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<SEC-DOCUMENT>0000891092-05-000817.txt : 20050427
<SEC-HEADER>0000891092-05-000817.hdr.sgml : 20050427
<ACCEPTANCE-DATETIME>20050427161641
ACCESSION NUMBER:		0000891092-05-000817
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050426
FILED AS OF DATE:		20050427
DATE AS OF CHANGE:		20050427

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:		05776637

	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>e20794_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Form 6-K</TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>UNITED STATES  <BR>SECURITIES AND
EXCHANGE COMMISSION  <BR>Washington, D.C.
20549  </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>FORM 6-K  </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>REPORT OF FOREIGN
PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16  <BR>UNDER THE SECURITIES
EXCHANGE ACT OF 1934  </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2 no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the month of
                                                        April, 2005. </FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2 no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Group Simec, Inc.</font><BR><HR ALIGN=center WIDTH=100% SIZE=1 noshade>
<div align="center"><font size=2>(Translation of Registrant&#146;s Name Into English)
  </FONT></div>
<p></P>

<!-- MARKER FORMAT-SHEET="Center Head 2 no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mexico </font><BR><HR ALIGN=center WIDTH=100% SIZE=1 noshade>
<div align="center"><font size=2>(Jurisdiction of incorporation or organization)
  </FONT></div>
<p></P>


<!-- MARKER FORMAT-SHEET="Center Head 2 no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Av.           Lazaro
Cardenas 601, Colonia la Nogalera, Guadalajara, Jalisco, Mexico 44440 </font><BR><HR ALIGN=center WIDTH=100% SIZE=1 noshade>
<div align="center"><font size=2>(Address of principal executive office) </FONT></div>
<p></P>

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<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 |_| </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Default" -->
<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;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>

<!-- MARKER FORMAT-SHEET="Center Head 2 no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURE  </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;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 CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=600>
  <TR VALIGN=Bottom>
     <TD WIDTH=46% ALIGN=LEFT><FONT SIZE=2></FONT></TD>
     <TD WIDTH=54% ALIGN=center><FONT SIZE=2>GRUPO SIMEC, S.A. de C.V.</FONT><HR ALIGN=center WIDTH=100% SIZE=1 noshade></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE=2></FONT></TD>
     <TD ALIGN=center><FONT SIZE=2>(Registrant)</FONT></TD></TR>
<TR>

    <TD COLSPAN=2>&nbsp;</TD>
  </TR>
  <TR VALIGN=top>
    <TD ALIGN=LEFT><FONT SIZE=2>Date: April 27, 2005</FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=2>By: /s/ Luis Garc&iacute;a Lim&oacute;n</FONT>
      <hr align=center width=100% size=1 noshade>
    </TD></TR>
  <TR VALIGN=top>
    <TD ALIGN=LEFT><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=2>Name: Luis Garc&iacute;a Lim&oacute;n</FONT></TD>
  </TR>
  <TR VALIGN=top>
    <TD ALIGN=LEFT><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT><FONT SIZE=2>Title: Chief Executive Officer</FONT></TD>
  </TR>
</TABLE>

<!-- 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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>






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


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><IMG SRC="grupologo.gif" width="107" height="43">
  </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=600>
<TR VALIGN=Bottom>

    <TD WIDTH=47% ALIGN=LEFT><FONT SIZE=2>PRESS RELEASE</FONT></TD>

    <TD WIDTH=16% ALIGN=LEFT><FONT SIZE=2>Contact:</FONT></TD>

    <TD WIDTH=37% ALIGN=LEFT><FONT SIZE=2>Adolfo Luna Luna</FONT></TD>
  </TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="47%"><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT width="16%"><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT width="37%"><FONT SIZE=2>Jos&eacute;Flores Flores</FONT></TD>
  </TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="47%"><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT width="16%"><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT width="37%"><FONT SIZE=2>Grupo Simec, S.A. de C.V.</FONT></TD>
  </TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="47%"><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT width="16%"><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT width="37%"><FONT SIZE=2>Calzada Lazaro Cardenas 601</FONT></TD>
  </TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="47%"><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT width="16%"><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT width="37%"><FONT SIZE=2>44440 Guadalajara, Jalisco, Mexico</FONT></TD>
  </TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="47%"><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT width="16%"><FONT SIZE=2></FONT></TD>

