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<SEC-DOCUMENT>0000891092-04-003737.txt : 20040729
<SEC-HEADER>0000891092-04-003737.hdr.sgml : 20040729
<ACCEPTANCE-DATETIME>20040729161732
ACCESSION NUMBER:		0000891092-04-003737
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040728
FILED AS OF DATE:		20040729

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GROUP SIMEC SA DE CV
		CENTRAL INDEX KEY:			0000887153
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES  ROLLING MILLS (COKE OVENS) [3312]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11176
		FILM NUMBER:		04939312

	BUSINESS ADDRESS:	
		STREET 1:		CALZADA LAZARO CARDENAS 601
		CITY:			44910 GUADALAJARA JA
		STATE:			O5
		ZIP:			10022

	MAIL ADDRESS:	
		STREET 1:		CALZADA LAZARO CARDENAS
		CITY:			GUADALAJARA JALISCO
		STATE:			O5
		ZIP:			999999999
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>e18605_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<html>
<head>
<title>Form 6-K </title>
</head>
<body>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 2; page: 2" -->




<p><table width=600><tr><td  align=center><font size=3><B>UNITED STATES<BR>SECURITIES AND
EXCHANGE COMMISSION<BR>
      <font size="2">Washington, D.C. 20549</font></B></font></td>
  </tr></table>

<p><table width=600><tr><td  align=center><font size=2><B>FORM 6-K</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=2><B>REPORT OF FOREIGN PRIVATE
ISSUER PURSUANT TO RULE 13a-16 OR 15d-16<BR>UNDER THE SECURITIES EXCHANGE ACT OF 1934</B></font></td></tr></table>

<p><table width=600><tr>
    <td  align=center><font size=2>For the month of July 2004.</font></td>
  </tr></table>

<p><table width=600><tr>
    <td  align=center><font size=2>Group Simec, Inc.</font>
      <hr noshade size="1" width="100%">
      <font size=2> (Translation of Registrant&#146;s Name Into English) </font></td>
  </tr></table>

<p>
<p><table width=600><tr>
    <td  align=center><font size=2>Mexico</font>
      <hr noshade size="1" width="100%">
      <font size=2> (Jurisdiction of incorporation or organization)</font></td>
  </tr></table>


<p><table width=600><tr>
    <td  align=center><font size=2>Av. Lazaro Cardenas 601, Colonia la Nogalera,
      Guadalajara, Jalisco, Mexico 44440</font>
      <hr size="1" noshade>
      <font size=2> (Address of principal executive office)</font></td>
  </tr></table>

<P><table width=600><tr><td><font size=2>(Indicate by check mark whether the registrant
files or will file annual reports  under cover of Form 20-F or Form 40-F.)</font></td></tr></table>


<br>
<table width=600>
  <tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 20-F [X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form
      40-F [&nbsp;&nbsp;]</font></td>
  </tr>
</table>
<P><table width=600><tr><td><font size=2>(Indicate by check mark whether the registrant
by furnishing the information  contained in this form is also thereby furnishing the
information to the  Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of  1934.)</font></td></tr></table>


<br>
<table width=600>
  <tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes [&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
      [X]</font></td>
  </tr>
</table>
<P><table width=600><tr><td><font size=2>(If &#147;Yes&#148; is marked, indicate below
the file number assigned to the registrant  in connection with Rule 12g3-2(b):
82-_______________________.)</font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=2>SIGNATURE</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the
requirements of the Securities Exchange Act of  1934, the Company has duly caused this
report to be signed on its behalf by the  undersigned, thereunto duly authorized.</font></td></tr></table>


<br>
<table width=600>
  <tr>
    <td width=10% valign=top>&nbsp;</td>
    <td width=47% valign="top">&nbsp;</td>
    <td width=43% align="center"><font size="2">GRUPO SIMEC, S.A. de C.V.</font>
      <hr noshade size="1">
      <font size="2"> (Registrant)</font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr valign="top">
    <td width=52%><font size="2">Date: July 29, 2004.</font></td>
    <td width=5%><font size="2">By:</font></td>
    <td width=43%><font size="2"> /s/ LUIS GARC&#205;A LIM&#211;N</font>
      <hr noshade size="1">
      <font size="2"> Name: Luis Garc&#237;a Lim&#243;n<br>
      Title: Chief Executive Officer</font></td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 4; page: 4" --> <br>
  <br>
<p><img src="logo.gif" width="98" height="34">&nbsp; </p>
<p><br>
<table width=600>
  <tr>
    <td width=42% valign=top><font size="2"><b>PRESS RELEASE</b></font></td>
    <td width=15% valign="top"><font size="2">Contact:</font></td>
    <td width=43%><font size="2"> Adolfo Luna Luna <br>
      Jose Flores Flores <br>
      Grupo Simec, S.A. de C.V. <br>
      Calzada Lazaro Cardenas 601 <br>
      44440 Guadalajara, Jalisco, Mexico <br>
      52 33 1057 5740 </font></td>
  </tr>
</table>
<p><table width=600><tr><td  align=center><font size=2><B>GRUPO SIMEC, SUBSIDIARY OF
INDUSTRIAS CH, ANNOUNCES THE<BR>AUTHORIZATION BY THE MEXICAN COMISION FEDERAL DE COMPETENCIA<BR>
(FEDERAL COMPETITION COMMISSION) TO ACQUIRE GRUPO SIDENOR&#146;S<BR>MEXICAN STEEL
MANUFACTURING FACILITIES</B></font></td></tr></table>

<P><table width=600><tr><td><font size=2>GUADALAJARA, MEXICO, July 19, 2004- Grupo Simec,
S.A. de C.V. (AMEX-SIM) (&#147;Simec&#148;) announced today, that the Mexican  Comision
Federal de Competencia (Federal Commission of Competition) notified Industrias CH, S.A.
de C.V. (&#147;ICH&#148;) and  Simec, of its authorization to acquire the Mexican steel
making facilities of Industrias Ferricas del Norte, S.A. (Grupo  Sidenor).</font></td></tr></table>

<P><table width=600><tr><td><font size=2>Simec expects the acquisition to close during
the third quarter of 2004. The  acquisition will be financed with internally generated
resources of Simec and  borrowings from ICH. Simec will not acquire any liabilities as
part of this  acquisition (other than seniority premiums associated with certain
employees)  and, as a result, will maintain its solid financial structure, free of
indebtedness. Simec expects this acquisition to substantially increase its  installed
capacity, sales and net income.</font></td></tr></table>

<P><table width=600><tr><td><font size=2>The acquisition will be made by Simec and its
subsidiaries due to the greater  synergy and economies of scale between Simec&#146;s
plants in Mexicali and  Guadalajara and Grupo Sidenor&#146;s plants in Apizaco, Tlaxcala
and Cholula, Puebla.</font></td></tr></table>


<P><table width=600><tr><td><font size=2>###</font></td></tr></table>


<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p><!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 4; page: 4" --> <br>
</p>
<p><img src="logo.gif" width="98" height="34">&nbsp; </p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
  <tr valign="top">
    <td align="left" width="42%"><font face="Times New Roman, Times, Serif" size=2><b>PRESS
      RELEASE</b></font></td>
    <td align="right" width="33%"><font face="Times New Roman, Times, Serif" size=2>Contact:</font></td>
    <td width="1%">&nbsp;&nbsp;</td>
    <td align="left" width="24%"><font face="Times New Roman, Times, Serif" size=2>
      Adolfo Luna Luna <br>
      Jos&#233; Flores Flores <br>
      Grupo Simec, S.A. de C.V. <br>
      Calzada Lazaro Cardenas 601 <br>
      44440 Guadalajara, Jalisco, Mexico <br>
      52 33 1057 5740</font></td>
  </tr>
</table>
<p align=center><font face="Times New Roman, Times, Serif" size=2><b>GRUPO SIMEC
  ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST SIX MONTHS OF 2004 </b></font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GUADALAJARA,
  MEXICO, July 26, 2004- Grupo Simec, S.A. de C.V. (AMEX-SIM) (&#147;Simec&#148;)
  announced today its results of operations for the six-month period ended June
  30, 2004. Net sales increased 66% to Ps. 2,199 million in the first six months
  of 2004 compared to Ps. 1,323 million in the same period of 2003 primarily due
  to higher finished product prices and also resulting from higher production
  levels. Primarily as a result of the foregoing, Simec recorded net income of
  Ps. 546 million in the first half of 2004 versus net income of Ps. 165 million
  for the first half of 2003. </font></p>
<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  May 2004, Simec announced that it intends to acquire the Mexican steel manufacturing
  facilities of Industrias Ferricas del Norte, S.A. If consummated, this transaction
  is expected to significantly increase Simec&#146;s installed capacity, its net
  sales and the number of its employees. The purchase price of the acquisition
  is $92 million and Simec will also incur certain taxes and expenses in connection
  with the acquisition of the properties, Simec will acquire the inventories,
  land, buildings, machinery and equipment and will assume liabilities associated
  with seniority premiums of employees. On July 12, 2004 the shareholders of Simec
  approved this transaction at an extraordinary shareholders meeting. </font></p>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>Simec sold 327,329 metric
  tons of basic steel products during the six-month period ended June 30, 2004
  an increase of 7% as compared to 304,989 metric tons in the same period of 2003.
  Exports of basic steel products were 50,340 metric tons in the first half of
  2004 versus 34,031 metric tons in the same period of 2003. Additionally Simec
  sold 39,512 tons of billet in the six-month period ended June 30, 2004 as compared
  to 27,636 tons of billet in the same period of 2003. Prices of finished products
  sold in the first six months of 2004 increased 52% in real terms versus the
  same period of 2003. </font></p>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>Simec&#146;s direct cost
  of sales was Ps. 1,293 million in the six-month period ended June 30, 2004,
  or 59% of net sales, versus Ps. 870 million, or 66% of net sales, for the 2003
  period. Indirect manufacturing, selling, general and administrative expenses
  (including depreciation) was Ps. 232 million during the six-month period ended
  June 30, 2004, compared to Ps. 240 million in the same period of 2003. </font></p>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>Simec&#146;s operating income
  increased 216% to Ps. 674 million during the six-month period ended June 30,
  2004 from Ps. 213 million in the second quarter of 2003. Operating income was
  31% of net sales in the six-month period ended June 30, 2004 compared to 16%
  of net sales in the same period of 2003. </font></p>
<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<p>&nbsp;</p>
<table width=100%>
  <tr>
    <td width=20% align=left><font size=1>&nbsp;</font></td>
    <td width=60% align=center><font size="2"> </font></td>
    <td width=20% align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<hr size=5 noshade width=100% align=LEFT>
<p></p>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 7; page: 7" --> <!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>Simec recorded other income,
  net, from other financial operations of Ps. 12 million in the six-month period
  ended June 30, 2004 compared to other income, net, of Ps. 1 million in the same
  period of 2003. In addition, Simec recorded a provision for income tax and employee
  profit sharing of Ps. 137 million in the six-month period ended June 30, 2004
  versus a provision of Ps. 22 million in the same period of 2003. </font></p>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>Simec recorded financial
  expense of Ps. 3 million in the six-month period ended June 30, 2004 compared
  to financial expense of Ps. 27 million in the same period of 2003 as a result
  of (i) no net interest expense in the six-month period ended June 30, 2004 compared
  to net interest expense of Ps. 15 million in the same period of 2003, (ii) an
  exchange gain of Ps. 8 million in the six-month period ended June 30, 2004 compared
  to an exchange loss of Ps. 15 million in the same period of 2003, reflecting
  lower debt during the six-month period ended June 30, 2004 and a decrease of
  1.6% in the value of the peso versus the dollar in each of the six-month period
  ended June 30, 2004 and in the 2003 period and (iii) a loss from monetary position
  of Ps. 11 million in the six-month period ended June 30, 2004 compared to a
  gain from monetary position of Ps. 3 million in the same period of 2003, reflecting
  the domestic inflation rate of 1.6% in the six-month period ended June 30, 2004
  compared to the domestic inflation rate of 1.2% in the same period in 2003 and
  lower debt levels during the 2004 period. </font></p>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>At June 30, 2004, Simec&#146;s
  total consolidated debt consisted of US$302,000 of 8 7/8% MTN&#146;s due 1998
  (accrued interest at June 30, 2004 was $269,108) which were issued in 1993 as
  part of a $68 million issuance. At December 31, 2003, Simec had outstanding
  approximately $2 million of U.S. dollar-denominated debt. Simec&#146;s lower
  debt level at June 30, 2004 reflected the prepayment of $1.7 million of the
  remainder of its bank debt in March 2004. </font></p>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>All figures were prepared
  in accordance with Mexican generally accepted accounting principles and are
  stated in constant Pesos at June 30, 2004. </font></p>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>Simec is a mini-mill steel
  producer in Mexico and manufactures a broad range of non-flat structural steel
  products. </font></p>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=2>###</font></p>
<table width=100%>
  <tr>
    <td width=20% align=left><font size=1>&nbsp;</font></td>
    <td width=60% align=center><font size="2">-2- </font></td>
    <td width=20% align=right><font size="1">&nbsp;</font></td>
  </tr>
</table>
<hr size=5 noshade width=100% align=LEFT>
<p>&nbsp;





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<!-- MARKER PAGE="sheet: 2; page: 2" -->





<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<p><table width=600><tr>
    <td  align=center><font size=1><B>CONSOLIDATED FINANCIAL STATEMENT<BR>
      </B>AT JUNE 30 OF 2004 AND 2003<BR>
      (thousands of pesos)</font></td>
  </tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr valign="bottom">
    <td align="right" colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td valign=top width=20> <b><font size="1">REF&nbsp;</font></b></td>
    <td valign=top width=24>&nbsp;</td>
    <td align="center" width=316 valign="top"> <b><font size="1">CATEGORIES</font></b></td>
    <td colspan=4 align="center"> <b><font size="1">QUARTER OF PRESENT<br>
      FINANCIAL YEAR </font></b>
      <hr width="90%" size="1" noshade>
    </td>
    <td colspan=4 align="center"> <b><font size="1">QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR </font></b>
      <hr width="90%" size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="center"> <b><font size="1">S</font></b></td>
    <td width=24>&nbsp;</td>
    <td align="center" width=316> <b><font size="1">&nbsp;</font></b></td>
    <td align="right" width=61> <b><font size="1">AMOUNT</font></b></td>
    <td align="center" width=30>&nbsp;</td>
    <td align="right" width=23> <b><font size="1">%</font></b></td>
    <td align="center" width=14>&nbsp;</td>
    <td align="right" width=64> <b><font size="1">AMOUNT</font></b></td>
    <td align="center" width=21>&nbsp;</td>
    <td align="right" width=28> <b><font size="1">%</font></b></td>
    <td align="center" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>1</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>TOTAL ASSETS</b></font></td>
    <td align="right" width=61> <font size="1"><b>6,950,014</b></font></td>
    <td align="right" width=30>&nbsp;&nbsp;&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>100</b></font></td>
    <td align="right" width=14>&nbsp;&nbsp;&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>5,613,213</b></font></td>
    <td align="right" width=21>&nbsp;&nbsp;&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>100</b></font></td>
    <td align="right" width=19>&nbsp;&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">&nbsp;</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">&nbsp;</font></td>
    <td align="right" width=61> <font size="1">&nbsp;</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">&nbsp;</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>2</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>CURRENT ASSETS</b></font></td>
    <td align="right" width=61> <font size="1"><b>2,224,016</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>32</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>920,545</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>16</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">3</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">CASH AND SHORT-TERM INVESTMENTS</font></td>
    <td align="right" width=61> <font size="1">1,145,490</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">16</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">150,959</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">3</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">4</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">ACCOUNTS AND DOCUMENTS RECEIVABLE (NET)</font></td>
    <td align="right" width=61> <font size="1">637,597</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">9</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">434,011</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">8</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">5</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE</font></td>
    <td align="right" width=61> <font size="1">87,571</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">1</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">36,853</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">1</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">6</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">INVENTORIES</font></td>
    <td align="right" width=61> <font size="1">349,457</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">5</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">293,545</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">5</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">7</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">OTHER CURRENT ASSETS</font></td>
    <td align="right" width=61> <font size="1">3,901</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">5,177</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>8</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>LONG-TERM</b></font></td>
    <td align="right" width=61> <font size="1"><b>10,300</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>0</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>0</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>0</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">9</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">ACCOUNTS AND DOCUMENTS RECEIVABLE (NET)</font></td>
    <td align="right" width=61> <font size="1">10,300</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">0</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">10</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">INVESTMENT IN SHARES OF SUBSIDIARIES</font><font size="1">AND
      </font></td>
    <td align="right" width=61>&nbsp;</td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23>&nbsp;</td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64>&nbsp;</td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28>&nbsp;</td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right">&nbsp;</td>
    <td width=24>&nbsp;</td>
    <td width=316><font size="1">NON-CONSOLIDATED</font></td>
    <td align="right" width=61> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">11</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">OTHER INVESTMENTS</font></td>
    <td align="right" width=61> <font size="1">0</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">0</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>12</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>PROPERTY, PLANT AND EQUIPMENT</b></font></td>
    <td align="right" width=61> <font size="1"><b>4,472,105</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>64</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>4,420,021</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>79</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">13 </font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">PROPERTY</font></td>
    <td align="right" width=61> <font size="1">1,946,883</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">28</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">1,938,851</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">35</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">14</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">MACHINERY AND INDUSTRIAL</font></td>
    <td align="right" width=61> <font size="1">4,552,234</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">65</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">4,049,369</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">72</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">15</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">OTHER EQUIPMENT</font></td>
    <td align="right" width=61> <font size="1">136,585</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">2</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">194,781</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">3</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">16</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">ACCUMULATED DEPRECIATION</font></td>
    <td align="right" width=61> <font size="1">2,171,818</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">31</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">1,795,113</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">32</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">17</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">CONSTRUCTION IN PROGRESS</font></td>
    <td align="right" width=61> <font size="1">8,221</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">32,133</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">1</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>18</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>DEFERRED ASSETS (NET)</b></font></td>
    <td align="right" width=61> <font size="1"><b>243,593</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>4</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>272,647</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>5</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>19</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>OTHER ASSETS</b></font></td>
    <td align="right" width=61> <font size="1"><b>0</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>0</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>0</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>0</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">&nbsp;</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">&nbsp;</font></td>
    <td align="right" width=61> <font size="1">&nbsp;</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">&nbsp;</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>20 </b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>TOTAL LIABILITIES</b></font></td>
    <td align="right" width=61> <font size="1"><b>1,672,306</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>100</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>1,197,060</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>100</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>&nbsp;</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>&nbsp;</b></font></td>
    <td align="right" width=61> <font size="1"><b>&nbsp;</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>&nbsp;</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>&nbsp;</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>&nbsp;</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>21</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>CURRENT LIABILITIES</b></font></td>
    <td align="right" width=61> <font size="1"><b>478,919</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>29</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>328,630</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>27</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">22</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">SUPPLIERS</font></td>
    <td align="right" width=61> <font size="1">236,593</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">14</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">201,552</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">17</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">23</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">BANK LOANS</font></td>
    <td align="right" width=61> <font size="1">0</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">18,896</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">2</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">24</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">STOCK MARKET LOANS</font></td>
    <td align="right" width=61> <font size="1">3,446</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">3,303</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">25</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">TAXES TO BE PAID</font></td>
    <td align="right" width=61> <font size="1">110,905</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">7</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">39,356</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">3</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">26</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">OTHER CURRENT LIABILITIES</font></td>
    <td align="right" width=61> <font size="1">127,975</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">8</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">65,523</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">5</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>27</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>LONG-TERM LIABILITIES</b></font></td>
    <td align="right" width=61> <font size="1"><b>0</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>0</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>0</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>0</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">28</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">BANK LOANS</font></td>
    <td align="right" width=61> <font size="1">0</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">0</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">29</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">STOCK MARKET LOANS</font></td>
    <td align="right" width=61> <font size="1">0</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">0</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">30</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">OTHER LOANS</font></td>
    <td align="right" width=61> <font size="1">0</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">0</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>31</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>DEFERRED LOANS</b></font></td>
    <td align="right" width=61> <font size="1"><b>1,193,387</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>71</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>868,430</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>73</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>32</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>OTHER LIABILITIES</b></font></td>
    <td align="right" width=61> <font size="1"><b>0</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>0</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>0</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>0</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">&nbsp;</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">&nbsp;</font></td>
    <td align="right" width=61> <font size="1">&nbsp;</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">&nbsp;</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>33</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>CONSOLIDATED STOCKHOLDERS&#146; EQUITY</b></font></td>
    <td align="right" width=61> <font size="1"><b>5,277,708</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>100</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>4,416,153</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>100</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>&nbsp;</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>&nbsp;</b></font></td>
    <td align="right" width=61> <font size="1"><b>&nbsp;</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>&nbsp;</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>&nbsp;</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>&nbsp;</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>34</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>MINORITY INTEREST</b></font></td>
    <td align="right" width=61> <font size="1"><b>229</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>0</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>261</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>0</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>35</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>MAJORITY INTEREST</b></font></td>
    <td align="right" width=61> <font size="1"><b>5,277,479</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>100</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>4,415,892</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>100</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>36</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>CONTRIBUTED CAPITAL</b></font></td>
    <td align="right" width=61> <font size="1"><b>3,800,084</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>72</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>3,757,304</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>85</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">37</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">PAID-IN CAPITAL STOCK (NOMINAL)</font></td>
    <td align="right" width=61> <font size="1">1,948,155</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">37</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">1,755,676</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">40</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">38</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">RESTATEMENT OF PAID-IN CAPITAL STOCK</font></td>
    <td align="right" width=61> <font size="1">1,218,279</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">23</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">1,210,991</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">27</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">39</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">PREMIUM ON SALES OF SHARES</font></td>
    <td align="right" width=61> <font size="1">633,650</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">12</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">633,650</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">14</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">40</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES</font></td>
    <td align="right" width=61> <font size="1">0</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">156,987</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">4</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1"><b>41</b></font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1"><b>CAPITAL INCREASE (DECREASE)</b></font></td>
    <td align="right" width=61> <font size="1"><b>1,477,395</b></font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1"><b>28</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1"><b>658,588</b></font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1"><b>15</b></font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">42</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">RETAINES EARNINGS AND CAPITAL RESERVE</font></td>
    <td align="right" width=61> <font size="1">1,569,651</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">30</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">1,271,892</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">29</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">43</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">REPURCHASE FUND OF SHARES</font></td>
    <td align="right" width=61> <font size="1">81,376</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">2</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">81,376</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">2</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">44</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">EXCESS (SHORTFALL) IN RESTATEMENT </font></td>
    <td align="right" width=61>&nbsp;</td>
    <td align="left" width=30>&nbsp;</td>
    <td align="right" width=23>&nbsp;</td>
    <td align="left" width=14>&nbsp;</td>
    <td align="right" width=64>&nbsp;</td>
    <td align="left" width=21>&nbsp;</td>
    <td align="right" width=28>&nbsp;</td>
    <td align="left" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right">&nbsp;</td>
    <td width=24>&nbsp;</td>
    <td width=316><font size="1">OF STOCKHOLDERS EQUITY</font></td>
    <td align="right" width=61> <font size="1">&nbsp;</font><font size="1">(719,787</font></td>
    <td align="left" width=30><font size="1">)</font></td>
    <td align="right" width=23> <font size="1">&nbsp;</font><font size="1">(14</font></td>
    <td align="left" width=14><font size="1">)</font></td>
    <td align="right" width=64> <font size="1">&nbsp;</font><font size="1">(859,904</font></td>
    <td align="left" width=21><font size="1">)</font></td>
    <td align="right" width=28> <font size="1">&nbsp;</font><font size="1">(19</font></td>
    <td align="left" width=19><font size="1">)</font></td>
  </tr>
  <tr valign="bottom">
    <td width=20 align="right"> <font size="1">45</font></td>
    <td width=24>&nbsp;</td>
    <td width=316> <font size="1">NET INCOME FOR THE YEAR</font></td>
    <td align="right" width=61> <font size="1">546,155</font></td>
    <td align="right" width=30>&nbsp;</td>
    <td align="right" width=23> <font size="1">10</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=64> <font size="1">165,224</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=28> <font size="1">4</font></td>
    <td align="right" width=19>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;






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<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>


