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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000891092-04-005130.txt : 20041027
<SEC-HEADER>0000891092-04-005130.hdr.sgml : 20041027
<ACCEPTANCE-DATETIME>20041027144144
ACCESSION NUMBER:		0000891092-04-005130
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20041027
FILED AS OF DATE:		20041027
DATE AS OF CHANGE:		20041027

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:		041099195

	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>e19440_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>






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<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="3"><B>UNITED STATES
<BR>SECURITIES AND EXCHANGE COMMISSION
<BR></B> </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Washington, D.C. 20549</B> </FONT> </P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>FORM 6-K </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>REPORT OF FOREIGN
PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
                                               <BR>UNDER THE SECURITIES EXCHANGE ACT OF 1934 </B></FONT></P>

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="12%"><font face="Times New Roman, Times, Serif" size=2>For the
      month of</font></td>
    <td align="center" width="82%"><font face="Times New Roman, Times, Serif" size=2>October</font></td>
    <td align="right" width="6%"><font face="Times New Roman, Times, Serif" size=2>
      2004.</font></td>
  </tr>
  <tr>
    <td width="12%">&nbsp;</td>
    <td align="center" width="82%">
      <hr noshade size="1">
    </td>
    <td width="6%">&nbsp;</td>
  </tr>
</table>
<P ALIGN=CENTER> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">Group Simec,
  Inc.</FONT>
<hr noshade size="1">
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Translation
  of Registrant&#146;s Name Into English) </FONT> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</div>
<P ALIGN=CENTER> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">Mexico <BR>
  </FONT>
<hr noshade size="1">
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Jurisdiction
  of incorporation or organization) </FONT><!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</div>
<P ALIGN=CENTER>
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Av. Lazaro
  Cardenas 601, Colonia la Nogalera, Guadalajara, Jalisco, Mexico 44440 <BR>
  </FONT></div>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">
<hr noshade size="1" align="center">
<div align="center">
  <p>(Address of principal executive office) </p>
  <p>&nbsp;</p>
</div>
</FONT>
<div align="center"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</div>
<P><FONT FACE="Times New Roman, Times, Serif" 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></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;Form
20-F [X]             &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 40-F [&nbsp;&nbsp;&nbsp;] </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" 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></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;Yes
[&nbsp;&nbsp;&nbsp;]             &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No [X] </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" 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></P>


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<BR>
<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><BR>






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<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="3">SIGNATURE </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&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></P>
<table border="0" cellspacing="0" cellpadding="0" width="100%">

  <tr>
    <td width="30%">&nbsp;</td>
    <td width="27%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="40%"><font size="2">GRUPO SIMEC, S.A. de C.V. </font>
      <hr size="1" noshade width="175" align="left">
      <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</font></td>
  </tr>
  <tr>
    <td width="30%"><font size="2"></font></td>
    <td width="27%"><font size="2"></font></td>
    <td width="3%">&nbsp;</td>
    <td width="40%"><font size="2"></font></td>
  </tr>
  <tr align="left" valign="top">
    <td width="30%"><font size="2">Date: October 26, 2004.</font></td>
    <td width="27%"><font size="2"></font></td>
    <td width="3%"><font size="2">By:</font></td>
    <td width="40%"><font size="2">/s/ Luis Garc&#237;a Lim&#243;n</font>
      <hr size="1" noshade align="left" width="175">
    </td>
  </tr>
  <tr align="left" valign="top">
    <td width="30%"><font size="2"></font></td>
    <td width="27%"><font size="2"></font></td>
    <td width="3%">&nbsp;</td>
    <td width="40%"><font size="2">Name: Luis Garc&#237;a Lim&#243;n <br>
      Title:     Chief Executive
Officer </font></td>
  </tr>
</table>

<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><BR>






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





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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="29%"><font face="Times New Roman, Times, Serif" size=2><b><img src="simeclogo.gif" width="98" height="34"><br>
      PRESS RELEASE</b></font></td>
    <td width="22%">&nbsp;&nbsp;</td>
    <td width="7%"><font face="Times New Roman, Times, Serif" size=2>Contact:</font></td>
    <td width="42%"><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>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>GRUPO SIMEC
ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST NINE <BR>MONTHS OF 2004 </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GUADALAJARA, MEXICO, October 25,
2004- Grupo Simec, S.A. de C.V. (AMEX-SIM) (&#147;Simec&#148;) announced today its results of
operations for the nine-month period ended September 30, 2004. Net sales increased 85% to
Ps. 3,882 million in the first nine months of 2004 (including the net sales recorded
since August 1, 2004 generated by the newly acquired plants in Apizaco and Cholula of Ps.
486 million), compared to Ps. 2,098 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. 1,042 million in
the first nine months of 2004 versus net income of Ps. 295 million for the first nine
months of 2003. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On September 10, 2004 Simec
completed the acquisition of the property, plant and equipment and the inventories, and
assumed liabilities associated with seniority premiums of employees of the Mexican
steel-making facilities of Industr&#237;as Ferricas del Norte, S.A. (Corporaci&#243;n
Sidenor of Spain) located in Apizaco, Tlaxcala and Cholula, Puebla. Simec&#146;s total
investment in this transaction was approximately U.S. $135 million, funded with
internally generated resources of Simec and capital contributions from ICH of U.S. $19
million for capital stock to be issued in the future. On July 12, 2004 the shareholders
of Simec approved this transaction at an extraordinary shareholders meeting. Simec began
to operate the plants in Apizaco, Tlaxcala and Cholula, Puebla on August 1, 2004, and, as
a result, the operations of both plants are reflected in Simec&#146;s financial results as of
such date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec sold 542,705 metric tons of
basic steel products during the nine-month period ended September 30, 2004 (including
64,427 tons from the newly acquired plants in Apizaco and Cholula), an increase of 17% as
compared to 463,286 metric tons in the same period of 2003. Exports of basic steel
products were 70,112 metric tons in the first nine months of 2004 (including 1,205 tons
from the newly acquired plants in Apizaco and Cholula) versus 54,047 metric tons in the
same period of 2003. Additionally Simec sold 40,791 tons of billet in the nine-month
period ended September 30, 2004 as compared to 47,049 tons of billet in the first nine
months of 2003. Prices of finished products sold in the first nine months of 2004
increased 61% in real terms versus the same period of 2003. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s direct cost of sales was Ps.
2,211 million in the nine-month period ended September 30, 2004 (including Ps. 303
million relating to the newly acquired plants in Apizaco and Cholula), or 57% of net
sales, versus Ps. 1,374 million, or 65% of net sales, for the 2003 period. The average
cost of raw materials used to produce steel products increased 40% in real terms in the
nine-month period ended September 30, 2004 versus the first nine months of 2003,
primarily as a result of significant increases in the price of scrap and certain other
raw materials. Indirect manufacturing, selling, general and  </FONT></P>





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<BR>
<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><BR>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>administrative expenses (including
depreciation) was Ps. 406 million during the first nine months of 2004 (including Ps. 52
million relating to the newly acquired plants in Apizaco and Cholula), compared to Ps.
365 million in the same period of 2003. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s operating income increased
252% to Ps. 1,265 million during the nine-month period ended September 30, 2004
(including Ps. 131 million relating to the newly acquired plants in Apizaco and Cholula)
from Ps. 359 million in the same period of 2003. Operating income was 33% of net sales in
the nine-month period ended September 30, 2004 compared to 17% of net sales in the
comparable period of 2003. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded other income, net,
from other financial operations of Ps. 16 million in the nine-month period ended
September 30, 2004 compared to other income, net, of Ps. 0 million in the same period of
2003. In addition, Simec recorded a provision for income tax and employee profit sharing
of Ps. 223 million in the nine-month period ended September 30, 2004 versus a provision
of Ps. 39 million in the same period of 2003. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded financial expense of
Ps. 16 million in the nine-month period ended September 30, 2004 compared to financial
expense of Ps. 25 million in the first nine months of of 2003 as a result of (i) net
interest income of Ps. 3 million in the nine-month period ended September 30, 2004
compared to net interest expense of Ps. 15 million in the same period of 2003, (ii) an
exchange gain of Ps. 12 million in the nine-month period ended September 30, 2004
compared to an exchange loss of Ps. 9 million in the same period of 2003, reflecting
lower debt during the nine-month period ended September 30, 2004 and a decrease of 1.6%
in the value of the peso versus the dollar in the nine-month period ended September 30,
2004 compared to a decrease of 6% in the value of the peso versus the dollar in the same
period of 2003 and (iii) a loss from monetary position of Ps. 31 million in the
nine-month period ended September 30, 2004 compared to a loss from monetary position of
Ps. 1 million in the same period of 2003, reflecting the domestic inflation rate of 3.4%
in the nine-month period ended September 30, 2004 compared to the domestic inflation rate
of 2.3% in the same period in 2003 and lower debt levels during the 2004 period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At September 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
September 30, 2004 was $273,962) 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 September 30, 2004 reflected the
prepayment of $1.7 million of the remainder of its bank debt in March 2004. </FONT></P>

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<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 September 30, 2004. </FONT></P>

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<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>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>### </FONT></P>



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<BR>
<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><BR>





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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>
  SIFIC / ICS</B></FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="17%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="29%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>

