Milbank Represents URBI, Desarrollos Urbanos, S.A. de C.V. in US$150 Million High Yield Offering

May 30, 2006

Mexican Homebuilder Taps International Market

NEW YORK, NY, May 30, 2006 – Reflecting the continued strength of the real estate market in Mexico, Urbi, Desarrollos Urbanos, S.A. de C.V. ("Urbi") [BMV: URBI], one of the largest homebuilders in Mexico, has issued US$150 million of high yield bonds in an international offering under Rule 144A/Regulation S. The international law firm Milbank, Tweed, Hadley & McCloy LLP, led by partners John Cobb, Michael Fitzgerald and tax partner Bruce Kayle, acted as special US counsel to Urbi.

The US$150 million offering of 8.50 percent senior guaranteed notes due 2016 were rated 'BB' by both S&P and Fitch and 'Ba3' by Moody's. Merrill Lynch acted as sole bookrunner and joint-lead manager of the offering, with UBS Investment Bank acting as joint-lead manager. Proceeds from the offering will be used principally to refinance and lengthen the maturity of the Company's existing debt.

Mr. Cobb stated, "The offering was well received by international institutional investors primarily comprised of asset managers and insurance companies. The endorsement of the Company by this group of sophisticated investors should broaden its access to additional sources of funding in the future."

Mr. Fitzgerald added, "This transaction gave us another opportunity to work with Urbi in accessing the international capital markets. We previously represented Urbi in its $175 million initial public offering, a combined Mexican and US stock offering, which at the time two years ago was the first IPO out of Mexico in many years."

In addition to partners John Cobb, Michael Fitzgerald and Bruce Kayle, the Milbank team acting as special US counsel to Urbi included counsel Taisa Markus, associates Stephen Diamond, Jr., Jihay Ellie Kwack and Drew Batkin and international attorney Maria Hyde.

Established in 1981, Urbi is a vertically-integrated and diversified Mexican housing development company, primarily targeting entry-level and low-middle income home buyers. One of Mexico's leading housing developers, Urbi, headquartered in the northern city of Mexicali, has expanded its focus in the past few years to include high-middle income and upper-income home buyers.

About Milbank

Milbank, Tweed, Hadley & McCloy LLP is a preeminent global law firm that is recognized for more than 140 years for providing innovative legal solutions in many of the world’s largest, most complex, "first-ever" corporate transactions, including capital markets, corporate finance, project finance, acquisition finance, and other major fields of law practice. Milbank clients range from prominent multinational financial, industrial and commercial enterprises to governments, institutions and individuals. The firm is headquartered in New York, with offices in Los Angeles, Washington, DC, London, Frankfurt, Munich, Tokyo, Hong Kong and Singapore.