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<SEC-DOCUMENT>0000950123-10-090820.txt : 20110107
<SEC-HEADER>0000950123-10-090820.hdr.sgml : 20110107
<ACCEPTANCE-DATETIME>20101001161044
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-10-090820
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20101001

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Ternium S.A.
		CENTRAL INDEX KEY:			0001342874
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES  ROLLING MILLS (COKE OVENS) [3312]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			N4
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		46A, AVENUE JOHN F. KENNEDY 2ND FLOOR
		CITY:			LUXEMBOURG
		STATE:			N4
		ZIP:			L-1855
		BUSINESS PHONE:		(352) 4661-11-3815

	MAIL ADDRESS:	
		STREET 1:		46A, AVENUE JOHN F. KENNEDY 2ND FLOOR
		CITY:			LUXEMBOURG
		STATE:			N4
		ZIP:			L-1855
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>Correspondence</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="65%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="c06532c0653200.gif" alt="(TERNIUM LOGO)">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">TERNIUM S.A.<BR>
Soci&#233;t&#233; anonyme holding</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registered office:</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">46A, avenue John F. Kennedy</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">L-1855 Luxembourg</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">R.C.S. Luxembourg B 98 668</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 10pt">October&nbsp;1, 2010
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Mr.&nbsp;Terence O&#146; Brien,<BR>
Division of Corporation Finance,<BR>
Securities and Exchange Commission,<BR>
100 F. Street, N.E.,<BR>
Washington, D.C. 20549-4631.

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" align="right"><DIV style="margin-left:0px; text-indent:-0px"><B>Re:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Ternium S.A.</B></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Form&nbsp;20-F for the Fiscal Year Ended December&nbsp;31, 2009</B></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Filed June&nbsp;30, 2010</B></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>File No.&nbsp;1-32734</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Dear Mr.&nbsp;O&#146; Brien:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Set out below are the responses of Ternium S.A. (&#147;<U>Ternium</U>&#148; or the &#147;<U>Company</U>&#148;),
to the comments of the Staff of the United States Securities and Exchange Commission (the
&#147;<U>Staff</U>&#148;) set forth in its letter dated September&nbsp;7, 2010, to Mr.&nbsp;Pablo Brizzio, the
Company&#146;s Chief Financial Officer (the &#147;<U>Comment Letter</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The responses below are keyed to the headings indicated in the Staff&#146;s comments and are
designated with the letter &#147;R&#148; below the comment number. The comments themselves are set forth in
boldface type. Unless otherwise indicated, all page references are to the corresponding page in the
Company&#146;s Consolidated Financial Statements incorporated to the Company&#146;s annual report on Form
20-F for the fiscal year ended December&nbsp;31, 2009 (the &#147;<U>Form&nbsp;20-F</U>&#148;).
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please disclose the number of authorized shares in accordance with
paragraph </B><B>79(a)</B><B> (i)&nbsp;of IAS 1. Please also provide a description of the nature and purpose of
each reserve within equity in accordance with paragraph </B><B>79(b)</B><B> of IAS 1.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company notes that it currently discloses its number of authorized shares on page
92 of the Form 20-F. In future filings, however, the Company will also disclose this
information in its financial statements, either in the statement of financial position,
the statement of changes in equity, or in the footnotes. In addition, in future filings
the Company will provide a description of the nature and purpose of each reserve within
equity in accordance with paragraph 79(b) of IAS 1.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please provide investors with a more comprehensive understanding as to
your accounting policy for business combinations with consideration as to whether any material
acquisitions have occurred during any of the periods presented. Specifically, please ensure
you address the following:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>The determination of the acquisition date.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>The process for recognizing and measuring assets, liabilities, and non-controlling
interest.</B></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><IMG src="c06532c0653201.gif" alt="(TERNIUM LOGO)">
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>The process for recognizing goodwill or a gain from a bargain purchase.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>The measurement period for the recognition of assets and liabilities.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>The treatment of any subsequent measurement and accounting for reacquired rights,
contingent liabilities, indemnification assets, and contingent consideration.</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Please refer to IFRS 3 for guidance.</B>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In response to the Staff&#146;s comment, the Company will include the disclosures required
pursuant to IFRS 3 in future filings if and to the extent it consummates a material
acquisition during any of the periods presented.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please disclose your accounting policy for reporting monetary and
non-monetary assets and liabilities in periods subsequent to the original transaction. Please
refer to paragraphs 23-26 of IAS 21. Please also disclose your accounting policy as it relates
to gains or losses on non-monetary items. Please refer to paragraphs 30-31 of IAS 21. Please
provide us with the disclosures you intend to include in future filings.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In response to the Staff&#146;s comment, the Company proposes to include in future filings
the following disclosure relating to its accounting policy for reporting foreign currency
transactions:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><B><I>Transactions in currencies other than the functional currency.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Transactions in currencies other than the functional currency are translated into the