<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
FINANCIAL STATEMENT <BR></B>AT SEPTEMBER 30 OF
2004 AND 2003 <BR>(thousands of
pesos) </FONT> </P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td colspan="2" align="CENTER"><font size=1>REF</font></td>
    <td colspan="2" align="CENTER"><font size=1>CATEGORIES</font></td>
    <td colspan="4" align="CENTER"><font size=1>QUARTER OF PRESENT<br>
FINANCIAL YEAR</font></td>
    <td colspan="4" align="CENTER"><font size=1>QUARTER OF PREVIOUS<br>
FINANCIAL YEAR</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td colspan="2" align="CENTER"><font size=1>S</font></td>
    <td colspan="2" align="CENTER"><font size=1></font></td>
    <td colspan="2" align="CENTER"><font size=1>AMOUNT</font></td>
    <td colspan="2" align="CENTER"><font size=1>%</font></td>
    <td colspan="2" align="CENTER"><font size=1>AMOUNT</font></td>
    <td colspan="2" align="CENTER"><font size=1>%</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=7% align=RIGHT><font size="1"><b>1</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=50% align=LEFT><font size="1"><b>TOTAL ASSETS</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>7,997,537</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>6,001,414</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>2</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CURRENT ASSETS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>2,091,468</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>26</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>1,106,834</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>18</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>3</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CASH AND SHORT-TERM INVESTMENTS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>320,637</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>4</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>362,128</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>6</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>4</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>ACCOUNTS AND DOCUMENTS RECEIVABLE (NET)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>931,522</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>12</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>447,113</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>7</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>5</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>137,936</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>26,181</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>6</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INVENTORIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>638,286</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>8</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>264,392</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>4</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>7</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER CURRENT ASSETS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>63,087</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>7,020</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>8</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>LONG-TERM</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>10,300</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>9</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>ACCOUNTS AND DOCUMENTS RECEIVABLE (NET)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>10,300</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>10</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INVESTMENT IN SHARES OF SUBSIDIARIES AND NON-CONSOLIDATED</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>11</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER INVESTMENTS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>12</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>PROPERTY, PLANT AND EQUIPMENT</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>5,657,182</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>71</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>4,625,733</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>77</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>13</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>PROPERTY</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2,191,216</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>27</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,976,189</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>33</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>14</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>MACHINERY AND INDUSTRIAL</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>5,522,025</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>69</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>4,355,792</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>73</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>15</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER EQUIPMENT</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>150,031</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>196,266</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>16</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>ACCUMULATED DEPRECIATION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2,226,502</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>28</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,910,991</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>32</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>17</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CONSTRUCTION IN PROGRESS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>20,412</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>8,477</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>18</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>DEFERRED ASSETS (NET)</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>238,587</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>3</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>268,847</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>4</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>19</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>OTHER ASSETS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>20</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>TOTAL LIABILITIES</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>1,980,490</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>1,276,058</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>21</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CURRENT LIABILITIES</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>631,424</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>32</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>336,316</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>26</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>22</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>SUPPLIERS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>421,158</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>21</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>198,903</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>16</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>23</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>BANK LOANS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>19,832</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>24</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>STOCK MARKET LOANS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,446</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,467</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>25</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>TAXES TO BE PAID</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>34,695</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>43,425</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>26</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER CURRENT LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>172,125</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>9</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>70,689</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>6</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>27</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>LONG-TERM LIABILITIES</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>28</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>BANK LOANS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>29</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>STOCK MARKET LOANS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>30</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER LOANS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>31</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>DEFERRED LOANS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>1,349,066</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>68</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>939,742</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>74</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>32</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>OTHER LIABILITIES</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>33</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CONSOLIDATED STOCKHOLDERS&#146; EQUITY</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>6,017,047</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>4,725,356</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>34</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>MINORITY INTEREST</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>228</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>263</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>35</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>MAJORITY INTEREST</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>6,016,819</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>4,725,093</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>36</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CONTRIBUTED CAPITAL</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>4,081,935</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>68</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>3,820,068</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>81</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>37</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>PAID-IN CAPITAL STOCK (NOMINAL)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,948,155</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>32</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,755,676</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>37</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>38</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>RESTATEMENT OF PAID-IN CAPITAL STOCK</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,272,520</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>21</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,261,806</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>27</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>39</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>PREMIUM ON SALES OF SHARES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>644,561</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>11</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>644,561</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>14</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>40</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>216,699</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>4</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>158,025</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>41</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CAPITAL INCREASE (DECREASE)</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>1,934,884</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>32</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>905,025</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>19</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>42</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>RETAINES EARNINGS AND CAPITAL RESERVE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,596,557</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>27</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,293,700</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>27</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>43</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>REPURCHASE FUND OF SHARES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>82,779</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>82,779</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>44</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EXCESS (SHORTFALL) IN RESTATEMENT OF STOCKHOLDERS EQUITY</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(786,842</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(13</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(766,663</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(16</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>45</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET INCOME FOR THE YEAR</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,042,390</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>17</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>295,209</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>6</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>




<p><BR>
</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><BR>





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




<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="19%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="27%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
FINANCIAL STATEMENT <BR>
  </B>BREAKDOWN OF MAIN CATEGORIES
<BR>
  (thousands of pesos) </FONT> </P>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=4><font size=1>QUARTER OF PRESENT<br>
FINANCIAL YEAR</font></th>
    <th colspan=4><font size=1>QUARTER OF PREVIOUS<br>
FINANCIAL YEAR</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>S</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=7% align=RIGHT><font size="1"><b>3</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=50% align=LEFT><font size="1"><b>CASH AND SHORT-TERM INVESTMENTS</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>320,637</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>362,128</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>46</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CASH</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>239,502</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>75</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>154,597</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>43</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>47</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>SHORT-TERM INVESTMENTS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>81,135</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>25</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>207,531</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>57</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>18</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>DEFERRED ASSETS (NET)</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>238,587</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>268,847</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>48</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>AMORTIZED OR REDEEMED EXPENSES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>236,629</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>99</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>266,505</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>99</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>49</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>GOODWILL</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>50</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>DEFERRED TAXES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>51</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHERS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,958</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2,342</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>21</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CURRENT LIABILITIES</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>631,424</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>336,316</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>52</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>FOREIGN CURRENCY LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>123,740</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>20</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>74,695</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>22</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>53</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>MEXICAN PESOS LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>507,684</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>80</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>261,621</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>78</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>24</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>STOCK MARKET LOANS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>3,446</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>3,467</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>54</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>COMMERCIAL PAPER</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>55</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CURRENT MATURITIES OF MEDIUM TERM NOTES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,446</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>100</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,467</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>100</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>56</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CURRENT MATURITIES OF BONDS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>26</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>OTHER CURRENT LIABILITIES</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>172,125</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>70,689</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>57</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER CURRENT LIABILITIES WITH COST</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>58</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER CURRENT LIABILITIES WITHOUT COST</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>172,125</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>100</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>70,689</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>100</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>27</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>LONG-TERM LIABILITIES</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>59</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>FOREIGN CURRENCY LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>60</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>MEXICAN PESOS LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>29</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>STOCK MARKET LOANS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>61</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>BONDS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>62</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>MEDIUM TERM NOTES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>30</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>OTHER LOANS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>63</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER LOANS WITH COST</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>64</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER LOANS WITHOUT COST</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>31</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>DEFERRED LOANS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>1,349,066</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>939,742</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>65</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NEGATIVE GOODWILL</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>66</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>DEFERRED TAXES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,339,733</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>99</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>930,233</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>99</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>67</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHERS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>9,333</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>9,509</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>32</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>OTHER LIABILITIES</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>68</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>RESERVES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>69</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>44</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>EXCESS (SHORTFALL) IN RESTATEMENT OF STOCKHOLDERS&#146;&#146; EQUIT</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>(786,842</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(100</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(766,663</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(100</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>70</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>ACCUMULATED INCOME DUE TO MONETARY POSITION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(786,842</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(100</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(766,663</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(100</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>71</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INCOME FROM NON-MONETARY POSITION ASSETS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>



<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><BR>





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



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="21%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="25%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
FINANCIAL STATEMENT <BR>
  </B>OTHER CONCEPTS
<BR>
  (thousands of pesos) </FONT> </P>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
FINANCIAL YEAR</font></th>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>S</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=14% align=RIGHT><font size=1></font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=47% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=14% align=RIGHT><font size=1></font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=14% align=RIGHT><font size=1></font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>72</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>WORKING CAPITAL</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,460,044</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>770,518</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>73</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>PENSIONS FUND AND SENIORITY PREMIUMS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>74</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EXECUTIVES (*)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>22</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>25</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>75</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EMPLOYERS (*)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>686</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>384</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>76</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>WORKERS (*)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,347</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>910</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>77</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>COMMON SHARES (*)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>133,542,984</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>120,348,855</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>78</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>REPURCHASED SHARES (*)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(*) THESE ITEMS SHOULD BE EXPRESSED
IN UNITS </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><BR>





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




<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="22%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="24%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
EARNING STATEMENT <BR></B>FROM JANUARY 1 TO SEPTEMBER
30 OF 2004 AND 2003 <BR>(thousands
of pesos) </FONT> </P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=4><font size=1>QUARTER OF PRESENT<br>
FINANCIAL YEAR</font></th>
    <th colspan=4><font size=1>QUARTER OF PREVIOUS<br>
FINANCIAL YEAR</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>R</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=6% align=RIGHT><font size="1"><b>1</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=48% align=LEFT><font size="1"><b>NET SALES</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=6% align=RIGHT><font size="1"><b>3,881,568</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=6% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=6% align=RIGHT><font size="1"><b>2,098,129</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=12% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=5% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size=1>2</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>COST OF SALES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>2,210,732</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>57</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>1,373,859</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>65</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size="1"><b>3</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="48%"><font size="1"><b>GROSS INCOME</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>1,670,836</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>43</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>724,270</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>35</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size=1>4</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>OPERATING EXPENSES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>405,957</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>10</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>364,725</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>17</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size="1"><b>5</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="48%"><font size="1"><b>OPERATING INCOME</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>1,264,879</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>33</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>359,545</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>17</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size=1>6</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>TOTAL FINANCING COST</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>15,774</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>25,351</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>1</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size="1"><b>7</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="48%"><font size="1"><b>INCOME AFTER FINANCING COST</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>1,249,105</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>32</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>334,194</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>16</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size=1>8</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>OTHER FINANCIAL OPERATIONS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>(16,345</font></td>
    <td align=LEFT width="3%"><font size=1>)</font></td>
    <td align=RIGHT width="6%"><font size=1>(0</font></td>
    <td align=LEFT width="2%"><font size=1>)</font></td>
    <td align=RIGHT width="6%"><font size=1>(292</font></td>
    <td align=LEFT width="2%"><font size=1>)</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size="1"><b>9</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="48%"><font size="1"><b>INCOME BEFORE TAXES AND WORKERS&#146; PROFIT SHARING</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>1,265,450</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>33</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>334,486</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>16</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size=1>10</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>RESERVE FOR TAXES AND WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>223,060</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>6</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>39,277</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>2</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size="1"><b>11</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="48%"><font size="1"><b>NET INCOME AFTER TAXES AND WORKERS&#146; PROFIT SHARING</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>1,042,390</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>27</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>295,209</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>14</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%" valign="top"><font size=1>12</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>SHARE IN NET INCOME OF SUBSIDIARIES
      AND NON-CONSOLIDATED<br>
      ASSOCIATES </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size="1"><b>13</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="48%"><font size="1"><b>CONSOLIDATED NET INCOME FROM CONTINUOS OPERATIONS</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>1,042,390</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>27</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>295,209</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>14</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size=1>14</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>INCOME FROM DISCONTINUOUS OPERAATIONS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size="1"><b> &nbsp;&nbsp;&nbsp;&nbsp;15</b>
      </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="48%"><font size="1"><b>CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>1,042,390</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>27</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>295,209</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>14</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size=1>16</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>EXTRAORDINARY ITEMS NET EXPENSES (INCOME)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%" valign="top"><font size=1>17</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>NET EFFECT AT THE BEGINNING OF THE
      YEAR BY CHANGES IN <br>
      ACCOUNTING PRINCIPLES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="3%">&nbsp;</td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size="1"><b>18</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="48%"><font size="1"><b>NET CONSOLIDATED INCOME</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>1,042,390</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>27</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>295,209</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>14</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size=1>19</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>NET INCOME OF MINORITY INTEREST</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>9</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT width="6%"><font size=1>20</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>NET INCOME OF MAJORITY INTEREST</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>1,042,390</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>27</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>295,209</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>14</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>



<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><BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 16; page: 16" -->




<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="21%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="25%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
EARNING STATEMENT <BR></B>BREAKDOWN OF MAIN CONCEPTS
<BR>(thousands of pesos) </FONT> </P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=4><font size=1>QUARTER OF PRESENT<br>
FINANCIAL YEAR</font></th>
    <th colspan=4><font size=1>QUARTER OF PREVIOUS<br>
FINANCIAL YEAR</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>R</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=8% align=RIGHT><font size="1"><b>1</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=45% align=LEFT><font size="1"><b>NET SALES</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>3,881,568</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>2,098,129</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>21</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>DOMESTIC</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,439,413</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>89</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,884,259</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>90</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>22</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>FOREIGN</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>442,155</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>11</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>213,870</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>10</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>23</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>TRANSLATED INTO DOLLARS (***)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>38,605</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>18,839</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>6</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>TOTAL FINANCING COST</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>15,774</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>25,351</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>24</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INTEREST PAID</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>14,893</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>94</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>17,852</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>70</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>25</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EXCHANGE LOSSES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>9,558</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>38</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>26</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INTEREST EARNED</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>18,333</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>116</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2,771</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>11</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>27</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EXCHANGE PROFITS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>11,537</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>73</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>28</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>(GAIN) LOSS FROM MONETARY POSITION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>30,751</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>195</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>712</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>8</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>OTHER FINANCIAL OPERATIONS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>(16,345</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(100</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(292</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(100</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>29</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER NET EXPENSES (INCOME) NET</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(16,345</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(100</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(292</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(100</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>30</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>(PROFIT) LOSS ON SALE OF OWN SHARES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>31</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>(PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>10</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>RESERVE FOR TAXES AND WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size="1"><b>223,060</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>39,277</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>32</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INCOME TAX</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>22,483</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>10</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>24,793</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>63</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>33</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>DEFERRED INCOME TAX</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>200,577</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>90</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>13,349</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>34</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>34</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,135</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>35</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>DEFERRED WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(***) THOUSANDS OF DOLLARS</FONT></P>
<P><!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>
</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><BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 17; page: 17" -->



