



|Sales Volume (Metric tons)
|--------------------------

|Three months ended September 30,
|--------------------------------
|                                
|                                
|                                
|Exports                         
|Tavsa                           
|Riga                            
|Steel and others                
|                                
|Total sales volume              
|                                

|Sales Volume 
      (Metric tons)
|---------------------------------

|Nine months ended September 30,   
|----------------------------------
|                                  
|                                  
|                                  
|Domestic petroleum pipes          
|Non-oil related domestic customers
|Exports                           
|Tavsa                             
|Riga                              
|Steel and others                  
|                                  
|Total sales volume                
|                                  



| | 7 | 
| | - | 



---





|Tubos de Acero de Mexico, S.A. and Subsidiaries
 Consolidated Statements of Earnings Three months ended September 30, 2002 and 2001
 Presented in thousands of Mexican pesos, except per share data, with purchasing power as
of September 30, 2002
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                                             | 2002 
        (Unaudited) | 2001 
        (Unaudited)
|------------------------------------------------------------------------------------------------------------ | ------------------------- | -------------------------
|
|Net sales                                                                                                    | Ps.                       | 1,813,293                
|Cost of products sold                                                                                        |                           | (1,088,235               
|Selling, general and administrative expenses                                                                 |                           | (306,953                 
|Operating profit                                                                                             |                           | 418,105                  
|Comprehensive financing cost                                                                                 |                           | (3,415                   
|Other expenses  net                                                                                         |                           | (1,387                   
|Income before taxes, employees statutory profit
        sharing 
        and equity in associated companies |                           | 413,303                  
|Income tax, asset tax
      and employees statutory profit sharing                                          |                           | (165,307                 
|Income before equity in
      associated companies                                                           |                           | 247,996                  
|Equity in gain (loss) of associated companies                                                                |                           | 14,101                   
|Net income of the period                                                                                     | Ps.                       | 262,097                  
|Net income corresponding to majority shareholders                                                            | Ps.                       | 263,817                  
|Minority interest in (loss) income of consolidated subsidiary                                                |                           | (1,720                   
|Net income of the period                                                                                     | Ps.                       | 262,097                  
|Income per share                                                                                             | Ps.                       | 0.77                     
|Income per share of majority shareholders                                                                    | Ps.                       | 0.78                     



| | 8 | 
| | - | 



---





|Tubos de Acero de Mexico, S.A. and Subsidiaries
 Consolidated Statements of Earnings Nine months ended September 30, 2002 and 2001
 Presented in thousands of Mexican pesos, except per share data, with purchasing power as
of September 30, 2002
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                                             | 2002 
        (Unaudited) | 2001 
        (Unaudited)
|------------------------------------------------------------------------------------------------------------ | ------------------------- | -------------------------
|
|Net sales                                                                                                    | Ps.                       | 4,856,057                
|Cost of products sold                                                                                        |                           | (2,943,870               
|Selling, general and administrative expenses                                                                 |                           | (859,186                 
|Operating profit                                                                                             |                           | 1,053,001                
|Comprehensive financing cost                                                                                 |                           | (170,699                 
|Other expenses  net                                                                                         |                           | (5,696                   
|Income before taxes, employees statutory profit
        sharing 
        and equity in associated companies |                           | 876,606                  
|Income tax, asset tax
      and employees statutory profit sharing                                          |                           | (121,988                 
|Income before equity in
      associated companies                                                           |                           | 754,618                  
|Equity in gain (loss) of associated companies                                                                |                           | 11,811                   
|Income before the following item                                                                             |                           | 766,429                  
|Net effect at the beginning of the year from change in
        
        accounting principle                 |                           |                         
|Net income of the period                                                                                     | Ps.                       | 766,429                  
|Net income corresponding to majority shareholders                                                            | Ps.                       | 806,744                  
|Minority interest in (loss) income of consolidated subsidiary                                                |                           | (40,315                  
|Net income of the period                                                                                     | Ps.                       | 766,429                  
|Income per share before the following item                                                                   | Ps.                       | 2.26                     
|Net effect at the beginning
      of the year from change                                                    |                           |                          
|in accounting principle                                                                                      |                           |                         
|Income per share                                                                                             | Ps.                       | 2.26                     
|Income per share of majority shareholders                                                                    | Ps.                       | 2.38                     