functional currency using the exchange rates prevailing at the date of the transactions or
valuation where items are re-measured.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>At the end of each reporting period: (i)&nbsp;monetary items denominated in currencies other
than the functional currency are translated using the closing rates, (ii)&nbsp;non-monetary
items that are measured in terms of historical cost in a currency other than the
functional currency are translated using the exchange rates prevailing at the date of the
transactions; and (iii)&nbsp;non-monetary items that are measured at fair value in a currency
other than the functional currency are translated using the exchange rates prevailing at
the date when the fair value was determined.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and liabilities
denominated in currencies other than the functional currency are recorded as gains and
losses from foreign exchange and included in &#147;Other Financial Income (Expenses), Net&#148; in
the Consolidated Income Statement, except when deferred in equity as qualifying cash flow
hedges and qualifying net investment hedges. Translation differences on non-monetary
financial assets and liabilities such as equities held at fair value through profit or
loss are recognized in profit or loss as part of the &#147;fair value gain or loss,&#148; while
translation differences on non-monetary financial assets such as equities classified as
available for sale are included in the &#147;available for sale reserve&#148; in equity. Ternium had
no such assets or liabilities for any of the periods presented.</I>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><IMG src="c06532c0653201.gif" alt="(TERNIUM LOGO)">
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please disclose your accounting policy for assessing your non derivative
financial assets that are carried at amortized cost for impairment. Please refer to paragraphs
58-65 of IAS 39.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company acknowledges the Staff&#146; s comment and confirms that in future filings it
will disclose the accounting policy for assessing non derivative financial assets that are
carried at amortized cost for impairment.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please disclose the method and amortization rate(s) you are using to
amortize your mining licenses and exploration and evaluation costs. To the extent that the
amortization method for these assets differ, please separately disclose these assets to allow
an investor to better understand how each of these assets are impacting the consolidated
financial statements. Please refer to paragraphs 88-106 and </B><B>118(a)</B><B>-</B><B>118(b)</B><B> of IAS 38 for
guidance.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company acknowledges the Staff&#146;s comment and confirms that in future filings it
will expand the description of the method and amortization rates used to amortize mining
licenses and exploration and evaluation costs and will separately disclose these assets.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Please revise your disclosure in future filings to clarify, if correct, that the present
value of your defined benefit obligations have been evaluated regularly such that the amounts
recognized in the financial statements do not differ materially from the amounts that would
have been determined at the end of the reporting period. Please refer to paragraph 56 of IAS
19 for guidance.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company respectfully confirms to the Staff that it has calculated the present
value of its defined benefit pension obligation as of December&nbsp;31, 2009; accordingly,
there is no difference between the amounts recorded and those that would be determined at
the end of the reporting period. In future filings, the Company will disclose that the
present value of the defined benefit pension obligation is calculated as of the end of
each reporting period.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please provide the disclosures required by paragraph 134 of IAS 36 for
each of your CGUs that have been allocated a significant amount of goodwill in comparison to
the total carrying amount of goodwill. If you have determined that none of your CGUs have been
allocated a significant amount of goodwill in comparison to the total carrying amount of
goodwill, please provide the disclosures required by paragraph 135 of IAS 36 to the extent
appropriate. Please note that these disclosures should provide investors with your
company-specific / CGU-specific assumptions rather than a high-level overview that could be
applicable to any company. Please provide us with the disclosures that you would have provided
in the 2009 20-F and will be the basis for future disclosures.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In response to the Staff&#146;s comment, the Company confirms that, in future filings, the
Company will provide the disclosures required by paragraph 134 of IAS 36 for each of its
CGUs that have been allocated a significant amount of goodwill in comparison to the total
carrying amount of goodwill. Currently, the Mexico CGU is the only CGU that has been
allocated a significant amount of goodwill in comparison to the total carrying amount of
goodwill.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The following is the disclosure that the Company would have provided in the Form 20-F and
that it proposes to be the basis for disclosure in future filings:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>&#147;4. Accounting policies</I>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><IMG src="c06532c0653201.gif" alt="(TERNIUM LOGO)">
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>(e)&nbsp;Intangible assets</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>(3)&nbsp;Goodwill</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Goodwill represents the excess of the acquisition cost over the fair value of Ternium&#146;s
participation in acquired companies&#146; net assets at the acquisition date. Under IFRS 3,
goodwill is considered to have an indefinite life and not amortized, but is subject to
annual impairment testing.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Goodwill is allocated to cash-generating units (CGUs) for the purpose of impairment
testing. The allocation is made to those CGUs expected to benefit from the business
