DRAFT DATED 5/7/02


                                      FOR:       The Mexico Fund, Inc.

                                    CONTACT:     Eduardo Solano
                                                 The Mexico Fund, Inc.
                                                 011-52-55-5282-8900



            MEXICO FUND LAUNCHES PERIODIC IN-KIND REPURCHASE POLICY-
                    COMMENCES FIRST IN-KIND REPURCHASE OFFER


Washington, D.C., May 8, 2002 -- The Mexico Fund, Inc. (NYSE: MXF) announced
today that it has commenced an offer to repurchase from shareholders up to 100%
of the Fund's issued and outstanding shares of common stock at 98% of the Fund's
per share net asset value at the close of business on the expiration date of the
repurchase offer in exchange for portfolio securities of the Fund (the
"Repurchase Offer"). The expiration date of the Repurchase Offer is June 7, 2002
at 5:00 P.M., New York City time, unless extended. If the expiration date is
extended, the purchase price for Fund shares participating in the Repurchase
Offer will be 98% of net asset value as determined at the close of business on
the expiration date as extended.

The Repurchase Offer represents the launch of the Fund's quarterly in-kind
repurchase policy. The Fund anticipates that future repurchase offers will be
scheduled to occur in conjunction with the Fund's fiscal quarters with the next
such offer occurring during the Fund's fourth fiscal quarter which ends October
31, 2002.

Shareholders desiring to participate in the Repurchase Offer must comply with
the terms of the Repurchase Offer which includes establishment or availability
of a brokerage or custodial account in Mexico, submission of information
regarding the account and submission of information necessary for tax purposes.
The Repurchase Offer will generally be a taxable transaction for participating
shareholders.

The Repurchase Offer will be made, and shareholders will be notified, in
accordance with the requirements of the Securities Exchange Act of 1934, as
amended, and the Investment Company Act of 1940, as amended.

The Repurchase Offer is being made in response to the expressed desire of
shareholders for greater liquidity and a permanent narrowing of the discount at
which Fund shares have historically traded and is part of a quarterly repurchase
policy announced by the Fund on March 6, 2002.

The terms and conditions of the Repurchase Offer are set forth in the Fund's
Repurchase Offer Statement dated May 8, 2002, and the related Letter of
Transmittal which are being mailed to shareholders of record of the Fund as of
April 30, 2002, although any shareholder holding Fund shares on the expiration
date may participate in the Repurchase Offer. Questions and requests for
assistance or for copies of the Repurchase Offer






Statement, Letter of Transmittal, and any other Repurchase Offer documents
should be directed to the Information Agent for the Repurchase Offer, Morrow &
Co., Inc. at 800-607-0088.

This announcement is not an offer to purchase nor a solicitation of an offer to
sell shares of the Fund. The Repurchase Offer is made only by the Repurchase
Offer Statement and the related Letter of Transmittal. Holders of Fund shares
are urged to read these documents carefully because they contain important
information. These and other filed documents will be available to investors free
of charge both at www.sec.gov and from the Fund. The Repurchase Offer is not
being made to, nor will submissions be accepted from, or on behalf of, holders
of shares in any jurisdiction in which making or accepting the Repurchase Offer
would violate that jurisdiction's laws.

For further information, contact the Fund's Investor Relations office at
011-52-55-5282-8900, or by email at investor-relations@themexicofund.com.

The Mexico Fund, Inc. is a non-diversified closed-end management investment
company with the investment objective of long-term capital appreciation through
investments in securities, primarily equity, listed on the Mexican Stock
Exchange. The Fund provides a vehicle to investors who wish to invest in Mexican
companies through a managed non-diversified portfolio as part of their overall
investment program.

This press release may contain certain forward-looking statements regarding
future circumstances. These forward-looking statements are based upon the Fund's
current expectations and assumptions and are subject to various risks and
uncertainties that could cause actual results to differ materially from those
contemplated in such forward-looking statements including, in particular, the
risks and uncertainties described in the Fund's filings with the Securities and
Exchange Commission. Actual results, events, and performance may differ. Readers
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. The Fund undertakes no obligation to
release publicly any revisions to these forward looking statements that may be
made to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. The inclusion of any statement in this
release does not constitute an admission by The Mexico Fund or any other person
that the events or circumstances described in such statement are material.

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