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="21%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="25%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
EARNING STATEMENT <BR></B>OTHER CONCEPTS
<BR>(thousands of pesos) </FONT> </P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
FINANCIAL YEAR</font></th>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>R</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=15% align=RIGHT><font size=1></font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=41% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=15% align=RIGHT><font size=1></font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=15% align=RIGHT><font size=1></font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>36</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>TOTAL SALES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>4,124,747</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2,240,191</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>37</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET FISCAL INCOME OF THE YEAR</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>38</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET SALES (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>4,664,877</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2,686,864</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>39</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OPERATION INCOME (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,414,204</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>436,898</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>40</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET INCOME OF MAJORITY INTEREST (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,049,416</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>351,488</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>41</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET CONSOLIDATED INCOME (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,049,417</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>351,488</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(**) THE RESTATED INFORMATION FOR
THE LAST TWELVE MONTHS SHOULD BE USED </FONT></P>


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<BR>
<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><BR>






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 18; page: 18" -->



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="24%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="22%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
EARNING STATEMENTOF THE SECOND QUARTER <BR></B>FROM
JULY 1 TO SEPTEMBER 30 OF 2004 AND 2003
<BR>(thousands of pesos) </FONT> </P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=4><font size=1>QUARTER OF PRESENT<br>
FINANCIAL YEAR</font></th>
    <th colspan=4><font size=1>QUARTER OF PREVIOUS<br>
FINANCIAL YEAR</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>R</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=7% align=RIGHT><font size="1"><b>1</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=44% align=LEFT><font size="1"><b>NET SALES</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>1,644,483</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>752,441</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=11% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>2</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>COST OF SALES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>894,863</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>54</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>488,755</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>65</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>3</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>GROSS INCOME</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>749,620</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>46</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>263,686</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>35</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>4</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OPERATING EXPENSES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>169,858</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>10</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>120,767</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>16</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>5</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>OPERATING INCOME</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>579,762</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>35</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>142,919</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>19</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>6</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>TOTAL FINANCING COST</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>12,740</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(2,204</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>7</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>INCOME AFTER FINANCING COST</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>567,022</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>34</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>145,123</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>19</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>8</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER FINANCIAL OPERATIONS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(3,876</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,472</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>9</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>INCOME BEFORE TAXES AND WORKERS&#146; PROFIT SHARING</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>570,898</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>35</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>143,651</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>19</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>10</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>RESERVE FOR TAXES AND WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>84,033</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>5</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>16,498</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT valign="top"><font size="1"><b>11</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>NET INCOME AFTER TAXES AND WORKERS&#146; PROFIT SHARING</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>486,865</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>30</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>127,153</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>17</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT valign="top"><font size=1>12</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>SHARE IN NET INCOME OF SUBSIDIARIES AND NON-CONSOLIDATED
      ASSOCIATES </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT valign="top"><font size="1"><b>13</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CONSOLIDATED NET INCOME FROM CONTINUOS OPERATIONS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>486,865</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>30</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>127,153</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>17</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>14</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INCOME FROM DISCONTINUOUS OPERAATIONS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT valign="middle"><font size="1"><b>&nbsp;&nbsp;&nbsp;15</b></font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>486,865</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>30</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>127,153</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>17</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>16</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EXTRAORDINARY ITEMS NET EXPENSES (INCOME)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT valign="top"><font size=1>17</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET EFFECT AT THE BEGINNING OF THE YEAR BY CHANGES
      IN<br>
      ACCOUNTING PRINCIPLES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>18</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>NET CONSOLIDATED INCOME</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>486,865</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>30</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>127,153</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>17</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>19</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET INCOME OF MINORITY INTEREST</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>20</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET INCOME OF MAJORITY INTEREST</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size="1"><b>486,865</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>30</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>127,153</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>17</b> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>



<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><BR>





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<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="24%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="22%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
EARNING STATEMENT OF THE SECOND QUARTER <BR></B>BREAKDOWN OF MAIN
CONCEPTS <BR>FROM JULY 1 TO SEPTEMBER 30 OF 2004 AND 2003 <BR>(thousands of pesos) </FONT> </P>



<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=4><font size=1>QUARTER OF PRESENT<br>
FINANCIAL YEAR</font></th>
    <th colspan=4><font size=1>QUARTER OF PREVIOUS<br>
FINANCIAL YEAR</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>R</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=8% align=RIGHT><font size="1"><b>1</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=45% align=LEFT><font size="1"><b>NET SALES</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>1,644,483</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>752,441</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>21</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>DOMESTIC</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,500,971</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>91</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>669,117</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>89</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>22</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>FOREIGN</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>143,512</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>9</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>83,324</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>11</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>23</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>TRANSLATED INTO DOLLARS (***)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>12,475</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>7,345</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>6</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>TOTAL FINANCING COST</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>12,740</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>(2,204</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>24</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INTEREST PAID</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>429</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>632</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>29</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>25</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EXCHANGE LOSSES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>26</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INTEREST EARNED</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,387</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>27</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>890</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>40</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>27</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EXCHANGE PROFITS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,610</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>28</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>6,159</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>279</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>28</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>(GAIN) LOSS FROM MONETARY POSITION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>19,308</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>152</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>4,213</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>191</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>8</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>OTHER FINANCIAL OPERATIONS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>(3,876</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(100</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>1,472</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>29</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER NET EXPENSES (INCOME) NET</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(3,876</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(100</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>1,472</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>100</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>30</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>(PROFIT) LOSS ON SALE OF OWN SHARES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>31</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>(PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>10</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>RESERVE FOR TAXES AND WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size="1"><b>84,033</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>16,498</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>100</b> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>32</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INCOME TAX</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>7,883</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>9</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>8,354</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>51</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>33</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>DEFERRED INCOME TAX</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>76,150</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>91</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>7,773</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>47</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>34</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>371</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>35</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>DEFERRED WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(***) THOUSANDS OF DOLLARS </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>
<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><BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 20; page: 20" -->



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="23%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="23%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
STATEMENT OF CHANGES IN FINANCIAL POSITION
<BR></B>FROM JANUARY 1 TO SEPTEMBER 30 OF 2004 AND
2003 <BR>(thousands of pesos) </FONT> </P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
FINANCIAL YEAR</font></th>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>C</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=11% align=RIGHT><font size=1></font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=37% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=11% align=RIGHT><font size=1></font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=11% align=RIGHT><font size=1></font></td>
    <td width=21% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>1</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CONSOLIDATED NET INCOME</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>1,042,390</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>295,209</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT valign="top"><font size=1>2</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) ITEMS ADDED TO INCOME WHICH DO NOT <br>
      REQUIRE CASH </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>354,111</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>153,919</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>3</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CASH FLOW FROM NET INCOME OF THE YEAR</b>
      </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>1,396,501</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>449,128</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT height="10"><font size=1>4</font></td>
    <td align=LEFT height="10"><font size=1>&nbsp;</font></td>
    <td align=LEFT height="10"><font size=1>CASH FLOW FROM CHANGE IN WORKING CAPITAL</font></td>
    <td align=LEFT height="10"><font size=1>&nbsp;</font></td>
    <td align=RIGHT height="10"><font size=1>(686,201</font></td>
    <td align=LEFT height="10"><font size=1>)</font></td>
    <td align=RIGHT height="10"><font size=1>(189,056</font></td>
    <td align=LEFT height="10"><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT valign="top"><font size="1"><b>5</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CASH GENERATED (USED) IN OPERATING ACTIVITIES</b>
      </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>710,300</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>260,072</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>6</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CASH FLOW FROM EXTERNAL FINANCING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(19,782</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(346,704</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>7</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CASH FLOW FROM INTERNAL FINANCING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>240,033</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>348,637</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b>8</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CASH FLOW GENERATED (USED) BY FINANCING</b>
      </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>220,251</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>1,933</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT valign="top"><font size="1"><b>9</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CASH FLOW GENERATED (USED) IN INVESTMENT
      <br>
      ACTIVITIES </b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>(1,143,460</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(17,089</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT valign="top"><font size=1>10</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET INCREASE (DECREASE) IN CASH AND <br>
      SHORT-TERM INVESTMENTS </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(212,909</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>244,916</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT valign="top"><font size=1>11</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CASH AND SHORT-TERM INVESTMENTS AT THE <br>
      BEGINNING OF PERIOD</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>533,546</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>117,212</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT valign="top"><font size=1>12</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CASH AND SHORT TERM INVESTMENTS AT THE<br>
      END OF PERIOD </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>320,637</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>362,128</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>


<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><BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 21; page: 21" -->




<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="23%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="23%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
STATEMENT OF CHANGES IN FINANCIAL POSITION <BR></B>BREAKDOWN OF MAIN
CONCEPTS <BR>(thousands of pesos) </FONT> </P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>C</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=9% align=RIGHT><font size=1></font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=64% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=9% align=RIGHT><font size=1></font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=9% align=RIGHT><font size=1></font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size="1"><b>2</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>+ (-) ITEMS ADDED TO INCOME WHICH DO NOT
      REQUIRE CASH</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>354,111</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>153,919</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>13</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>DEPRECIATION AND AMORTIZATION FOR THE YEAR</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>153,534</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>140,571</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>14</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) NET INCREASE (DECREASE) IN PENSIONS FUND
      AND SENIORITY PREMIUMS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>15</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) NET LOSS (PROFIT) IN MONEY EXCHANGE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>16</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) NET LOSS (PROFIT) IN ASSETS AND LIABILITIES
      ACTUALIZATION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>17</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) OTHER ITEMS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>40</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) OTHER ITEMS WHICH DO NOT AFFECT EBITDA</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>200,577</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>13,348</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size="1"><b>4</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CASH FLOW CHANGE IN WORKING CAPITAL</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>(686,201</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(189,056</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>18</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) DECREASE (INCREASE) IN ACCOUNT RECEIVABLES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(485,673</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(11,374</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>19</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) DECREASE (INCREASE) IN INVENTORIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(339,658</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>24,878</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>20</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) DECREASE (INCREASE) IN OTHER ACCOUNT RECEIVABLES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(176,632</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>30,918</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>21</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) DECREASE (INCREASE) IN SUPPLIER ACCOUNT</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>207,229</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(25,022</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>22</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) DECREASE (INCREASE) IN OTHER LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>108,533</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(208,456</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size="1"><b>6</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CASH FLOW FROM EXTERNAL FINANCING</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>(19,782</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(346,704</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>23</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ SHORT-TERM BANK AND STOCK MARKET FINANCING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(707</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>1,364</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>24</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ LONG-TERM BANK AND STOCK MARKET FINANCING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>25</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ DIVIDEND RECEIVED</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>26</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OTHER FINANCING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>27</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>BANK FINANCING AMORTIZATION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(19,075</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(348,068</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>28</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>(-) STOCK MARKET AMORTIZATION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>29</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>(-) OTHER FINANCING AMORTIZATION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size="1"><b>7</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CASH FLOW FROM INTERNAL FINANCING</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>240,033</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>348,637</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>30</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) INCREASE (DECREASE) IN CAPITAL STOCK</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>23,334</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>190,612</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>31</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>(-) DIVIDENDS PAID</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>32</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ PREMIUM ON SALE OF SHARES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>33</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ CONTRIBUTION FOR FUTURE CAPITAL INCREASES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>216,699</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>158,025</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size="1"><b>9</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>CASH FLOW GENERATED (UTILIZED) IN INVESTMENT
      ACTIVITIES</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>(1,143,460</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(17,089</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>34</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) INCREASE 8DECREASE) IN STOCK INVESTMENTS
      OF A PERMANENT NATURE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>35</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>(-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(1,176,568</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(12,571</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>36</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>(-) INCREASE IN CONSTRUCTION PROGRESS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>37</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ SALE OF OTHER PERMANET INVESTMENTS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>38</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ SALE OF TANGIBLE FIXED ASSETS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT><font size=1>39</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>+ (-) OTHER ITEMS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>33,108</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(4,518</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>