combination which generated the goodwill being tested.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>As of December&nbsp;31, 2009, the carrying amount of goodwill allocated to the Mexico CGU unit
was USD 704.0&nbsp;million, while the carrying amount of goodwill allocated to other CGUs
totaled USD 4.6&nbsp;million. Accordingly, the Mexico CGU has been allocated a significant
amount of goodwill in comparison to the total carrying amount of goodwill.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>&#091;...&#093;</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>(f)&nbsp;Impairment</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Assets that have an indefinite useful life (including goodwill) are not subject to
amortization and are tested annually for impairment. Assets that are subject to
amortization and investments in affiliates are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognized for the amount by which the asset&#146;s carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset&#146;s fair value less
cost to sell and the value in use.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>To carry out these tests, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (each, a CGU). When evaluating long-lived assets for
potential impairment, the Company estimates the recoverable amount based on the value in
use of the corresponding CGU. The value in use of each CGU is determined on the basis of
the present value of net future cash flows which will be generated by the assets tested.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Determining the present value of future cash flows involves highly sensitive estimates and
assumptions specific to the nature of each CGU&#146;s activities, including estimates and
assumptions relating to amount and timing of projected future cash flows, expected changes
in market prices, expected changes in the demand of Ternium products and services,
selected discount rate; and selected tax rate.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Ternium uses cash flow projections for the next five years based on past performance and
expectations of market development; thereafter, it uses a perpetuity rate with no growth
increase. Application of the discounted cash flow (DCF)&nbsp;method to determine the value in
use of a CGU begins with a forecast of all expected future net cash flows. Variables
considered in forecasts include Mexican GDP growth rates and their correlation with
steel demand, level of steel prices and estimated raw material costs as observed in
industry reports.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Cash flows are discounted at post-tax rates that reflect specific country and currency
risks associated with the cash flow projections. The discount rates used are based on
Ternium&#146;s weighted average cost of capital (WACC), which is considered to be a good
indicator of cost of capital. As of December&nbsp;31, 2009, the discount rate used to test
goodwill allocated to Mexico CGU for impairment was 11.8%.</I>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><IMG src="c06532c0653201.gif" alt="(TERNIUM LOGO)">
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>As a result of the above factors, actual cash flows and values could vary significantly
from the forecasted future cash flows and related values derived using discounting
techniques. Based on the information currently available, however, Ternium believes that
it is not reasonably possible that the variation would cause the carrying amount to exceed
the recoverable amount of the CGUs.</I>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please provide investors with a more comprehensive understanding of the
charges you recognized to mark your inventories to net realizable value in fiscal years 2009
and 2008. This disclosure should provide investors with the facts specific to Ternium that led
to the need to record the valuation allowance, including quantification of the changes in
steel prices. Please provide this disclosure by geography to the extent that there are
material differences in selling prices between geographic locations. Please refer to
paragraphs 125-133 of IAS 1 and Section&nbsp;501.14 of the Financial Reporting Codification for
guidance. Please provide us with the disclosures you intend to include in future filings.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company acknowledges the Staff s comment and will include the requested
disclosure in its future filings. The following is the disclosure that the Company would
have provided in the Form 20-F and that it proposes to be the basis for disclosure in
future filings:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>(v)&nbsp;Critical Accounting Estimates</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>(4)&nbsp;Allowance for obsolescence of supplies and spare parts and slow-moving inventory</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Management assesses the recoverability of its inventories considering their selling prices
or whether they are damaged or have become wholly or partly obsolete.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Net realizable value is the estimated selling price in the ordinary course of business,
less the costs of completion and selling expenses.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>The Company establishes an allowance for obsolete or slow-moving inventory in connection
with finished goods and goods in process. The allowance for slow-moving inventory is
recognized for finished goods and goods in process based on management&#146;s analysis of their
aging. In connection with supplies and spare parts, the calculation is based on
management&#146;s analysis of their aging, the capacity of such materials to be used based on
their levels of preservation and maintenance, and their potential obsolescence due to
technological change.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>As of December&nbsp;31, 2009, the Company recorded no allowance for net realizable value and
USD 58.2&nbsp;million as allowance for obsolescence (compared to USD 160.9&nbsp;million and USD
124.9&nbsp;million, respectively, as of December&nbsp;31, 2008).</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Charges to mark the inventory to net realizable value in 2008 and 2009 were USD 200.0
million and USD 127.6&nbsp;million, respectively. Of these amounts, USD 179.6&nbsp;million in 2008
and USD 82.8&nbsp;million in 2009 corresponded to inventories for shipment to North America