<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<p><table width=600><tr>
    <td  align=center><font size=1><B>CONSOLIDATED FINANCIAL STATEMENT<BR>
      </B>BREAKDOWN OF MAIN CATEGORIES<BR>
      (thousands of pesos)</font></td>
  </tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr valign="bottom">
    <td align="right" width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1"><b>REF</b></font><font size="1"><b>&nbsp;</b></font></td>
    <td valign=top width=9>&nbsp;</td>
    <td valign=top align="center" width=319> <font size="1"><b>CATEGORIES</b></font></td>
    <td colspan=4 valign=top align="center"> <font size="1"><b>QUARTER OF PRESENT</b></font><font size="1"><b><br>
      FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
    <td colspan=4 valign=top align="center"> <font size="1"><b>QUARTER OF PREVIOUS</b></font><font size="1"><b><br>
      FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="center" width=24> <font size="1"><b>S</b></font></td>
    <td valign=top width=9>&nbsp;</td>
    <td valign=top width=319> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=top align="right" width=77> <font size="1"><b>AMOUNT</b></font></td>
    <td valign=top align="right" width=19>&nbsp;</td>
    <td valign=top align="right" width=29> <font size="1"><b>%</b></font></td>
    <td valign=top align="right" width=14>&nbsp;</td>
    <td valign=top align="right" width=80> <font size="1"><b>AMOUNT</b></font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="right" width=24> <font size="1"><b>%</b></font></td>
    <td valign=top align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1"><b>3</b></font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1"><b>CASH AND SHORT-TERM INVESTMENTS</b></font></td>
    <td align="right" width=77> <font size="1"><b>1,145,490</b></font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1"><b>100</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1"><b>150,959</b></font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1"><b>100</b></font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">46</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">CASH</font></td>
    <td align="right" width=77> <font size="1">133,145</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">12</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">122,812</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">81</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">47</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">SHORT-TERM INVESTMENTS</font></td>
    <td align="right" width=77> <font size="1">1,012,345</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">88</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">28,147</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">19</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">&nbsp;</font></td>
    <td align="right" width=77> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">&nbsp;</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1"><b>18</b></font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1"><b>DEFERRED ASSETS (NET)</b></font></td>
    <td align="right" width=77> <font size="1"><b>243,593</b></font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1"><b>100</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1"><b>272,647</b></font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1"><b>100</b></font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">48</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">AMORTIZED OR REDEEMED EXPENSES</font></td>
    <td align="right" width=77> <font size="1">241,635</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">99</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">270,320</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">99</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">49</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">GOODWILL</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">50</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">DEFERRED TAXES</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">51</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">OTHERS</font></td>
    <td align="right" width=77> <font size="1">1,958</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">1</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">2,327</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">1</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">&nbsp;</font></td>
    <td align="right" width=77> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">&nbsp;</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1"><b>21</b></font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1"><b>CURRENT LIABILITIES</b></font></td>
    <td align="right" width=77> <font size="1"><b>478,919</b></font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1"><b>100</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1"><b>328,630</b></font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1"><b>100</b></font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">52</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">FOREIGN CURRENCY LIABILITIES</font></td>
    <td align="right" width=77> <font size="1">43,318</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">9</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">66,153</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">20</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">53</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">MEXICAN PESOS LIABILITIES</font></td>
    <td align="right" width=77> <font size="1">435,601</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">91</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">262,477</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">80</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">&nbsp;</font></td>
    <td align="right" width=77> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">&nbsp;</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1"><b>24</b></font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1"><b>STOCK MARKET LOANS</b></font></td>
    <td align="right" width=77> <font size="1"><b>3,446</b></font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1"><b>100</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1"><b>3,303</b></font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1"><b>100</b></font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">54</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">COMMERCIAL PAPER</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">55</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">CURRENT MATURITIES OF MEDIUM TERM NOTES</font></td>
    <td align="right" width=77> <font size="1">3,446</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">100</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">3,303</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">100</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">56</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">CURRENT MATURITIES OF BONDS</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">&nbsp;</font></td>
    <td align="right" width=77> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">&nbsp;</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1"><b>26</b></font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1"><b>OTHER CURRENT LIABILITIES</b></font></td>
    <td align="right" width=77> <font size="1"><b>127,975</b></font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1"><b>100</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1"><b>65,523</b></font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1"><b>100</b></font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">57</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">OTHER CURRENT LIABILITIES WITH COST</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">58</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">OTHER CURRENT LIABILITIES WITHOUT COST</font></td>
    <td align="right" width=77> <font size="1">127,975</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">100</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">65,523</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">100</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">&nbsp;</font></td>
    <td align="right" width=77> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">&nbsp;</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1"><b>27</b></font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1"><b>LONG-TERM LIABILITIES</b></font></td>
    <td align="right" width=77> <font size="1"><b>0</b></font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1"><b>0</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1"><b>0</b></font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1"><b>0</b></font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">59</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">FOREIGN CURRENCY LIABILITIES</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">60</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">MEXICAN PESOS LIABILITIES</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">&nbsp;</font></td>
    <td align="right" width=77> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">&nbsp;</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1"><b>29</b></font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1"><b>STOCK MARKET LOANS</b></font></td>
    <td align="right" width=77> <font size="1"><b>0</b></font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1"><b>0</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1"><b>0</b></font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1"><b>0</b></font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">61</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">BONDS</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">62</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">MEDIUM TERM NOTES</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">&nbsp;</font></td>
    <td align="right" width=77> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">&nbsp;</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1"><b>30</b></font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1"><b>OTHER LOANS</b></font></td>
    <td align="right" width=77> <font size="1"><b>0</b></font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1"><b>0</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1"><b>0</b></font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1"><b>0</b></font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">63</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">OTHER LOANS WITH COST</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">64</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">OTHER LOANS WITHOUT COST</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td width=9>&nbsp;&nbsp;</td>
    <td width=319> <font size="1">&nbsp;</font></td>
    <td align="right" width=77> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">&nbsp;</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1"><b>31</b></font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1"><b>DEFERRED LOANS</b></font></td>
    <td align="right" width=77> <font size="1"><b>1,193,387</b></font></td>
    <td align="right" width=19>&nbsp;&nbsp;</td>
    <td align="right" width=29> <font size="1"><b>100</b></font></td>
    <td align="right" width=14>&nbsp;&nbsp;</td>
    <td align="right" width=80> <font size="1"><b>868,430</b></font></td>
    <td align="right" width=9>&nbsp;&nbsp;</td>
    <td align="right" width=24> <font size="1"><b>100</b></font></td>
    <td align="right" width=16>&nbsp;&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">65</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">NEGATIVE GOODWILL</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">66</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">DEFERRED TAXES</font></td>
    <td align="right" width=77> <font size="1">1,183,667</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">99</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">859,004</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">99</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">67</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">OTHERS</font></td>
    <td align="right" width=77> <font size="1">9,720</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">1</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">9,426</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">1</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">&nbsp;</font></td>
    <td align="right" width=77> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">&nbsp;</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1"><b>32</b></font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1"><b>OTHER LIABILITIES</b></font></td>
    <td align="right" width=77> <font size="1"><b>0</b></font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1"><b>0</b></font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1"><b>0</b></font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1"><b>0</b></font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">68</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">RESERVES</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">69</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">OTHER LIABILITIES</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">&nbsp;</font></td>
    <td align="right" width=77> <font size="1">&nbsp;</font></td>
    <td align="right" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">&nbsp;</font></td>
    <td align="right" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24 valign="top"> <font size="1"><b>44</b></font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1"><b>EXCESS (SHORTFALL) IN RESTATEMENT OF STOCKHOLDERS&#146;
      EQUITY</b></font></td>
    <td align="right" width=77> <font size="1"><b>&nbsp;</b></font><font size="1"><b>(719,787</b></font></td>
    <td align="left" width=19><font size="1"><b>)</b></font></td>
    <td align="right" width=29> <font size="1"><b>&nbsp;</b></font><font size="1"><b>(100</b></font></td>
    <td align="left" width=14><font size="1"><b>)</b></font></td>
    <td align="right" width=80> <font size="1"><b>&nbsp;</b></font><font size="1"><b>(859,904</b></font></td>
    <td align="left" width=9><font size="1"><b>)</b></font></td>
    <td align="right" width=24> <font size="1"><b>&nbsp;</b></font><font size="1"><b>(100</b></font></td>
    <td align="left" width=16><font size="1"><b>)</b></font></td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">70</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">ACCUMULATED INCOME DUE TO MONETARY POSITION</font></td>
    <td align="right" width=77> <font size="1">(714,787</font></td>
    <td align="left" width=19><font size="1">)</font></td>
    <td align="right" width=29> <font size="1">(100</font></td>
    <td align="left" width=14><font size="1">)</font></td>
    <td align="right" width=80> <font size="1">(859,904</font></td>
    <td align="left" width=9><font size="1">)</font></td>
    <td align="right" width=24> <font size="1">(100</font></td>
    <td align="left" width=16><font size="1">)</font></td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=24> <font size="1">71</font></td>
    <td width=9>&nbsp;</td>
    <td width=319> <font size="1">INCOME FROM NON-MONETARY POSITION ASSETS</font></td>
    <td align="right" width=77> <font size="1">0</font></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=29> <font size="1">0</font></td>
    <td align="left" width=14>&nbsp;</td>
    <td align="right" width=80> <font size="1">0</font></td>
    <td align="left" width=9>&nbsp;</td>
    <td align="right" width=24> <font size="1">0</font></td>
    <td align="left" width=16>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=620 colspan="11">
      <hr width="100%" size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 4; page: 4" -->






<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>


<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td  align=center><b><font size="1">CONSOLIDATED FINANCIAL STATEMENT <br>
      </font></b><font size="1">OTHER CONCEPTS<br>
      (thousands of pesos)</font></td>
  </tr>
</table>
<br>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr valign="bottom">
    <td align="right" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=26> <font size="1"><b>REF</b></font><font size="1"><b>&nbsp;</b></font></td>
    <td valign=top width=1>&nbsp;</td>
    <td valign=top align="center" width=267> <font size="1"><b>CATEGORIES</b></font></td>
    <td valign=bottom align="center" colspan="2"> <font size="1"><b>QUARTER OF
      PRESENT</b></font><font size="1"><b><br>
      FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
    <td valign=bottom align="center" colspan="2"> <font size="1"><b>QUARTER OF
      PREVIOUS<br>
      </b></font><font size="1"><b>FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="center" width=26> <font size="1"><b>S</b></font></td>
    <td valign=top width=1>&nbsp;&nbsp;&nbsp;</td>
    <td valign=bottom align="center" width=267> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="center" colspan="2"> <font size="1"><b>AMOUNT</b></font></td>
    <td valign=bottom align="center" colspan="2"> <font size="1"><b>AMOUNT</b></font></td>
  </tr>
  <tr valign="bottom">
    <td align="right" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=26> <font size="1">72</font></td>
    <td width=1>&nbsp;</td>
    <td width=267> <font size="1">WORKING CAPITAL</font></td>
    <td align="right" width=100> <font size="1">1,745,097</font></td>
    <td align="right" width=58>&nbsp;&nbsp;&nbsp;</td>
    <td align="right" width=104> <font size="1">591,915</font></td>
    <td width=63>&nbsp;&nbsp;&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=26> <font size="1">73</font></td>
    <td width=1>&nbsp;</td>
    <td width=267> <font size="1">PENSIONS FUND AND SENIORITY PREMIUMS</font></td>
    <td align="right" width=100> <font size="1">0</font></td>
    <td align="right" width=58>&nbsp;</td>
    <td align="right" width=104> <font size="1">0</font></td>
    <td width=63>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=26> <font size="1">74</font></td>
    <td width=1>&nbsp;</td>
    <td width=267> <font size="1">EXECUTIVES (*)</font></td>
    <td align="right" width=100> <font size="1">22</font></td>
    <td align="right" width=58>&nbsp;</td>
    <td align="right" width=104> <font size="1">23</font></td>
    <td width=63>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=26> <font size="1">75</font></td>
    <td width=1>&nbsp;</td>
    <td width=267> <font size="1">EMPLOYERS (*)</font></td>
    <td align="right" width=100> <font size="1">349</font></td>
    <td align="right" width=58>&nbsp;</td>
    <td align="right" width=104> <font size="1">386</font></td>
    <td width=63>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=26> <font size="1">76</font></td>
    <td width=1>&nbsp;</td>
    <td width=267> <font size="1">WORKERS (*)</font></td>
    <td align="right" width=100> <font size="1">870</font></td>
    <td align="right" width=58>&nbsp;</td>
    <td align="right" width=104> <font size="1">916</font></td>
    <td width=63>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=26> <font size="1">77</font></td>
    <td width=1>&nbsp;</td>
    <td width=267> <font size="1">COMMON SHARES (*) </font></td>
    <td align="right" width=100> <font size="1">133,542,984</font></td>
    <td align="right" width=58>&nbsp;</td>
    <td align="right" width=104> <font size="1">120,348,855</font></td>
    <td width=63>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" width=26> <font size="1">78</font></td>
    <td width=1>&nbsp;</td>
    <td width=267> <font size="1">REPURCHASED SHARES (*)</font></td>
    <td align="right" width=100> <font size="1">0</font></td>
    <td align="right" width=58>&nbsp;</td>
    <td align="right" width=104> <font size="1">0</font></td>
    <td width=63>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="right" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td><font size="1">(*)&nbsp;&nbsp;&nbsp; THESE ITEMS SHOULD BE EXPRESSED IN
      UNITS</font></td>
  </tr>
</table>
<p>&nbsp; </p>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 5; page: 5" -->






<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td  align=center><b><font size="1">CONSOLIDATED EARNING STATEMENT<br>
      </font></b><font size="1">FROM JANUARY 1 TO JUNE 30 OF 2004 AND 2003<br>
      (thousands of pesos)</font></td>
  </tr>
</table>
<br>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr>
    <td valign=top height="22" align="right" width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=25> <font size="1"><b>REF</b></font><font size="1"><b>&nbsp;</b></font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325 align="center"> <b><font size="1">CATEGORIES</font></b></td>
    <td colspan=4 valign=top align="center"> <b><font size="1">QUARTER OF PRESENT<br>
      FINANCIAL YEAR </font></b>
      <hr width="90%" size="1" noshade>
    </td>
    <td colspan=4 valign=top align="center"> <b><font size="1">QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR </font></b>
      <hr width="90%" size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="center" width=25> <font size="1"><b>R</b></font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325 align="center"> <b><font size="1">&nbsp;</font></b></td>
    <td valign=top width=68 align="right"> <b><font size="1">AMOUNT</font></b></td>
    <td valign=top width=22 align="right">&nbsp;</td>
    <td valign=top width=25 align="right"> <b><font size="1">%</font></b></td>
    <td valign=top width=17 align="right">&nbsp;</td>
    <td valign=top width=62 align="right"> <b><font size="1">AMOUNT</font></b></td>
    <td valign=top width=23 align="right">&nbsp;</td>
    <td valign=top width=21 align="right"> <b><font size="1">%</font></b></td>
    <td valign=top width=22 align="right">&nbsp;</td>
  </tr>
  <tr>
    <td valign=top height="22" align="right" width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top height="22" align="right" width=25> <font size="1"><b>1</b></font></td>
    <td valign=top height="22" width=10>&nbsp;</td>
    <td valign=top height="22" width=325> <font size="1"><b>NET SALES</b></font></td>
    <td valign=top align="right" height="22" width=68> <font size="1"><b>2,199,346</b></font></td>
    <td valign=top align="left" height="22" width=22>&nbsp;&nbsp;</td>
    <td valign=top align="right" height="22" width=25> <font size="1"><b>100</b></font></td>
    <td valign=top align="left" height="22" width=17>&nbsp;&nbsp;</td>
    <td valign=top align="right" height="22" width=62> <font size="1"><b>1,322,998</b></font></td>
    <td valign=top align="left" height="22" width=23>&nbsp;&nbsp;</td>
    <td valign=top align="right" height="22" width=21> <font size="1"><b>100</b></font></td>
    <td valign=top align="left" height="22" width=22>&nbsp;&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1">2</font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1">COST OF SALES</font></td>
    <td valign=top align="right" width=68> <font size="1">1,293,672</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1">59</font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">870,180</font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">66</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1"><b>3</b></font></td>
    <td valign=top width=10>&nbsp;&nbsp;</td>
    <td valign=top width=325> <font size="1"><b>GROSS INCOME</b></font></td>
    <td valign=top align="right" width=68> <font size="1"><b>905,674</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1"><b>41</b></font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>452,818</b></font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>34</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1">4</font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1">OPERATING EXPENSES</font></td>
    <td valign=top align="right" width=68> <font size="1">232,118</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1">11</font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">239,844</font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">18</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1"><b>5</b></font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1"><b>OPERATING INCOME</b></font></td>
    <td valign=top align="right" width=68> <font size="1"><b>673,556</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1"><b>31</b></font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>211,974</b></font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>16</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1">6</font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1">TOTAL FINANCING COST</font></td>
    <td valign=top align="right" width=68> <font size="1">2,982</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1">0</font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">27,090</font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">2</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1"><b>7</b></font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1"><b>INCOME AFTER FINANCING COST</b></font></td>
    <td valign=top align="right" width=68> <font size="1"><b>670,574</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1"><b>30</b></font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>185,884</b></font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>14</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1">8</font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1">OTHER FINANCIAL OPERATIONS</font></td>
    <td valign=top align="right" width=68> <font size="1">(12,258</font></td>
    <td valign=top align="left" width=22><font size="1">)</font></td>
    <td valign=top align="right" width=25> <font size="1">(1</font></td>
    <td valign=top align="left" width=17><font size="1">)</font></td>
    <td valign=top align="right" width=62> <font size="1">(1,735</font></td>
    <td valign=top align="left" width=23><font size="1">)</font></td>
    <td valign=top align="right" width=21> <font size="1">0</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1"><b>9</b></font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1"><b>INCOME BEFORE TAXES AND WORKERS&#146;
      PROFIT SHARING</b></font></td>
    <td valign=top align="right" width=68> <font size="1"><b>682,832</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1"><b>31</b></font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>187,619</b></font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>14</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1">10</font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1">RESERVE FOR TAXES AND WORKERS&#146;
      PROFIT SHARING</font></td>
    <td valign=top align="right" width=68> <font size="1">136,677</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1">6</font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">22,395</font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">2</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1"><b>11</b></font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1"><b>NET INCOME AFTER TAXES AND WORKERS&#146;
      PROFIT SHARING</b></font></td>
    <td valign=top align="right" width=68> <font size="1"><b>546,155</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1"><b>25</b></font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>165,224</b></font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>12</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1">12</font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1">SHARE IN NET INCOME OF SUBSIDIARIES
      AND <br>
      NON-CONSOLIDATED ASSOCIATES</font></td>
    <td valign=top align="right" width=68> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1"><b>13</b></font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1"><b>CONSOLIDATED NET INCOME FROM CONTINUOS
      OPERATIONS</b></font></td>
    <td valign=top align="right" width=68> <font size="1"><b>&nbsp;</b></font><font size="1"><b>546,155</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1"><b>&nbsp;</b></font><font size="1"><b>25</b></font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>&nbsp;</b></font><font size="1"><b>165,224</b></font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>&nbsp;</b></font><font size="1"><b>12</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1">14</font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1">INCOME FROM DISCONTINUOUS OPERAATIONS</font></td>
    <td valign=top align="right" width=68> <font size="1">0</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1">0</font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">0</font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">0</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1"><b>15</b></font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1"><b>CONSOLIDATED NET INCOME BEFORE
      EXTRAORDINARY ITEMS</b></font></td>
    <td valign=top align="right" width=68> <font size="1"><b>&nbsp;</b></font><font size="1"><b>546,155</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1"><b>&nbsp;</b></font><font size="1"><b>25</b></font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>&nbsp;</b></font><font size="1"><b>165,224</b></font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>&nbsp;</b></font><font size="1"><b>12</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1">16</font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1">EXTRAORDINARY ITEMS NET EXPENSES
      (INCOME)</font></td>
    <td valign=top align="right" width=68> <font size="1">0</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1">0</font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">0</font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">0</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1">17</font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1">NET EFFECT AT THE BEGINNING OF THE
      YEAR BY CHANGES IN <br>
      ACCOUNTING PRINCIPLES</font></td>
    <td valign=top align="right" width=68> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1"><b>18</b></font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1"><b>NET CONSOLIDATED INCOME</b></font></td>
    <td valign=top align="right" width=68> <font size="1"><b>546,155</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1"><b>25</b></font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>165,224</b></font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>12</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <font size="1">19</font></td>
    <td valign=top width=10>&nbsp;</td>
    <td valign=top width=325> <font size="1">NET INCOME OF MINORITY INTEREST</font></td>
    <td valign=top align="right" width=68> <font size="1">0</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1">0</font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">9</font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">0</font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=25> <b><font size="1">20</font></b></td>
    <td valign=top width=10><b></b></td>
    <td valign=top width=325> <b><font size="1">NET INCOME OF MAJORITY INTEREST</font></b></td>
    <td valign=top align="right" width=68> <font size="1"><b>546,155</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
    <td valign=top align="right" width=25> <font size="1"><b>25</b></font></td>
    <td valign=top align="left" width=17>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>165,224</b></font></td>
    <td valign=top align="left" width=23>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>12</b></font></td>
    <td valign=top align="left" width=22>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<br>
<table width=600><tr>
    <td  align=center><font size=1><B>CONSOLIDATED EARNING STATEMENT<BR>
      </B>BREAKDOWN OF MAIN CONCEPTS<BR>
      (thousands of pesos)</font></td>
  </tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr>
    <td valign=top align="right" width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=28> <b><font size="1">REF&nbsp;</font></b></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293 align="center"> <b><font size="1">CATEGORIES</font></b></td>
    <td colspan=4 valign=top align="center"> <b><font size="1">QUARTER OF PRESENT<br>
      FINANCIAL YEAR </font></b>
      <hr width="90%" size="1" noshade>
    </td>
    <td colspan=4 valign=top align="center"> <b><font size="1">QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR </font></b>
      <hr width="90%" size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="center" width=28> <b><font size="1">R</font></b></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <b><font size="1">&nbsp;</font></b></td>
    <td valign=top align="right" width=74> <b><font size="1">AMOUNT</font></b></td>
    <td valign=top align="right" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <b><font size="1">%</font></b></td>
    <td valign=top align="right" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <b><font size="1">AMOUNT</font></b></td>
    <td valign=top align="right" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <b><font size="1">%</font></b></td>
    <td valign=top align="right" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1"><b>1</b></font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1"><b>NET SALES</b></font></td>
    <td valign=top align="right" width=74> <font size="1"><b>2,199,346</b></font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1"><b>100</b></font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>1,322,998</b></font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1"><b>100</b></font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">21</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">DOMESTIC</font></td>
    <td valign=top align="right" width=74> <font size="1">1,905,742</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">87</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">1,194,653</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">90</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">22</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">FOREIGN</font></td>
    <td valign=top align="right" width=74> <font size="1">293,604</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">13</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">128,345</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">10</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">23</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">TRANSLATED INTO DOLLARS (***)</font></td>
    <td valign=top align="right" width=74> <font size="1">26,130</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">0</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">11,494</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">0</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">&nbsp;</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">&nbsp;</font></td>
    <td valign=top align="right" width=74> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1"><b>6</b></font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1"><b>TOTAL FINANCING COST</b></font></td>
    <td valign=top align="right" width=74> <font size="1"><b>2,982</b></font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1"><b>100</b></font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>27,090</b></font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1"><b>100</b></font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">24</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">INTEREST PAID</font></td>
    <td valign=top align="right" width=74> <font size="1">14,221</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">477</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">16,929</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">62</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">25</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">EXCHANGE LOSSES</font></td>
    <td valign=top align="right" width=74> <font size="1">0</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">0</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">15,452</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">57</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">26</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">INTEREST EARNED</font></td>
    <td valign=top align="right" width=74> <font size="1">14,696</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">493</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">1,849</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">7</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">27</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">EXCHANGE PROFITS</font></td>
    <td valign=top align="right" width=74> <font size="1">7,794</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">261</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">0</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">0</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">28</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">(GAIN) LOSS FROM MONETARY POSITION</font></td>
    <td valign=top align="right" width=74> <font size="1">11,251</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">377</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">(3,442)</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">(13)</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">&nbsp;</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">&nbsp;</font></td>
    <td valign=top align="right" width=74> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1"><b>8</b></font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1"><b>OTHER FINANCIAL OPERATIONS</b></font></td>
    <td valign=top align="right" width=74> <font size="1"><b>(12,258</b></font></td>
    <td valign=top align="left" width=29><font size="1"><b>)</b></font></td>
    <td valign=top align="right" width=28> <font size="1"><b>(100</b></font></td>
    <td valign=top align="left" width=21><font size="1"><b>)</b></font></td>
    <td valign=top align="right" width=62> <font size="1"><b>(1,735</b></font></td>
    <td valign=top align="left" width=21><font size="1"><b>)</b></font></td>
    <td valign=top align="right" width=35> <font size="1"><b>(100</b></font></td>
    <td valign=top align="left" width=18><font size="1"><b>)</b></font></td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">29</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">OTHER NET EXPENSES (INCOME) NET</font></td>
    <td valign=top align="right" width=74> <font size="1">(12,258</font></td>
    <td valign=top align="left" width=29><font size="1">)</font></td>
    <td valign=top align="right" width=28> <font size="1">(100</font></td>
    <td valign=top align="left" width=21><font size="1">)</font></td>
    <td valign=top align="right" width=62> <font size="1">(1,735</font></td>
    <td valign=top align="left" width=21><font size="1">)</font></td>
    <td valign=top align="right" width=35> <font size="1">(100</font></td>
    <td valign=top align="left" width=18><font size="1">)</font></td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">30</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">(PROFIT) LOSS ON SALE OF OWN SHARES</font></td>
    <td valign=top align="right" width=74> <font size="1">0</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">0</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">0</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">0</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">31</font></td>
    <td valign=top width=11>&nbsp;&nbsp;</td>
    <td valign=top width=293> <font size="1">(PROFIT) LOSS ON SALE OF SHORT-TERM
      INVESTMENTS</font></td>
    <td valign=top align="right" width=74> <font size="1">0</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">0</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">0</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">0</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">&nbsp;</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">&nbsp;</font></td>
    <td valign=top align="right" width=74> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <b><font size="1">10</font></b></td>
    <td valign=top width=11><b></b></td>
    <td valign=top width=293> <b><font size="1">RESERVE FOR TAXES AND WORKERS&#146;
      PROFIT SHARING</font></b></td>
    <td valign=top align="right" width=74> <font size="1"><b>136,677</b></font></td>
    <td valign=top align="left" width=29>&nbsp;&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1"><b>100</b></font></td>
    <td valign=top align="left" width=21>&nbsp;&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1"><b>22,395</b></font></td>
    <td valign=top align="left" width=21>&nbsp;&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1"><b>100</b></font></td>
    <td valign=top align="left" width=18>&nbsp;&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">32</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">INCOME TAX</font></td>
    <td valign=top align="right" width=74> <font size="1">14,354</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">11</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">16,162</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">72</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">33</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">DEFERRED INCOME TAX</font></td>
    <td valign=top align="right" width=74> <font size="1">122,323</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">89</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">5,482</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">24</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">34</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">WORKERS&#146; PROFIT SHARING</font></td>
    <td valign=top align="right" width=74> <font size="1">0</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">0</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">751</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">3</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=28> <font size="1">35</font></td>
    <td valign=top width=11>&nbsp;</td>
    <td valign=top width=293> <font size="1">DEFERRED WORKERS&#146; PROFIT SHARING</font></td>
    <td valign=top align="right" width=74> <font size="1">0</font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=28> <font size="1">0</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=62> <font size="1">0</font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
    <td valign=top align="right" width=35> <font size="1">0</font></td>
    <td valign=top align="left" width=18>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="left">
    <td><font size="1">(***) THOUSANDS OF DOLLARS </font></td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 7; page: 7" -->