<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><BR>





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



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="20%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="26%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>RATIOS
<BR></B>CONSOLIDATED </FONT> </P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
FINANCIAL YEAR</font></th>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>P</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1></font></th>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b>YIELD</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=CENTER><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=CENTER><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>1</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET INCOME TO NET SALES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>26.85</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
    <td align=right><font size=1>14.07</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>2</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET INCOME TO STOCKHOLDERS&#146; EQUITY (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>17.44</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
    <td align=right><font size=1>7.44</font></td>
    <td align=LEFT><font size=1>%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>3</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET INCOME TO TOTAL ASSETS (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>13.12</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
    <td align=right><font size=1>5.86</font></td>
    <td align=LEFT><font size=1>%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>4</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
    <td align=right><font size=1>0.00</font></td>
    <td align=LEFT><font size=1>%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>5</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INCOME DUE TO MONETARY POSITION TO NET INCOME</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>(2.95</font></td>
    <td align=LEFT><font size=1>)%</font></td>
    <td align=right><font size=1>(0.24</font></td>
    <td align=LEFT><font size=1>)%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size="1"><b>ACTIVITY</b> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>6</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET SALES TO NET ASSETS (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>.0.58</font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
    <td align=right><font size=1>0.45 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>7</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET SALES TO FIXED ASSETS (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>0.82 </font></td>
    <td align=LEFT><font size=1> &nbsp;times</font></td>
    <td align=right><font size=1>0.58 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>8</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INVENTORIES ROTATION (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1> 4.28 </font></td>
    <td align=LEFT><font size=1> &nbsp;times</font></td>
    <td align=right><font size=1>6.70 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>9</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>ACCOUNTS RECEIVABLE IN DAYS OF SALES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>56</font></td>
    <td align=LEFT><font size=1>&nbsp;days</font></td>
    <td align=right><font size=1>50 </font></td>
    <td align=LEFT><font size=1>&nbsp;days</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>10</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>PAID INTEREST TO TOTAL LIABILITIES WITH COST (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>446.90</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
    <td align=right><font size=1>119.53</font></td>
    <td align=LEFT><font size=1>%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size="1"><b>LEVERAGE</b> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>11</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>TOTAL LIABILITIES TO TOTAL ASSETS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>24.76</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
    <td align=right><font size=1>21.26</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>12</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>TOTAL LIABILITIES TO STOCKHOLDERS&#146; EQUITY</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>0.33 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
    <td align=right><font size=1>0.27 </font></td>
    <td align=LEFT><font size=1>&nbsp; times</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>13</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>6.25</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
    <td align=right><font size=1>5.85</font></td>
    <td align=LEFT><font size=1>%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>14</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>LONG-TERM LIABILITIES TO FIXED ASSETS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
    <td align=right><font size=1>0.00</font></td>
    <td align=LEFT><font size=1>%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>15</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>OPERATING INCOME TO INTEREST PAID</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>84.93</font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
    <td align=right><font size=1>20.14 </font></td>
    <td align=LEFT><font size=1>&nbsp;times&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>16</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>NET SALES TO TOTAL LIABILITIES (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>2.36 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
    <td align=right><font size=1>2.11 </font></td>
    <td align=LEFT><font size=1>times&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size="1"><b>LIQUIDITY</b> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>17</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CURRENT ASSETS TO CURRENT LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>3.31 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
    <td align=right><font size=1>3.29 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>18</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>2.30 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
    <td align=right><font size=1>2.50 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>19</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CURRENT ASSETS TO TOTAL LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>1.06 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
    <td align=right><font size=1>0.87 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>20</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>AVAILABLE ASSETS TO CURRENT LIABILITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>50.78</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
    <td align=right><font size=1>107.67</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size="1"><b>CASH FLOW</b> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>21</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CASH FLOW FROM NET INCOME TO NET SALES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>35.98</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
    <td align=right><font size=1>21.41</font></td>
    <td align=LEFT><font size=1>&nbsp;%</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>22</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CASH FLOW FROM CHANGES IN WORKING CAPITAL TO NET
      SALES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>(17.68</font></td>
    <td align=LEFT><font size=1>)%</font></td>
    <td align=right><font size=1>(9.01</font></td>
    <td align=LEFT><font size=1>)%</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>23</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CASH GENERATED (USED) IN OPERATING TO INTEREST
      PAID</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>47.69</font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
    <td align=right><font size=1>14.57 </font></td>
    <td align=LEFT><font size=1>&nbsp;times</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>24</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EXTERNAL FINANCING TO CASH GENERATED (USED) IN
      FINANCING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>(8.98</font></td>
    <td align=LEFT><font size=1>)%</font></td>
    <td align=right><font size=1>(17,936.06</font></td>
    <td align=LEFT><font size=1>)%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>25</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>INTERNAL FINANCING TO CASH GENERATED (USED) IN
      FINANCING</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>108.98</font></td>
    <td align=LEFT><font size=1>%</font></td>
    <td align=right><font size=1>18,036.06</font></td>
    <td align=LEFT><font size=1>%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>26</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO
      CASH GENERATED (USED) IN INVESTMENT ACTIVITIES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=right><font size=1>102.90</font></td>
    <td align=LEFT><font size=1>%</font></td>
    <td align=right><font size=1>73.56</font></td>
    <td align=LEFT><font size=1>%</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(**) IN THESE RATIOS PROVIDE
INFORMATION FOR THE LAST TWELVE MONTHS </FONT></P>


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<BR>
<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><BR>





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<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="24%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="22%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DATE PER SHARE
<BR></B>CONSOLIDATED </FONT> </P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
FINANCIAL YEAR</font></th>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>D</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1></font></th>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=2% align=RIGHT><font size=1></font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=75% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=5% align=CENTER><font size=1>&nbsp;</font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=8% align=CENTER><font size=1>&nbsp;</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>1</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>BASIC PROFIT PER ORDINARY SHARE (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$ 8.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$    3.08</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>2</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>BASIC PROFIT PER PREFERENCE SHARE (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$ 0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$    0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>3</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>DILUTED PROFIT PER ORDINARY SHARE (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$ 0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$    0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>4</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CONTINUOUS OPERATING PROFIT PER COMMON SHARE (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$ 8.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$    3.08</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>5</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EFFECT OF DISCONTINUED OPERATIONS ON CONTINUOUS OPERATING PROFIT PER SHARE (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$ 0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$    0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>6</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON CONTINUOUSOPERATING PROFIT PER SHARE (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$ 0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$    0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>7</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>EFFECT BY CHANGES IN ACCOUNTING POLICIES ON CONTINUOUS OPERATING PROFIT PER SHARE (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$ 0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$    0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>8</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CARRYING VALUE PER SHARE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$45.06</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$   39.26</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>9</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>CASHH DIVIDEND ACCUMULATED PER SHARE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$ 0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>$    0.00</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>10</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>DIVIDEND IN SHARES PER SHARE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>0.00 shares</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>0.00 shares</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>11</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>MARKET PRICE TO CARRYING VALUE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>0.98 times</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>0.41 times</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>12</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>MARKET PRICE TO BASIC PROFIT PER COMMON SHARE (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>5.50 times</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>5.20 times</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=RIGHT><font size=1>13</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>MARKET PRICE TO BASIC PROFIT PER PREFERENCE SHARE (**)</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>0.00 times</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>0.00 times</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(**) TO CALCULATE THE DATE PER SHARE
USE THE NET INCOME FOR THE LAST TWELVE MONTHS. </FONT></P>


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<BR>
<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><BR>





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<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="24%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="22%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>FINANCIAL STATEMENT
NOTES </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE="2">CONSOLIDATED </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>s35.- Stockholders&#146; Equity: <BR>Effects
of inflation - The effects of inflation on stockholders&#146; equity at September 30, 2004 are
as follows: </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640>