region, while USD 20.4&nbsp;million in 2008 and 44.8&nbsp;million in 2009 corresponded to
inventories for exports within the South and Central America region.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>The additions to the allowance for net realizable value recorded during 2008 and 2009
responded to the steep fall of steel prices as a result of the global financial crisis
that began in 2008. Beginning in the second half of 2008 up to the first half of 2009
average prices of flat steel products decreased 41%.Accordingly, inventory values were
compared to their estimated net selling prices and written down when the selling prices
were lower than historical costs. This was the case of inventories produced from
third-party slabs in Mexico and certain raw materials in Argentina that had been acquired
at market prices in force prior to the beginning of the global financial crisis.&#148;</I>
</DIV>


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</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>9.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>We note that long-lived assets with finite useful lives represent a significant portion of
your total assets (i.e., 42.9%) and total equity (i.e., 70.5%). As such, please revise your
disclosures to provide investors with a more comprehensive understanding as to how these
assets are reviewed each reporting period in future filings either in your footnote
disclosures or within MD&#038;A. Specifically, please address each of the following:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Discuss all of the material, CGU-specific facts and circumstances considered when you
assess whether there is an indicator that an impairment may exist. Refer to paragraphs
12-14 of IAS 36 for guidance.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>If you tested any CGUs for impairment during any of the periods presented, please
disclose the number of CGUs tested along with the corresponding carrying values of the
CGUs and provide a detailed discussion as to how you estimated the recoverable amount,
specifically stating whether you estimated the fair value less costs to sell or the value
in use or both, along with the material estimates and assumptions made. Refer to
paragraphs 18-57 and 74-79 of IAS 36 for guidance.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>To the extent that it is reasonably possible a future impairment charge could be
recognized, discuss the facts and circumstances that could lead to additional impairment
charges.</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Please provide us with the disclosures that you would have provided in the 2009 20-F that
addresses the bullet points above and will be the basis for future disclosures.</B>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> In response to the Staff&#146;s comment, the Company advises the Staff that none of its
CGUs were tested for impairment in 2009, as no impairment indicators were identified. For
fiscal year 2008, the Company tested for impairment long-lived assets with finite useful
lives corresponding to its Mexico and Argentina CGUs. As a result of these tests, no
impairment was required.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The Company supplementally advises the Staff that there is a significant interaction of
the main assumptions made in estimating its cash flow projections. Based on the
information currently available, however, the Company believes that the recognition of a
future impairment charge is not reasonably possible.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The following is the disclosure that the Company would have provided in the Form 20-F and
that it proposes to be the basis for disclosure in future filings, within the footnotes to
the financial statements:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>(6)&nbsp;Useful Lives and Impairment of Property, Plant and Equipment and Other Long-lived
Assets</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>In determining useful lives, management considered, among others, the following factors:
age, operating condition and level of usage and maintenance. Management conducted visual
inspections for the purpose of (i)&nbsp;determining whether the current conditions of such
assets are consistent with normal conditions of assets of similar age; (ii)&nbsp;confirming
that the operating conditions and levels of usage of such assets are adequate and
consistent with their design; (iii)&nbsp;establishing obsolescence levels and (iv)&nbsp;estimating
life expectancy, all of which were used in determining useful lives. Management believes,
however, that it is possible that the periods of economic utilization of property, plant
and equipment may be different than the useful lives so determined. Furthermore,
management believes that this accounting policy involves a critical accounting estimate
because it is subject to change from period to period as a result of variations in
economic conditions and business performance.</I>
</DIV>
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</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>When assessing whether an impairment indicator may exist, the Company evaluates both
internal and external sources of information, such as the following:</I>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>whether significant changes with an adverse effect on the entity have taken
place during the period, or will take place in the near future, in the technological,
market, economic or legal environment in which the entity operates or in the market
to which an asset is dedicated;</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>whether market interest rates or other market rates of return on
investments have increased during the period, and those increases are likely to
affect the discount rate used in calculating an asset&#146;s value in use and decrease the
asset&#146;s recoverable amount materially;</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>whether the carrying amount of the net assets of the entity is more than
its market capitalization;</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>whether evidence is available of obsolescence or physical damage of an
asset.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>whether significant changes with an adverse effect on the entity have taken
place during the period, or are expected to take place in the near future, in the
extent to which, or manner in which, an asset is used or is expected to be used.