<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<p><table width=600><tr><td  align=center><font size=2><B>CONSOLIDATED EARNING STATEMENT<BR>
OTHER CONCEPTS<BR>(thousands of pesos)</B></font></td></tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr>
    <td valign=top colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="center" width=40> <font size="1"><b>REF</b></font><font size="1"><b>&nbsp;</b></font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="center" width=284> <font size="1"><b>CATEGORIES</b></font></td>
    <td valign=top align="center" colspan="2"> <font size="1"><b>QUARTER OF PRESENT</b></font><font size="1"><b><br>
      FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
    <td valign=top align="center" colspan="2"> <font size="1"><b>QUARTER OF PREVIOUS<br>
      </b></font><font size="1"><b>FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="center" width=40> <font size="1"><b>R</b></font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top width=284> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=top align="center" colspan="2"> <font size="1"><b>AMOUNT</b></font></td>
    <td valign=top align="center" colspan="2"> <font size="1"><b>AMOUNT</b></font></td>
  </tr>
  <tr>
    <td valign=top colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="right" width=40> <font size="1">36</font></td>
    <td valign=top width=24>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=284> <font size="1">TOTAL SALES</font></td>
    <td valign=top align="right" width=85> <font size="1">2,319,897</font></td>
    <td valign=top align="right" width=47>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top align="right" width=91> <font size="1">1,396,819</font></td>
    <td valign=top width=49>&nbsp;&nbsp;&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=40> <font size="1">37</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top width=284> <font size="1">NET FISCAL INCOME OF THE YEAR</font></td>
    <td valign=top align="right" width=85> <font size="1">0</font></td>
    <td valign=top align="right" width=47>&nbsp;</td>
    <td valign=top align="right" width=91> <font size="1">0</font></td>
    <td valign=top width=49>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=40> <font size="1">38</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top width=284> <font size="1">NET SALES (**)</font></td>
    <td valign=top align="right" width=85> <font size="1">3,709,198</font></td>
    <td valign=top align="right" width=47>&nbsp;</td>
    <td valign=top align="right" width=91> <font size="1">2,478,219</font></td>
    <td valign=top width=49>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=40> <font size="1">39</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top width=284> <font size="1">OPERATION INCOME (**)</font></td>
    <td valign=top align="right" width=85> <font size="1">960,864</font></td>
    <td valign=top align="right" width=47>&nbsp;</td>
    <td valign=top align="right" width=91> <font size="1">357,105</font></td>
    <td valign=top width=49>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=40> <font size="1">40</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top width=284> <font size="1">NET INCOME OF MAJORITY INTEREST (**)</font></td>
    <td valign=top align="right" width=85> <font size="1">678,061</font></td>
    <td valign=top align="right" width=47>&nbsp;</td>
    <td valign=top align="right" width=91> <font size="1">285,400</font></td>
    <td valign=top width=49>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=40> <font size="1">41</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top width=284> <font size="1">NET CONSOLIDATED INCOME (**)</font></td>
    <td valign=top align="right" width=85> <font size="1">678,062</font></td>
    <td valign=top align="right" width=47>&nbsp;</td>
    <td valign=top align="right" width=91> <font size="1">285,400</font></td>
    <td valign=top width=49>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 8; page: 8" -->







<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<br>
<table width=600><tr>
    <td  align=center><font size=1><B>CONSOLIDATED EARNING STATEMENTOF THE SECOND
      QUARTER<BR>
      </B>FROM APRIL 1 TO JUNE 30 OF 2004 AND 2003<BR>
      (thousands of pesos)</font></td>
  </tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr>
    <td valign=top width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=26> <font size="1"><b>REF</b></font><font size="1"><b>&nbsp;</b></font></td>
    <td valign=top width=1>&nbsp;</td>
    <td valign=top align="center" width=336> <font size="1"><b>CATEGORIES</b></font></td>
    <td colspan=4 valign=bottom align="center"> <font size="1"><b>QUARTER OF PRESENT</b></font><font size="1"><b><br>
      FINANCIAL YEAR </b></font>
      <hr size="1" noshade width="90%">
    </td>
    <td colspan=4 valign=bottom align="center"> <font size="1"><b>QUARTER OF PREVIOUS<br>
      </b></font><font size="1"><b>FINANCIAL YEAR </b></font>
      <hr size="1" noshade width="90%">
    </td>
  </tr>
  <tr>
    <td valign=top width=26><font size="1"><b>R</b></font></td>
    <td valign=top width=1>&nbsp;</td>
    <td valign=top width=336>&nbsp;</td>
    <td valign=top align="right" width=63><font size="1"><b>AMOUNT</b></font></td>
    <td valign=top align="left" width=29>&nbsp;</td>
    <td valign=top align="right" width=26><font size="1"><b>%</b></font></td>
    <td valign=top align="left" width=12>&nbsp;</td>
    <td valign=top align="right" width=62><font size="1"><b>AMOUNT</b></font></td>
    <td valign=top align="left" width=26>&nbsp;</td>
    <td valign=top align="right" width=18><font size="1"><b>%</b></font></td>
    <td valign=top align="left" width=21>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1"><b>1</b></font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1"><b>NET SALES</b></font></td>
    <td align="right" width=63> <font size="1"><b>1,234,454</b></font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1"><b>100</b></font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1"><b>712,449</b></font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1"><b>100</b></font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1">2</font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1">COST OF SALES</font></td>
    <td align="right" width=63> <font size="1">655,206</font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1">53</font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1">465,498</font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1">65</font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1"><b>3</b></font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1"><b>GROSS INCOME</b></font></td>
    <td align="right" width=63> <font size="1"><b>579,248</b></font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1"><b>47</b></font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1"><b>246,951</b></font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1"><b>35</b></font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1">4</font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1">OPERATING EXPENSES</font></td>
    <td align="right" width=63> <font size="1">115,626</font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1">9</font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1">119,933</font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1">17</font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1"><b>5</b></font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1"><b>OPERATING INCOME</b></font></td>
    <td align="right" width=63> <font size="1"><b>463,622</b></font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1"><b>38</b></font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1"><b>127,018</b></font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1"><b>18</b></font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1">6</font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1">TOTAL FINANCING COST</font></td>
    <td align="right" width=63> <font size="1">(12,650</font></td>
    <td align="left" width=29><font size="1">)</font></td>
    <td align="right" width=26> <font size="1">(1</font></td>
    <td align="left" width=12><font size="1">)</font></td>
    <td align="right" width=62> <font size="1">(2,038</font></td>
    <td align="left" width=26><font size="1">)</font></td>
    <td align="right" width=18> <font size="1">0</font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1"><b>7</b></font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1"><b>INCOME AFTER FINANCING COST</b></font></td>
    <td align="right" width=63> <font size="1"><b>476,272</b></font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1"><b>39</b></font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1"><b>129,056</b></font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1"><b>18</b></font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1">8</font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1">OTHER FINANCIAL OPERATIONS</font></td>
    <td align="right" width=63> <font size="1">(2,820</font></td>
    <td align="left" width=29><font size="1">)</font></td>
    <td align="right" width=26> <font size="1">0</font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1">(769</font></td>
    <td align="left" width=26><font size="1">)</font></td>
    <td align="right" width=18> <font size="1">0</font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1"><b>9</b></font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1"><b>INCOME BEFORE TAXES AND WORKERS&#146; PROFIT
      SHARING</b></font></td>
    <td align="right" width=63> <font size="1"><b>479,092</b></font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1"><b>39</b></font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1"><b>128,825</b></font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1"><b>18</b></font></td>
    <td align="left" width=21>&nbsp;&nbsp;&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1">10</font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1">RESERVE FOR TAXES AND WORKERS&#146; PROFIT SHARING</font></td>
    <td align="right" width=63> <font size="1">199,127</font></td>
    <td align="left" width=29>&nbsp;&nbsp;&nbsp;</td>
    <td align="right" width=26> <font size="1">16</font></td>
    <td align="left" width=12>&nbsp;&nbsp;&nbsp;</td>
    <td align="right" width=62> <font size="1">44,096</font></td>
    <td align="left" width=26>&nbsp;&nbsp;&nbsp;</td>
    <td align="right" width=18> <font size="1">6</font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1"><b>11</b></font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1"><b>NET INCOME AFTER TAXES AND WORKERS&#146;
      PROFIT SHARING</b></font></td>
    <td align="right" width=63> <font size="1"><b>279,965</b></font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1"><b>23</b></font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1"><b>85,729</b></font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1"><b>12</b></font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1">12</font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1">SHARE IN NET INCOME OF SUBSIDIARIES AND <br>
      NON-CONSOLIDATED ASSOCIATES</font></td>
    <td align="right" width=63> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1"><b>13</b></font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1"><b>CONSOLIDATED NET INCOME FROM CONTINUOS OPERATIONS</b></font></td>
    <td align="right" width=63> <font size="1"><b>&nbsp;</b></font><font size="1"><b>279,965</b></font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1"><b>&nbsp;</b></font><font size="1"><b>23</b></font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1"><b>&nbsp;</b></font><font size="1"><b>85,729</b></font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1"><b>&nbsp;</b></font><font size="1"><b>12</b></font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1">14</font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1">INCOME FROM DISCONTINUOUS OPERAATIONS</font></td>
    <td align="right" width=63> <font size="1">0</font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1">0</font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1">0</font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1">0</font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1"><b>15</b></font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1"><b>CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY
      ITEMS</b></font></td>
    <td align="right" width=63> <font size="1"><b>&nbsp;</b></font><font size="1"><b>279,965</b></font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1"><b>&nbsp;</b></font><font size="1"><b>23</b></font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1"><b>&nbsp;</b></font><font size="1"><b>85,729</b></font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1"><b>&nbsp;</b></font><font size="1"><b>12</b></font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1">16</font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1">EXTRAORDINARY ITEMS NET EXPENSES (INCOME)</font></td>
    <td align="right" width=63> <font size="1">0</font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1">0</font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1">0</font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1">0</font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1">17</font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1">NET EFFECT AT THE BEGINNING OF THE YEAR BY CHANGES
      <br>
      IN ACCOUNTING PRINCIPLES</font></td>
    <td align="right" width=63> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1">&nbsp;</font><font size="1">0</font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1"><b>18</b></font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1"><b>NET CONSOLIDATED INCOME</b></font></td>
    <td align="right" width=63> <font size="1"><b>279,965</b></font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1"><b>23</b></font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1"><b>85,729</b></font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1"><b>12</b></font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <font size="1">19</font></td>
    <td width=1>&nbsp;</td>
    <td width=336> <font size="1">NET INCOME OF MINORITY INTEREST</font></td>
    <td align="right" width=63> <font size="1">1</font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1">0</font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1">9</font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1">0</font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=26> <b><font size="1">20</font></b></td>
    <td width=1><b></b></td>
    <td width=336> <b><font size="1">NET INCOME OF MAJORITY INTEREST</font></b></td>
    <td align="right" width=63> <font size="1"><b>279,965</b></font></td>
    <td align="left" width=29>&nbsp;</td>
    <td align="right" width=26> <font size="1"><b>23</b></font></td>
    <td align="left" width=12>&nbsp;</td>
    <td align="right" width=62> <font size="1"><b>85,729</b></font></td>
    <td align="left" width=26>&nbsp;</td>
    <td align="right" width=18> <font size="1"><b>12</b></font></td>
    <td align="left" width=21>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<br>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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<!-- MARKER PAGE="sheet: 9; page: 9" -->







<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<br>
<table width=600><tr>
    <td  align=center><font size=1><B>CONSOLIDATED EARNING STATEMENT OF THE SECOND
      QUARTER<BR>
      </B>BREAKDOWN OF MAIN CONCEPTS<BR>
      FROM APRIL 1 TO JUNE 30 OF 2004 AND 2003<BR>
      (thousands of pesos)</font></td>
  </tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr>
    <td valign=top align="right" width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="center" width=30> <font size="1"><b>REF</b></font><font size="1"><b>&nbsp;</b></font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top align="center" width=296> <font size="1"><b>CATEGORIES</b></font></td>
    <td colspan=4 valign=top align="center"> <font size="1"><b>QUARTER OF PRESENT</b></font><font size="1"><b><br>
      FINANCIAL YEAR</b></font>
      <hr size="1" noshade width="90%">
    </td>
    <td colspan=4 valign=top align="center"> <font size="1"><b>QUARTER OF PREVIOUS<br>
      </b></font><font size="1"><b>FINANCIAL YEAR</b></font>
      <hr size="1" noshade width="90%">
    </td>
  </tr>
  <tr>
    <td valign=top align="center" width=30> <font size="1"><b>R</b></font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=top align="right" width=73> <font size="1"><b>AMOUNT</b></font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>%</b></font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1"><b>AMOUNT</b></font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1"><b>%</b></font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1"><b>1</b></font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1"><b>NET SALES</b></font></td>
    <td valign=top align="right" width=73> <font size="1"><b>1,234,454</b></font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>100</b></font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1"><b>712,449</b></font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1"><b>100</b></font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">21</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">DOMESTIC</font></td>
    <td valign=top align="right" width=73> <font size="1">1,065,238</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">86</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">648,954</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">91</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">22</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">FOREIGN</font></td>
    <td valign=top align="right" width=73> <font size="1">169,216</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">14</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">63,495</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">9</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">23</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">TRANSLATED INTO DOLLARS (***)</font></td>
    <td valign=top align="right" width=73> <font size="1">14,850</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">0</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">5,517</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">0</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">&nbsp;</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">&nbsp;</font></td>
    <td valign=top align="right" width=73> <font size="1">&nbsp;</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">&nbsp;</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">&nbsp;</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">&nbsp;</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1"><b>6</b></font></td>
    <td valign=top width=12>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=296> <font size="1"><b>TOTAL FINANCING COST</b></font></td>
    <td valign=top align="right" width=73> <font size="1"><b>(12,650</b></font></td>
    <td valign=top width=28><font size="1"><b>)</b></font></td>
    <td valign=top align="right" width=21> <font size="1"><b>100</b></font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1"><b>(2,038</b></font></td>
    <td valign=top width=18><font size="1"><b>)</b></font></td>
    <td valign=top align="right" width=23> <font size="1"><b>100</b></font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">24</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">INTEREST PAID</font></td>
    <td valign=top align="right" width=73> <font size="1">7,928</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">63</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">10,720</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">526</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">25</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">EXCHANGE LOSSES</font></td>
    <td valign=top align="right" width=73> <font size="1">0</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">0</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">6,646</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">61</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">26</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">INTEREST EARNED</font></td>
    <td valign=top align="right" width=73> <font size="1">12,615</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">100</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">1,849</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">91</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">27</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">EXCHANGE PROFITS</font></td>
    <td valign=top align="right" width=73> <font size="1">8,141</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">64</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">11,234</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">551</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">28</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">GAIN FROM MONETARY POSITION</font></td>
    <td valign=top align="right" width=73> <font size="1">178</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">1</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">325</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">16</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">&nbsp;</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">&nbsp;</font></td>
    <td valign=top align="right" width=73> <font size="1">&nbsp;</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">&nbsp;</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">&nbsp;</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">&nbsp;</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1"><b>8</b></font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1"><b>OTHER FINANCIAL OPERATIONS</b></font></td>
    <td valign=top align="right" width=73> <font size="1"><b>(2,820</b></font></td>
    <td valign=top width=28><font size="1"><b>)</b></font></td>
    <td valign=top align="right" width=21> <font size="1"><b>(100</b></font></td>
    <td valign=top width=24><font size="1"><b>)</b></font></td>
    <td valign=top align="right" width=71> <font size="1"><b>(769</b></font></td>
    <td valign=top width=18><font size="1"><b>)</b></font></td>
    <td valign=top align="right" width=23> <font size="1"><b>(100</b></font></td>
    <td valign=top width=24><font size="1"><b>)</b></font></td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">29</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">OTHER NET EXPENSES (INCOME) NET</font></td>
    <td valign=top align="right" width=73> <font size="1">(2,820</font></td>
    <td valign=top width=28><font size="1">)</font></td>
    <td valign=top align="right" width=21> <font size="1">(100</font></td>
    <td valign=top width=24><font size="1">)</font></td>
    <td valign=top align="right" width=71> <font size="1">(769</font></td>
    <td valign=top width=18><font size="1">)</font></td>
    <td valign=top align="right" width=23> <font size="1">(100</font></td>
    <td valign=top width=24><font size="1">)</font></td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">30</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">(PROFIT) LOSS ON SALE OF OWN SHARES</font></td>
    <td valign=top align="right" width=73> <font size="1">0</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">0</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">0</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">0</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">31</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">(PROFIT) LOSS ON SALE OF SHORT-TERM
      INVESTMENTS</font></td>
    <td valign=top align="right" width=73> <font size="1">0</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">0</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">0</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">0</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">&nbsp;</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">&nbsp;</font></td>
    <td valign=top align="right" width=73> <font size="1">&nbsp;</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">&nbsp;</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">&nbsp;</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">&nbsp;</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <b><font size="1">10</font></b></td>
    <td valign=top width=12><b></b></td>
    <td valign=top width=296> <b><font size="1">RESERVE FOR TAXES AND WORKERS&#146;
      PROFIT SHARING</font></b></td>
    <td valign=top align="right" width=73> <font size="1"><b>199,127</b></font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1"><b>100</b></font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1"><b>44,096</b></font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1"><b>100</b></font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">32</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">INCOME TAX</font></td>
    <td valign=top align="right" width=73> <font size="1">7,157</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">4</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">8,033</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">18</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">33</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">DEFERRED INCOME TAX</font></td>
    <td valign=top align="right" width=73> <font size="1">192,270</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">97</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">35,687</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">81</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">34</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">WORKERS&#146; PROFIT SHARING</font></td>
    <td valign=top align="right" width=73> <font size="1">(300</font></td>
    <td valign=top width=28><font size="1">)</font></td>
    <td valign=top align="right" width=21> <font size="1">0</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">376</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">1</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=30> <font size="1">35</font></td>
    <td valign=top width=12>&nbsp;</td>
    <td valign=top width=296> <font size="1">DEFERRED WORKERS&#146; PROFIT SHARING</font></td>
    <td valign=top align="right" width=73> <font size="1">0</font></td>
    <td valign=top width=28>&nbsp;</td>
    <td valign=top align="right" width=21> <font size="1">0</font></td>
    <td valign=top width=24>&nbsp;</td>
    <td valign=top align="right" width=71> <font size="1">0</font></td>
    <td valign=top width=18>&nbsp;</td>
    <td valign=top align="right" width=23> <font size="1">0</font></td>
    <td valign=top width=24>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=620 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="left">
    <td><font size="1">(***) THOUSANDS OF DOLLARS </font></td>
  </tr>
</table>
<br>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 10; page: 10" -->







<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<p><table width=600><tr>
    <td  align=center><font size=1><B>CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL
      POSITION<BR>
      </B>FROM JANUARY 1 TO JUNE 30 OF 2004 AND 2003<BR>
      (thousands of pesos)</font></td>
  </tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr>
    <td valign=top align="right" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="center" width=27> <font size="1"><b>REF</b></font><font size="1"><b>&nbsp;</b></font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top align="center" width=324> <font size="1"><b>CATEGORIES</b></font></td>
    <td valign=top align="center" colspan="2"> <font size="1"><b>QUARTER OF PRESENT</b></font><font size="1"><b><br>
      FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
    <td valign=top align="center" colspan="2"> <font size="1"><b>QUARTER OF PREVIOUS<br>
      </b></font><font size="1"><b>FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="center" width=27> <font size="1"><b>C</b></font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top align="center" width=324> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=top align="center" colspan="2"> <font size="1"><b>AMOUNT</b></font></td>
    <td valign=top align="center" colspan="2"> <font size="1"><b>AMOUNT</b></font></td>
  </tr>
  <tr>
    <td valign=top align="right" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1"><b>1</b></font></td>
    <td valign=top width=16>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top width=324> <font size="1"><b>CONSOLIDATED NET INCOME</b></font></td>
    <td valign=top align="right" width=85> <font size="1"><b>546,155</b></font></td>
    <td valign=top align="left" width=35>&nbsp;</td>
    <td valign=top align="right" width=83> <font size="1"><b>165,224</b></font></td>
    <td valign=top align="left" width=50>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1">2</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=324> <font size="1">+ (-) ITEMS ADDED TO INCOME WHICH
      DO NOT REQUIRE CASH</font></td>
    <td valign=top align="right" width=85> <font size="1">217,001</font></td>
    <td valign=top align="left" width=35>&nbsp;</td>
    <td valign=top align="right" width=83> <font size="1">97,448</font></td>
    <td valign=top align="left" width=50>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1"><b>3</b></font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=324> <font size="1"><b>CASH FLOW FROM NET INCOME OF THE
      YEAR</b></font></td>
    <td valign=top align="right" width=85> <font size="1"><b>763,156</b></font></td>
    <td valign=top align="left" width=35>&nbsp;</td>
    <td valign=top align="right" width=83> <font size="1"><b>262,672</b></font></td>
    <td valign=top align="left" width=50>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1">4</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=324> <font size="1">CASH FLOW FROM CHANGE IN WORKING
      CAPITAL</font></td>
    <td valign=top align="right" width=85> <font size="1">(154,089</font></td>
    <td valign=top align="left" width=35><font size="1">)</font></td>
    <td valign=top align="right" width=83> <font size="1">(224,590</font></td>
    <td valign=top align="left" width=50><font size="1">)</font></td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1"><b>5</b></font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=324> <font size="1"><b>CASH GENERATED (USED) IN OPERATING
      ACTIVITIES</b></font></td>
    <td valign=top align="right" width=85> <font size="1"><b>609,067</b></font></td>
    <td valign=top align="left" width=35>&nbsp;</td>
    <td valign=top align="right" width=83> <font size="1"><b>38,082</b></font></td>
    <td valign=top align="left" width=50>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1">6</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=324> <font size="1">CASH FLOW FROM EXTERNAL FINANCING</font></td>
    <td valign=top align="right" width=85> <font size="1">(19,391</font></td>
    <td valign=top align="left" width=35><font size="1">)</font></td>
    <td valign=top align="right" width=83> <font size="1">(341,601</font></td>
    <td valign=top align="left" width=50><font size="1">)</font></td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1">7</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=324> <font size="1">CASH FLOW FROM INTERNAL FINANCING</font></td>
    <td valign=top align="right" width=85> <font size="1">22,940</font></td>
    <td valign=top align="left" width=35>&nbsp;</td>
    <td valign=top align="right" width=83> <font size="1">344,397</font></td>
    <td valign=top align="left" width=50>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1"><b>8</b></font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=324> <font size="1"><b>CASH FLOW GENERATED (USED) BY
      FINANCING</b></font></td>
    <td valign=top align="right" width=85> <font size="1"><b>3,549</b></font></td>
    <td valign=top align="left" width=35>&nbsp;</td>
    <td valign=top align="right" width=83> <font size="1"><b>2,796</b></font></td>
    <td valign=top align="left" width=50>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1"><b>9</b></font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=324> <font size="1"><b>CASH FLOW GENERATED (USED) IN
      INVESTMENT ACTIVITIES</b></font></td>
    <td valign=top align="right" width=85> <font size="1"><b>8,309</b></font></td>
    <td valign=top align="left" width=35>&nbsp;</td>
    <td valign=top align="right" width=83> <font size="1"><b>(5,165</b></font></td>
    <td valign=top align="left" width=50><font size="1"><b>)</b></font></td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1">10</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=324> <font size="1">NET INCREASE (DECREASE) IN CASH AND
      SHORT-TERM INVESTMENTS</font></td>
    <td valign=top align="right" width=85> <font size="1">&nbsp;</font><font size="1">620,925</font></td>
    <td valign=top align="left" width=35>&nbsp;</td>
    <td valign=top align="right" width=83> <font size="1">&nbsp;</font><font size="1">35,713</font></td>
    <td valign=top align="left" width=50>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1">11</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=324> <font size="1">CASH AND SHORT-TERM INVESTMENTS AT
      THE BEGINNING OF PERIOD</font></td>
    <td valign=top align="right" width=85> <font size="1">&nbsp;</font><font size="1">524,565</font></td>
    <td valign=top align="left" width=35>&nbsp;</td>
    <td valign=top align="right" width=83> <font size="1">&nbsp;</font><font size="1">115,246</font></td>
    <td valign=top align="left" width=50>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=27> <font size="1">12</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td valign=top width=324> <font size="1">CASH AND SHORT TERM INVESTMENTS AT
      THE END OF PERIOD</font></td>
    <td valign=top align="right" width=85> <font size="1">1,145,490</font></td>
    <td valign=top align="left" width=35>&nbsp;</td>
    <td valign=top align="right" width=83> <font size="1">150,959</font></td>
    <td valign=top align="left" width=50>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top align="right" width=620 colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 11; page: 11" -->






