o Sales for the quarter totaled $7,101.73 million
o Gross income increased 3.56%
o Gross margin for the quarter was 11.19%
o Quarterly operating expenses as a percentage of sales were 5.33%
o The operating margin for the quarter was 5.86%
o Net profit for the quarter reached $383.90 million
o Cash and cash equivalents at the end of the quarter was $661.63 million

Mexico City, Mexico, February 26, 2008. Grupo Casa Saba (“Saba”, “GCS”, “the Company” or “the Group”), one of the leading Mexican distributors of pharmaceutical products, beauty aids, personal care and consumer goods, general merchandise, publications and other products announces its consolidated financial and operating results for the fourth quarter of 2007.

QUARTERLY EARNINGS

During the fourth quarter, GCS’s sales were $7,101.73 million, an increase of 3.85%.

Sales for our Private Pharma division grew 3.66% during the fourth quarter of 2007, due to an increase in the number of units sold.

Sales in our Health, Beauty, Consumer Goods, General Merchandise and Others division rose slightly versus the fourth quarter of 2006, growing 1.63%, while the Government Pharma division’s sales increased 4.13%.

Publications sales increased significantly, growing by 14.62%. This was due to a significant increase in the number of units sold, particularly in sales of men’s and women’s magazines as well as health-oriented publications and the 2008 astrological guides.

The sales mix was not altered significantly. Private Pharma sales represented 85.03% of total sales, Government Pharma accounted for 3.44%, Health, Beauty, Consumer Goods, General Merchandise and Other totaled 8.11% and Publications made up the remaining 3.42%.

SALES BY DIVISION

PRIVATE PHARMA

Sales in this division rose 3.66%, as a result of an increase in the number of units sold. Sales reached $6,038.47 million and represent 85.03% of the Group’s total sales.

GOVERNMENT PHARMA

Government Pharma sales reached $244.03 million during 4Q07 and accounted for 3.44% of our total sales.

HEALTH, BEAUTY, CONSUMER GOODS, GENERAL MERCHANDISE AND OTHER

Sales in this division totaled $576.42 million for the quarter, an increase of 1.63% compared to the fourth quarter of 2006.

The growth in this division was due to higher unit sales.

PUBLICATIONS

Publication sales showed noteworthy growth, increasing 14.62%. This was due to a significant increase in the number of units sold, particularly our sales of men’s and women’s magazines as well as health-oriented publications and the 2008 astrological guides.

This division’s participation as a percentage of total sales went from 3.10% in 4Q06 to 3.42% in the fourth quarter of 2007.

                                                  Division                               % of sales
                                              Private Pharma                             85.03%
                                          Government Pharma                          3.44%
                                Health, Beauty, Consumer Goods,
                                  General Merchandise and Other                  8.11%
                                                Publications                                3.42%

                                                   TOTAL                                    100.00%

GROSS INCOME

During the fourth quarter of the year, Grupo Casa Saba’s gross income rose 3.56% to reach $794.85 million. The company’s gross margin decreased by 3 b.p., to 11.19%, in spite of the highly competitive environment.

OPERATING EXPENSES

Operating expenses reached $378.73 million, an increase of 8.69% versus the fourth quarter of 2006. These expenses represented 5.33% of our total sales.

OPERATING INCOME

Operating income decreased slightly, by 0.71%, to reach $416.11 million pesos. The operating margin was 5.86%, which was 27 b.p. lower than the 6.13% margin posted in the fourth quarter of 2006.

OPERATING INCOME PLUS DEPRECIATION AND AMORTIZATION

Operating income plus depreciation and amortization for 4Q07 was $429.98 million, an increase of 2.96% compared to the fourth quarter of 2006. Depreciation and amortization for the period was $13.86 million.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents at the end of the fourth quarter of 2007 was $661.63 million, an increase of 3.45% versus 4T06.

COMPREHENSIVE COST OF FINANCING

During the fourth quarter of 2007, GCS’s comprehensive cost of financing (CCF) of $1.91 million was lower than the $3.61 million registered in 4Q06, and was the result of a lower charge in the monetary position account.

OTHER EXPENSES (INCOME)

During the fourth quarter of 2007, the Company registered an income of $7.17 million in other expenses (income). The expenses (income) from this line item were derived from activities that are distinct from the company’s everyday business operations.

TAX PROVISIONS

During the fourth quarter, tax provisions were $37.47 million. These provisions include: $74.84 million in current income tax, $24.46 million in the asset tax for the period and -$61.82 million in deferred income tax.

NET INCOME

GCS’s net income for the fourth quarter was $383.90 million, a slight decrease of 2.70% versus the fourth quarter of 2006. The net margin for the period was 5.41%.

WORKING CAPITAL

During the fourth quarter of 2007 and compared to the fourth quarter of 2006, the Group’s accounts receivable and inventory days increased by 3.2 and 8.3 days, to reach 58.8 and 67.1 days, respectively. In addition, our accounts payable days increased by 5.9 days, compared to 4Q06, to reach 59.1 days.

The 265.4 million shares issued by Grupo Casa Saba are listed in the Mexican Stock Exchange and its ADRs in the New York Stock Exchange, both under the symbol “SAB”. One ADR equals 10 ordinary shares.

Grupo Casa Saba is one of the leading distributors of pharmaceutical products, beauty, personal care and consumer goods, general merchandise, publications and other goods in Mexico. With more than 110 years of experience, the Company distributes to the majority of pharmacies, chains, self-service and convenience stores, as well as other specialized national chains.

As a precautionary note to investors, except for the historic information contained herein, certain topics discussed in this document constitute forward-looking statements. Such topics imply risks and uncertainties, including the economic conditions in Mexico and other countries in which Casa Saba operates, as well as variations in the value of the Mexican peso as compared with the US dollar.

Contacts:
GRUPO CASA SABA                                  IR Communications:
Rodrigo Echagaray, IRO                               Jesús Martínez Rojas
+52 (55) 5284-6672                                      +52 (55) 5644-1247
rechagar@casasaba.com                             jesus@irandpr.com

Alejandro Sadurni, CFO
asadurni@casasaba.com

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643,449

751,279

1,222,621

4.99%

1,161,280

4.62%

-61,341

(5.02%)

550,630

8.05%

421,381

5.93%

-129,249

(23.47%)