  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT WIDTH=335>&nbsp;</TD>
    <TD ALIGN=center WIDTH=79 colspan="2"><font size=2>Historical<br>
Cost</font></TD>
    <TD ALIGN=center WIDTH=22>&nbsp;</TD>
    <TD ALIGN=center WIDTH=23>&nbsp;</TD>
    <TD ALIGN=center WIDTH=63><font size=2>Restated<br>
Amount</font></TD>
    <TD ALIGN=center WIDTH=27>&nbsp;</TD>
    <TD ALIGN=center WIDTH=81 colspan="2"><font size=2>Total</font></TD>
    <TD ALIGN=LEFT WIDTH=10>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT WIDTH=335><FONT SIZE=2>Capital stock</FONT></TD>
    <TD ALIGN=LEFT WIDTH=25><font size=2>Ps.</font></TD>
    <TD ALIGN=RIGHT WIDTH=54><FONT SIZE=2> 1,948,155</FONT></TD>
    <TD ALIGN=LEFT WIDTH=22>&nbsp;&nbsp;</TD>
    <TD ALIGN=LEFT WIDTH=23><font size=2>Ps. </font></TD>
    <TD ALIGN=RIGHT WIDTH=63><FONT SIZE=2>1,272,520</FONT></TD>
    <TD ALIGN=LEFT WIDTH=27>&nbsp;&nbsp;</TD>
    <TD ALIGN=LEFT WIDTH=23><font size=2>Ps. </font></TD>
    <TD ALIGN=RIGHT WIDTH=58><FONT SIZE=2>3,220,675</FONT></TD>
    <TD ALIGN=LEFT WIDTH=10>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="335"><FONT SIZE=2>Additional paid-in capital</FONT></TD>
    <TD ALIGN=LEFT width="25"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="54"><FONT SIZE=2>549,517</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="23">&nbsp;</TD>
    <TD ALIGN=RIGHT width="63"><FONT SIZE=2>95,044</FONT></TD>
    <TD ALIGN=LEFT width="27"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="23">&nbsp;</TD>
    <TD ALIGN=RIGHT width="58"><FONT SIZE=2>644,561</FONT></TD>
    <TD ALIGN=LEFT width="10"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="335"><FONT SIZE=2>Contributions for future  Capital increases</FONT></TD>
    <TD ALIGN=LEFT width="25"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="54"><FONT SIZE=2>216,699</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="23">&nbsp;</TD>
    <TD ALIGN=RIGHT width="63"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=LEFT width="27"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="23">&nbsp;</TD>
    <TD ALIGN=RIGHT width="58"><FONT SIZE=2>216,699</FONT></TD>
    <TD ALIGN=LEFT width="10"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="335"><FONT SIZE=2>Retained earnings</FONT></TD>
    <TD ALIGN=LEFT width="25"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="54"><FONT SIZE=2>2,193,947</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="23">&nbsp;</TD>
    <TD ALIGN=RIGHT width="63"><FONT SIZE=2>527,779</FONT></TD>
    <TD ALIGN=LEFT width="27"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="23">&nbsp;</TD>
    <TD ALIGN=RIGHT width="58"><FONT SIZE=2>2,721,726</FONT></TD>
    <TD ALIGN=LEFT width="10"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="335"><FONT SIZE=2>Excess resulting from restating</FONT></TD>
    <TD ALIGN=LEFT width="25"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="335"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Stockholders&#146; equity to reflect</FONT></TD>
    <TD ALIGN=LEFT width="25"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="335"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Certain effects of inflation</FONT></TD>
    <TD ALIGN=LEFT width="25"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center width="54"><FONT SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="23">&nbsp;</TD>
    <TD ALIGN=RIGHT width="63"><FONT SIZE=2>69,064</FONT></TD>
    <TD ALIGN=LEFT width="27"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT width="23">&nbsp;</TD>
    <TD ALIGN=RIGHT width="58"><FONT SIZE=2>69,064</FONT></TD>
    <TD ALIGN=LEFT width="10"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="335"><FONT SIZE=2>Effect deferred income tax</FONT></TD>
    <TD ALIGN=LEFT width="25"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="335"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Bulletin D-4</FONT></TD>
    <TD ALIGN=LEFT width="25"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="54"><FONT SIZE=2>(662,340</FONT></TD>
    <TD ALIGN=LEFT width="22"><FONT SIZE=2>)</FONT></TD>
    <TD ALIGN=LEFT width="23">&nbsp;</TD>
    <TD ALIGN=RIGHT width="63"><FONT SIZE=2>(193,566</FONT></TD>
    <TD ALIGN=LEFT width="27"><FONT SIZE=2>)</FONT></TD>
    <TD ALIGN=LEFT width="23">&nbsp;</TD>
    <TD ALIGN=RIGHT width="58"><FONT SIZE=2>(855,906</FONT></TD>
    <TD ALIGN=LEFT width="10"><FONT SIZE=2>)</FONT></TD>
  </TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>s39.- Premium in subscription of
Capital Stock made in March 29, 2001. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" 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. 1,339,733 at September 30, 2004
compared to Ps. 930,233 at September 30, 2003. The effect on Simec&#146;s consolidated
statement of income in the nine-month period ended September 30, 2004 was an increase of
Ps. 200,577 in the provision for income tax and employee profit sharing compared to an
increase of Ps. 13,349 in the same period of 2003. These provisions do not affect the
cash flow of Simec. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>r24.- Simec doesn&#146;t have interest
paid in UDI&#146;s </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>r26.- Simec doesn&#146;t have interest
earned in UDI&#146;s </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c02.- Consolidated Statements of
Changes in Financial Position </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The net loss in money exchange and
net profit in liabilities actualization are as follows: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640>

  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT WIDTH=375>&nbsp;</TD>
    <TD ALIGN=right colspan="3"><font size="2">September 30, 2004</font></TD>
    <TD ALIGN=right WIDTH=13>&nbsp;&nbsp;</TD>
    <TD ALIGN=right colspan="3"><font size="2">September 30, 2003</font></TD>
    <TD ALIGN=right>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT WIDTH=375><font size="2">Net loss (profit) in money exchange</font></TD>
    <TD ALIGN=right colspan="3"><font size="2">Ps.&nbsp;&nbsp;&nbsp;</font><font size="2">(28</font><font size="2">1</font></TD>
    <TD ALIGN=LEFT WIDTH=13><font size="2">)</font></TD>
    <TD ALIGN=right colspan="3"><font size="2">Ps.&nbsp;&nbsp;&nbsp;</font><font size="2">5,151</font></TD>
    <TD ALIGN=left>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="375"><font size="2">Net loss (profit) in liabilities actualization</font></TD>
    <TD ALIGN=right colspan="3"><font size="2"></font><font size="2">(757</font></TD>
    <TD ALIGN=LEFT width="13"><font size="2">)</font></TD>
    <TD ALIGN=right colspan="3"><font size="2"></font><font size="2">(8,319</font></TD>
    <TD ALIGN=left><font size="2">)</font></TD>
  </TR>
</TABLE>



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<BR>
<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><BR>





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<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="23%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="23%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>DIRECTOR REPORT</b></FONT>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 1</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2>CONSOLIDATED</font></td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>INFORMATION
CONCERNING LIQUIDITY AND CAPITAL RESOURCES AND DEBT <BR>OBLIGATIONS WITH BANKS AND COMMERCIAL
CREDITORS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Liquidity and Capital
Resources </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At September 30, 2004, Simec&#146;s total
consolidated debt consisted of $302,000 of 8 7/8% MTN&#146;s due 1998 (accrued interest at
September 30, 2004 was $273,962) 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 September 30, 2004 reflected the
prepayment of $1.7 million of the remainder of its outstanding bank debt in March 2004.
At September 30, 2004 Simec owed no debt to Industrias CH, S.A. de C.V. (&#147;ICH&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" 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 affirmative and negative covenants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On September 10, 2004 Simec
completed the acquisition of the property, plant and equipment and the inventories, and
assumed liabilities associated with seniority premiums of employees, of the Mexican
steel-making facilities of Industr&#237;as Ferricas del Norte, S.A. (Corporaci&#243;n
Sidenor of Spain) located in Apizaco, Tlaxcala and Cholula, Puebla. Simec&#146;s total
investment in this transaction was approximately U.S. $135 million, funded with
internally generated resources of Simec and capital contributions from ICH of U.S. $19
million for capital stock to be issued in the future. On July 12, 2004 the shareholders
of Simec approved this transaction at an extraordinary shareholders meeting. Simec began
to operate the plants in Apizaco, Tlaxcala and Cholula, Puebla on August 1, 2004, and, as
a result, the operation of both plants is reflected in Simec&#146;s financial results as of
such date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" 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></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" 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. 23.3 million at the price per share of Ps. 14.588 (the
equivalent of U.S. $1.25 per American Depositary Share). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net resources provided by operations
were Ps. 710 million in the nine-month period ended September 30, 2004 versus Ps. 260
million of net resources provided by operations in the same period of 2003 (which amount
for the </FONT></P>





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<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>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="23%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="23%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p align="center"><font face="Times New Roman, Times, Serif" size=2><b>DIRECTOR REPORT</b></font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 1</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2>CONSOLIDATED</font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003 period reflects the conversion
of loans into common shares of Simec for Ps. 191 million). Net resources provided by
financing activities were Ps. 220 million in the nine-month period ended September 30,
2004 (which amount reflects prepayment of bank debt and capital contribution from ICH to
Simec in the amount of Ps. 217 million ($19 million) for capital stock to be issued in
the future) versus Ps. 2 million of net resources provided by financing activities in the
same period of 2003 (which amount reflects the prepayment of Ps. 348 million ($31.4
million) of bank debt, the conversion by ICH of Ps. 191 million of loans (plus accrued
interest thereon) into common shares and a capital contribution from ICH to Simec in the
amount of Ps. 158 million ($14.5 million) for capital stock to be issued in the fourth
quarter of 2003). Net resources used in investing activities (to acquire property, plant
and equipment and other non-current assets) were Ps. 1,177 million in the nine-month
period ended September 30, 2004 (which amount reflects the acquisition of the Apizaco and
Cholula facilities) versus net resources used in investing activities of Ps. 17 million
in the same period of 2003. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>MANAGEMENT&#146;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                                                       <BR>AND RESULTS OF OPERATIONS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Nine-Month Period
Ended September 30, 2004 compared to Nine-Month Period Ended September 30, 2003 </B></FONT></P>

<!-- MARKER FORMAT-SHEET="left head 2 italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Net Sales </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales of Simec increased 85% to
Ps. 3,882 million in the nine-month period ended September 30, 2004 (including the net
sales generated since August 1, 2004 by the newly acquired plants in Apizaco and Cholula
of Ps. 486 million), compared to Ps. 2,098 million in the same period of 2003. Sales in
tons of basic steel products increased 17% to 542,705 tons in the nine-month period ended
September 30, 2004 (including 64,427 tons generated by the newly acquired plants in
Apizaco and Cholula) compared to 463,286 tons in the same period of 2003. Exports of
basic steel products increased 30% to 70,112 tons in the nine-month period ended
September 30, 2004 (including 1,205 tons relating to the newly acquired plants in Apizaco
and Cholula) versus 54,047 tons in the same period of 2003. Additionally, Simec sold
40,791 tons of billet in the first nine months of 2004, compared to 47,049 tons of billet
in the same period of 2003. The average price of steel products increased 61% in real
terms in the nine-month period ended September 30, 2004 versus the same period of 2003. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Direct Cost of Sales </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s direct cost of sales
increased 61% to Ps. 2,211 million in the nine-month period ended September 30, 2004
(including Ps. 303 million relating to the newly acquired plants in Apizaco and Cholula)
compared to Ps. 1,374 million in the same period of 2003. Direct cost of sales as a
percentage of net sales was 57% in the nine-month period ended September 30, 2004
compared to 65% in the same period of 2003. The average cost of raw materials used to
produce steel products increased 40% in real terms in the nine-month period ended
September 30, 2004 versus the first nine months of 2003, primarily as a result of
increases in the price of scrap and certain other raw materials. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Marginal Profit </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s  marginal  profit
 increased 131% to Ps. 1,671 million in the  nine-month  period ended  September 30, 2004
 (including Ps. 183 million generated by the newly acquired plants in Apizaco and
Cholula) compared to Ps. 724 </FONT></P>



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<BR>
<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><BR>