<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<p><table width=600><tr>
    <td  align=center><font size=1><B>CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL
      POSITION<BR>
      </B>BREAKDOWN OF MAIN CONCEPTS<BR>
      (thousands of pesos)</font></td>
  </tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr>
    <td valign=top width=640 colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=25 align="center"> <font size="1"><b>REF&nbsp;</b></font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=340> <font size="1"><b>CATEGORIES</b></font></td>
    <td valign=top colspan="2" align="center"> <font size="1"><b>QUARTER OF PRESENT<br>
      FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
    <td valign=top colspan="2" align="center"> <font size="1"><b>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=25 align="center"> <font size="1"><b>C</b></font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top align="center" width=340> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=top colspan="2" align="center"> <font size="1"><b>AMOUNT</b></font></td>
    <td valign=top colspan="2" align="center"> <font size="1"><b>AMOUNT</b></font></td>
  </tr>
  <tr>
    <td valign=top width=640 colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1"><b>2</b></font></td>
    <td valign=top width=8><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td valign=top width=340> <font size="1"><b>+ (-) ITEMS ADDED TO INCOME WHICH
      DO NOT REQUIRE CASH</b></font></td>
    <td valign=top align="right" width=83> <font size="1"><b>&nbsp;217,001</b></font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1"><b>&nbsp;97,448</b></font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">13</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">DEPRECIATION AND AMORTIZATION FOR
      THE YEAR</font></td>
    <td valign=top align="right" width=83> <font size="1">94,678</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">91,966</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">14</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) NET INCREASE (DECREASE) IN
      PENSIONS FUND AND<br>
      SENIORITY PREMIUMS</font></td>
    <td valign=top align="right" width=83> <font size="1">&nbsp;0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">&nbsp;0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">15</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) NET LOSS (PROFIT) IN MONEY
      EXCHANGE</font></td>
    <td valign=top align="right" width=83> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">16</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) NET LOSS (PROFIT) IN ASSETS
      AND LIABILITIES ACTUALIZATION</font></td>
    <td valign=top align="right" width=83> <font size="1">&nbsp;0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">&nbsp;0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">17</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) OTHER ITEMS</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">40</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) OTHER ITEMS WHICH DO NOT AFFECT
      EBITDA</font></td>
    <td valign=top align="right" width=83> <font size="1">122,323</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">5,482</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">&nbsp;</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">&nbsp;</font></td>
    <td valign=top align="right" width=83> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1"><b>4</b></font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1"><b>CASH FLOW CHANGE IN WORKING CAPITAL</b></font></td>
    <td valign=top align="right" width=83> <font size="1"><b>(154,089</b></font></td>
    <td valign=top align="left" width=46><font size="1"><b>)</b></font></td>
    <td valign=top align="right" width=84> <font size="1"><b>(224,590</b></font></td>
    <td valign=top align="left" width=54><font size="1"><b>)</b></font></td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">18</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) DECREASE (INCREASE) IN ACCOUNT
      RECEIVABLES</font></td>
    <td valign=top align="right" width=83> <font size="1">(199,253</font></td>
    <td valign=top align="left" width=46><font size="1">)</font></td>
    <td valign=top align="right" width=84> <font size="1">(5,578</font></td>
    <td valign=top align="left" width=54><font size="1">)</font></td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">19</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) DECREASE (INCREASE) IN INVENTORIES</font></td>
    <td valign=top align="right" width=83> <font size="1">(55,856</font></td>
    <td valign=top align="left" width=46><font size="1">)</font></td>
    <td valign=top align="right" width=84> <font size="1">(9,124</font></td>
    <td valign=top align="left" width=54><font size="1">)</font></td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">20</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) DECREASE (INCREASE) IN OTHER
      ACCOUNT RECEIVABLES</font></td>
    <td valign=top align="right" width=83> <font size="1">(67,492</font></td>
    <td valign=top align="left" width=46><font size="1">)</font></td>
    <td valign=top align="right" width=84> <font size="1">21,015</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">21</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) DECREASE (INCREASE) IN SUPPLIER
      ACCOUNT</font></td>
    <td valign=top align="right" width=83> <font size="1">26,265</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">(18,619</font></td>
    <td valign=top align="left" width=54><font size="1">)</font></td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">22</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) DECREASE (INCREASE) IN OTHER
      LIABILITIES</font></td>
    <td valign=top align="right" width=83> <font size="1">142,247</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">(212,284</font></td>
    <td valign=top align="left" width=54><font size="1">)</font></td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">&nbsp;</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">&nbsp;</font></td>
    <td valign=top align="right" width=83> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1"><b>6</b></font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1"><b>CASH FLOW FROM EXTERNAL FINANCING</b></font></td>
    <td valign=top align="right" width=83> <font size="1"><b>(19,391</b></font></td>
    <td valign=top align="left" width=46><font size="1"><b>)</b></font></td>
    <td valign=top align="right" width=84> <font size="1"><b>(341,601</b></font></td>
    <td valign=top align="left" width=54><font size="1"><b>)</b></font></td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">23</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ SHORT-TERM BANK AND STOCK MARKET
      FINANCING</font></td>
    <td valign=top align="right" width=83> <font size="1">(638</font></td>
    <td valign=top align="left" width=46><font size="1">)</font></td>
    <td valign=top align="right" width=84> <font size="1">619</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">24</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ LONG-TERM BANK AND STOCK MARKET
      FINANCING</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">25</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ DIVIDEND RECEIVED</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">26</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">OTHER FINANCING</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">27</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">BANK FINANCING AMORTIZATION</font></td>
    <td valign=top align="right" width=83> <font size="1">(18,753</font></td>
    <td valign=top align="left" width=46><font size="1">)</font></td>
    <td valign=top align="right" width=84> <font size="1">(342,220</font></td>
    <td valign=top align="left" width=54><font size="1">)</font></td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">28</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">(-) STOCK MARKET AMORTIZATION</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">29</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">(-) OTHER FINANCING AMORTIZATION</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">&nbsp;</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">&nbsp;</font></td>
    <td valign=top align="right" width=83> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1"><b>7</b></font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1"><b>CASH FLOW FROM INTERNAL FINANCING</b></font></td>
    <td valign=top align="right" width=83> <font size="1"><b>22,940</b></font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1"><b>344,397</b></font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">30</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) INCREASE (DECREASE) IN CAPITAL
      STOCK</font></td>
    <td valign=top align="right" width=83> <font size="1">22,940</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">187,410</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">31</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">(-) DIVIDENDS PAID</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">32</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ PREMIUM ON SALE OF SHARES</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">33</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ CONTRIBUTION FOR FUTURE CAPITAL
      INCREASES</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">156,987</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">&nbsp;</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">&nbsp;</font></td>
    <td valign=top align="right" width=83> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">&nbsp;</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1"><b>9</b></font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1"><b>CASH FLOW GENERATED (UTILIZED)
      IN INVESTMENT ACTIVITIES</b></font></td>
    <td valign=top align="right" width=83> <font size="1"><b>&nbsp;8,309</b></font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1"><b>&nbsp;(5,165</b></font></td>
    <td valign=top align="left" width=54><font size="1"><b>)</b></font></td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">34</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) INCREASE 8DECREASE) IN STOCK
      INVESTMENTS OF A PERMANENT NATURE</font></td>
    <td valign=top align="right" width=83> <font size="1">&nbsp;0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">&nbsp;0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">35</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">(-) ACQUISITION OF PROPERTY, PLANT
      AND EQUIPMENT</font></td>
    <td valign=top align="right" width=83> <font size="1">(8,531</font></td>
    <td valign=top align="left" width=46><font size="1">)</font></td>
    <td valign=top align="right" width=84> <font size="1">(4,442</font></td>
    <td valign=top align="left" width=54><font size="1">)</font></td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">36</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">(-) INCREASE IN CONSTRUCTION PROGRESS</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">37</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ SALE OF OTHER PERMANET INVESTMENTS</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">38</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ SALE OF TANGIBLE FIXED ASSETS</font></td>
    <td valign=top align="right" width=83> <font size="1">0</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">0</font></td>
    <td valign=top align="left" width=54>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=25 align="right"> <font size="1">39</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=340> <font size="1">+ (-) OTHER ITEMS</font></td>
    <td valign=top align="right" width=83> <font size="1">16,840</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
    <td valign=top align="right" width=84> <font size="1">(723</font></td>
    <td valign=top align="left" width=54><font size="1">)</font></td>
  </tr>
  <tr>
    <td valign=top width=640 align="right" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<p><table width=600><tr>
    <td  align=center><font size=1><B>RATIOS<BR>
      </B>CONSOLIDATED</font></td>
  </tr></table>

<table border=0 cellspacing=0 cellpadding=0 width="600">
  <tr>
    <td valign=top colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top align="center"> <font size="1"><b>REF</b></font><font size="1"><b>&nbsp;</b></font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top align="center"> <font size="1"><b>CATEGORIES</b></font></td>
    <td valign=top align="center"> <font size="1"><b>QUARTER OF PRESENT</b></font><font size="1"><b><br>
      FINANCIAL YEAR </b></font>
      <hr size="1" noshade width="90%">
    </td>
    <td valign=top align="center"> <font size="1"><b>QUARTER OF PREVIOUS</b></font><font size="1"><b><br>
      FINANCIAL YEAR </b></font>
      <hr size="1" noshade width="90%">
    </td>
  </tr>
  <tr>
    <td valign=top align="center"> <font size="1"><b>P</b></font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=top> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=top> <font size="1"><b>&nbsp;</b></font></td>
  </tr>
  <tr>
    <td valign=top colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top> <font size="1">&nbsp;</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1"><b>YIELD</b></font></td>
    <td valign=top> <font size="1">&nbsp;</font></td>
    <td valign=top> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">1</font></td>
    <td valign=top>&nbsp;&nbsp;&nbsp;</td>
    <td valign=top> <font size="1">NET INCOME TO NET SALES</font></td>
    <td valign=top align="center"> <font size="1">24.83%</font></td>
    <td valign=top align="center"> <font size="1">12.49%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">2</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">NET INCOME TO STOCKHOLDERS&#146; EQUITY (**)</font></td>
    <td valign=top align="center"> <font size="1">12.85%</font></td>
    <td valign=top align="center"> <font size="1">6.46%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">3</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">NET INCOME TO TOTAL ASSETS (**)</font></td>
    <td valign=top align="center"> <font size="1">9.76%</font></td>
    <td valign=top align="center"> <font size="1">5.08%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">4</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME</font></td>
    <td valign=top align="center"> <font size="1">0.00%</font></td>
    <td valign=top align="center"> <font size="1">0.00%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">5</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">INCOME DUE TO MONETARY POSITION TO NET INCOME</font></td>
    <td valign=top align="center"> <font size="1">(2.06)%</font></td>
    <td valign=top align="center"> <font size="1">2.08%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">&nbsp;</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1"><b>ACTIVITY</b></font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">6</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">NET SALES TO NET ASSETS (**)</font></td>
    <td valign=top align="center"> <font size="1">0.53 times</font></td>
    <td valign=top align="center"> <font size="1">0.44 times</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">7</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">NET SALES TO FIXED ASSETS (**)</font></td>
    <td valign=top align="center"> <font size="1">0.83 times</font></td>
    <td valign=top align="center"> <font size="1">0.56 times</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">8</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">INVENTORIES ROTATION (**)</font></td>
    <td valign=top align="center"> <font size="1">6.54 times</font></td>
    <td valign=top align="center"> <font size="1">5.60 times</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">9</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">ACCOUNTS RECEIVABLE IN DAYS OF SALES</font></td>
    <td valign=top align="center"> <font size="1">45 days</font></td>
    <td valign=top align="center"> <font size="1">51 days</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">10</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">PAID INTEREST TO TOTAL LIABILITIES WITH COST
      (**)</font></td>
    <td valign=top align="center"> <font size="1">215.21%</font></td>
    <td valign=top align="center"> <font size="1">168.43%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">&nbsp;</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">&nbsp;</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1"><b>LEVERAGE</b></font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">11</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">TOTAL LIABILITIES TO TOTAL ASSETS</font></td>
    <td valign=top align="center"> <font size="1">24.06%</font></td>
    <td valign=top align="center"> <font size="1">21.33%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">12</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">TOTAL LIABILITIES TO STOCKHOLDERS&#146; EQUITY</font></td>
    <td valign=top align="center"> <font size="1">0.32 times</font></td>
    <td valign=top align="center"> <font size="1">0.27 times</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">13</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES</font></td>
    <td valign=top align="center"> <font size="1">2.59%</font></td>
    <td valign=top align="center"> <font size="1">5.53%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">14</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">LONG-TERM LIABILITIES TO FIXED ASSETS</font></td>
    <td valign=top align="center"> <font size="1">0.00%</font></td>
    <td valign=top align="center"> <font size="1">0.00%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">15</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">OPERATING INCOME TO INTEREST PAID</font></td>
    <td valign=top align="center"> <font size="1">47.36 times</font></td>
    <td valign=top align="center"> <font size="1">12.58 times</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">16</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">NET SALES TO TOTAL LIABILITIES (**)</font></td>
    <td valign=top align="center"> <font size="1">2.22 times</font></td>
    <td valign=top align="center"> <font size="1">2.07 times</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">&nbsp;</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">&nbsp;</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1"><b>LIQUIDITY</b></font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">17</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">CURRENT ASSETS TO CURRENT LIABILITIES</font></td>
    <td valign=top align="center"> <font size="1">4.64 times</font></td>
    <td valign=top align="center"> <font size="1">2.80 times</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">18</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES</font></td>
    <td valign=top align="center"> <font size="1">3.91 times</font></td>
    <td valign=top align="center"> <font size="1">1.91 times</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">19</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">CURRENT ASSETS TO TOTAL LIABILITIES</font></td>
    <td valign=top align="center"> <font size="1">1.33 times</font></td>
    <td valign=top align="center"> <font size="1">0.77 times</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">20</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">AVAILABLE ASSETS TO CURRENT LIABILITIES</font></td>
    <td valign=top align="center"> <font size="1">239.18%</font></td>
    <td valign=top align="center"> <font size="1">45.94%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">&nbsp;</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">&nbsp;</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1"><b>CASH FLOW</b></font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">21</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">CASH FLOW FROM NET INCOME TO NET SALES</font></td>
    <td valign=top align="center"> <font size="1">34.70%</font></td>
    <td valign=top align="center"> <font size="1">19.85%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">22</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">CASH FLOW FROM CHANGES IN WORKING CAPITAL TO
      NET SALES</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font><font size="1">(7.01)%</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font><font size="1">(16.98)%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">23</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">CASH GENERATED (USED) IN OPERATING TO INTEREST
      PAID</font></td>
    <td valign=top align="center"> <font size="1">42.83 times</font></td>
    <td valign=top align="center"> <font size="1">2.25 times</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">24</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">EXTERNAL FINANCING TO CASH GENERATED (USED)<br>
      IN FINANCING</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font><font size="1">(546.38)%</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font><font size="1">(12,217.49)%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">25</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">INTERNAL FINANCING TO CASH GENERATED (USED)<br>
      IN FINANCING</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font><font size="1">646.38%</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font><font size="1">12,317.49%</font></td>
  </tr>
  <tr>
    <td valign=top align="right"> <font size="1">26</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="1">ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT
      TO <br>
      CASH GENERATED (USED) IN INVESTMENT ACTIVITIES</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font><font size="1">(102.67)%</font></td>
    <td valign=top align="center"> <font size="1">&nbsp;</font><font size="1">86.00%</font></td>
  </tr>
  <tr>
    <td valign=top colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="left">
    <td><font size="1">(**) IN THESE RATIOS PROVIDE INFORMATION FOR THE LAST TWELVE
      MONTHS</font> </td>
  </tr>
</table>
<br>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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<!-- MARKER PAGE="sheet: 13; page: 13" -->







<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<p><table width=600><tr>
    <td  align=center><font size=1><B>DATE PER SHARE<BR>
      </B>CONSOLIDATED</font></td>
  </tr></table>


<br>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr>
    <td valign=top width=620 colspan="9">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=24 align="center"> <font size="1"><b>REF</b></font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322 align="center"> <font size="1"><b>CATEGORIES</b></font></td>
    <td valign=top colspan="3" align="center"> <font size="1"><b>QUARTER OF PRESENT<br>
      FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
    <td valign=top colspan="3" align="center"> <font size="1"><b>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR </b></font>
      <hr width="90%" size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=24 align="center"> <font size="1"><b>D</b></font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=top width=92> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=top width=9>&nbsp;</td>
    <td valign=top width=34>&nbsp;</td>
    <td valign=top width=79> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=top width=7>&nbsp;</td>
    <td valign=top width=45>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=620 colspan="9">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">1</font></td>
    <td valign=top width=8><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td valign=top width=322> <font size="1">BASIC PROFIT PER ORDINARY SHARE (**)</font></td>
    <td valign=top align="right" width=92> <font size="1">$&nbsp; 5.30</font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34>&nbsp;</td>
    <td valign=top align="right" width=79> <font size="1">$&nbsp; 2.56</font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">2</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">BASIC PROFIT PER PREFERENCE SHARE
      (**)</font></td>
    <td valign=top align="right" width=92> <font size="1">$&nbsp; 0.00</font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34>&nbsp;</td>
    <td valign=top align="right" width=79> <font size="1">$&nbsp; 0.00</font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">3</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">DILUTED PROFIT PER ORDINARY SHARE
      (**)</font></td>
    <td valign=top align="right" width=92> <font size="1">$&nbsp; 0.00</font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34>&nbsp;</td>
    <td valign=top align="right" width=79> <font size="1">$&nbsp; 0.00</font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">4</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">CONTINUOUS OPERATING PROFIT PER COMMON
      SHARE (**)</font></td>
    <td valign=top align="right" width=92> <font size="1">$&nbsp; 5.30</font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34>&nbsp;</td>
    <td valign=top align="right" width=79> <font size="1">$&nbsp; 2.56</font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">5</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">EFFECT OF DISCONTINUED OPERATIONS
      ON CONTINUOUS <br>
      OPERATING PROFIT PER SHARE (**)</font></td>
    <td valign=top align="right" width=92> <font size="1">&nbsp;</font><font size="1">$&nbsp;
      0.00</font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34>&nbsp;</td>
    <td valign=top align="right" width=79> <font size="1">&nbsp;</font><font size="1">$&nbsp;
      0.00</font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">6</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">EFFECT OF EXTRAORDINARY PROFIT AND
      LOSS ON <br>
      CONTINUOUSOPERATING PROFIT PER SHARE (**)</font></td>
    <td valign=top align="right" width=92> <font size="1">&nbsp;</font><font size="1">$&nbsp;
      0.00</font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34>&nbsp;</td>
    <td valign=top align="right" width=79> <font size="1">&nbsp;</font><font size="1">$
      &nbsp;0.00</font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">7</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">EFFECT BY CHANGES IN ACCOUNTING POLICIES
      ON <br>
      CONTINUOUS OPERATING PROFIT PER SHARE (**)</font></td>
    <td valign=top align="right" width=92> <font size="1">&nbsp;</font><font size="1">$&nbsp;
      0.00</font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34>&nbsp;</td>
    <td valign=top align="right" width=79> <font size="1">&nbsp;</font><font size="1">$&nbsp;
      0.00</font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">8</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">CARRYING VALUE PER SHARE</font></td>
    <td valign=top align="right" width=92> <font size="1">$39.52</font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34>&nbsp;</td>
    <td valign=top align="right" width=79> <font size="1">$36.69</font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">9</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">CASH DIVIDEND ACCUMULATED PER SHARE</font></td>
    <td valign=top align="right" width=92> <font size="1">$&nbsp;&nbsp;0.00</font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34>&nbsp;</td>
    <td valign=top align="right" width=79> <font size="1">$&nbsp; 0.00</font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">10</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">DIVIDEND IN SHARES PER SHARE</font></td>
    <td valign=top align="right" width=92> <font size="1"> 0.00 </font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34><font size="1">shares</font></td>
    <td valign=top align="right" width=79> <font size="1"> 0.00 </font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45><font size="1">shares</font></td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">11</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">MARKET PRICE TO CARRYING VALUE</font></td>
    <td valign=top align="right" width=92> <font size="1"> 0.91 </font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34><font size="1">times</font></td>
    <td valign=top align="right" width=79> <font size="1"> 0.36 </font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45><font size="1">times</font></td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">12</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">MARKET PRICE TO BASIC PROFIT PER
      COMMON SHARE (**)</font></td>
    <td valign=top align="right" width=92> <font size="1"> 6.79 </font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34><font size="1">times</font></td>
    <td valign=top align="right" width=79> <font size="1"> 5.10 </font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45><font size="1">times</font></td>
  </tr>
  <tr>
    <td valign=top width=24> <font size="1">13</font></td>
    <td valign=top width=8>&nbsp;</td>
    <td valign=top width=322> <font size="1">MARKET PRICE TO BASIC PROFIT PER
      PREFERENCE SHARE (**)</font></td>
    <td valign=top align="right" width=92> <font size="1"> 0.00 </font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="left" width=34><font size="1">times</font></td>
    <td valign=top align="right" width=79> <font size="1"> 0.00 </font></td>
    <td valign=top align="right" width=7>&nbsp;</td>
    <td valign=top align="left" width=45><font size="1">times</font></td>
  </tr>
  <tr>
    <td valign=top width=620 colspan="9">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="left">
    <td><font size="1">(**) TO CALCULATE THE DATE PER SHARE USE THE NET INCOME
      FOR THE LAST TWELVE MONTHS.</font> </td>
  </tr>
</table>
<br>
<br>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 14; page: 14" -->






<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<br>
<table width=600><tr>
    <td  align=center><font size=1><B>FINANCIAL STATEMENT NOTES</B></font></td>
  </tr></table>

<table width=600><tr>
    <td align=right><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr></table>


<P><table width=600><tr><td><font size=2>s35.- Stockholders&#146; Equity:<BR>Effects of
inflation - The effects of inflation on stockholders&#146; equity at June  30, 2004 are
as follows:</font></td></tr></table>