These changes include the asset becoming idle, plans to discontinue or restructure
the operation to which an asset belongs, plans to dispose of an asset before the
previously expected date, and reassessing the useful life of an asset as finite
rather than indefinite; and</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>whether evidence is available from internal reporting that indicates that
the economic performance of an asset is, or will be, worse than expected.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Management identified the presence of impairment indicators in certain CGUs at December
31, 2008 and, accordingly, carried out impairment tests. These impairment indicators arose
mainly due to recessionary environment and the abrupt decline of demand and prices of
steel products.</I>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>For the Mexico CGU, management carried out an impairment test for Property,
Plant and Equipment and for other long-lived assets with finite useful lives and
concluded that no impairment was needed. The Company estimated the recoverable amount
as the &#147;value in use&#148; and compared it to the carrying amount of the corresponding
assets (USD3.2&nbsp;billion at that date). The discount rates used were based on the
Mexico CGU&#146;s weighted average cost of capital (WACC), which was 13.4%. Variables
considered in forecasts included Mexican GDP growth rates and correlation with steel
demand, level of steel prices, and estimated raw material costs as observed in industry
reports.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>For the Argentina CGU, management carried out an impairment test for
Property, Plant and Equipment and for other long-lived assets with finite useful
lives and also concluded that no impairments were required. The Company estimated the
recoverable amount as the &#147;value in use&#148; and compared it to the carrying amount of
the corresponding assets (USD1.3&nbsp;billion at that date). The discount rates used were
based on the Argentina CGU&#146;s WACC, which was 18.3%. Variables considered in forecasts
included Argentinean GDP growth rates and correlation with steel demand, level of
steel prices, and estimated raw material costs as observed in industry reports.</I></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>None of the Company&#146;s CGUs were tested for impairment in 2009, as no impairment indicators
were identified.</I>
</DIV>
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</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>10.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please disclose the impact the termination of the 1929 holding company
regime is expected to have once the current exemption expires in December&nbsp;31, 2010. Please
refer to paragraph </B><B>81(d)</B><B> of IAS 12 for guidance. Please provide us with the disclosure you
intend to include in future filings.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In response to the Staff&#146;s comment, the Company respectfully provides to the Staff
the disclosure it proposes to include in this respect in any filings on or after January
1st, 2011 (on the assumption that there is no change in the Luxembourg law currently
applicable or in the Luxembourg&#146;s authorities current interpretation thereof):</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>The Company was established as a soci&#232;t&#232; anonyme holding under Luxembourg&#146;s 1929 holding
company regime and the billionaire provisions relating thereto. 1929 holding companies are
exempt from Luxembourg corporate and withholding tax over dividends distributed to holders
of shares and ADSs. These benefits terminated effective December&nbsp;31, 2010. On January 1st,
2011, the Company became an ordinary public limited liability company (soci&#232;t&#232; anonyme)
and, effective as from that date, the Company is currently subject to all applicable
Luxembourg taxes, including, among others, corporate income tax on its worldwide income,
and its dividend distributions will generally be subject to Luxembourg withholding tax.
