Grupo Lala De CV : CONCLUDES NEGOTIATIONS WITH VIGOR IN BRAZIL

3rd Quarter, 2017 Acquisition GRUPO LALA CONCLUDES NEGOTIATIONS WITH VIGOR IN BRAZIL

T orreon C oahuila, August 1st, 2017, G rupo L ala, S .A.B. de C .V. (BMV "L ala") informs that it has concluded the negotiation process aimed to complete the acquisition of the Brazilian dairy company Vigor Alimentos S .A., including its shareholding in Itambé Alimentos, S .A. T he acquisition project will be submitted for approval to the Board of Directors of L AL A at a meeting called for that purpose on T hursday, August 3rd, 2017.

F ounded in 1917, Vigor is a leading company in the Brazilian dairy market focused on value added products and innovation. It has more than 7,600 employees, 11 milk collection centers, 14 production plants, 31 distribution centers and 67,000 points of sale in Brazil. In addition, it has a wide portfolio of dairy products, including yogurt, cheese and other dairy products, marketed under the Vigor® , Danubio® , F aixa Azul® , S errabella® L eco® and Amelia® brands, among others.

Itambé Alimentos S .A. is a Brazilian dairy company with more than 66 years of experience in the market. It has a complete portfolio of dairy products, mainly: powdered milk, condensed milk, milk caramel, yogurt, dairy products and UHT milk, under the Itambé® brand.

T his transaction is subject to certain common conditions, including the approval of Grupo Lala's Board of Directors and S hareholders Meeting (for which a corporate restructuring s tatement will be disclosed), governmental authorizations, shareholder agreements and other inherent contractual conditions. L AL A will obtain financing and possible additional capitalizations as part of the financial package for these acquisitions. L AL A will timely inform whether the transaction is completed.

In case this acquisition is approved by the Board of Directors of L AL A, a conference call with investors has been convened for August 4th, 2017. Both the recording and any other material used during the call will be available on L AL A's website: http://www.g rupo la la .c om /Inve s tor

About LALA

Grupo LALA is a Mexican company focused on healthy and nutritious foods, has a history of more than 65 years of experience in the production, innovation and marketing of milk and dairy products under the highest quality standards. The Company operates 22 production plants and 160 distribution centers in Mexico, United States and Central America, supported by more than 34,000 employees. Grupo LALA's fleet of approximately 7,000 vehicles distributes its more than 600 products to nearly 500,000 points of sale. LALA's portfolio is led by its two main brands: LALA® and Nutri Leche®.

For more information visit: www.grupolala.com

For more information:

Mariana Rojo

Investor R elations

Tel.: + 52 (55) 9177- 5900

investor.relations@ grupolala.com

Disclaimer

This press release contains certain forward-looking statements that reflect the current vision or expectations of Lala and its management with respect to its performance, business and future events. Lala uses words like "believe", "anticipate", "plan", "expect", "intend", "target", "estimate", "predict", "forecast", "guidelines" and other similar expressions to identify forecasts or projections, but it is not the only way it refers to them. These statements are subject to certain risks, unforeseen and assumptions. Lala warns that a significant number of factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this press release. Lala is not subject to any obligation and expressly disclaims any intention or obligation to update or modify any forecast or projection that could result from new information, future events or any other cause.

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