<br>
<table border=0 cellspacing=0 cellpadding=0 width="600">
  <tr>
    <td valign=top width="293" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width="293"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="center" colspan="2"> <font size="2"><b>Historical<br>
      Cost </b></font> </td>
    <td valign=bottom align="center" colspan="2"> <font size="2"><b>Restated<br>
      Amount </b></font> </td>
    <td valign=bottom align="center" colspan="2"> <font size="2"><b>&nbsp;Total</b></font>
    </td>
  </tr>
  <tr>
    <td valign=top width="600" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width="293"> <font size="2">Capital stock</font></td>
    <td valign=top align="right" width="86"> <font size="2">Ps. 1,948,155</font></td>
    <td valign=top align="left" width="15">&nbsp;</td>
    <td valign=top align="right" width="84"> <font size="2">Ps. 1,218,279</font></td>
    <td valign=top align="left" width="17">&nbsp;</td>
    <td valign=top align="right" width="87"> <font size="2">Ps. 3,166,434</font></td>
    <td valign=top align="left" width="18">&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width="293"> <font size="2">Additional paid-in capital</font></td>
    <td valign=top align="right" width="86"> <font size="2">549,517</font></td>
    <td valign=top align="left" width="15">&nbsp;</td>
    <td valign=top align="right" width="84"> <font size="2">84,133</font></td>
    <td valign=top align="left" width="17">&nbsp;</td>
    <td valign=top align="right" width="87"> <font size="2">633,650</font></td>
    <td valign=top align="left" width="18">&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width="293"> <font size="2">Retained earnings</font></td>
    <td valign=top align="right" width="86"> <font size="2">1,697,712</font></td>
    <td valign=top align="left" width="15">&nbsp;&nbsp;</td>
    <td valign=top align="right" width="84"> <font size="2">499,470</font></td>
    <td valign=top align="left" width="17">&nbsp;&nbsp;</td>
    <td valign=top align="right" width="87"> <font size="2">2,197,182</font></td>
    <td valign=top align="left" width="18">&nbsp;&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width="293"> <font size="2">Excess resulting from restating<br>
      </font><font size="2"> &nbsp;&nbsp;Stockholders&#146; equity to reflect</font><font size="2"><br>
      &nbsp;&nbsp;Certain effects of inflation</font></td>
    <td valign=bottom align="right" width="86"> <font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">
      &#151;</font></td>
    <td valign=bottom align="left" width="15">&nbsp;</td>
    <td valign=bottom align="right" width="84"> <font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">121,826</font></td>
    <td valign=bottom align="left" width="17">&nbsp;</td>
    <td valign=bottom align="right" width="87"> <font size="2">&nbsp;</font><font size="2">&nbsp;</font><font size="2">121,826</font></td>
    <td valign=top align="left" width="18">&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width="293"> <font size="2">Effect deferred income tax </font><font size="2">
      Bulletin D-4</font></td>
    <td valign=top align="right" width="86"> <font size="2">&nbsp;</font><font size="2">(662,340</font></td>
    <td valign=top align="left" width="15"><font size="2">)</font></td>
    <td valign=top align="right" width="84"> <font size="2">&nbsp;</font><font size="2">(179,273</font></td>
    <td valign=top align="left" width="17"><font size="2">)</font></td>
    <td valign=top align="right" width="87"> <font size="2">&nbsp;</font><font size="2">(841,613</font></td>
    <td valign=top align="left" width="18"><font size="2">)</font></td>
  </tr>
</table>
<P><table width=600><tr><td><font size=2>s39.- Premium in subscription of Capital Stock
made in March 29, 2001.</font></td></tr></table>


<P><table width=600><tr><td><font size=2>s44.- In 1999, the Mexican Institute of Public
Accountants issued Bulletin D-4,  &#147;Accounting for Income and Asset Taxes and
Employee Profit Sharing&#148;, which is  effective for all fiscal years beginning January
1, 2000. Bulletin D-4  establishes financial accounting and reporting standards for the
effects of  asset tax, income tax and employee profit sharing that result from enterprise
activities during the current and preceding years. Simec&#146;s long-term liabilities
resulting from the adoption of this Bulletin was Ps. 1,183,667 at June 30, 2004  compared
to Ps. 859,004 at June 30, 2003. The effect on Simec&#146;s consolidated  statement of
income in the six-month period ended June 30, 2004 was an increase  of Ps. 122,323 in the
provision for income tax and employee profit sharing  compared to an increase of Ps.
5,482 in the same period of 2003. These  provisions do not affect the cash flow of Simec.</font></td></tr></table>


<P><table width=600><tr><td><font size=2>r24.- Simec doesn&#146;t have interest paid in
UDI&#146;s</font></td></tr></table>

<P><table width=600><tr><td><font size=2>r26.- Simec doesn&#146;t have interest earned in
UDI&#146;s</font></td></tr></table>

<P><table width=600><tr><td><font size=2>c02.- Consolidated Statements of Changes in
Financial Position  The net loss in money exchange and net profit in liabilities
actualization are as follows:</font></td></tr></table>


<br>
<table border=0 cellspacing=0 cellpadding=0 width="600">
  <tr>
    <td valign=top width=341 colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=341> <font size="2">&nbsp;</font></td>
    <td valign=top colspan="2" align="center"> <font size="2">June 30, 2004</font></td>
    <td valign=top colspan="2" align="center"> <font size="2">June 30, 2003</font></td>
  </tr>
  <tr>
    <td valign=top width=600 colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=341> <font size="2">Net loss (profit) in money exchange</font></td>
    <td valign=top align="right" width=83> <font size="2">Ps. (281</font></td>
    <td valign=top align="left" width=34><font size="2">)</font></td>
    <td valign=top align="right" width=96> <font size="2"> Ps. 4,170</font></td>
    <td valign=top align="left" width=46>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=341> <font size="2">Net loss (profit) in liabilities
      actualization</font></td>
    <td valign=top align="right" width=83> <font size="2">(366</font></td>
    <td valign=top align="left" width=34><font size="2">)</font></td>
    <td valign=top align="right" width=96> <font size="2">(4,492</font></td>
    <td valign=top align="left" width=46><font size="2">)</font></td>
  </tr>
</table>
<br>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 15; page: 15" -->





<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>DIRECTOR REPORT</b></font></td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>ANNEX 1 </b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<p>
<table width=600><tr><td  align=center><font size=2><B>INFORMATION CONCERNING
LIQUIDITY AND CAPITAL RESOURCES AND DEBT<BR>OBLIGATIONS WITH BANKS AND COMMERCIAL CREDITORS</B></font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>Liquidity and Capital Resources</B></font></td></tr></table>

<P><table width=600><tr><td><font size=2>At June 30, 2004, Simec&#146;s total
consolidated debt consisted of $302,000 of 8  7/8% MTN&#146;s due 1998 (accrued interest
at June 30, 2004 was $269,108) which were  issued in 1993 as part of a $68 million
issuance. At December 31, 2003, Simec  had outstanding approximately $2 million of U.S.
dollar-denominated debt.  Simec&#146;s lower debt level at June 30, 2004 reflected the
prepayment of $1.7  million of bank debt in March 2004. At June 30, 2004 Simec owed no
debt to  Industrias CH, S.A. de C.V. (&#147;ICH&#148;).</font></td></tr></table>

<P><table width=600><tr><td><font size=2>Simec&#146;s bank debt prepayment in March 2004
resulted in the payment in full of  its outstanding bank debt. This payment permitted to
Simec to cancel the  industrial mortgage securing the bank debt and Simec is no longer
required to  comply with various covenants, including a limitation on asset dispositions
and  required application of proceeds from such dispositions.</font></td></tr></table>

<P><table width=600><tr><td><font size=2>In May 2004, Simec announced that it intends to
acquire the Mexican steel  manufacturing facilities of Industrias Ferricas del Norte,
S.A. If consummated,  this transaction is expected to significantly increase Simec&#146;s
installed  capacity, its net sales and the number of its employees. The purchase price of
the acquisition is $92 million and Simec will also incur certain taxes and  expenses in
connection with the acquisition of the properties, Simec will  acquire the inventories,
land, buildings, machinery and equipment and will  assume liabilities associated with
seniority premiums of employees. On July 12,  2004 the shareholders of Simec approved
this transaction at an extraordinary  shareholders meeting.</font></td></tr></table>


<P><table width=600><tr><td><font size=2>In December 2003 Simec acquired Administradora
de Cartera de Occidente, S.A. de  C.V. (&#147;Acosa&#148;) from ICH for nominal
consideration. Acosa&#146;s sole assets are a  portfolio of defaulted receivables it
acquired in June 2003 from various Mexican  banks which are in the process of
liquidation. The purchase price of the  portfolio is payable by Acosa solely from
recoveries if any, net of expenses of  collection, with respect to the defaulted
receivables; upon payment of the  purchase price from recoveries on the portfolio, Acosa
and the Mexican banks  will share in any additional recoveries, net of expenses of
collection, on a  50%/50% basis.</font></td></tr></table>

<P><table width=600><tr><td><font size=2>In November 2003, ICH converted into common
shares of Simec the capital  contribution to Simec made in May 2003, in the amount of
$14.5 million (the  proceeds of which were used to retire debt owed to ICH) for capital
stock issued  in the fourth quarter of 2003, at a conversion price equivalent to U.S
$1.41  (Ps. 14.588) per American Depositary Share. In May 2004, certain minority
shareholders of Simec exercised their pre-emptive rights arising as a result of  this
conversion by ICH to purchase capital stock for Ps. 22.9 million at the  price per share
of Ps. 14.588 (the equivalent of U.S. $1.25 per American  Depositary Share).</font></td></tr></table>

<P><table width=600><tr><td><font size=2>Net resources provided by operations were Ps.
609 million in the six-month  period ended June 30, 2004 versus Ps. 38 million of net
resources provided by  operations in the same period of 2003 (which amount for the 2003
period reflects  the conversion of loans into common shares of Simec for Ps. 188
million). Net  resources provided by financing activities were Ps. 4 million in the
six-month  period ended June 30, 2004 (which amount reflects</font></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 16; page: 16" -->
<p>&nbsp;
<table width=600>
  <tr>
    <td  align=center><font size=2><b>MEXICAN STOCK EXCHANGE<br>
      SIFIC / ICS</b></font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>DIRECTOR REPORT</b></font></td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>ANNEX 1 </b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<br>
<table width=600><tr><td><font size=2>prepayment of bank debt) versus Ps. 3 million of
net resources provided by  financing activities in the same period of 2003 (which amount
reflects the  prepayment of Ps. 342 million ($31.4 million) of bank debt and the
conversion by  ICH of Ps. 187 million of loans (plus accrued interest thereon) into
common  shares. Net resources provided by investing activities (to acquire property,
plant and equipment and other non-current assets) were Ps. 8 million in the  six-month
period ended June 30, 2004 versus net resources used in investing  activities of Ps. 5
million in the same period of 2003.</font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=2>MANAGEMENT&#146;S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION<BR>AND RESULTS OF OPERATIONS</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>Six-Month Period Ended June 30, 2004 compared
to Six-Month Period Ended June 30, 2003</B></font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2><I><b>Net Sales</b></I></font></td>
  </tr></table>

<table width=600><tr><td><font size=2>Net sales of Simec increased 66% to Ps. 2,199
million in the six-month period  ended June 30, 2004, compared to Ps. 1,323 million in
the same period of 2003.  Sales in tons of basic steel products increased 7% to 327,329
tons in the  six-month period ended June 30, 2004 compared to 304,989 tons in the same
period  of 2003. Exports of basic steel products increased 48% to 50,340 tons in the
six-month period ended June 30, 2004 versus 34,031 tons in the first half of  2003.
Additionally, Simec sold 39,512 tons of billet in the first six months of  2004, compared
to 27,636 tons of billet in the same period of 2003. The average  price of steel products
increased 52% in real terms in the six-month period  ended June 30, 2004 versus the same
period of 2003.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2><I><b>Direct Cost of Sales</b></I></font></td>
  </tr></table>

<table width=600><tr><td><font size=2>Simec&#146;s direct cost of sales increased 49%
to Ps. 1,293 million in the  six-month period ended June 30, 2004 compared to Ps. 870
million in the first  half of 2003. Direct cost of sales as a percentage of net sales was
59% in the  six-month period ended June 30, 2004 compared to 66% in the same period of
2003.  The average cost of raw materials used to produce steel products increased 35%  in
real terms in the six-month period ended June 30, 2004 versus the first six  months of
2003, primarily as a result of increases in the price of scrap and  certain other raw
materials.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2><I><b>Marginal Profit</b></I></font></td>
  </tr></table>

<table width=600><tr><td><font size=2>Simec&#146;s marginal profit increased 100% to
Ps. 906 million in the six-month  period ended June 30, 2004 compared to Ps. 453 million
in the first half of  2003. As a percentage of net sales, marginal profit was 41% in the
first six  months of 2004 compared to 34% in the same period of 2003.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2><I><b>Indirect Manufacturing, Selling, General And Administrative
      Expenses</b></I></font></td>
  </tr></table>

<table width=600><tr><td><font size=2>Indirect manufacturing, selling, general, and
administrative expenses (which  include depreciation and amortization) decreased 3% to
Ps. 232 million in the  six-month period ended June 30, 2004 from Ps. 240 million in the
same period of  2003; Simec recorded an increase of Ps. 3 million in depreciation and
amortization expense, which in the six-month period ended June 30, 2004 was Ps.  95
million compared to Ps. 92 million in the same period of 2003.</font></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 17; page: 17" -->
<p>&nbsp;
<table width=600>
  <tr>
    <td  align=center><font size=2><b>MEXICAN STOCK EXCHANGE<br>
      SIFIC / ICS</b></font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>DIRECTOR REPORT</b></font></td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>ANNEX 1 </b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<br>
<table width=600><tr>
    <td><font size=2><I><b>Operating Income</b></I></font></td>
  </tr></table>

<table width=600><tr><td><font size=2>Simec&#146;s operating income increased 216% to
Ps. 674 million in the first half  of 2004 compared to Ps. 213 million in the same period
of 2003. Operating income  was 31% of net sales in the six-month period ended June 30,
2004 and 16% of net  sales in the first six months of 2003.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2><I><b>Financial Income (Expense)</b></I></font></td>
  </tr></table>

<table width=600><tr><td><font size=2>Simec recorded financial expense of Ps. 3
million in the six-month period ended  June 30, 2004 compared to financial expense of Ps.
27 million in the same period  of 2003. Simec recorded an exchange gain of approximately
Ps. 8 million in the  six-month period ended June 30, 2004 compared to an exchange loss
of Ps. 15  million in the second quarter of 2003, reflecting a 1.6% decrease in the value
of the peso versus the dollar in each of the six-month period ended June 30,  2004 and in
the same period of 2003 and lower debt levels in the six-month  period ended June 30,
2004. Net interest expense was Ps. 0 million in the  six-month period ended June 30, 2004
(including a loss of Ps. 5 million in debt  bond investment) versus Ps. 15 million in the
same period of 2003. Simec  recorded a loss from monetary position of Ps. 11 million in
the six-month period  ended June 30, 2004 compared to a gain from monetary position of
Ps. 3 million  in the same period of 2003, reflecting the domestic inflation rate of 1.6%
in  the six-month period ended June 30, 2004 as compared to 1.2% in the same period  of
2003 and lower debt levels during the six-month period ended June 30, 2004.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2><I><b>Other Income (Expense), Net</b></I></font></td>
  </tr></table>

<table width=600><tr><td><font size=2>Simec recorded other income, net, of Ps. 12
million in the six-month period  ended June 30, 2004 (reflecting (i) income from the
recovery of an account  recorded as a doubtful account of Ps. 11 million and (ii) other
income, net  related to other financial operations of Ps. 1 million) compared to other
income, net, of Ps. 1 million in the same period of 2003.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2><I><b>Income Tax and Employee Profit Sharing</b></I></font></td>
  </tr></table>

<table width=600><tr><td><font size=2>Simec recorded a provision of Ps. 137 million
for income tax and employee profit  sharing in the six-month period ended June 30, 2004
(including a provision of  Ps. 122 million from the application of Bulletin D-4 with
respect to deferred  income tax described below) compared to a provision of Ps. 22
million in same  period of 2003 (including a provision of Ps. 5 million from the
application of  Bulletin D-4 with respect to deferred income tax described below).</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2><I><b>Net Income</b></I></font></td>
  </tr></table>

<table width=600><tr><td><font size=2>As a result of the foregoing, Simec recorded net
income of Ps. 546 million in  the six-month period ended June 30, 2004 compared to net
income of Ps. 165  million in the six-month period ended June 30, 2003.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2><I><b>Pronouncements Applicable to Mexican GAAP</b></I></font></td>
  </tr></table>

<table width=600><tr><td><font size=2>In 1999, the Mexican Institute of Public
Accountants issued Bulletin D-4,  &#147;Accounting for Income and Asset Taxes and
Employee Profit Sharing&#148;, which is  effective for all fiscal years beginning January
1, 2000. Bulletin D-4  establishes financial accounting and reporting standards for the
effects of  asset tax, income tax and employee profit sharing that result from enterprise
activities during the current and preceding years. Simec&#146;s long-term liability
resulting from the adoption of this Bulletin was Ps. 1,184 million at June 30,  2004
compared to Ps. 859 million at June 30, 2003. The effect on Simec&#146;s  consolidated
statement of income in the six-month period ended June 30, 2004 was  an increase of Ps.
122 million in the provision for income tax and employee  profit sharing compared to an
increase of Ps. 5 million in the same period of  2003. These provisions do not affect the
cash flow of Simec.</font></td></tr></table>


<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 18; page: 18" -->
<p>&nbsp;
<table width=600>
  <tr>
    <td  align=center><font size=2><b>MEXICAN STOCK EXCHANGE <br>
      SIFIC / ICS</b></font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>FINANCIAL STATEMENT NOTES
      </b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>ANNEX 2</b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<br>
<table width=600><tr><td><font size=2><B>(1) Operations preparation bases and summary
of  significant accounting policies:</B></font></td></tr></table>

<P><table width=600><tr><td><font size=2>Grupo Simec, S.A. de C.V. and its Subsidiaries (&#147;the
Company&#148;) are subsidiaries  of Industrias CH, S.A. de C.V. (&#147;ICH&#148;), and
their main activities consist of the  manufacturing and sale of steel products primarily
destined for the construction  sector of Mexico and other countries.</font></td></tr></table>

<P><table width=600><tr><td><font size=2>Significant accounting policies and practices
followed by the Companies which  affect the principal captions of the financial
statements are described below:</font></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>a. Financial statement presentation</B> - The
consolidated financial statements have been prepared in accordance with principles
generally accepted in Mexico, which include the recognition of the effects of inflation
on the financial information and the presentation in constant Mexican pesos.</FONT></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>b. Principles of Consolidation</B> - As part of the
financial debt restructuring agreement into during 1997, Compania Siderurgica de
Guadalajara, S.A. de C.V. (&#147;CSG&#148;) assumed all of the debt of the Company in
return for an equity interest in its subsidiaries. As a result of the above, the Company
is the principal shareholder of CSG, and CSG is the principal shareholder of the other
subsidiaries that Grupo Simec, S.A. de C.V. (&#147;Simec&#148;) controlled before the
restructuring.</FONT></td></tr></table>

<P><table width=600><tr><td><font size=2>The main subsidiaries of CSG are the following:</font></td></tr></table>

<table width=600>
  <tr>
    <td colspan="2"><font size=3>&#149;</font></td>
    <td width=97%><font size=2>Compania Siderurgica de California, S.A. de C.V.</font></td>
  </tr>
</table>

<table width=600>
  <tr>
    <td colspan="2"><font size=3>&#149;</font></td>
    <td width=97%><font size=2>Industrias del Acero y del Alambre, S.A. de C.V.</font></td>
  </tr>
</table>

<table width=600>
  <tr>
    <td colspan="2"><font size=3>&#149;</font></td>
    <td width=97%><font size=2>Pacific Steel Inc.</font></td>
  </tr>
</table>

<P><table width=600><tr><td><font size=2>All significant intercompany balances and
transactions have been eliminated in  consolidation.</font></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>c. Cash and cash equivalents</B> - The Company
considers short-term investments with original maturities not greater than three months
to be cash equivalent. Cash equivalents includes temporary investments and Mexican
Government Treasury Bonds, and are stated at market value, which approximates cost plus
earned interest. Any increase in market value is credited to operations for the period.</FONT></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>d. Inventories</B> - The inventories are originally
stated at average cost and subsequently adjusted to replacement value at the balance
sheet date. The replacement values do not exceed market and are determined as follows:</FONT></td></tr></table>

<P><table width=600><tr><td><font size=2>Billet finished goods and work in process - At
the latest production cost for  the month.</font></td></tr></table>

<P><table width=600><tr><td><font size=2>Raw materials - According to purchase prices
prevailing in the market at the  balance sheet date.</font></td></tr></table>

<P><table width=600><tr><td><font size=2>Materials, supplies and rollers - At historical
cost, restated by applying the  steel industry inflation index.</font></td></tr></table>

<P><table width=600><tr><td><font size=2>The Company presents as non-current inventories
the rollers and spare parts,  which according to historical data and production trends
will not be used within  a one-year period.</font></td></tr></table>


<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 19; page: 19" -->
<p>&nbsp;
<table width=600>
  <tr>
    <td  align=center><font size=2><b>MEXICAN STOCK EXCHANGE <br>
      SIFIC / ICS</b></font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>FINANCIAL STATEMENT NOTES
      </b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>ANNEX 2</b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<br>
<table width=600><tr><td><FONT SIZE="2"><B>e.- Derivative financial instruments</B> - The
Company is using derivative financial instruments for hedging risks associated with
natural gas prices and conducted studies on historical consumption, future requirements
and commitments; thus it avoided exposure to risks other than the normal operating
risks. Management of the Company examines its financial risks by continually analyzing
price, credit and liquidity risks.</FONT></td></tr></table>

<P><table width=600><tr><td><font size=2>The Company uses futures contracts for hedging
risks from fluctuations in  natural gas prices, which are based on demand and supply at
the principal  international markets.</font></td></tr></table>

<P><table width=600><tr><td><font size=2>As applicable, the Company recognized the fair
value of instruments either as  liabilities or assets. Such fair value and thus, the
value of these assets or  liabilities were restated at each month&#146;s-end. The Company
opted for the early  adoption of Bulletin C-10 &#147;Derivative Financial Instruments and
Hedging&#148;;  therefore, at December 31, 2003 the fair value of natural gas in force
during  2004, 2005 and 2006 and which effective portions will not be offset against the
asset risks until consumed, were recognized within the comprehensive income  account in
stockholders&#146; equity.</font></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>f. Property, plant and equipment</B> - Property,
plant and equipment of domestic origin are restated by using factors derived from The
National Consumer Price Index (&#147;NCPI&#148;) from the date of their acquisition, and
imported machinery and equipment are restated by applying devaluation and inflation
factors of the country of origin. Depreciation recorded in the consolidated statement of
income (loss) is computed based upon the estimated useful life and the restated cost of
each asset. In addition, Financial expense incurred during the construction period is
capitalized as construction in progress. The capitalized amounts are restated using a
factor derived from the NCPI cumulative from the date of capitalization through
period-end and are amortized over the average depreciation period of the corresponding
assets. The estimated useful lives of assets as of June 30, 2004 are as follows:</FONT></td></tr></table>


<br>
<table cellpadding="0" cellspacing="0" border="0" width="600">
  <tr valign="BOTTOM">
    <th colspan="3"></th>
    <th colspan="2"></th>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="LEFT"><font size="2">&nbsp;</font></td>
    <td align="LEFT">&nbsp;</td>
    <td align="center"><font size="2">Years</font>
      <hr noshade align="center" size="1" width="50%">
    </td>
    <td align="LEFT"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font size="2">Buildings</font></td>
    <td align="LEFT">&nbsp;</td>
    <td align="center"><font size="2">15 to 50</font></td>
    <td align="LEFT">&nbsp;</td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT">&nbsp;</td>
    <td align="LEFT"><font size="2">Machinery and equipment</font></td>
    <td align="LEFT">&nbsp;</td>
    <td align="center"><font size="2">10 to 40</font></td>
    <td align="LEFT">&nbsp;</td>
  </tr>
</table>
<br>
<table width=600><tr><td><FONT SIZE="2"><B>g. Other assets</B> - Organization and pre-operating
expenses are capitalized and restated using a factor derived from the NCPI cumulative
from the date of generation through period-end, and their amortization is calculated by
the straight-line method over a period of 20 years.</FONT></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>h. Seniority premiums and severance payments</B> -
According to Federal Labor Law, employees are entitled to seniority premiums after
fifteen years or more of services. These premiums are recognized as expenses in the
years in which the services are rendered, using actuarial calculations based on the
projected unit credit method, and since 1996 by applying real interest and salary
increases.</FONT></td></tr></table>