However, dividends from high income tax subsidiaries continue to be tax-exempt under
Luxembourg&#146;s participation exemption.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>At its August 3th, 2010 meeting, the Company&#146;s board of directors approved a multi-step
corporate reorganization plan pursuant to which all of the Company&#146;s assets and
liabilities were contributed to a wholly-owned Luxembourg subsidiary and holdings in
certain subsidiaries were restructured. Following the completion of the reorganization on
&#091;</I><U><I>date</I></U><I>&#093;, 2010, and upon its conversion into an ordinary Luxembourg holding company,
the Company recorded a special reserve for tax purposes amounting to US$ &#091;</I><U><I>amount</I></U><I>&#093;
billion. The Company expects that its current overall tax burden will not increase and
that any potential future dividend distributions out of such special reserve should be
exempt from Luxembourg withholding tax.</I>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please explain what the line item, recovery of income tax, in the income
expense component table and the effective tax rate reconciliation. Please provide us with the
disclosure you intend to include in future filings.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> In response to the Staff&#146;s comment, the Company informs the Staff that the line item
&#147;recovery of income tax&#148; represents gains recorded in 2008 and 2009 for several income tax
claims filed against the tax authorities for which definitive favorable rulings were
obtained in each such year.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The following is the disclosure that the Company would have provided in the Form 20-F and
that it proposes to be the basis for disclosure in future filings:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Income tax</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>Income tax expense for each of the years presented is as follows:</I>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><I>Year ended December 31,</I></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>2009</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>2008(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>2007</I></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Current tax</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(124,647</I></TD>
    <TD nowrap><I>)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(502,425</I></TD>
    <TD nowrap><I>)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(272,004</I></TD>
    <TD nowrap><I>)</I></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Deferred tax (Note 23)</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(24,812</I></TD>
    <TD nowrap><I>)</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>300,614</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(20,109</I></TD>
    <TD nowrap><I>)</I></TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Deferred tax &#151; effect of changes in tax rates
(Note 23)</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(11,216</I></TD>
    <TD nowrap><I>)</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>&#151;</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>&#151;</I></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Effect of change in fair value of cash flow hedge</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>9,112</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(23,121</I></TD>
    <TD nowrap><I>)</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>&#151;</I></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Recovery of income tax (2)</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>60,249</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>62,228</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>&#151;</I></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Utilization of previously unrecognized tax losses</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>&#151;</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>&#151;</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><I>768</I></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(91,314</I></TD>
    <TD nowrap><I>)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(162,704</I></TD>
    <TD nowrap><I>)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right"><I>(291,345</I></TD>
    <TD nowrap><I>)</I></TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><I>(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Includes the reversal of deferred statutory profit sharing.</I></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><I>(2)</I></TD>
    <TD>&nbsp;</TD>
    <TD><I>Represents gains recorded in 2008 and 2009 for several income tax
claims filed against the tax authorities for which definitive favorable rulings
were obtained in each such year.</I></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">





<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><IMG src="c06532c0653201.gif" alt="(TERNIUM LOGO)">

</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please disclose the basis on which the applicable tax rate is computed.
Please refer to paragraph </B><B>81(c)(i)</B><B> of IAS 12 for guidance. To the extent appropriate, please
also provide an explanation for any changes in accordance with paragraph </B><B>81(d)</B><B> of IAS 12.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> The Company acknowledges the Staff&#146;s comment and confirms that, in future filings, it
will include an explanation of the relationship between tax expense and accounting profit
in either or both of the forms indicated in paragraph 81(c) of IAS 12 and, if appropriate,
an explanation on any changes in the applicable tax rate(s) in accordance with paragraph
81(d) of IAS 12.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please separately disclose the amount of cash on hand and balances with
banks separately from the different components of cash equivalents. Please refer to paragraph
45 of IAS 7.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> The Company acknowledges the Staff&#146;s comment and confirms to the Staff that in future
filings it will disclose the components of cash on hand balances with banks separately
from the different components of cash.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please disclose the amount of cash and cash equivalents that are not
available for use by the group. Otherwise, please disclose that there are no restrictions on
the use of cash and cash equivalents. Please refer to paragraph 48 of IAS 7 for guidance.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> The Company acknowledges the Staff&#146;s comment and confirms to the Staff that in future
filings it will disclose the amount of cash or cash equivalents that are not available for
use by the group, or disclose that there are no restrictions on use of cash and cash
equivalents.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>15.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please provide investors with an explanation for the reversals in the
obsolescence allowance during fiscal years 2009 and 2008. Please refer to paragraph </B><B>36(g)</B><B> of
IAS 2 for guidance. Please provide us with the disclosure you intend to include in future
filings.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%"></TD>
    <TD> The Company acknowledges the Staff&#146;s comment and confirms to the Staff that in future
filings it will provide an explanation for the reversals in the obsolescence allowance.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The following is the disclosure about reversals in the obsolescence allowance that the
Company would have provided in the Form 20-F and that it proposes to be the basis for
disclosure in future filings:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%"><I>&#147;The world financial crisis that took place in 2008 and part of 2009 had a severe
negative impact on the volume of international steel trade, thus reducing the rotation
of the Company&#146;s stock. Accordingly, the Company recorded a provision for slow-moving
inventory to cover for expected losses. As certain inventory items covered by the
obsolescence allowance were subsequently sold, the Company reversed a portion of such
allowance.&#148;</I>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><IMG src="c06532c0653201.gif" alt="(TERNIUM LOGO)">

</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>16.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Please confirm to us that you do not have any material unrecognized deferred tax assets.