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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="22%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="24%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<p align="center"><font face="Times New Roman, Times, Serif" size=2><b>DIRECTOR REPORT</b></font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 1</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2>CONSOLIDATED</font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>million in the same period of 2003.
As a percentage of net sales, marginal profit was 43% in the first nine months of 2004
compared to 35% in the same period of 2003. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Indirect
Manufacturing, Selling, General And Administrative Expenses </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indirect  manufacturing,  selling,
 general, and administrative expenses (which include depreciation and amortization)
increased 11% to Ps. 406 million in the nine-month  period ended September 30, 2004
 (including Ps. 52 million  relating to the newly acquired plants in Apizaco and
 Cholula)  from Ps. 365 million in the same period of 2003;  Simec  recorded an increase
of Ps. 13 million in  depreciation and amortization  expense,  which in the nine-month
period ended September 30, 2004 was Ps. 154 million (including Ps. 9 million of the newly
acquired plants in Apizaco and Cholula) compared to Ps. 141 million in the same period of
2003. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Operating Income </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s operating income
increased 252% to Ps. 1,265 million in the first nine months of 2004 (including Ps. 131
million of the newly acquired plants in Apizaco and Cholula) compared to Ps. 359 million
in the same period of 2003. Operating income was 33% of net sales in the nine-month
period ended September 30, 2004 and 17% of net sales in the first nine months of 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="left head 2 italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Financial Income
(Expense) </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded financial expense of
Ps. 16 million in the nine month period ended September 30, 2004 compared to financial
expense of Ps. 25 million in the same period of 2003. Simec recorded an exchange gain of
approximately Ps. 12 million in the nine-month period ended September 30, 2004 compared
to an exchange loss of Ps. 9 million in the same period of 2003, reflecting a 1.6%
decrease in the value of the peso versus the dollar in the nine-month period ended
September 30, 2004 compared to a 6% decrease in the value of the peso versus the dollar
in the same period of 2003 and lower debt levels in the nine-month period ended September
30, 2004. Net interest income was Ps. 3 million in the nine-month period ended September
30, 2004 versus net interest expense of Ps. 15 million in the same period of 2003. Simec
recorded a loss from monetary position of Ps. 31 million in the nine-month period ended
September 30, 2004 compared to a loss from monetary position of Ps. 1 million in the same
period of 2003, reflecting the domestic inflation rate of 3.4% in the nine-month period
ended September 30, 2004 as compared to 2.3% in the same period of 2003 and lower debt
levels during the nine-month period ended September 30, 2004. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other Income (Expense), Net </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded other income, net, of
Ps. 16 million in the nine-month period ended September 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. 5 million) compared to
other income, net, of Ps. 0 million in the same period of 2003. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income Tax and Employee Profit
Sharing </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded a provision of Ps.
223 million for income tax and employee profit sharing in the nine-month period ended
September 30, 2004 (including a provision of Ps. 201 million from the application of
Bulletin D-4 with respect to deferred income tax described below) compared to a provision
of Ps. 39 million in same period of 2003 (including a provision of Ps. 13 million from
the application of Bulletin D-4 with respect to deferred income tax described below). </FONT></P>





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<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><BR>






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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="53%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="22%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="25%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<P align="center"><font face="Times New Roman, Times, Serif" size=2><b>DIRECTOR REPORT</b></font><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 1</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2>CONSOLIDATED</font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net Income </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a result of the foregoing, Simec
recorded net income of Ps. 1,042 million in the nine-month period ended September 30,
2004 compared to net income of Ps. 295 million in the nine-month period ended September
30, 2003. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Pronouncements
Applicable to Mexican GAAP </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" 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. 1,340 million at September 30, 2004 compared
to Ps. 930 million at September 30, 2003. The effect on Simec&#146;s consolidated statement of
income in the nine-month period ended September 30, 2004 was an increase of Ps. 201
million in the provision for income tax and employee profit sharing compared to an
increase of Ps. 13 million in the same period of 2003. These provisions do not affect the
cash flow of Simec. </FONT></P>



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<BR>
<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><BR>
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<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="24%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="22%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>FINANCIAL STATEMENT NOTES</b></FONT>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 1</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2>CONSOLIDATED</font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) Operations preparation bases and
summary of significant accounting policies: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" 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></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Significant accounting policies and
practices followed by the Companies which affect the principal captions of the financial
statements are described below: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a. Financial statement presentation
- - 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></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b. Principles of Consolidation - As
part of the financial debt restructuring agreement into during 1997, Compa&#241;&#237;a
Sider&#250;rgica 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></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The main subsidiaries of CSG are the
following: </FONT></P>

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>Compa&#241;&#237;a
Sider&#250;rgica de California, S.A. de C.V.</FONT></TD></TR></TABLE>

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>Industrias
del Acero y del Alambre, S.A. de C.V.</FONT></TD></TR></TABLE>

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5%></TD>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3%></TD>
    <TD WIDTH=90%><FONT SIZE=2>Pacific
Steel Inc.</FONT></TD></TR></TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All significant intercompany
balances and transactions have been eliminated in consolidation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c. Cash and cash equivalents - 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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>d. Inventories - 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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Billet finished goods and work in
process - At the latest production cost for the month. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Raw materials - According to
purchase prices prevailing in the market at the balance sheet date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Materials, supplies and rollers - At
historical cost, restated by applying the steel industry inflation index. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" 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></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>e.- Derivative financial instruments
- - The Company is using derivative financial instruments for hedging risks associated with
natural gas prices and conducted studies on historical consumption, future requirements
and </FONT></P>


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<BR>
<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><BR>
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<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="22%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="24%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<P align="center"><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FINANCIAL STATEMENT NOTES</FONT></b><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT>
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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 2</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2>CONSOLIDATED</font></td>
  </tr>
</table>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" 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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" 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></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>f. Property, plant and equipment -
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 September 30, 2004 are as follows: </FONT></P>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>

  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center><font size=2>Years</font></TD>
    <TD ALIGN=center>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Buildings</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>15 to 50</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT SIZE=2>Machinery and equipment</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>10 to 40</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>g. Other assets - 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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>h. Seniority premiums and severance
payments - 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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" 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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>i. Pension plan - 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 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, </FONT></P>





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<BR>
<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><BR>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 31; page: 31" --> <!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="22%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="24%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>FINANCIAL STATEMENT NOTES</b> </FONT>

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 2</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2>CONSOLIDATED</font></td>
  </tr>
</table>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company does not have any
contractual obligation regarding the payment of pensions of retirements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>j. Cost of sales - 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></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>k. Income tax and employee profit
sharing - 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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company and its subsidiaries are
included in the consolidated tax returns of the company&#146;s parent. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>l. Foreign currency transactions and
exchange differences - 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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" 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></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Monetary
items at the exchange rate at the balance sheet date. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Non-monetary
items and stockholders&#146; equity at the exchange rate prevailing at the date the
transactions occurred.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income
and expense items at an appropriate average exchange rate.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" 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>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" 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>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>m. Geographic concentration of
credit risk - 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 September 30, 2004
and 2003. The Company performs evaluations of its customers&#146; credit histories and
establishes and allowance for doubtful accounts based upon the credit risk of specific
customers and historical trends. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>n. Other income (expenses) - Other
income (expenses) shown in the consolidated statements of operations primarily includes
other financial operations. </FONT></P>






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<BR>
<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><BR>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 32; page: 32" --> <!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="24%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="22%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>FINANCIAL STATEMENT NOTES</b>
  <br>
   </FONT>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 2</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2>CONSOLIDATED</font></td>
  </tr>
</table>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o. Gain on monetary position - 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></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>p. Restatement of capital stock and
retained earnings (losses) - 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></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>q. Effect of restatement of
stockholders&#146; equity - 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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) Financial Debt: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At September 30, 2004, Simec&#146;s total
consolidated debt consisted of $302,000 of 8 7/8% MTN&#146;s due 1998 (accrued interest at
September 30, 2004 was $273,962) 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 September 30, 2004 reflected the
prepayment of $1.7 million of the remainder of its outstanding bank debt in March 2004.
At September 30, 2004 Simec owed no debt to Industrias CH, S.A. de C.V. (&#147;ICH&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) Commitments and contingent
liabilities: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" 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. 16,251 (U.S.
$1,424,207) at September 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></P>

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<P><FONT FACE="Times New Roman, Times, Serif" 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></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c. Compa&#241;&#237;a Sider&#250;rgica
de Guadalajara, S.A. de C.V. has entered into a gas and liquid oxygen purchase agreement
with Praxair de M&#233;xico, 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. 1,175 per month. </FONT></P>


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<BR>
<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><BR>






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 33; page: 33" -->






<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="22%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="24%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>RELATIONS OF SHARES INVESTMENTS
  <br>
  </b> </FONT>

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 3</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2>CONSOLIDATED</font></td>
  </tr>
</table>
<br>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>COMPANY NAME</font></th>
    <th colspan=2><font size=1>MAIN<br>
ACTIVITIES</font></th>
    <th colspan=2><font size=1>NUMBER OF<br>
SHARES</font></th>
    <th colspan=2><font size=1>OWNERSHIP</font></th>
    <th colspan=4><font size=1>TOTAL AMOUNT<br>
(Thousands of Pesos)</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>SUBSIDIARIES</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>ACQUISITION<br>
COST</font></th>
    <th colspan=2><font size=1>PRESENT<br>
VALUE</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=48% align=LEFT><font size=1>1 CIA SIDERURGICA DE GUADALAJARA</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=8% align=CENTER><font size=1>MINI-MILL</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=10% align=RIGHT><font size=1>474,393,215</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=4% align=RIGHT><font size=1>99.99</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=9% align=RIGHT><font size=1>38,359</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=9% align=RIGHT><font size=1>3,152,455</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>2 ADMINISTRADORA DE CARTERA DE OCCIDENTE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>49,999</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>99.99</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>50</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(9,621</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size="1"><b>TOTAL INVESTMENT IN SUBSIDIARIES</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=CENTER><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>38,409</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>3,142,834</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size="1"><b>ASSOCIATEDS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=CENTER><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1">0 </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1">0.00 </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1">0 </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size="1"><b>TOTAL INVESTMENT IN ASSOCIATEDS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=CENTER><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1">0 </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size="1"><b>OTHER PERMANENT INVESTMENTS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=CENTER><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1">0 </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size="1"><b>TOTAL</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=CENTER><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b></b> </font> </td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>3,142,834</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTES </FONT></P>



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<BR>
<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><BR>






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




<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="23%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="23%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>CREDITS BREAK DOWN
                                                         <BR>
  (THOUSANDS OF PESOS)</B></FONT>
  <table width="100%" border="0" cellspacing="0" cellpadding="0">
    <tr>
      <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
      <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 5</b></font></td>
      <td width="26%">&nbsp;</td>

    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2>CONSOLIDATED</font></td>
    </tr>
  </table>
   <br>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=100%>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2 rowspan="4"><font size=1>Credit<br>
      Type/<br>
      Institution</font><font size=1></font><font size=1></font></th>
    <th colspan=2 rowspan="4"><font size=1>Amortization<br>
      Date</font><font size=1></font><font size=1></font></th>
    <th colspan=2 rowspan="4"><font size=1>Rate of<br>
      Interest</font><font size=1></font><font size=1></font></th>
    <th colspan=4 rowspan="2"><font size=1>Denominated In<br>
      Pesos</font><font size=1></font><font size=1></font></th>
    <th colspan=12><font size=1>Amortization of Credits in Foreign Currency <br>
      With National Entities (Thousands of Pesos)</font></th>
    <th colspan=12><font size=1>Amortization of Credits in Foreign Currency <br>
      With Foreing Entities (Thousands of Pesos)</font></th>
  </tr>
  <tr valign=Bottom>
    <th colspan=12><font size=1>Time Interval</font></th>
    <th colspan=12><font size=1>Time Interval</font></th>
  </tr>
  <tr valign=Bottom>
    <th colspan=28>
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>Until 1 <br>
      Year</font></th>
    <th colspan=2><font size=1>More <br>
      Than<br>
      1 Year</font></th>
    <th colspan=2><font size=1>Current<br>
      Year</font></th>
    <th colspan=2><font size=1>Until 1<br>
      Year</font></th>
    <th colspan=2><font size=1>Until 2<br>
      Years</font></th>
    <th colspan=2><font size=1>Until 3<br>
      Years</font></th>
    <th colspan=2><font size=1>Until 4<br>
      Years</font></th>
    <th colspan=2><font size=1>Until 5 <br>
      Years <br>
      or <br>
      More</font></th>
    <th colspan=2><font size=1>Current <br>
      Year</font></th>
    <th colspan=2><font size=1>Until 1 <br>
      Year</font></th>
    <th colspan=2><font size=1>Until 2 <br>
      Years</font></th>
    <th colspan=2><font size=1>Until 3 <br>
      Years</font></th>
    <th colspan=2><font size=1>Until 4 <br>
      Years</font></th>
    <th colspan=2><font size=1>Until 5 <br>
      Years <br>
      or <br>
      More</font></th>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=18% align=LEFT><font size=1><b>BANKS</b></font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=4% align=CENTER><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=2% align=CENTER><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1><b>WITH WARRANTY</b></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1><b>TOTAL BANKS</b></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>LISTED IN THE MEXICAN STOCK EXCHANGE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>UNSECURED DEBT</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>MEDIUM TERM NOTES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>12/15/1998</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1>9.33</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,446</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1><b>TOTAL STOCK EXCHANGE</b></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,446</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>SUPPLIERS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>VARIOUS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>321,878</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>85,153</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>14,127</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1><b>TOTAL SUPPLIERS</b></font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>321,878</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>85,153</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>14,127</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>OTHER CURRENT LIABILITIES AND OTHER CREDITS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>VARIOUS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>151,111</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>21,014</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>OTHER CURRENT LIABILITIES AND OTHER CREDITS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>151,111</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>21,014</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>TOTAL</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=CENTER><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>472,989</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>85,153</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>38,587</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr>
    <td colspan=34>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>
<p><font face="Times New Roman, Times, Serif" size=2><b>NOTES </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;THE
  EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT SEPTEMBER 30, 2004 WAS PS. 11.4106
  </font></p>
<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<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><BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 35; page: 35" -->