<P><table width=600><tr><td><font size=2>Any other payments to which employees may be
entitled in case of separation,  disability or death, are charged to operations in the
period in which they  become payable.</font></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>i. Pension plan</B> - Until 1995, the Company
provided pension benefits for all personnel with a minimum of 10 years of service and 35
years of age. The Company had established an irrevocable trust for its contributions,
which were based on actuarial calculations. In December 1995, the board of directors of
the Company, in</FONT></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 20; page: 20" -->
<p>&nbsp;
<table width=600>
  <tr>
    <td  align=center><font size=2><b>MEXICAN STOCK EXCHANGE <br>
      SIFIC / ICS</b></font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>FINANCIAL STATEMENT NOTES
      </b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>ANNEX 2</b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<br>
<table width=600><tr><td><font size=2>agreement with the trade union, discontinued
these benefits and related  contributions to the trust fund. This decision was made
because of the new  Mexican pension fund system, Administradoras de Fondos para el
Retiro, which  establishes similar benefits for the employees. The balance of the trust
fund  will be applied to the retirement benefits of qualifying employees until the  fund
is exhausted due to the irrevocable status of the fund.</font></td></tr></table>

<P><table width=600><tr><td><font size=2>The Company does not have any contractual
obligation regarding the payment of  pensions of retirements.</font></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>j. Cost of sales</B> - Cost of sales related to
sales of inventory items is recorded at standard cost, which approximates the
replacement cost at the date of sale.</FONT></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>k. Income tax and employee profit sharing</B> - In
1999, the Mexican Institute of Public Accountants issued Bulletin D-4, &#147;Accounting
for Income and Asset Taxes and Employee Profit Sharing&#148;, which is effective for all
fiscal years beginning January 1, 2000. Bulletin D-4 establishes financial accounting
and reporting standards for the effects of asset tax, income tax and employee profit
sharing that result from enterprise activities during the current and preceding years.</FONT></td></tr></table>


<P><table width=600><tr><td><font size=2>The Company and its subsidiaries are included in
the consolidated tax returns of  the company&#146;s parent.</font></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>l. Foreign currency transactions and exchange
differences</B> - All transactions in foreign currency are recorded at the exchange rates
prevailing on the date of their execution or liquidation. Foreign currency denominated
assets and liabilities are translated at the exchange rates prevailing at the balance
sheet date. Any exchange differences incurred with regard to assets or liabilities
denominated in foreign currency are charged to operations of the period and are included
in financial income (expense) in the accompanying consolidated statements of income
(loss).</FONT></td></tr></table>

<br>
<table width=600>
  <tr>
    <td><font size="2">The financial statements of foreign subsidiaries are translated
      into Mexican pesos in conformity with Bulletin B-15 &#147;Transactions in
      Foreign Currency and Translation of Financial Statements of Foreign Operations&#148;.
      All foreign subsidiaries are considered to be &#147;integrated foreign operations&#148;,
      as defined in Bulletin B-15, and accordingly such financial statements were
      translated as follows: </font></td>
  </tr>
</table>
<P><table width=600><tr>
   <td width=5% valign=top><font size="2">- </font></td><td width=95%><font size="2">Monetary
items at the exchange rate at the balance sheet date.</font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">- </font></td><td width=95%><font size="2">Non-monetary
items and stockholders&#146; equity at the exchange rate prevailing at  the date the
transactions occurred. </font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">- </font></td><td width=95%><font size="2">Income
and expense items at an appropriate  average exchange rate. </font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">- </font></td><td width=95%><font size="2">The
resulting foreign currency translation differences  are included in the financial income
(expense) in the statement of  income (loss).</font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">- </font></td><td width=95%><font size="2"> All
resulting Mexican peso amounts are restated for the effects of  inflation in accordance
with the dispositions of Bulletin B-10 using the  NCPI, where such effects are considered
significant.</font></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>m. Geographic concentration of credit risk</B> - The
Company sells its products primarily to distributors for the construction industry with
no specific geographic concentration. Additionally, no single customer accounted for a
significant amount of the Company&#146;s sales, and there were no significant accounts
receivable from a single customer or affiliate at June 30, 2004 and 2003. The Company
performs evaluations of its customers&#146; credit</FONT></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 21; page: 21" -->
<p>&nbsp;
<table width=600>
  <tr>
    <td  align=center><font size=2><b>MEXICAN STOCK EXCHANGE <br>
      SIFIC / ICS</b></font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>FINANCIAL STATEMENT NOTES
      </b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>ANNEX 2</b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<br>
<table width=600><tr><td><font size=2>histories and establishes and allowance for
doubtful accounts based upon the  credit risk of specific customers and historical trends.</font></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>n. Other income (expenses)</B> - Other income
(expenses) shown in the consolidated statements of operations primarily includes other
financial operations.</FONT></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>o. Gain on monetary position</B> - The gain on
monetary position in the consolidated statements of income (loss) is determined by
applying to net monetary assets or liabilities at the beginning of each month the factor
of inflation derived from the NCPI and is restated at period-end with the corresponding
factor.</FONT></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>p. Restatement of capital stock and retained
earnings (losses)</B> - This is determined by multiplying capital stock contributions and
retained earnings (losses) by factors derived from the NCPI, which measure the
cumulative inflation from the date when capital stock contributions were made and
earnings (losses) were generated, through the latest period-end.</FONT></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>q. Effect of restatement of stockholders&#146; equity</B>
- - The effect resulting from restating stockholders&#146; equity includes the accumulated
effect from holding non-monetary assets, which represents the change in the specific
price level of those assets compared to the change in the NCPI.</FONT></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>(2) Financial Debt:</B></FONT></td></tr></table>

<P><table width=600><tr><td><font size=2>At June 30, 2004, Simec&#146;s total
consolidated debt consisted of $302,000 of 8  7/8% MTN&#146;s due 1998 (accrued interest
at June 30, 2004 was $269,108) which were  issued in 1993 as part of a $68 million
issuance. At December 31, 2003, Simec  had outstanding approximately $2 million of U.S.
dollar-denominated debt.  Simec&#146;s lower debt level at June 30, 2004 reflected the
prepayment of $1.7  million of bank debt in March 2004. At June 30, 2004 Simec owed no
debt to  Industrias CH, S.A. de C.V. (&#147;ICH&#148;).</font></td></tr></table>

<P><table width=600><tr><td><FONT SIZE="2"><B>(3) Commitments and contingent liabilities:</B></FONT></td></tr></table>

<P><table width=600><tr><td><font size=2>a. Pacific Steel, Inc. (a wholly-owned
subsidiary located in the U.S.A.) has  been named in various claims and suits relating to
the generation, storage,  transport, disposal and cleanup of materials classified as
hazardous waste. The  Company has accrued approximately Ps. 17,166 (U.S. $1,504,219) at
June 30, 2004,  (included in accrued liabilities) relating to these actions; the
reduction of  this reserve from previous levels reflects clean-up activities undertaken
by  Simec. Management believes the ultimate liability with respect to this matter  will
not exceed the amounts that have been accrued.</font></td></tr></table>


<P><table width=600><tr><td><font size=2>b. The Company is subject to various other legal
proceeding and claims, which  have arisen, in the ordinary course of its business. It is
the opinion of  management that their ultimate resolution will not have a material
adverse  effect on the Company&#146;s consolidated financial position or consolidated
results  of operations.</font></td></tr></table>

<P><table width=600><tr><td><font size=2>c. Compania Siderurgica de Guadalajara, S.A. de
C.V. has entered into a gas and  liquid oxygen purchase agreement with Praxair de Mexico,
S.A. de C.V., under  which it is committed to acquire monthly over a fifteen-year period
beginning  January 1, 1989, a certain amount of product. At present required purchases
amount to Ps. 1,171 per month.</font></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 22; page: 22" -->





<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>RELATIONS OF SHARES INVESTMENTS</b></font>
    </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="166">&nbsp;</td>
    <td align="center" width="251"><font size="1"><b>ANNEX 3</b></font> </td>
    <td width="9">&nbsp;</td>
    <td align="center" width="172"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<br>
<table cellpadding="0" cellspacing="0" border="0" width="640">
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom" colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="top"><font size="1">COMPANY NAME</font></td>
    <td align="center" valign="bottom"><font size="1">MAIN <br>
      ACTIVITIES </font></td>
    <td align="center" valign="bottom"> </td>
    <td align="center" valign="bottom"><font size="1">NUMBER OF <br>
      SHARES </font></td>
    <td align="center" valign="bottom"> </td>
    <td align="center" valign="bottom"><font size="1">OWNERSHIP</font></td>
    <td align="center" valign="bottom"> </td>
    <td align="center" valign="bottom" colspan="3"> <font size="1">TOTAL AMOUNT
      <br>
      (Thousands of Pesos) </font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom" colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom"><font size="1">SUBSIDIARIES </font></td>
    <td align="center" valign="bottom"> </td>
    <td align="center" valign="bottom"> </td>
    <td align="center" valign="bottom"> </td>
    <td align="center" valign="bottom"> </td>
    <td align="center" valign="bottom"> </td>
    <td align="center" valign="bottom"> </td>
    <td align="center" valign="bottom"><font size="1">ACQUISITION <br>
      COST </font></td>
    <td align="center" valign="bottom"> </td>
    <td align="center" valign="bottom"><font size="1">PRESENT <br>
      VALUE</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom" colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom"><font size="1">1 CIA SIDERURGICA DE</font><font size="1">
      GUADALAJARA</font></td>
    <td valign=bottom align="right"> <font size="1">MINI-MILL</font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">474,393,215</font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">99.99</font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">38,359</font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">2,669,331</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom" colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=bottom> <font size="1">2 ADMINISTRADORA DE CARTERA DE</font><font size="1">OCCIDENTE</font></td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">49,999</font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">99.99</font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">50</font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">(7,545)</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom" colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=bottom> <font size="1"><b>TOTAL INVESTMENT IN SUBSIDIARIES</b></font></td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1"><b>&nbsp;</b></font><font size="1"><b>38,409</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1"><b>&nbsp;2,661,786</b></font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom" colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=bottom> <font size="1"><b>ASSOCIATEDS</b></font></td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">0</font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">0.00</font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1"><b>&nbsp;</b></font><font size="1"><b>0</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">&nbsp;</font><font size="1">0</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom" colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=middle> <font size="1"><b>TOTAL INVESTMENT IN ASSOCIATEDS</b></font></td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1"><b>&nbsp;</b></font><font size="1"><b>&nbsp;</b></font><font size="1"><b>&nbsp;</b></font><font size="1"><b>0</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">&nbsp;</font><font size="1">0</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom" colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=bottom> <font size="1"><b>OTHER PERMANENT INVESTMENTS</b></font></td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1">0</font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom" colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=bottom> <font size="1"><b>&nbsp;</b></font><font size="1"><b>TOTAL</b></font></td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right">&nbsp; </td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="1"><b>&nbsp;</b></font><font size="1"><b>2,661,786</b></font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" valign="bottom" colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td><font size="2">NOTES </font></td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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<!-- MARKER PAGE="sheet: 23; page: 23" -->








<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td  align=center><font size=1><b>CREDITS BREAK DOWN<br>
      (THOUSANDS OF PESOS)<br>
      ANNEX 5</b></font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="left">
    <td>&nbsp;</td>
    <td  align=right><font size=1><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<br>
<table cellspacing=0 cellpadding=0 border="0" width=600>
  <tr align="center" valign="bottom">
    <td colspan="5" width="600">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td height=36 rowspan="2" width="343">&nbsp; </td>
    <td height=36 rowspan="2" width="79">&nbsp; </td>
    <td height=36 rowspan="2" width="52">&nbsp; </td>
    <td colspan=2 height=36 rowspan="2"> <font size="1">Denominated In <br>
      Pesos </font>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr><td></td></tr>
  <tr align="center" valign="bottom">
    <td height=17 width="343"> </td>
    <td height=17 width="79"> </td>
    <td height=17 width="52"> </td>
    <td height=17 width="57"> </td>
    <td height=17 width="69"> </td>
  </tr>
  <tr align="center" valign="bottom">
    <td height=34 rowspan="2" width="343"><font size="1">Credit</font> <font size="1"><br>
      Type / Institution </font> </td>
    <td height=34 rowspan="2" width="79"><font size="1">Amortization <br>
      Date </font> </td>
    <td height=34 rowspan="2" width="52"><font size="1">Rate of <br>
      Interest </font> </td>
    <td height=34 rowspan="2" width="57"> <font size="1">Until 1 <br>
      Year </font></td>
    <td height=34 rowspan="2" width="69"> <font size="1">More Than <br>
      1 Year </font></td>
  </tr>
  <tr><td></td></tr>
  <tr valign="bottom">
    <td height=18 width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left" width="343"><font size="1"><b>BANKS <br>
      WITH WARRANTY</b></font></td>
    <td height=17 width="79"> </td>
    <td height=17 width="52"> </td>
    <td height=17 width="57"> </td>
    <td height=17 width="69"> </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="343"> <font size="1"><b>TOTAL BANKS</b></font></td>
    <td height=18 align="center" width="79"> </td>
    <td height=18 align="center" width="52"> </td>
    <td height=18 align="center" width="57"> <font size="1">&nbsp;0</font></td>
    <td height=18 align="center" width="69"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="343"> <font size="1">LISTED IN THE MEXICAN
      <br>
      STOCK EXCHANGE</font></td>
    <td height=18 align="center" width="79"> </td>
    <td height=18 align="center" width="52"> </td>
    <td height=18 align="center" width="57"> </td>
    <td height=18 align="center" width="69"> </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="343"> <font size="1">UNSECURED DEBT</font></td>
    <td height=18 align="center" width="79"> </td>
    <td height=18 align="center" width="52"> </td>
    <td height=18 align="center" width="57"> </td>
    <td height=18 align="center" width="69"> </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left" width="343"> <font size="1">MEDIUM TERM NOTES</font></td>
    <td width=80 nowrap align="center" height="17"> <font size="1">12/15/1998</font></td>
    <td width=80 nowrap align="center" height="17"> <font size="1">9.33</font></td>
    <td width=80 align="center" height="17"> <font size="1">0</font></td>
    <td width=80 align="center" height="17"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="343"><font size="1"><b>TOTAL STOCK EXCHANGE</b></font></td>
    <td height=18 align="center" width="79"> </td>
    <td height=18 align="center" width="52"> </td>
    <td height=18 align="center" width="57"> <font size="1">&nbsp;0</font></td>
    <td height=18 align="center" width="69"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="343"> <font size="1">SUPPLIERS</font></td>
    <td height=18 align="center" width="79"> </td>
    <td height=18 align="center" width="52"> </td>
    <td height=18 align="center" width="57"> </td>
    <td height=18 align="center" width="69"> </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left" width="343"> <font size="1">VARIOUS</font></td>
    <td height=17 align="center" width="79"> </td>
    <td height=17 align="center" width="52"> </td>
    <td width=80 nowrap align="center"> <font size="1">218,892</font></td>
    <td width=80 nowrap align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="343"> <font size="1"><b>TOTAL SUPPLIERS</b></font></td>
    <td height=18 align="center" width="79"> </td>
    <td height=18 align="center" width="52"> </td>
    <td width=80 nowrap align="center"> <font size="1">218,892</font></td>
    <td width=80 nowrap align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=36 align="left" width="343" rowspan="2"><font size="1">OTHER CURRENT
      LIABILITIES</font> <font size="1"><br>
      AND OTHER CREDITS</font></td>
    <td height=36 align="center" width="79" rowspan="2"> </td>
    <td height=36 align="center" width="52" rowspan="2"> </td>
    <td height=36 align="center" width="57" rowspan="2"> </td>
    <td height=36 align="center" width="69" rowspan="2"> </td>
  </tr>
  <tr><td></td></tr>
  <tr valign="bottom">
    <td height=17 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left" width="343"> <font size="1">VARIOUS</font></td>
    <td height=17 align="center" width="79"> </td>
    <td height=17 align="center" width="52"> </td>
    <td width=80 nowrap align="center"> <font size="1">105,804</font></td>
    <td width=80 nowrap align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="343"><font size="1">OTHER CURRENT LIABILITIES
      <br>
      AND OTHER CREDITS</font></td>
    <td height=18 align="center" width="79"> </td>
    <td height=18 align="center" width="52"> </td>
    <td width=80 nowrap align="center"> <font size="1">105,804</font></td>
    <td width=80 nowrap align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="343"> <font size="1"><b>TOTAL</b></font></td>
    <td height=18 align="center" width="79"> </td>
    <td height=18 align="center" width="52"> </td>
    <td width=80 nowrap align="center"> <font size="1">324,696</font></td>
    <td width=80 nowrap align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" width="600" colspan="5">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="left">
    <td>&nbsp;</td>
    <td  align=right><font size=1><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<table cellspacing=0 cellpadding=0 border="0" width=600>
  <tr align="center" valign="bottom">
    <td height=17 colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td height=17>&nbsp;</td>
    <td height=17 colspan="6">
      <p><font size="1">Amortization of Credits in Foreign Currency <br>
        With National Entities <br>
        (Thousands of Pesos) </font>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td height=17> </td>
    <td height=17 colspan="6"><font size="1">Time Interval </font>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td height=34 rowspan="2"><font size="1">Credit</font> <font size="1"><br>
      Type / <br>
      Institution </font> </td>
    <td height=34 rowspan="2"> <font size="1">Current <br>
      Year </font></td>
    <td height=34 rowspan="2"> <font size="1">Until 1 <br>
      Year </font></td>
    <td height=34 rowspan="2"> <font size="1">Until 2 <br>
      Years </font></td>
    <td height=34 rowspan="2"> <font size="1">Until 3 <br>
      Years </font></td>
    <td height=34 rowspan="2"> <font size="1">Until 4 <br>
      Years </font></td>
    <td height=34 rowspan="2"> <font size="1">Until 5 <br>
      Years or <br>
      More </font></td>
  </tr>
  <tr><td></td></tr>
  <tr valign="bottom">
    <td height=18 colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left"><font size="1"><b>BANKS <br>
      WITH WARRANTY</b></font></td>
    <td height=17> </td>
    <td height=17> </td>
    <td height=17> </td>
    <td height=17> </td>
    <td height=17> </td>
    <td height=17> </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1"><b>TOTAL BANKS</b></font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1">LISTED IN THE MEXICAN <br>
      STOCK EXCHANGE</font></td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1">UNSECURED DEBT</font></td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1">MEDIUM TERM NOTES</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"><font size="1"><b>TOTAL STOCK EXCHANGE</b></font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1">SUPPLIERS</font></td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left"> <font size="1">VARIOUS</font></td>
    <td height=17 align="center"> <font size="1">3,134</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1"><b>TOTAL SUPPLIERS</b></font></td>
    <td height=18 align="center"> <font size="1">3,134</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=36 align="left" rowspan="2"><font size="1">OTHER CURRENT LIABILITIES
      <br>
      AND OTHER CREDITS </font></td>
    <td height=36 align="center" rowspan="2"> </td>
    <td height=36 align="center" rowspan="2"> </td>
    <td height=36 align="center" rowspan="2"> </td>
    <td height=36 align="center" rowspan="2"> </td>
    <td height=36 align="center" rowspan="2"> </td>
    <td height=36 align="center" rowspan="2"> </td>
  </tr>
  <tr><td></td></tr>
  <tr valign="bottom">
    <td height=17 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left"> <font size="1">VARIOUS</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">&nbsp;&nbsp;&nbsp;&nbsp;0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"><font size="1">OTHER CURRENT LIABILITIES <br>
      AND OTHER CREDITS </font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">&nbsp;&nbsp;&nbsp;&nbsp;0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1"><b>TOTAL</b></font></td>
    <td height=18 align="center"> <font size="1">3,134</font></td>
    <td height=18 align="center"> <font size="1">&nbsp;0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="left">
    <td>&nbsp;</td>
    <td  align=right><font size=1><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<table cellspacing=0 cellpadding=0 border="0" width=600>
  <tr align="center" valign="bottom">
    <td height=17 colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td height=17>&nbsp;</td>
    <td height=17 colspan="6"><font size="1">Amortization of Credits in Foreign
      Currency <br>
      With Foreing Entities <br>
      (Thousands of Pesos) </font>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td height=17> </td>
    <td height=17 colspan="6"><font size="1">Time Interval </font>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td height=34 rowspan="2"><font size="1">Credit</font> <font size="1"><br>
      Type / <br>
      Institution </font> </td>
    <td height=34 rowspan="2"> <font size="1">Current <br>
      Year </font></td>
    <td height=34 rowspan="2"> <font size="1">Until 1 <br>
      Year </font></td>
    <td height=34 rowspan="2"> <font size="1">Until 2 <br>
      Years </font></td>
    <td height=34 rowspan="2"> <font size="1">Until 3 <br>
      Years </font></td>
    <td height=34 rowspan="2"> <font size="1">Until 4 <br>
      Years </font></td>
    <td height=34 rowspan="2"> <font size="1">Until 5 <br>
      Years or <br>
      More </font></td>
  </tr>
  <tr><td></td></tr>
  <tr valign="bottom">
    <td height=18 colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left"><font size="1"><b>BANKS <br>
      WITH WARRANTY</b></font></td>
    <td height=17> </td>
    <td height=17> </td>
    <td height=17> </td>
    <td height=17> </td>
    <td height=17> </td>
    <td height=17> </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1">TOTAL BANKS</font></td>
    <td height=18 align="center"> <font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1">LISTED IN THE MEXICAN <br>
      STOCK EXCHANGE</font></td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1">UNSECURED DEBT</font></td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1">MEDIUM TERM NOTES</font></td>
    <td height=18 align="center"> <font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,446</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"><font size="1"><b>TOTAL STOCK EXCHANGE</b></font></td>
    <td height=18 align="center"> <font size="1">&nbsp;&nbsp;&nbsp;&nbsp;3,446</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1">SUPPLIERS</font></td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
    <td height=18 align="center"> </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left"> <font size="1">VARIOUS</font></td>
    <td height=17 align="center"> <font size="1">14,567</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1"><b>TOTAL SUPPLIERS</b></font></td>
    <td height=18 align="center"> <font size="1">14,567</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" rowspan="2"><font size="1">OTHER CURRENT LIABILITIES</font>
      <font size="1"><br>
      AND OTHER CREDITS </font></td>
    <td height=18 align="center" rowspan="2"> </td>
    <td height=18 align="center" rowspan="2"> </td>
    <td height=18 align="center" rowspan="2"> </td>
    <td height=18 align="center" rowspan="2"> </td>
    <td height=18 align="center" rowspan="2"> </td>
    <td height=18 align="center" rowspan="2"> </td>
  </tr>
  <tr><td></td></tr>
  <tr valign="bottom">
    <td height=17 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=17 align="left"> <font size="1">VARIOUS</font></td>
    <td height=17 align="center"> <font size="1">22,171</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"><font size="1">OTHER CURRENT LIABILITIES <br>
      AND OTHER CREDITS </font></td>
    <td height=17 align="center"> <font size="1">22,171</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
    <td height=17 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left"> <font size="1"><b>TOTAL</b></font></td>
    <td height=18 align="center"> <font size="1">40,184</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
    <td height=18 align="center"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td height=18 align="left" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="left">
    <td><font size="2">1.- The exchange rate of the peso to the U.S. Dollar at
      June 30, 2004 was Ps. 11.4116 </font></td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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<!-- MARKER PAGE="sheet: 24; page: 24" -->