Otherwise, please confirm that you will provide the disclosures required by paragraph 81 (e)
of IAS 12 in future filings.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R: </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In response to the Staff&#146;s comment, the Company advises the Staff that as of December
31, 2009, it did not have any material unrecognized deferred tax assets. If appropriate,
the Company will provide the disclosures required by paragraph 81 (e)&nbsp;of IAS 12 in future
filings.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>17.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please disclose the following for your interest rate contracts and your
foreign exchange contracts that are considered cash flow hedging instruments in accordance
with IAS 39 to allow investors to better understand how these hedging instruments are
impacting the consolidated financial statements:</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>The gross amount recognized in other comprehensive income for the change in fair value.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>The gross amount reclassified from other comprehensive income to profit or loss in the
consolidated income statements.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>The gross amount remaining in accumulated other comprehensive income, including an
understanding as to when you expect the remaining amounts to be reclassified to profit or
loss in the consolidated income statements. For example, we note that you disclosed that
USD 46.7&nbsp;million is in accumulated other comprehensive income for your interest rate
contracts. However, it is unclear whether this is profit or a loss and when you expect
this amount to be reclassified to the consolidated income statements.</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Please refer to paragraph 23 of IFRS 7 for guidance. Please provide us with the disclosures you
intend to include in future filings.</B>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R: </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company respectfully directs the Staff&#146;s attention note 31(a) on page 50, which
includes all the required disclosures, other than expected timing for the reclassification
to profit or loss of the amounts remaining in &#147;other comprehensive income.&#148;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The following is the disclosure that the Company would have provided in the Form 20-F and
that it proposes to be the basis for disclosure in future filings:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>On June&nbsp;18, 2008, Ternium Mexico entered into four knock-in swap agreements over an
aggregate notional amount of USD 894&nbsp;million, in an average swap level of 5.22% and a
knock-in level of 2.5%. These agreements are due in July&nbsp;2012. As of December&nbsp;31, 2009,
these contracts were accounted for as cash flow hedges. As of December&nbsp;31, 2009, the
outstanding balance of the pre-tax reserve recorded in other comprehensive income is a USD
46.7&nbsp;million loss, which is expected to be reclassified to the income statements as
follows: USD 20.6&nbsp;million in 2010, USD 21.0&nbsp;million in 2011 and USD 5.1&nbsp;million in 2012&#148;.</I>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><IMG src="c06532c0653201.gif" alt="(TERNIUM LOGO)">

</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>18.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>We note your disclosure that the ultimate resolution of existing litigation will not have a
material impact to your consolidated financial position or results of operations. In future
filings please expand your conclusion regarding materiality as it also relates to your
liquidity. To the extent that the ultimate resolutions could have a material impact on your
liquidity, please revise your disclosures for each provision to state the amount or range by
which your consolidated financial statements could be impacted above the amount of provision
recognized, if any. Please refer to paragraph 86 of IAS 37 for guidance.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> The Company acknowledges the Staff&#146;s comment and confirms to the Staff that in future
filings it will disclose whether the resolution of pending litigation will have a material
impact on its liquidity, in addition to its financial position and results of operations.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>19.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please expand your disclosure of Siderar&#146;s raw material purchase
agreements to disclose how you have accounted for the purchases of certain raw materials at
prices that exceed current market conditions by USD 66.3&nbsp;million. Please provide us with the
disclosures you intend to include in future filings.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R: </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In response to the Staff&#146;s comment, the Company informs the Staff that purchases of
raw materials at prices that exceed current market conditions are only given accounting
recognition when delivery from suppliers takes place. In other words, the Company records
the actual cost incurred for the purchase of such raw materials and does not recognize any
anticipated losses, as sales prices of finished goods are expected to exceed production
costs. The impact of these purchases in the income statement is recorded through the &#147;cost
of sales&#148; line item when finished goods are sold.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The following is the disclosure that the Company would have provided in the Form 20-F in
this respect and that it proposes to be the basis for disclosure in future filings:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>(c)&nbsp;Given the financial crisis initiated in 2008 and following global steel industry
trends, Siderar entered into several renegotiation processes regarding the main provisions
under which the Company had assumed fixed commitments for the purchase of raw materials.