| | 9 | 
| | - | 



---





|Tubos de Acero de Mexico, S.A. and Subsidiaries
 Consolidated Statements of Financial Position September 30, 2002 and 2001 Presented in
thousands of Mexican pesos with purchasing power as of September 30, 2002
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                                      | 2002 
        (Unaudited) | 2001 
        (Unaudited)
|----------------------------------------------------------------------------------------------------- | ------------------------- | -------------------------
|
|ASSETS                                                                                                |                           |                          
|Current assets:                                                                                       |                           |                          
|Cash and cash equivalents                                                                             | Ps.                       | 1,078,848                
|Accounts and notes receivable  Net                                                                   |                           | 2,540,035                
|Inventories  Net                                                                                     |                           | 1,440,740                
|Prepaid expenses and recoverable taxes                                                                |                           | 34,117                   
|Total current assets                                                                                  |                           | 5,093,740                
|Non-current assets:                                                                                   |                           |                          
|Investments in associated companies                                                                   |                           | 561,574                  
|Property, plant and equipment  net                                                                   |                           | 8,151,788                
|Other assets                                                                                          |                           | 70,045                   
|Total non-current assets                                                                              |                           | 8,783,407                
|TOTAL ASSETS                                                                                          | Ps.                       | 13,877,147               
|LIABILITIES & SHAREHOLDERS EQUITY                                                                    |                           |                          
|Current liabilities:                                                                                  |                           |                          
|Notes payable to financial institutions, including current
        
        portion of long-term debt | Ps.                       | 597,039                  
|Trade accounts and notes payable                                                                      |                           | 801,086                  
|Other accounts payable and accrued expenses                                                           |                           | 463,441                  
|Total current liabilities                                                                             |                           | 1,861,566                
|Non-current liabilities:                                                                              |                           |                          
|Long-term debt                                                                                        |                           | 1,101,816                
|Other liabilities                                                                                     |                           | 199,536                  
|Deferred income tax                                                                                   |                           | 2,280,841                
|Total non-current liabilities                                                                         |                           | 3,582,193                
|TOTAL LIABILITIES                                                                                     | Ps.                       | 5,443,759                
|Shareholders equity:                                                                                 |                           |                          
|Capital stock                                                                                         |                           | 10,516,336               
|Additional paid-in capital                                                                            |                           | 6,877,152                
|Retained earnings                                                                                     |                           | 16,325,375               
|Cumulative deferred income tax                                                                        |                           | (2,349,987               
|Cumulative translation adjustment                                                                     |                           | (896,102                 
|Cumulative loss from holding non-monetary assets                                                      |                           | (22,024,489              
|Equity of majority shareholders                                                                       |                           | 8,448,285                
|Minority interest in consolidated subsidiary                                                          |                           | (14,897                  
|Total shareholders equity                                                                            |                           | 8,433,388                
|TOTAL LIABILITIES AND SHAREHOLDERS EQUITY                                                            | Ps.                       | 13,877,147               



| | 10 | 
| | -- | 



---





|Tubos de Acero de Mexico, S.A. and Subsidiaries
 Consolidated Statements of Changes In Financial Position Nine months ended September 30,
2002 and 2001 Presented in thousands of Mexican pesos with purchasing power as of
September 30, 2002
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                                                      | 2002 
        (Unaudited) | 2001 
        (Unaudited)
|--------------------------------------------------------------------------------------------------------------------- | ------------------------- | -------------------------
|
|Resources provided by operations                                                                                      |                           |                          
|Net income                                                                                                            | Ps. 766,429               |                          
|Adjustments to reconcile net income to resources 
        provided by operating activities:                           |                           |                          
|Depreciation and other                                                                                                | 359,813                   |                          
|Deferred income tax                                                                                                   | (95,817)                  |                          
|Equity in loss of associated companies                                                                                | (11,811)                  |                          
|Exchange loss which did not require resources                                                                         | 64,755                    |                          
|(Increase) decrease in accounts receivable, notes receivable,
        
        prepaid expenses and recoverable taxes | (673,152)                 |                          
|Decrease (increase) in inventories                                                                                    | 233,856                   |                          
|Increase (decrease) in trade accounts and other accounts
        
        payable and accrued expenses                | 289,203                   |                          
|Total adjustments                                                                                                     | 166,847                   |                          
|Resources provided by operations before the following
        item:                                                   | 933,276                   |                          
|Net effect at the beginning of the year from changes in
        the accounting 
        principles                    |                          |                          
|Resources provided by operations                                                                                      | 933,276                   |                          
|Resources used in investing activities:                                                                               |                           |                          
|Increase in interest in subsidiaries and associated companies                                                         | (613)                     |                          
|Purchases of property, plant and equipment  Net                                                                      | (162,760)                 |                          
|Resources used in investing activities                                                                                | (163,373)                 |                          
|Resources provided by financing activities:                                                                           |                           |                          
|Increase (decrease) in short-term notes payable to banks                                                              | 6,100                     |                          
|Increase in long-term debt                                                                                            |                          |                          
|Dividend payment                                                                                                      | (275,983)                 |                          
|Resources provided by financing activities                                                                            | (269,883)                 |                          
|Net increase (decrease) in cash                                                                                       | 500,020                   |                          
|Cash at beginning of period                                                                                           | 578,828                   |                          
|Cash at end of period                                                                                                 | Ps. 1,078,848             |                          



| | 11 | 
| | -- | 



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