<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td  align=center><font size=1><b>MONETARY POSITION IN FOREIGN EXCHANGE <br>
      (Thousands of Pesos) </b></font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr valign="bottom">
    <td width=37%><font size="1"><b> </b></font></td>
    <td width=26% align="center"><font size="1"><b>ANNEX 6</b></font></td>
    <td width=37% align="right"><font size="1"><b> CONSOLIDATED</b></font></td>
  </tr>
</table>
<br>
<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr align="center">
    <td valign=bottom width=270 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center">
    <td valign=bottom width=270> <b><font size="1">&nbsp;</font></b></td>
    <td colspan=4 valign=bottom> <font size="1">DOLLARS</font></td>
    <td colspan=4 valign=bottom> <font size="1">OTHER CURRENCIES</font></td>
    <td valign=bottom colspan="2"> <font size="1">TOTAL</font></td>
  </tr>
  <tr align="center">
    <td valign=bottom width=270> </td>
    <td valign=bottom colspan="2"> </td>
    <td valign=bottom colspan="2"> </td>
    <td valign=bottom colspan="2"> </td>
    <td valign=bottom colspan="2"> </td>
    <td valign=bottom colspan="2"> </td>
  </tr>
  <tr align="center">
    <td valign=bottom align="left" width=270>&nbsp;</td>
    <td valign=bottom colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center">
    <td valign=bottom align="left" width=270> <font size="1">TRADE BALANCE</font></td>
    <td valign=bottom colspan="2"> <font size="1">THOUSANDS<br>
      OF DOLLARS</font></td>
    <td valign=bottom colspan="2"> <font size="1">THOUSANDS<br>
      OF PESOS</font></td>
    <td valign=bottom colspan="2"> <font size="1">THOUSANDS <br>
      OF DOLLARS</font></td>
    <td valign=bottom colspan="2"> <font size="1">THOUSANDS <br>
      OF PESOS</font></td>
    <td valign=bottom colspan="2"> <font size="1">THOUSANDS<br>
      OF PESOS</font></td>
  </tr>
  <tr>
    <td valign=bottom width=640 colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=bottom width=270> <font size="2"><b>FOREIGN MONETARY POSITION</b></font></td>
    <td valign=bottom width=53>&nbsp; </td>
    <td valign=bottom width=19>&nbsp;</td>
    <td valign=bottom width=62>&nbsp; </td>
    <td valign=bottom width=10>&nbsp;</td>
    <td valign=bottom width=57>&nbsp; </td>
    <td valign=bottom width=17>&nbsp;</td>
    <td valign=bottom width=58>&nbsp; </td>
    <td valign=bottom width=17>&nbsp;</td>
    <td valign=bottom width=62>&nbsp; </td>
    <td valign=top width=15>&nbsp;</td>
  </tr>
  <tr>
    <td valign=bottom width=270> <font size="2"><b>TOTAL ASSETS</b></font></td>
    <td valign=bottom align="right"> <font size="2"><b>98,359</b></font></td>
    <td valign=bottom align="right">&nbsp;&nbsp;&nbsp;</td>
    <td valign=bottom align="right"> <font size="2"><b>1,122,434</b></font></td>
    <td valign=bottom align="right">&nbsp;&nbsp;&nbsp;</td>
    <td valign=bottom align="right"> <font size="2"><b>0</b></font></td>
    <td valign=bottom align="left">&nbsp;&nbsp;&nbsp;</td>
    <td valign=bottom align="right"> <font size="2"><b>0</b></font></td>
    <td valign=bottom align="left">&nbsp;&nbsp;&nbsp;</td>
    <td valign=bottom align="right"> <font size="2"><b>1,122,434</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
  </tr>
  <tr>
    <td valign=bottom width=270> <b><font size="2">LIABILITIES POSITION</font></b></td>
    <td valign=bottom align="right"> <font size="2"><b>3,521</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="2"><b>40,184</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="2"><b>275</b></font></td>
    <td valign=bottom align="left">&nbsp;</td>
    <td valign=bottom align="right"> <font size="2"><b>3,134</b></font></td>
    <td valign=bottom align="left">&nbsp;</td>
    <td valign=bottom align="right"> <font size="2"><b>43,318</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
  </tr>
  <tr>
    <td valign=bottom width=270> <font size="2">SHORT TERM LIABILITIES POSITION</font></td>
    <td valign=bottom align="right"> <font size="2">3,521</font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="2">40,184</font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="2">275</font></td>
    <td valign=bottom align="left">&nbsp;</td>
    <td valign=bottom align="right"> <font size="2">3,134</font></td>
    <td valign=bottom align="left">&nbsp;</td>
    <td valign=bottom align="right"> <font size="2">43,318</font></td>
    <td valign=bottom align="right">&nbsp;</td>
  </tr>
  <tr>
    <td valign=bottom width=270> <font size="2">LONG TERM LIABILITIES POSITION</font></td>
    <td valign=bottom align="right" width=53> <font size="2">0</font></td>
    <td valign=bottom align="right" width=19>&nbsp;</td>
    <td valign=bottom align="right" width=62> <font size="2">0</font></td>
    <td valign=bottom align="right" width=10>&nbsp;</td>
    <td valign=bottom align="right" width=57> <font size="2">0</font></td>
    <td valign=bottom align="left" width=17>&nbsp;</td>
    <td valign=bottom align="right" width=58> <font size="2">0</font></td>
    <td valign=bottom align="left" width=17>&nbsp;</td>
    <td valign=bottom align="right" width=62> <font size="2">0</font></td>
    <td valign=bottom width=15>&nbsp;</td>
  </tr>
  <tr>
    <td valign=bottom width=270> <font size="2"><b>NET BALANCE</b></font></td>
    <td valign=bottom align="right"> <font size="2"><b>94,838</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="2"><b>1,082,250</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
    <td valign=bottom align="right"> <font size="2"><b>(275</b></font></td>
    <td valign=bottom align="left"><font size="2"><b>)</b></font></td>
    <td valign=bottom align="right"> <font size="2"><b>(3,134</b></font></td>
    <td valign=bottom align="left"><font size="2"><b>)</b></font></td>
    <td valign=bottom align="right"> <font size="2"><b>1,079,116</b></font></td>
    <td valign=bottom align="right">&nbsp;</td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="left">
    <td><font size="2">NOTES <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THE EXCHANGE RATE OF THE PESO TO THE U.S.
      DOLLAR AT JUNE 30, 2004 WAS PS. 11.4116</font> </td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 25; page: 25" -->






<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width=600>
  <tr>
    <td  align=center><font size=1><b>INTEGRATION AND INCOME<br>
      CALCULATION BY MONETARY POSITION<br>
      (Thousands of Pesos)</b></font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr valign="bottom">
    <td width=37%><font size="1"><b> </b></font></td>
    <td width=26% align="center"><font size="1"><b>ANNEX 7 </b></font></td>
    <td width=37% align="right"><font size="1"><b> CONSOLIDATED</b></font></td>
  </tr>
</table>
<br>
<table border=0 cellspacing=0 cellpadding=0 width="595">
  <tr align="center" valign="bottom">
    <td width=199> <b><font size="1">&nbsp;</font></b><b><font size="1">&nbsp;</font></b><b><font size="1">&nbsp;</font></b><b><font size="1">MONTH</font></b></td>
    <td colspan="2"> <b><font size="1">&nbsp;</font></b><b><font size="1">&nbsp;</font></b><b><font size="1">MONETARY</font></b><b><font size="1"><br>
      ASSETS </font></b></td>
    <td colspan="2"> <b><font size="1">&nbsp;</font></b><b><font size="1">&nbsp;</font></b><b><font size="1">MONETARY</font></b><b><font size="1"><br>
      LIABILITIES </font></b></td>
    <td colspan="2"> <b><font size="1">(ASSET) <br>
      LIABILITIES<br>
      MONETARY <br>
      POSITION </font></b></td>
    <td colspan="2"> <b><font size="1">&nbsp;</font></b><b><font size="1">&nbsp;</font></b><b><font size="1">MONTHLY
      <br>
      INFLATION </font></b></td>
    <td colspan="2"> <b><font size="1">&nbsp;</font></b><b><font size="1">&nbsp;</font></b><b><font size="1">MONTHLY
      PROFIT<br>
      AND (LOSS) </font></b></td>
  </tr>
  <tr>
    <td valign=top colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td width=199> <font size="2">JANUARY</font></td>
    <td align="right" width=66> <font size="2">3,668,488</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=66> <font size="2">3,021,189</font></td>
    <td align="right" width=16>&nbsp;</td>
    <td align="right" width=68> <font size="2">(647,299)</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=54> <font size="2">0.62</font></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=58> <font size="2">(4,023</font></td>
    <td align="left" width=19 valign="bottom"><font size="2">)</font></td>
  </tr>
  <tr valign="bottom">
    <td width=199> <font size="2">FEBRUARY</font></td>
    <td align="right" width=66> <font size="2">1,181,183</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=66> <font size="2">468,147</font></td>
    <td align="right" width=16>&nbsp;</td>
    <td align="right" width=68> <font size="2">(713,036)</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=54> <font size="2">0.60</font></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=58> <font size="2">(4,265</font></td>
    <td align="left" width=19 valign="bottom"><font size="2">)</font></td>
  </tr>
  <tr valign="bottom">
    <td width=199> <font size="2">MARCH</font></td>
    <td align="right" width=66> <font size="2">1,400,780</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=66> <font size="2">596,467</font></td>
    <td align="right" width=16>&nbsp;</td>
    <td align="right" width=68> <font size="2">(804,313)</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=54> <font size="2">0.34</font></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=58> <font size="2">(2,725</font></td>
    <td align="left" width=19 valign="bottom"><font size="2">)</font></td>
  </tr>
  <tr valign="bottom">
    <td width=199> <font size="2">APRIL</font></td>
    <td align="right" width=66> <font size="2">1,411,536</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=66> <font size="2">542,155</font></td>
    <td align="right" width=16>&nbsp;</td>
    <td align="right" width=68> <font size="2">(869,381)</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=54> <font size="2">0.15</font></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=58> <font size="2">(1,312</font></td>
    <td align="left" width=19 valign="bottom"><font size="2">)</font></td>
  </tr>
  <tr valign="bottom">
    <td width=199> <font size="2">MAY</font></td>
    <td align="right" width=66> <font size="2">1,528,433</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=66> <font size="2">552,485</font></td>
    <td align="right" width=16>&nbsp;</td>
    <td align="right" width=68> <font size="2">(975,948)</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=54> <font size="2">(0.25</font></td>
    <td align="left" width=19><font size="2">)</font>&nbsp;&nbsp;</td>
    <td align="right" width=58> <font size="2">2,448</font></td>
    <td align="left" width=19 valign="bottom">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=199> <font size="2">JUNE</font></td>
    <td align="right" width=66> <font size="2">1,748,525</font></td>
    <td align="right" width=14>&nbsp;&nbsp;</td>
    <td align="right" width=66> <font size="2">551,719</font></td>
    <td align="right" width=16>&nbsp;&nbsp;</td>
    <td align="right" width=68> <font size="2">(1,196,806)</font></td>
    <td align="right" width=21>&nbsp;&nbsp;</td>
    <td align="right" width=54> <font size="2">0.11</font></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=58> <font size="2">(1,316</font></td>
    <td align="left" width=19 valign="bottom"><font size="2">)</font></td>
  </tr>
  <tr valign="bottom">
    <td width=199> <font size="2">ACTUALIZATION</font></td>
    <td align="right" width=66> <font size="2">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=66> <font size="2">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
    <td align="right" width=68> <font size="2">&nbsp;</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=54> <font size="2">&nbsp;</font></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=58> <font size="2">(58</font></td>
    <td align="left" width=19 valign="bottom"><font size="2">)</font></td>
  </tr>
  <tr valign="bottom">
    <td width=199> <font size="2">CAPITALIZATION</font></td>
    <td align="right" width=66> <font size="2">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=66> <font size="2">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
    <td align="right" width=68> <font size="2">&nbsp;</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=54> <font size="2">&nbsp;</font></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=58> <font size="2">0</font></td>
    <td align="left" width=19 valign="bottom">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=199> <font size="2">FOREIGN CORPOPATION</font></td>
    <td align="right" width=66> <font size="2">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=66> <font size="2">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
    <td align="right" width=68> <font size="2">&nbsp;</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=54> <font size="2">&nbsp;</font></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=58> <font size="2">&nbsp;</font><font size="2">0</font></td>
    <td align="left" width=19 valign="bottom">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=199> <font size="2">OTHER</font></td>
    <td align="right" width=66> <font size="2">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=66> <font size="2">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
    <td align="right" width=68> <font size="2">&nbsp;</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=54> <font size="2">&nbsp;</font></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=58> <font size="2">0</font></td>
    <td align="left" width=19 valign="bottom">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=199> <font size="2">&nbsp;</font></td>
    <td align="right" width=66> <font size="2">&nbsp;</font></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=66> <font size="2">&nbsp;</font></td>
    <td align="right" width=16>&nbsp;</td>
    <td align="right" width=68> <font size="2">&nbsp;</font></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=54> <font size="2">&nbsp;</font></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=58> <font size="2">&nbsp;</font></td>
    <td align="left" width=19 valign="bottom">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width=199> <b><font size="2">TOTAL</font></b></td>
    <td align="right" width=66> <b><font size="2">&nbsp;</font></b></td>
    <td align="right" width=14>&nbsp;</td>
    <td align="right" width=66> <b><font size="2">&nbsp;</font></b></td>
    <td align="right" width=16>&nbsp;</td>
    <td align="right" width=68> <b><font size="2">&nbsp;</font></b></td>
    <td align="right" width=21>&nbsp;</td>
    <td align="right" width=54> <b><font size="2">&nbsp;</font></b></td>
    <td align="left" width=19>&nbsp;</td>
    <td align="right" width=58> <b><font size="2">(11,251</font></b></td>
    <td align="left" width=19 valign="bottom"><font size="2"><b>)</b></font></td>
  </tr>
  <tr valign="bottom">
    <td colspan="11">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 26; page: 26" -->






<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td  align=center><font size=1><b>BONDS AND MEDIUM TERM NOTES LISTING IN STOCK
      MARKET</b></font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td valign=top width=200>&nbsp;</td>
    <td valign="bottom" align="center" width=200><font size="1"><b>ANNEX 8</b></font></td>
    <td align="center" width=200 valign="bottom"><font size="1"><b>CONSOLIDATED
      </b></font></td>
  </tr>
</table>
<p><table width=600><tr><td><font size=2><B>FINANCIAL LIMITED BASED IN ISSUED DEED AND/OR
TITLE</B></font></td></tr></table>


<p><table width=600><tr><td  align=center><font size=2><B>MEDIUM TERM NOTES</B></font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">A) </font></td><td width=95%><font size="2">Current
assets  to current liabilities must be 1.0 times or more. </font></td></tr></table>

<br>
<table width=600><tr>
   <td width=5% valign=top><font size="2">B) </font></td><td width=95%><font size="2"> Total
liabilities to total assets do not be more than 0.60.</font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">C) </font></td><td width=95%><font size="2">Operating
income plus items added to income which do not require using  cash must be 2.0 times or
more.</font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">This </font></td><td width=95%><font size="2">notes
was  offered in the international market.</font></td></tr></table>






<p><table width=600><tr><td  align=center><font size=2><B>ACTUAL SITUATION OF FINANCIAL
LIMITED</B></font></td></tr></table>


<p><table width=600><tr><td><FONT SIZE="2">
MEDIUM TERM NOTES</FONT></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">A) </font></td><td width=95%><font size="2">Accomplished
the actual situation is 4.67 times. </font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">B) </font></td><td width=95%><font size="2">Accomplished
the  actual situation is 0.24 </font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">C) </font></td><td width=95%><font size="2">Accomplished
the actual situation is 54.02</font></td></tr></table>

<P><table width=600><tr><td><font size=2>As of June 30, 2004, the remaining balance of
the MTNs not exchanged  amounts to Ps. 3,446 ($302,000 dollars).</font></td></tr></table>


<P><table width=600><tr><td><font size=2>C.P. Adolfo Luna Luna<BR>Chief Financial Officer</font></td></tr></table>




<p><table width=600><tr><td  align=center><font size=2><B>BONDS AND/OR MEDIUM TERM NOTES
CERTIFICATE</B></font></td></tr></table>




<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 27; page: 27" -->







<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="168">&nbsp;</td>
    <td align="center" width="236"><font size="1"><b>PLANTS, COMMERCE CENTERS
      OR <br>
      DISTRIBUTION CENTERS </b></font></td>
    <td width="2">&nbsp;</td>
    <td align="center" width="192">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="2">&nbsp;</td>
    <td width="168">&nbsp;</td>
    <td align="center" width="236"><font size="1"><b>ANNEX 9 </b></font> </td>
    <td width="2">&nbsp;</td>
    <td align="center" width="192"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<br>
<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr align="center" valign="bottom">
    <td width=485 colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td width=188> <font size="1"><b>PLANT OR CENTER</b></font></td>
    <td width=16>&nbsp;</td>
    <td width=281> <font size="1"><b>ECONOMIC ACTIVITY</b></font></td>
    <td colspan="2"> <font size="1"><b>PLANT CAPACITY</b></font></td>
    <td colspan="2"> <font size="1"><b>UTILIZATION (%)</b></font></td>
  </tr>
  <tr valign="bottom">
    <td valign=top width=640 colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td valign=top width=188> <font size="2">GUADALAJARA MINI MILL</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td width=281> <font size="2">PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align="right" width=49> <font size="2">&nbsp;</font><font size="2">480</font></td>
    <td align="right" width=23>&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align="right" width=45> <font size="2">&nbsp;</font><font size="2">92</font></td>
    <td align="right" width=38>&nbsp;&nbsp;&nbsp;&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td valign=top width=188> <font size="2">MEXICALI MINI MILL</font></td>
    <td valign=top width=16>&nbsp;</td>
    <td width=281> <font size="2">PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align="right" width=49> <font size="2">&nbsp;</font><font size="2">250</font></td>
    <td align="right" width=23>&nbsp;</td>
    <td align="right" width=45> <font size="2">&nbsp;</font><font size="2">79</font></td>
    <td align="right" width=38>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td valign=top width=188> <font size="2">INDUSTRIAS DEL ACERO Y DEL ALAMBRE</font></td>
    <td valign=top width=16>&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width=281 valign=bottom> <font size="2">&nbsp;</font><font size="2">SALE
      OF STEEL PRODUCTS</font></td>
    <td align="right" width=49> <font size="2">&nbsp;</font><font size="2"> 0</font></td>
    <td align="right" width=23>&nbsp;</td>
    <td align="right" width=45> <font size="2">&nbsp;</font><font size="2"> 0</font></td>
    <td align="right" width=38>&nbsp;</td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 28; page: 28" -->
<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td><font size="2"> </font></td>
    <td align="right"><font size="1"> QUARTER: 2 YEAR:&nbsp;<b>2004</b> </font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td align="left" width="3">&nbsp;</td>
    <td width="222">&nbsp;</td>
    <td align="center" width="131"><font size="1"><b>MAIN RAW MATERIALS </b></font></td>
    <td width="3">&nbsp;</td>
    <td align="center" width="241">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="3">&nbsp;</td>
    <td width="222">&nbsp;</td>
    <td align="center" width="131"><font size="1"><b>ANNEX 10 </b></font> </td>
    <td width="3">&nbsp;</td>
    <td align="center" width="241"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<br>
<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr align="center" valign="bottom">
    <td colspan="9">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center" valign="bottom">
    <td> <font size="1"><b>&nbsp;DOMESTIC</b></font></td>
    <td>&nbsp;</td>
    <td> <font size="1"><b>&nbsp;MAIN <br>
      SUPPLIERS</b></font></td>
    <td>&nbsp;</td>
    <td> <font size="1"><b>&nbsp;FOREIGN</b></font></td>
    <td>&nbsp;</td>
    <td> <font size="1"><b>&nbsp;MAIN <br>
      SUPPLIERS</b></font></td>
    <td> <font size="1"><b>DOMESTIC SUBSTITUTION</b></font></td>
    <td> <font size="1"><b>COST <br>
      PRODUCTION (%)</b></font></td>
  </tr>
  <tr>
    <td valign=top colspan="9">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top> <font size="2">SCRAP</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="2">VARIOUS</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="2">SCRAP</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="2">VARIOUS</font></td>
    <td valign=top align="center"> <font size="2">YES</font></td>
    <td valign=top align="center"> <font size="2">60.81</font></td>
  </tr>
  <tr>
    <td valign=top> <font size="2">ELECTRICITY</font></td>
    <td valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top> <font size="2">C.F.E</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="2">&nbsp;</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="2">&nbsp;</font></td>
    <td valign=top align="center"> <font size="2">NO</font></td>
    <td valign=top align="center"> <font size="2">9.31</font></td>
  </tr>
  <tr>
    <td valign=top> <font size="2">FERROALLOYS</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="2">MINERA AUTLAN</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="2">FERROALLOYS</font></td>
    <td valign=top>&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td valign=top> <font size="2">GFM TRADING</font></td>
    <td valign=top align="center"> <font size="2">YES</font></td>
    <td valign=top align="center"> <font size="2">5.61</font></td>
  </tr>
  <tr>
    <td valign=top> <font size="2">ELECTRODES</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="2">UCAR CARBON MEXICANA</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="2">ELECTRODES</font></td>
    <td valign=top>&nbsp;</td>
    <td valign=top> <font size="2">SGL CARBON GROUP</font></td>
    <td valign=top align="center"> <font size="2">YES</font></td>
    <td valign=top align="center"> <font size="2">2.07</font><font size="2">&nbsp;</font></td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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<!-- MARKER PAGE="sheet: 29; page: 29" -->







<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr valign="bottom">
    <td width="256">&nbsp;</td>
    <td width="21">&nbsp;&nbsp;</td>
    <td align="center" width="57">&nbsp;</td>
    <td align="center" width="48">&nbsp;</td>
    <td align="center" width="71">&nbsp;</td>
    <td align="center" width="147">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="256"><font size="1">STOCK EXCHANGE CODE: <b>SIMEC
      <br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="21">&nbsp;</td>
    <td align="center" width="57">&nbsp;</td>
    <td align="center" width="48"> </td>
    <td align="center" width="71">&nbsp;</td>
    <td align="center" width="147"><font size=1>QUARTER: 2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YEAR:
      <b>2004 </b></font></td>
  </tr>
  <tr valign="bottom" align="center">
    <td colspan="6"><font size="1"><b>SELLS DISTRIBUTION BY PRODUCT </b></font></td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="256">&nbsp;</td>
    <td width="21">&nbsp;</td>
    <td align="center" width="57"><font size="1"><b>ANNEX 11 </b></font> </td>
    <td align="center" width="48"> </td>
    <td align="center" width="71">&nbsp;</td>
    <td align="center" width="147"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<p><table width=600><tr><td  align=center><font size=1><B>DOMESTIC SELLS</B></font></td></tr></table>

<br>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr valign="bottom">
    <td colspan="12">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font size="1"><b>MAIN PRODUCTS</b></font></td>
    <td align="center" colspan="3"><font size="1"><b>TOTAL PRODUCTION</b></font></td>
    <td align="center">&nbsp;</td>
    <td align="center" colspan="3"><font size="1"><b>NET SELLS</b></font></td>
    <td align="center">&nbsp;</td>
    <td colspan=3 align="center"><font size="1"><b>MAIN DESTINATION&nbsp;</b></font></td>
  </tr>
  <tr valign="bottom">
    <td colspan="12">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td align="center" colspan="2"><font size="1"><b>VOLUME</b></font></td>
    <td align="center" colspan="2"><font size="1"><b>AMOUNT</b></font></td>
    <td align="center" colspan="2"><font size="1"><b>VOLUME</b></font></td>
    <td align="center" colspan="2"><font size="1"><b>AMOUNT</b></font></td>
    <td colspan=2 align="center"><font size="1"><b>TRADEMARKS</b></font></td>
    <td align="center"><font size="1"><b>COSTUMERS</b></font></td>
  </tr>
  <tr valign="bottom">
    <td colspan="12">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td> <font size="2">STRUCTURAL PROFILES</font></td>
    <td align="right"> <font size="2">98</font></td>
    <td align="right">&nbsp;&nbsp;</td>
    <td align="right"> <font size="2">370,907</font></td>
    <td align="right">&nbsp;&nbsp;</td>
    <td align="right"> <font size="2">87</font></td>
    <td align="right">&nbsp;&nbsp;</td>
    <td align="right"> <font size="2">563,934</font></td>
    <td align="right">&nbsp;&nbsp;</td>
    <td colspan=2 align="right"> <font size="2"><b>&nbsp;</b></font></td>
    <td align="right"> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="2">COMMERCIAL PROFILES</font></td>
    <td align="right"> <font size="2">14</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">43,274</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">17</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">101,610</font></td>
    <td align="right">&nbsp;</td>
    <td colspan=2 align="right"> <font size="2"><b>&nbsp;</b></font></td>
    <td align="right"> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="2">REBAR</font></td>
    <td align="right"> <font size="2">89</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">286,084</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">58</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">388,360</font></td>
    <td align="right">&nbsp;</td>
    <td colspan=2 align="right"> <font size="2"><b>&nbsp;</b></font></td>
    <td align="right"> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="2">FLAT BAR</font></td>
    <td align="right"> <font size="2">16</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">54,350</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">13</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">83,952</font></td>
    <td align="right">&nbsp;</td>
    <td colspan=2 align="right"> <font size="2"><b>&nbsp;</b></font></td>
    <td align="right"> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="2">STEEL BARS</font></td>
    <td align="right"> <font size="2">97</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">349,173</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">100</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">597,083</font></td>
    <td align="right">&nbsp;</td>
    <td colspan=2 align="right"> <font size="2"><b>&nbsp;</b></font></td>
    <td align="right"> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="2">OTHER</font></td>
    <td align="right"> <font size="2">0</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">0</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">2</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">19,208</font></td>
    <td align="right">&nbsp;</td>
    <td colspan=2 align="right"> <font size="2"><b>&nbsp;</b></font></td>
    <td align="right"> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="2">BILLET</font></td>
    <td align="right"> <font size="2">39</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">94,192</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">39</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">151,595</font></td>
    <td align="right">&nbsp;</td>
    <td colspan=2 align="right"> <font size="2"><b>&nbsp;</b></font></td>
    <td align="right"> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="2"><b>T O T A L</b></font></td>
    <td align="right"> <font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2"><b>1,197,980</b></font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2">&nbsp;</font></td>
    <td align="right">&nbsp;</td>
    <td align="right"> <font size="2"><b>1,905,742</b></font></td>
    <td align="right">&nbsp;</td>
    <td colspan=2 align="right"> <font size="2"><b>&nbsp;</b></font></td>
    <td align="right"> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 30; page: 30" -->






