CHICAGO, May 23 /PRNewswire/ -- William Blair & Company initiated research coverage of Wal-Mart de Mexico, S.A. de C.V. (OTC:WMMVY)($28.75) with an Outperform rating and company profile of Core Growth. The company is the leading retail chain in Mexico, with nearly 500 discount, warehouse, supermarket, and apparel stores. Analyst Mark Miller estimated that the company would generate earnings per ADR of $1.24 in 2006 and $1.49 in 2007. "We believe Wal-Mart de Mexico (Walmex) has significant initiatives to drive midsingle-digit real same-store sales growth and to further increase productivity, including expansion of credit, improved quality of the apparel assortment, and centralized distribution for perishable foods," Miller said. "Walmex's comparative strength relative to other retailers in Mexico is derived from its development of people, local merchandising approach, its technology and distribution advantages, and the perception among consumers for having the lowest selling prices." "Based on its durable competitive advantage in a fragmented market, Walmex should be able to sustain low- to midteens square-footage growth for the next five to 10 years, and possibly longer, in our estimation," he added. "Importantly, expansion into smaller markets has the added potential to drive further gains in return on capital." William Blair & Company, L.L.C. is a Chicago-based investment firm offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. Since 1935, we have been committed to helping clients achieve their financial objectives. As an independent, employee-owned firm, our philosophy is to serve our clients' interests first and foremost. William Blair & Company has offices in Chicago, Hartford, London, San Francisco, Tokyo, Vaduz, and Zurich. William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months. For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/pages/news_story_dept.asp?uid=1042&depID=4 . Additional information is available upon request. William Blair & Company, L.L.C. is a member of the National Association of Securities Dealers, CRD number 1252. DATASOURCE: William Blair & Company, L.L.C. CONTACT: Tony Zimmer, William Blair & Company, L.L.C., +1-312-364-8611, or Web site: http://www.williamblair.com/

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