<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="22%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="24%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>MONETARY POSITION
IN FOREIGN EXCHANGE                                                          <BR>
  (Thousands
of Pesos) </B></FONT>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 6</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<br>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1></font></th>
    <th colspan=4><font size=1>DOLLARS</font></th>
    <th colspan=4><font size=1>OTHER CURRENCIES</font></th>
    <th colspan=2><font size=1>TOTAL</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>TRADE BALANCE</font></th>
    <th colspan=2><font size=1>THOUSANDS OF<br>
DOLLARS</font></th>
    <th colspan=2><font size=1>THOUSANDS OF<br>
PESOS</font></th>
    <th colspan=2><font size=1>THOUSANDS OF<br>
DOLLARS</font></th>
    <th colspan=2><font size=1>THOUSANDS OF<br>
PESOS</font></th>
    <th colspan=2><font size=1>THOUSANDS OF<br>
PESOS</font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>FOREING MONETARY POSITION</font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1></font></th>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=28% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1></font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1></font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1></font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=4% align=RIGHT><font size=1></font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1></font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size="1"><b>TOTAL ASSETS</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>45,322</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>517,140</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>0</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>517,140</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size="1"><b>LIABILITIES POSITION</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>10,596</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>120,909</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>248</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>2,83</b> </font></td>
    <td align=LEFT><font size="1"><b>1</b> </font></td>
    <td align=RIGHT><font size="1"><b>123,740</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>SHORT TERM LIABILITIES POSITION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>10,596</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>120,909</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>248</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2,83</font></td>
    <td align=LEFT><font size=1>1</font></td>
    <td align=RIGHT><font size=1>123,740</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>LONG TERM LIABILITIES POSITION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size="1"><b>NET BALANCE</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>34,726</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>396,231</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>(248</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(2,8</b> </font></td>
    <td align=LEFT><font size="1"><b>31)</b> </font></td>
    <td align=RIGHT><font size="1"><b>393,400</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOTES </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;THE
EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT SEPTEMBER 30, 2004 WAS PS. 11.4106 </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>
<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><BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 36; page: 36" -->




<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="22%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="24%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>INTEGRATION AND
INCOME                                                    <BR>CALCULATION BY MONETARY
POSITION                                                          <BR>(Thousands of Pesos) </B></FONT>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 7</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<br>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td colspan="2" align="CENTER"><font size=1>MONTH</font></td>
    <td colspan="2" align="CENTER"><font size=1>MONETARY ASSETS</font></td>
    <td colspan="2" align="CENTER"><font size=1>MONETARY<br>
LIABILITIES</font></td>
    <td colspan="2" align="CENTER"><font size=1>(ASSET)<br>
LIABILITIES<br>
MONETARY<br>
POSITION</font></td>
    <td colspan="2" align="CENTER"><font size=1>MONTHLY<br>
INFLATION</font></td>
    <td colspan="2" align="CENTER"><font size=1>MONTHLY PROFIT<br>
AND (LOSS)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=29% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1></font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1></font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1></font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=4% align=RIGHT><font size=1></font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1></font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>JANUARY</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,668,488</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,021,189</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(647,299</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.62</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(4,023</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>FEBRUARY</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,181,183</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>468,147</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(713,036</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.60</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(4,265</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>MARCH</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,400,780</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>596,467</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(804,313</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.34</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(2,725</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>APRIL</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,411,536</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>542,155</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(869,381</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.15</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(1,312</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>MAY</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,528,433</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>552,485</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(975,948</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(0.2</font></td>
    <td align=LEFT><font size=1>5)</font></td>
    <td align=RIGHT><font size=1>2,448</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>JUNE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,748,525</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>551,719</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(1,196,806</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.16</font></td>
    <td align=LEFT><font size=1>.</font></td>
    <td align=RIGHT><font size=1>(1,918</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>JULY</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,890,011</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>488,639</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(1,401,372</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.26</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(3,673</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>AUGUST</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2,097,374</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>484,552</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(1,612,822</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.62</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(9,956</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>SEPTEMBER</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,413,141</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>814,566</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(598,575</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.83</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(4,949</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>ACTUALIZATION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(378</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>CAPITALIZATION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>FOREIGN CORPOPATION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>OTHER</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>TOTAL</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(30,751</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>

    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>



<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><BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 37; page: 37" -->



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="21%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="25%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>BONDS AND MEDIUM
TERM NOTES LISTING IN STOCK MARKET </B></FONT>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 8</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>FINANCIAL LIMITED
BASED IN ISSUED DEED AND/OR TITLE </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEDIUM TERM NOTES </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A)
Current assets to current liabilities must be 1.0 times or more. </FONT></TD>
</TR>
</TABLE>
 <br>
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=95%><font face="Times New Roman, Times, Serif" size=2>
B)        Total
liabilities to total assets do not be more than 0.60. </font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
C)
Operating income plus items added to income which do not require using        cash must
be 2.0 times or more. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
This
notes was offered in the international market. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>ACTUAL SITUATION OF
FINANCIAL LIMITED </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
MEDIUM
TERM NOTES </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A)
Accomplished the actual situation is 3.31 times.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
B)
Accomplished the        actual situation is 0.25  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
C)
Accomplished the actual situation is 3,306.32 </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
As
of September 30, 2004, the remaining balance of the MTNs not exchanged amounts to Ps.
3,446 ($302,000 dollars). </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
C.P.
Adolfo Luna Luna        <BR>Chief Financial Officer </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>BONDS AND/OR MEDIUM
TERM NOTES CERTIFICATE </B></FONT></P>


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<BR>
<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><BR>





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<!-- MARKER PAGE="sheet: 38; page: 38" -->



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="23%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="23%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>PLANTS, COMMERCE
CENTERS OR DISTRIBUTION CENTERS </B></FONT>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 9</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<br>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font size=1>PLANT OR CENTER</font></th>
    <th colspan=2><font size=1>ECONOMIC ACTIVITY</font></th>
    <th colspan=2><font size=1>PLANT CAPACITY</font></th>
    <th colspan=2><font size=1>UTILIZATION (%)</font></th>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=40% align=LEFT><font size=1>GUADALAJARA MINI MILL</font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=43% align=LEFT><font size=1>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1>480</font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=3% align=RIGHT><font size=1>91</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>MEXICALI MINI MILL</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>250</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>74</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>INDUSTRIAS DEL ACERO Y DEL ALAMBRE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>SALE OF STEEL PRODUCTS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font size=1>APIZACO AND CHOLULA PLANTS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>460</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>84</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=8>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>




<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><BR>






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<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="23%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="23%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>MAIN RAW MATERIALS </B></FONT>
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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 10</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<br>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr valign=Bottom>
    <th colspan=12>
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>DOMESTIC</font></th>
    <th colspan=2><font size=1>MAIN SUPPLIERS</font></th>
    <th colspan=2><font size=1>FOREIGN</font></th>
    <th colspan=2><font size=1>MAIN SUPPLIERS</font></th>
    <th colspan=2><font size=1>DOMESTIC<br>
      SUBSTITUTION</font></th>
    <th colspan=2><font size=1>COST<br>
      PRODUCTION (%)</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=17% align=LEFT><font size=1>SCRAP</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=23% align=LEFT><font size=1>VARIOUS</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=LEFT><font size=1>SCRAP</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=18% align=LEFT><font size=1>VARIOUS</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=9% align=CENTER><font size=1>YES</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=9% align=RIGHT><font size=1>59.92</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="17%"><font size=1>ELECTRICITY</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="23%"><font size=1>C.F.E</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="12%">&nbsp;</td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="18%">&nbsp;</td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=CENTER width="9%"><font size=1>NO</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>9.68</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="17%"><font size=1>FERROALLOYS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="23%"><font size=1>MINERA AUTLAN</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="12%"><font size=1>FERROALLOYS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="18%"><font size=1>GFM TRADING</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=CENTER width="9%"><font size=1>YES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>6.15</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="17%"><font size=1>ELECTRODES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="23%"><font size=1>UCAR CARBON MEXICANA</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="12%"><font size=1>ELECTRODES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="18%"><font size=1>SGL CARBON GROUP</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=CENTER width="9%"><font size=1>YES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>1.93</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>



<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><BR>






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<!-- MARKER PAGE="sheet: 40; page: 40" -->




<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="23%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="23%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>SELLS DISTRIBUTION
BY PRODUCT </B></FONT>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 11</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>DOMESTIC SELLS </B></FONT></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr valign=Bottom>
    <th colspan=14>
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>MAIN PRODUCTS</font></th>
    <th colspan=4><font size=1>TOTAL PRODUCTION</font></th>
    <th colspan=4><font size=1>NET SELLS</font></th>
    <th colspan=4><font size=1>MAIN DESTINATION</font></th>
  </tr>
  <tr valign=Bottom>
    <th colspan=14>
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>VOLUME</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>VOLUME</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2 align="right"><font size=1>TRADEMARKS</font></th>
    <th colspan=2><font size=1>COSTUMERS</font></th>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>STRUCTURAL PROFILES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>141</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>558,573</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>130</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>907,474</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>COMMERCIAL PROFILES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>51</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>208,062</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>49</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>349,727</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>REBAR</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>130</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>433,848</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>90</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>625,453</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>FLAT BAR</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>44</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>183,484</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>31</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>225,940</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>STEEL BARS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>165</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>664,472</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>167</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,137,416</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>OTHER</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>4</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,313</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>7</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>33,470</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>BILLET</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>41</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>100,763</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>41</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>159,933</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1"><b>T O T A L</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b> </b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>2,150,515</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b> </b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>3,439,413</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b> </b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b> </b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>




<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><BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 41; page: 41" -->