<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table border="0" cellspacing="0" cellpadding="0" width="600">
  <tr valign="bottom">
    <td width="256">&nbsp;</td>
    <td width="21">&nbsp;&nbsp;</td>
    <td align="center" width="57">&nbsp;</td>
    <td align="center" width="48">&nbsp;</td>
    <td align="center" width="71">&nbsp;</td>
    <td align="center" width="147">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="256"><font size="1">STOCK EXCHANGE CODE: <b>SIMEC
      <br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="21">&nbsp;</td>
    <td align="center" width="57">&nbsp;</td>
    <td align="center" width="48"> </td>
    <td align="center" width="71">&nbsp;</td>
    <td align="center" width="147"><font size=1>QUARTER: 2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YEAR:
      <b>2004 </b></font></td>
  </tr>
  <tr valign="bottom" align="center">
    <td colspan="6"><font size="1"><b>SELLS DISTRIBUTION BY PRODUCT </b></font></td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="256">&nbsp;</td>
    <td width="21">&nbsp;</td>
    <td align="center" width="57"><font size="1"><b>ANNEX 11 </b></font> </td>
    <td align="center" width="48"> </td>
    <td align="center" width="71">&nbsp;</td>
    <td align="center" width="147"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td  align=center><font size=1><b>FOREIGN SELLS</b></font></td>
  </tr>
</table>
<br>
<table width="620" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr valign="bottom" align="center">
    <td width=160><font size="1"><b>MAIN PRODUCTS</b></font></td>
    <td colspan="2"><font size="1"><b>TOTAL PRODUCTION</b></font></td>
    <td colspan="4"><font size="1"><b>NET SELLS</b></font></td>
    <td colspan=3><font size="1"><b>MAIN DESTINATION&nbsp;</b></font></td>
  </tr>
  <tr valign="bottom" align="center">
    <td width="100%" colspan="10">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom" align="center">
    <td width=160> <font size="1"><b>&nbsp;</b></font></td>
    <td width=68> <font size="1"><b>VOLUME</b></font></td>
    <td width=63> <font size="1"><b>AMOUNT</b></font></td>
    <td colspan="2"> <font size="1"><b>VOLUME</b></font>&nbsp;&nbsp;&nbsp;</td>
    <td colspan="2"> <font size="1"><b>AMOUNT</b></font>&nbsp;&nbsp;&nbsp;</td>
    <td colspan=2> <font size="1"><b>TRADEMARKS</b></font></td>
    <td width=118> <font size="1"><b>COSTUMERS</b></font></td>
  </tr>
</table>
<table width="620" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<table border=0 cellspacing=0 cellpadding=0 width="620">
  <tr>
    <td valign=top width=158> <font size="2">STRUCTURAL PROFILES</font></td>
    <td valign=top width=66> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top width=62> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top align="right" width=41> <font size="2">9</font></td>
    <td valign=top align="right" width=27>&nbsp;</td>
    <td valign=top align="right" width=52> <font size="2">52,295</font></td>
    <td valign=top align="right" width=20>&nbsp;&nbsp;&nbsp;</td>
    <td colspan=2 valign=top> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top width=122> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr>
    <td valign=top width=158> <font size="2">COMMERCIAL PROFILES</font></td>
    <td valign=top width=66> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top width=62> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top align="right" width=41> <font size="2">2</font></td>
    <td valign=top align="right" width=27>&nbsp;</td>
    <td valign=top align="right" width=52> <font size="2">11,323</font></td>
    <td valign=top align="right" width=20>&nbsp;</td>
    <td colspan=2 valign=top> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top width=122> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr>
    <td valign=top width=158> <font size="2">REBAR</font></td>
    <td valign=top width=66> <font size="2">&nbsp;</font></td>
    <td valign=top width=62> <font size="2">&nbsp;</font></td>
    <td valign=top align="right" width=41> <font size="2">34</font></td>
    <td valign=top align="right" width=27>&nbsp;</td>
    <td valign=top align="right" width=52> <font size="2">196,860</font></td>
    <td valign=top align="right" width=20>&nbsp;</td>
    <td colspan=2 valign=top> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top width=122> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr>
    <td valign=top width=158> <font size="2">STEEL BARS</font></td>
    <td valign=top width=66> <font size="2">&nbsp;</font></td>
    <td valign=top width=62> <font size="2">&nbsp;</font></td>
    <td valign=top align="right" width=41> <font size="2">4</font></td>
    <td valign=top align="right" width=27>&nbsp;</td>
    <td valign=top align="right" width=52> <font size="2">29,670</font></td>
    <td valign=top align="right" width=20>&nbsp;</td>
    <td colspan=2 valign=top> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top width=122> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr>
    <td valign=top width=158> <font size="2">FLAT BAR</font></td>
    <td valign=top width=66> <font size="2">&nbsp;</font></td>
    <td valign=top width=62> <font size="2">&nbsp;</font></td>
    <td valign=top align="right" width=41> <font size="2">1</font></td>
    <td valign=top align="right" width=27>&nbsp;</td>
    <td valign=top align="right" width=52> <font size="2">3,456</font></td>
    <td valign=top align="right" width=20>&nbsp;</td>
    <td colspan=2 valign=top> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top width=122> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr>
    <td valign=top width=158> <font size="2"><b>T O T A L</b></font></td>
    <td valign=top width=66> <font size="2">&nbsp;</font></td>
    <td valign=top width=62> <font size="2">&nbsp;</font></td>
    <td valign=top align="right" width=41> <font size="2">&nbsp;</font></td>
    <td valign=top align="right" width=27>&nbsp;</td>
    <td valign=top align="right" width=52> <font size="2"><b>293.604</b></font></td>
    <td valign=top align="right" width=20>&nbsp;</td>
    <td colspan=2 valign=top> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top width=122> <font size="2"><b>&nbsp;</b></font></td>
  </tr>
  <tr>
    <td width=158></td>
    <td width=66></td>
    <td width=62></td>
    <td width=41></td>
    <td width=27></td>
    <td width=52></td>
    <td width=20></td>
    <td width=4></td>
    <td width=68></td>
    <td width=122></td>
  </tr>
</table>
<p>&nbsp; </p>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





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<!-- MARKER PAGE="sheet: 31; page: 31" -->








<p>
<table border="0" cellspacing="0" cellpadding="0" width="670">
  <tr valign="bottom">
    <td width="168">&nbsp;</td>
    <td width="296" colspan="3" align="center"><font size="2"><b>MEXICAN STOCK
      EXCHANGE <br>
      SIFIC / ICS </b></font></td>
    <td align="center" width="74">&nbsp;&nbsp;</td>
    <td align="center" width="132">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="168">&nbsp;</td>
    <td width="70">&nbsp;&nbsp;</td>
    <td align="center" width="148">&nbsp;</td>
    <td align="center" width="78">&nbsp;</td>
    <td align="center" width="74">&nbsp;</td>
    <td align="center" width="132">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="168"><font size="1">STOCK EXCHANGE CODE: <b>SIMEC
      <br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="70">&nbsp;</td>
    <td align="center" width="148">&nbsp;</td>
    <td align="center" width="78"> </td>
    <td align="center" width="74">&nbsp;</td>
    <td align="center" width="132"><font size=1>QUARTER:2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YEAR:<b>
      2004 </b></font></td>
  </tr>
  <tr valign="bottom">
    <td align="left" width="168">&nbsp;</td>
    <td width="296" align="center" colspan="3"><font size="1"><b>INTEGRATION OF
      THE PAID SOCIAL CAPITAL STOCK <br>
      CHARACTERISTICS OF THE SHARES </b></font></td>
    <td align="center" width="74">&nbsp;</td>
    <td align="center" width="132"><font size="1"><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<p>&nbsp;</p>
<table width="640" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<table border=0 cellspacing=0 cellpadding=0 width="640">
  <tr valign="bottom" align="center">
    <td width=53> <font size="1"><b>SERIES</b></font></td>
    <td colspan=2> <font size="1"><b>NOMINAL</b></font><font size="1"><b><br>
      VALUE</b></font></td>
    <td width=40> <font size="1"><b>VALID</b></font><font size="1"><b><br>
      CUPON</b></font></td>
    <td colspan=8 valign="top"> <font size="1"><b>NUMBER OF SHARES</b></font></td>
    <td colspan=4> <font size="1"><b>CAPITAL STOCK</b></font><font size="1"><b><br>
      (Thousands of Pesos)</b></font></td>
  </tr>
  <tr valign="bottom" align="center">
    <td width="100%" colspan="16">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom" align="center">
    <td width=53> <font size="1"><b>&nbsp;</b></font></td>
    <td width=24> <font size="1"><b>&nbsp;</b></font></td>
    <td colspan=2> <font size="1"><b>&nbsp;</b></font></td>
    <td colspan="2"> <font size="1"><b>FIXED <br>
      PORTION</b></font></td>
    <td colspan="2"> <font size="1"><b>VARIABLE<br>
      PORTION</b></font></td>
    <td colspan="2"> <font size="1"><b>&nbsp;</b></font><font size="1"><b>MEXICAN</b></font></td>
    <td colspan="2"> <font size="1"><b>FREE <br>
      SUSCRIPTION</b></font></td>
    <td colspan="2"> <font size="1"><b>&nbsp;</b></font><font size="1"><b>FIXED</b></font></td>
    <td colspan="2"> <font size="1"><b>&nbsp;</b></font><font size="1"><b>VARIABLE</b></font></td>
  </tr>
  <tr>
    <td valign=top width=640 colspan="16">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td valign=top width=53> <font size="2">B</font></td>
    <td valign=top width=24> <font size="2"><b>&nbsp;</b></font></td>
    <td colspan=2 valign=top> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top align="right" width=76> <font size="2">15,283,350</font></td>
    <td valign=top align="right" width=9>&nbsp;&nbsp;</td>
    <td valign=top align="right" width=85> <font size="2">118,259,634</font></td>
    <td valign=top align="right" width=9>&nbsp;&nbsp;</td>
    <td valign=top align="right" width=42> <font size="2">0</font></td>
    <td valign=top align="right" width=25>&nbsp;&nbsp;</td>
    <td valign=top align="right" width=96> <font size="2">133,542,984 </font></td>
    <td valign=top align="right" width=9>&nbsp;&nbsp;</td>
    <td valign=top align="right" width=55> <font size="2">222,963</font></td>
    <td valign=top align="right" width=9>&nbsp;&nbsp;</td>
    <td valign=top align="right" width=67> <font size="2">1,725,192</font></td>
    <td valign=top align="right" width=19>&nbsp;&nbsp;</td>
  </tr>
  <tr>
    <td valign=top width=53> <font size="2"><b>TOTAL</b></font></td>
    <td valign=top width=24> <font size="2"><b>&nbsp;</b></font></td>
    <td colspan=2 valign=top> <font size="2"><b>&nbsp;</b></font></td>
    <td valign=top align="right" width=76> <font size="2"><b>15,283,350</b></font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="right" width=85> <font size="2"><b>118,259,634</b></font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="right" width=42> <font size="2"><b>0</b></font></td>
    <td valign=top align="right" width=25>&nbsp;</td>
    <td valign=top align="right" width=96> <font size="2"><b>133,542,984</b></font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="right" width=55> <font size="2"><b>222,963</b></font></td>
    <td valign=top align="right" width=9>&nbsp;</td>
    <td valign=top align="right" width=67> <font size="2"><b>1,725,192</b></font></td>
    <td valign=top align="right" width=19>&nbsp;</td>
  </tr>
  <tr>
    <td width=53></td>
    <td width=24></td>
    <td width=32></td>
    <td width=40></td>
    <td width=76></td>
    <td width=9></td>
    <td width=85></td>
    <td width=9></td>
    <td width=42></td>
    <td width=25></td>
    <td width=96></td>
    <td width=9></td>
    <td width=55></td>
    <td width=9></td>
    <td width=67></td>
    <td width=19></td>
  </tr>
</table>
<br>
<table width=600><tr><td><font size=2>TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN
CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION :  133,542,984</font></td></tr></table>

<p><table width=600><tr><td><font size=2><B>SHARES PROPORTION BY :</B></font></td></tr></table>


<br>
<table cellpadding="0" cellspacing="0" border="0" width="500">
  <tr valign="BOTTOM">
    <th width="41%"></th>
    <th colspan="2" width="59%"></th>
  </tr>
  <tr valign="BOTTOM">
    <td width="41%" align="LEFT"><font size="2">CPO&#146;S : </font></td>
    <td width="59%" align="left" colspan="2"><font size="2"> 0 </font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="41%"><font size="2">ADRS&#146;s : </font></td>
    <td align="left" colspan="2" width="59%"><font size="2">1,743,028 ADR&#146;S
      OF 1 SHARE EACH ONE. </font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="41%"><font size="2">UNITS : </font></td>
    <td align="left" colspan="2" width="59%"><font size="2">0 </font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="41%"><font size="2">GDRS&#146;s : </font></td>
    <td align="left" colspan="2" width="59%"><font size="2">0 </font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="41%"><font size="2">ADS&#146;s : </font></td>
    <td align="left" colspan="2" width="59%"><font size="2">0 </font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="41%"><font size="2">GDS&#146;s : </font></td>
    <td align="left" colspan="2" width="59%"><font size="2">0 </font></td>
  </tr>
</table>
<br>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="21"> </td>
    <td width="72"> </td>
    <td width="14"> </td>
    <td width="136"> </td>
    <td width="52"> </td>
    <td colspan="3"><b><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REPURCHASED
      OWN SHARES </font></b></td>
  </tr>
  <tr>
    <td width="21"> </td>
    <td width="72"> </td>
    <td width="14"> </td>
    <td width="136"> </td>
    <td width="52"> </td>
    <td width="143"> </td>
    <td width="14"> </td>
    <td width="148"> </td>
  </tr>
  <tr>
    <td width="21"> </td>
    <td align="center" valign="bottom" width="72"> </td>
    <td align="center" valign="bottom" width="14"> </td>
    <td align="center" valign="bottom" width="136"> </td>
    <td align="center" valign="bottom" width="52"> </td>
    <td colspan="3" align="center" valign="bottom"><b><font size="1">MARKET VALUE
      OF THE SHARE </font></b></td>
  </tr>
  <tr>
    <td width="21"><b><font size="1">&nbsp;&nbsp;&nbsp;</font></b></td>
    <td align="center" valign="bottom" width="72"><b><font size="1">SERIES </font></b></td>
    <td align="center" valign="bottom" width="14"><b><font size="1">&nbsp;&nbsp;</font></b></td>
    <td align="center" valign="bottom" width="136"><b><font size="1">NUMBER OF
      <br>
      SHARES </font></b></td>
    <td align="center" valign="bottom" width="52"><b><font size="1">&nbsp;&nbsp;</font></b></td>
    <td align="center" valign="bottom" width="143"><b><font size="1">AT REPURCHASE
      </font></b></td>
    <td align="center" valign="bottom" width="14"><b><font size="1">&nbsp;&nbsp;</font></b></td>
    <td align="center" valign="bottom" width="148"><b><font size="1">AT QUARTER
      </font></b></td>
  </tr>
</table>
<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 32; page: 32" -->






<p>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="center"><b><font size="2">MEXICAN STOCK EXCHANGE <br>
      SIFIC / ICS </font></b></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td>&nbsp;&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left"><font size="1">STOCK EXCHANGE CODE: <b>SIMEC <br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td>&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="center"><font size=1>QUARTER: 2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YEAR:
      <b>2004 </b></font></td>
  </tr>
  <tr valign="bottom">
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="center"><font size="1"><b>CONSTRUCTION IN PROGRESS <br>
      (Proyect, Total Investment and % of Advance) </b></font></td>
    <td>&nbsp;</td>
    <td align="center">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="center"><font size="1"><b>ANNEX 13 </b></font> </td>
    <td>&nbsp;</td>
    <td align="center"><font size="1"><b>CONSOLIDATED </b></font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td><font size="2">THE PROYECTS IN PROGRESS AT JUNE 30, 2003, ARE: </font></td>
  </tr>
</table>
<p>
<p>
<table cellpadding="0" cellspacing="0" border="0" width="600">
  <tr valign="BOTTOM">
    <th width="270"></th>
    <th width="35"></th>
    <th colspan="2"></th>
    <th colspan="2"></th>
    <th width="8"></th>
    <th width="112"></th>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="270"><font size="2">PROYECTS IN <br>
      PROGRESS </font></td>
    <td align="center" colspan="3"><font size="2">TOTAL <br>
      INVESTMENT </font></td>
    <td align="center" colspan="2"><font size="2">PHISICAL <br>
      ADVANCE </font></td>
    <td align="center" width="8">&nbsp;</td>
    <td align="center" width="112"><font size="2">FINISHED <br>
      AT </font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="270">&nbsp;</td>
    <td align="LEFT" width="35">&nbsp;</td>
    <td align="RIGHT" width="37"></td>
    <td align="LEFT" width="52">&nbsp;</td>
    <td align="RIGHT" colspan="2"></td>
    <td align="LEFT" width="8">&nbsp;</td>
    <td align="LEFT" width="112">&nbsp;</td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="270"><font size="2">EXCHANGE HEATER FOR FURNACE ROLLING
      MILL </font></td>
    <td align="LEFT" width="35">&nbsp;</td>
    <td align="RIGHT" width="37"><font size="2">4,922 </font></td>
    <td align="LEFT" width="52">&nbsp;</td>
    <td align="center" colspan="2"><font size="2">80%</font></td>
    <td align="LEFT" width="8">&nbsp;</td>
    <td align="center" width="112"><font size="2">AUGUST 2004 </font></td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="270" height="18">&nbsp;</td>
    <td align="LEFT" width="35" height="18">&nbsp;</td>
    <td align="RIGHT" width="37" height="18">&nbsp;</td>
    <td align="LEFT" width="52" height="18">&nbsp;</td>
    <td align="RIGHT" colspan="2" height="18">&nbsp;</td>
    <td align="LEFT" width="8" height="18">&nbsp;</td>
    <td align="LEFT" width="112" height="18">&nbsp;</td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="270" height="18"><font size="2">VARIOUS </font></td>
    <td align="LEFT" width="35" height="18">&nbsp;</td>
    <td align="RIGHT" width="37" height="18"><font size="2">3,299 </font></td>
    <td align="LEFT" width="52" height="18">&nbsp;</td>
    <td align="RIGHT" colspan="2" height="18">&nbsp;</td>
    <td align="LEFT" width="8" height="18">&nbsp;</td>
    <td align="LEFT" width="112" height="18">&nbsp;</td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="270" height="18">&nbsp;</td>
    <td align="LEFT" width="35" height="18">&nbsp;</td>
    <td align="RIGHT" width="37" height="18">&nbsp;</td>
    <td align="LEFT" width="52" height="18">&nbsp;</td>
    <td align="RIGHT" colspan="2" height="18">&nbsp;</td>
    <td align="LEFT" width="8" height="18">&nbsp;</td>
    <td align="LEFT" width="112" height="18">&nbsp;</td>
  </tr>
  <tr valign="BOTTOM">
    <td align="LEFT" width="270"><b><font size="2">TOTAL INVESTMENT AT <br>
      JUNE 30, 2004 </font></b></td>
    <td align="LEFT" width="35">&nbsp;</td>
    <td align="RIGHT" width="37"><b><font size="2">8,221</font></b></td>
    <td align="LEFT" width="52">&nbsp;</td>
    <td align="RIGHT" colspan="2">&nbsp;</td>
    <td align="LEFT" width="8">&nbsp;</td>
    <td align="LEFT" width="112">&nbsp;</td>
  </tr>
</table>
<p><br>
</p>
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
<p>&nbsp; <!-- *************************************************************************** -->
  <!-- MARKER PAGE="sheet: 33; page: 33" -->
<p>&nbsp;
<table width=600>
  <tr>
    <td  align=center><font size=2><b>MEXICAN STOCK EXCHANGE <br>
      SIFIC / ICS</b></font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="1"> QUARTER: 2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YEAR:<b>&nbsp;2004</b>
      </font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td  align=center><font size=1><b>FOREIGN CURRENCY TRANSACTION AND EXCHANGE
      DIFFERENCES</b></font></td>
  </tr>
</table>
<p>
<table width=600>
  <tr>
    <td valign=top width="269"> </td>
    <td valign="top" width="117"><font size="1"><b>ANNEX 14</b></font></td>
    <td align="right" width="198"><font size="1"><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<P><table width=600><tr>
    <td><font size=2><b>Foreign currency transactions and exchange differences</b>
      - All transactions in foreign currency are recorded at the exchange rates
      prevailing on the date of their execution or liquidation. Foreign currency
      denominated assets and liabilities are translated at the exchange rates
      prevailing at the balance sheet date. Any exchange differences incurred
      with regard to assets or liabilities denominated in foreign currency are
      charged to operations of the period and are included in financial income
      (expense) in the accompanying consolidated statements of income (loss).</font></td>
  </tr></table>

<P><table width=600><tr><td><font size=2>The financial statements of foreign subsidiaries
are translated into Mexican  pesos in conformity with Bulletin B-15 &#147;Transactions in
Foreign Currency and  Translation of Financial Statements of Foreign Operations&#148;.
All foreign  subsidiaries are considered to be &#147;integrated foreign operations&#148;,
as defined in  Bulletin B-15, and accordingly such financial statements were translated
as  follows: </font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">- </font></td><td width=95%><font size="2">Monetary
items at the exchange rate at the balance sheet date.</font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">- </font></td><td width=95%><font size="2">Non-monetary
items and stockholders&#146; equity at the exchange rate prevailing at  the date the
transactions occurred. </font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">- </font></td><td width=95%><font size="2">Income
and expense items at an appropriate  average exchange rate. </font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">- </font></td><td width=95%><font size="2">The
resulting foreign currency translation differences  are included in the financial income
(expense) in the statement of  income (loss).</font></td></tr></table>

<P><table width=600><tr>
   <td width=5% valign=top><font size="2">- </font></td><td width=95%><font size="2"> All
resulting Mexican peso amounts are restated for the effects of  inflation in accordance
with the dispositions of Bulletin B-10 using the  NCPI, where such effects are considered
significant.</font></td></tr></table>



<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 34; page: 34" -->




<p><table width=600><tr><td  align=center><font size=2><B>MEXICAN STOCK EXCHANGE<BR>SIFIC /
ICS</B></font></td></tr></table>

<br>
<table width=600>
  <tr valign="top">
    <td><font size="1">STOCK EXCHANGE CODE: <b>SIMEC<br>
      GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td>&nbsp;</td>
    <td align="right"><font size="1"> QUARTER: 2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YEAR:<b>&nbsp;2004</b>
      </font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr align="right">
    <td><font size=1><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<br>
<table width=600>
  <tr>
    <td align=center><font size=1><b>DECLARATION OF THE COMPANY OFFICIALS RESPONSIBLE
      FOR THE INFORMATION CONTAINED IN THIS REPORT.</b></font></td>
  </tr>
</table>
<P><table width=600><tr><td><font size=2>LUIS GARCIA LIMON AND ADOLFO LUNA LUNA CERTIFY
THAT BASED ON OUR KNOWLEDGE, THIS  REPORT DOES NOT CONTAIN ANY UNTRUE STATEMENT OF A
MATERIAL FACT OR OMIT TO STATE  A MATERIAL FACT NECESSARY TO MAKE THE STATEMENTS MADE
HEREIN, IN LIGHT OF THE  CIRCUMSTANCES UNDER WHICH SUCH STATEMENTS WERE MADE, NOT
MISLEADING WITH RESPECT  TO THE PERIOD COVERED BY THIS SECOND QUARTER REPORT.</font></td></tr></table>







<br>
<table width=600>
  <tr align="center" valign="top">
    <td colspan="2"><font size="2">ING LUIS GARCIA LIMON <br>
      CHIEF EXECUTIVE OFFICER </font></td>
    <td width=51%><font size="2"> C.P. ADOLFO LUNA LUNA<br>
      CHIEF FINANCIAL OFFICER</font></td>
  </tr>
</table>
<p>
<table width=600><tr><td  align=center><font size=2>GUADALAJARA, JAL, AT JULY 26 OF
2004</font></td></tr></table>


<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT>
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`
end

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