The parties have agreed the conditions for the supply of raw materials for the next three
years. Under the new agreements, Siderar undertook commitments for a total amount of USD
422.6&nbsp;million, which include purchases of certain raw materials at prices that are
USD 66.3&nbsp;million higher than market prices at the end of the period. The Company records
the actual cost incurred for the purchase of such raw materials and does not recognize any
anticipated losses, as sales prices of finished goods are expected to exceed production
cost.&#148;</I>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>20.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please explain to investors what the $ 136&nbsp;million &#147;gain&#148; recognized in
the interest income &#151; Sidor financial asset line item of the consolidated income statements
represents. Please provide us with the disclosures you intend to include in future filings,
which should explain how you calculated the $136&nbsp;million gain and how you determined a 14.36%
annual discount rate is appropriate.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> The Company acknowledges the Staff&#146;s comment and will expand the disclosures in
footnote 29 to further explain what the USD 136&nbsp;million gain recognized in the &#147;interest
income  &#151; Sidor financial asset&#148; line item of the consolidated income statements
represents and how the Company determined a 14.36% annual discount rate.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The following is the disclosure that the Company would have provided in the Form 20-F and
that it proposes to be the basis for disclosure in future filings:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>At December&nbsp;31, 2009, the carrying amount of the Sidor financial asset (following the
receipt of USD 953.6&nbsp;million cash payments) amounted to USD 964.4&nbsp;million after
application of a 14.36% annual discount rate to adequately reflect, and only for the
purpose of recording, the present accounting value of the receivable with CVG. The Company
estimated the 14.36% annual discount rate on the basis of the yield of Venezuelan
sovereign debt with maturities similar to that of the receivable held by Ternium against
CVG. However, as the Venezuelan sovereign debt with similar maturities was governed by New
York law while the receivable with CVG was governed by Venezuelan law, the discount rate
was further adjusted to adequately reflect the specific risk of Ternium&#146;s receivable.</I>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><IMG src="c06532c0653201.gif" alt="(TERNIUM LOGO)">

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><I>At December&nbsp;31, 2009, the Company recorded a net gain, for accounting purposes, of USD
428.0&nbsp;million in connection with this transaction which is disclosed within &#147;Income from
discontinued operations&#148; in the Income Statement. This result represents the difference
between (i)&nbsp;the fair value, for accounting purposes, net of taxes and other transaction
costs, of the compensation for the Sidor financial asset (which comprised a USD 400
million cash payment and a receivable against CVG that, at May&nbsp;7, 2009, had a fair value
of USD 1,382.0&nbsp;million after application of the discount rate stated above, net of taxes
and other transaction costs of USD 35.1&nbsp;million) and (ii)&nbsp;the carrying amount of the Sidor
financial asset at March&nbsp;31, 2009. In addition, the Company recorded a gain in the amount
of USD 136.0&nbsp;million included in &#147;Interest income &#151; Sidor financial asset&#148; in the Income
Statement, representing the accretion income over the receivable held against CVG. All the
above is without prejudice to the rights of the Company, including the rights and remedies
reserved in the agreement with CVG and Venezuela as described above, in the event of
non-compliance by CVG with its payment obligations.</I>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>21.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please also disclose key management personnel compensation by the
categories listed in paragraph 16 of IAS 24.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">R:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> The Company acknowledges the Staff s comment and in future filings will disclose key
management personnel compensation by the categories listed in paragraph 16 of IAS 24.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">* * * * *
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company acknowledges that it is responsible for the adequacy and accuracy of the
disclosure in its filings. In addition, the Company acknowledges that the Staff&#146;s comments or
changes to the Company&#146;s disclosure in response to the Staff&#146;s comments do not foreclose the
Commission from taking any action with respect to the Company&#146;s filings and that the Company may
not assert the Staff&#146;s comments as a defense in any proceeding initiated by the Commission or any
person under the federal securities laws of the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If you have any questions relating to this letter, please feel free to call Robert S. Risoleo
of Sullivan &#038; Cromwell LLP at (202)&nbsp;956-7510. He may also be reached by facsimile at (202)&nbsp;956-6974
and by e-mail at risoleor@sullcrom.com.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 0px solid #000000" align="left">/s/ Pablo Brizzio<BR><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Pablo Brizzio&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><IMG src="c06532c0653201.gif" alt="(TERNIUM LOGO)">

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">cc:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tracey Houser<br>
Jeanne Baker<br><br></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Securities and Exchange Commission)<br><br></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Daniel L&#243;pez Lado<br></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(PricewaterhouseCoopers)<br><br></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cristian J. P. Mitrani<br>
Diego E. Parise<br></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Mitrani, Caballero, Rosso Alba, Francia, Ojam &#038; Ruiz Moreno Abogados)<br><br></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Robert S. Risoleo<br></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Sullivan &#038; Cromwell LLP)</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
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