<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="53%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="22%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="25%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>SELLS DISTRIBUTION
BY PRODUCT </B></FONT>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 11</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>FOREIGN SELLS </B></FONT></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr valign=Bottom>
    <th colspan=14>
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>MAIN PRODUCTS</font></th>
    <th colspan=4><font size=1>TOTAL PRODUCTION</font></th>
    <th colspan=4><font size=1>NET SELLS</font></th>
    <th colspan=4><font size=1>MAIN DESTINATION</font></th>
  </tr>
  <tr valign=Bottom>
    <th colspan=14>
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1></font></th>
    <th colspan=2><font size=1>VOLUME</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>VOLUME</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2 align="right"><font size=1>TRADEMARKS</font></th>
    <th colspan=2><font size=1>COSTUMERS</font></th>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>STRUCTURAL PROFILES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>11</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>66,888</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>COMMERCIAL PROFILES</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>4</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>22,111</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>REBAR</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>47</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>291,094</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>STEEL BARS</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>7</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>53,173</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>FLAT BAR</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>8,889</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=LEFT><font size=1> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1"><b>T O T A L</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b> </b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b> </b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b> </b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>442,155</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b> </b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT><font size="1"><b> </b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>




<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><BR>






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 42; page: 42" -->




<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="24%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="22%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>CONSOLIDATED</b>
  </FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>INTEGRATION OF THE
PAID SOCIAL CAPITAL STOCK
                                                     <BR>CHARACTERISTICS OF THE SHARES </B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=700>
  <TR>

    <TD COLSPAN=18>
<HR noshade COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>

    <TH COLSPAN=2><FONT SIZE=1>SERIES</FONT></TH>

    <TH COLSPAN=2><FONT SIZE=1>NOMINAL<BR>
VALUE</FONT></TH>

    <TH COLSPAN=2><FONT SIZE=1>VALID<BR>
CUPON</FONT></TH>

    <TH COLSPAN=8><FONT SIZE=1>NUMBER OF SHARES</FONT></TH>

    <TH COLSPAN=4><FONT SIZE=1>CAPITAL STOCK <br>
      (Thousand<BR>
of Pesos)</FONT></TH></TR>
<TR>

    <TD COLSPAN=18>
<HR noshade COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>

    <TH COLSPAN=2><FONT SIZE=1></FONT></TH>

    <TH COLSPAN=2><FONT SIZE=1></FONT></TH>

    <TH COLSPAN=2><FONT SIZE=1></FONT></TH>

    <TH COLSPAN=2><FONT SIZE=1>FIXED PORTION</FONT></TH>

    <TH COLSPAN=2><FONT SIZE=1>VARIABLE<BR>
PORTION</FONT></TH>

    <TH COLSPAN=2><FONT SIZE=1>MEXICAN</FONT></TH>

    <TH COLSPAN=2><FONT SIZE=1>FREE SUSCRIPTION</FONT></TH>

    <TH COLSPAN=2><FONT SIZE=1>FIXED</FONT></TH>

    <TH COLSPAN=2><FONT SIZE=1>VARIABLE</FONT></TH>
  </TR>
<TR>

    <TD COLSPAN=18>
<HR noshade COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;B</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=1>&nbsp;</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=1> </FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=1>&nbsp;</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=1> </FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=1>&nbsp;</FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE=1>15,283,350</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=1>&nbsp;</FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE=1>118,259,634</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=1>&nbsp;</FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE=1>0</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=1>&nbsp;</FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE=1>133,542,984</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=1>&nbsp;</FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE=1>222,963</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=1>&nbsp;</FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE=1>1,725,192</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=1>&nbsp;</FONT></TD>
  </TR>
<TR>

    <TD COLSPAN=18>
<HR noshade COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT SIZE="1"><B>&nbsp;&nbsp;TOTAL</B> </FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE="1"><B>&nbsp;</B> </FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE="1"><B></B> </FONT> </TD>
    <TD ALIGN=LEFT><FONT SIZE="1"><B>&nbsp;</B> </FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE="1"><B></B> </FONT> </TD>
    <TD ALIGN=LEFT><FONT SIZE="1"><B>&nbsp;</B> </FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE="1"><B>15,283,350</B> </FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE="1"><B>&nbsp;</B> </FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE="1"><B>118,259,634</B> </FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE="1"><B>&nbsp;</B> </FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE="1"><B>0</B> </FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE="1"><B>&nbsp;</B> </FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE="1"><B>133,542,984</B> </FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE="1"><B>&nbsp;</B> </FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE="1"><B>222,963</B> </FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE="1"><B>&nbsp;</B> </FONT></TD>

    <TD ALIGN=RIGHT><FONT SIZE="1"><B>1,725,192</B> </FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE="1"><B>&nbsp;</B> </FONT></TD>
  </TR>
<TR>

    <TD COLSPAN=18>
<HR noshade COLOR=#000000 SIZE=1></TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>TOTAL NUMBER OF SHARES
REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION: </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;133,542,984 </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SHARES PROPORTION BY: </B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>

    <TH width="22%"><FONT SIZE=2></FONT></TH>
    <TH COLSPAN=2 width="78%"><FONT SIZE=2></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>

    <TD WIDTH=22% ALIGN=LEFT><b><FONT SIZE=2>CPO&#146;S:</FONT></b></TD>
    <TD WIDTH=78% ALIGN=left colspan="2"><FONT SIZE=2>0</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="22%"><b><FONT SIZE=2>ADRS&#146;s:</FONT></b></TD>
    <TD ALIGN=left colspan="2" width="78%"><FONT SIZE=2>1</FONT><FONT SIZE=2>,869,417 ADR<font size=2>&#146;</font>S OF 1 SHARE EACH ONE</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="22%"><b><FONT SIZE=2>UNITS:</FONT></b></TD>
    <TD ALIGN=left colspan="2" width="78%"><FONT SIZE=2>0</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="22%"><b><FONT SIZE=2>GDRS&#146;s:</FONT></b></TD>
    <TD ALIGN=left colspan="2" width="78%"><FONT SIZE=2>0</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="22%"><b><FONT SIZE=2>ADS&#146;s:</FONT></b></TD>
    <TD ALIGN=left colspan="2" width="78%"><FONT SIZE=2>0</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="22%"><b><FONT SIZE=2>GDS&#146;s:</FONT></b></TD>
    <TD ALIGN=left colspan="2" width="78%"><FONT SIZE=2>0</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>



<br>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="640" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td width="46">&nbsp;</td>
    <td colspan="7" align="center">
      <p><font face="Times New Roman, Times, Serif" size=2><b>REPURCHASED OWN SHARES</b></font></p>
      </td>
  </tr>
  <tr valign="bottom">
    <td width="46">&nbsp;</td>
    <td width="75">&nbsp;</td>
    <td width="16">&nbsp;</td>
    <td width="122">&nbsp;</td>
    <td width="15">&nbsp;</td>
    <td width="196">&nbsp;</td>
    <td width="15">&nbsp;</td>
    <td width="155">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="46">&nbsp;</td>
    <td width="75">&nbsp;</td>
    <td width="16">&nbsp;</td>
    <td width="122">&nbsp;</td>
    <td width="15">&nbsp;</td>
    <td colspan="3" align="center"><font face="Times New Roman, Times, Serif" size=2><b>MARKET VALUE OF THE SHARE</b></font></td>
  </tr>
  <tr valign="bottom">
    <td width="46">&nbsp;&nbsp;</td>
    <td align="center" width="75"><font face="Times New Roman, Times, Serif" size=2><b>SERIES</b></font></td>
    <td align="center" width="16">&nbsp;&nbsp;</td>
    <td align="center" width="122"><font face="Times New Roman, Times, Serif" size=2><b>NUMBER OF
                            <br>
      SHARES</b></font></td>
    <td align="center" width="15">&nbsp;&nbsp;</td>
    <td align="center" width="196"><font face="Times New Roman, Times, Serif" size=2><b>AT REPURCHASE</b></font></td>
    <td align="center" width="15">&nbsp;&nbsp;</td>
    <td align="center" width="155"><font face="Times New Roman, Times, Serif" size=2><b>AT QUARTER</b></font></td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOTES </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>
<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><BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 43; page: 43" -->



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="23%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="23%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSTRUCTION IN
PROGRESS <BR></B>(Project, Total Investment and % of
Advance) </FONT>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 13</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE PROYECTS IN PROGRESS AT
SEPTEMBER 30, 2004, ARE: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=700>
  <TR VALIGN=Bottom align="center">
    <TD><font size=2>PROYECTS IN PROGRESS</font></TD>
    <TD>&nbsp;</TD>
    <TD ALIGN=right><font size=2>TOTAL INVESTMENT</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size=2>PHISICAL ADVANCE</font></TD>
    <TD>&nbsp;</TD>
    <TD><font size=2>FINISHED AT</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT SIZE=2>EXCHANGE HEATER FOR <br>
       FURNACE ROLLING MILL</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>7,287</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>90%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;&nbsp;</TD>
    <TD ALIGN=center><FONT SIZE=2>NOVEMBER 2004</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT SIZE=2>INCREASE PRODUCTIVITY IN <br>
      DEMAG ROLLING MILL</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT SIZE=2>8,654</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT SIZE=2>50%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center><FONT SIZE=2>DECEMBER 2004</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <td align=LEFT><font size=2>VARIOUS</font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=RIGHT><font size=2>4,471</font></td>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <td align=LEFT><font size=2><b>TOTAL INVESTMENT AT <br>
      SEPTEMBER 30, 2004</b></font></td>
    <td align=LEFT><font size=2>&nbsp;</font></td>
    <td align=RIGHT><font size=2><b>20,412</b></font>
      <hr size="2" noshade align="right" width="50">
    </td>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>




</TABLE>




<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<p><BR>
</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><BR>






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 44; page: 44" -->






<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="22%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="24%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>FOREIGN CURRENCY
TRANSACTION AND EXCHANGE DIFFERENCES </B></FONT>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="12%" align="center"><font face="Times New Roman, Times, Serif" size=2><b>ANNEXX 14</b></font></td>
    <td width="26%">&nbsp;</td>
    <td width="18%" align="right"><font face="Times New Roman, Times, Serif" size=2><b>CONSOLIDATED</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" 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> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" 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></P>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Monetary
items at the exchange rate at the balance sheet date. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Non-monetary
items and stockholders&#146; equity at the exchange rate prevailing at the date the
transactions occurred.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income
and expense items at an appropriate average exchange rate.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" 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>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" 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>
<BR>


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<BR>
<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><BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 45; page: 45" -->



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B>MEXICAN STOCK
EXCHANGE                                                               <BR>SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="54%"><font size="2">STOCK EXCHANGE CODE: <b> &nbsp;SIMEC <br>
      </b>GRUPO SIMEC, S.A. DE C.V. <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</font></td>
    <td width="22%"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td width="24%" align="right"><font size="2">QUARTER: &nbsp;&nbsp;<b>3</b>
      &nbsp;&nbsp;&nbsp;YEAR: <b>2004</b></font></td>
  </tr>
</table>
<div align="right"><br>
  <font size="2"><b>CONSOLIDATED</b></font> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</div>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>DECLARATION OF THE
COMPANY OFFICIALS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THIS REPORT. </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" 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 THIRD QUARTER REPORT. </FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;</td>
    <td align="center" valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>ING LUIS GARCIA LIMON <br>
      CHIEF EXECUTIVE OFFICER
      </font></b></td>
    <td align="center" valign="bottom"><b>&nbsp;&nbsp;&nbsp;</b></td>
    <td align="center" valign="bottom"><b><font face="Times New Roman, Times, Serif" size=2>C.P. ADOLFO LUNA LUNA
                                       <br>
      CHIEF FINANCIAL OFFICER</font></b></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>GUADALAJARA, JAL,
AT OCTOBER 25 OF 2004 </B></FONT></P>


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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
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