    <TD ALIGN=LEFT width="37%"><FONT SIZE=2>52 33 1057 5740</FONT></TD>
  </TR>
<TR>

    <TD COLSPAN=3>&nbsp;</TD>
  </TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Center Head 2 no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GRUPO SIMEC ANNOUNCES
RESULTS OF OPERATIONS FOR THE FIRST THREE MONTHS OF 2005 </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GUADALAJARA, MEXICO, April 20, 2005-
Grupo Simec, S.A. de C.V. (AMEX-SIM) &#147;Simec&#148;) announced today its results of
operations for the three-month period ended March 31, 2005. Net sales increased 75% to Ps.
1,764 million in the first quarter of 2005 compared to Ps. 1,007 million in the same
period of 2004, primarily due to the inclusion of net sales generated by the newly
acquired plants in Apizaco and Cholula of Ps. 706 million. Primarily as a result of the
foregoing, Simec recorded net income of Ps. 321 million in the first quarter of 2005
versus net income of Ps. 278 million for the first quarter of 2004. </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 inventories, and assumed
liabilities associated with seniority premiums of employees of the Mexican steel-making
facilities of Industr&iacute;as Ferricas del Norte, S.A. (Corporaci&oacute;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 its parent company Industrias CH, S.A.
de C.V. of U.S. $19 million for capital stock to be issued in the second quarter of 2005.
Simec began to operate the plants 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec sold 246,202 metric tons of
basic steel products during the three-month period ended March 31, 2005 (including 98,068
tons produced by the newly acquired plants in Apizaco and Cholula), an increase of 44% as
compared to 170,389 metric tons in the same period of 2004. Exports of basic steel
products were 36,796 metric tons in the first quarter of 2005 (including 9,353 tons
produced by the newly acquired plants in Apizaco and Cholula) versus 25,698 metric tons in
the same period of 2004. Additionally Simec sold 12,870 tons of billet in the three-month
period ended March 31, 2005 as compared to 19,505 tons of billet in the same period of
2004. Prices of finished products sold in the first three months of 2005 increased 26% in
real terms versus the same period of 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s direct cost of sales was
Ps. 1,123 million in the three-month period ended March 31, 2005 (including Ps. 500
million relating to the newly acquired plants in Apizaco and Cholula), or 64% of net
sales, versus Ps. 666 million, or 66% of net sales, for the 2004 period. The average cost
of raw materials used to produce steel products increased 23% in real terms in the
three-month period ended March 31, 2005 versus the same period of 2004, primarily as a
result of significant increases in the price of scrap and certain other raw materials.
Indirect manufacturing, selling, general and administrative expenses (including
depreciation) were Ps. 182 million during the three-month period ended March 31, 2005
(including Ps. 62 million relating to the newly acquired plants in Apizaco and Cholula),
compared to Ps. 122 million in the same period of 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s operating income
increased 110% to Ps. 459 million during three-month period ended March 31, 2005
(including Ps. 143 million relating to the newly acquired plants in Apizaco and Cholula)
from Ps. 219 million in the first quarter of 2004. Operating income was 26% of net sales
in the three-month period ended March 31, 2005 compared to 22% of net sales in the same
period of 2004. </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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>





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



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded other income, net,
from other financial operations of Ps. 5 million in the three-month period ended March 31,
2005 compared to other income, net, of Ps. 10 million in the same period of 2004. In
addition, Simec recorded a provision for income tax and employee profit sharing of Ps. 143
million in the three-month period ended March 31, 2005 versus a positive provision of Ps.
65 million in the same period of 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded financial expense of
Ps. 0 million in the three-month period ended March 31, 2005 compared to financial expense
of Ps. 16 million in the same period of 2004 as a result of (i) net interest income of Ps.
2 million in the three-month period ended March 31, 2005 compared to net interest expense
of Ps. 4 million in the same period of 2004, (ii) an exchange gain of Ps. 6 million in the
three-month period ended March 31, 2005 compared to an exchange gain of Ps. 0 million in
the same period of 2004, reflecting lower debt levels in the three-month period ended
March 31, 2005 and a decrease of 0.3% in the value of the peso versus the dollar in the
three-month period ended March 31, 2005 compared to an increase of 0.7% in the value of
the peso versus the dollar in the three-month period ended March 31, 2004 and (iii) a loss
from monetary position of Ps. 8 million in the three-month period ended March 31, 2005
compared to a loss from monetary position of Ps. 12 million in the three-month period
ended March 31, 2004, reflecting the domestic inflation rate of 0.8% in the three-month
period ended March 31, 2005 compared to the domestic inflation rate of 1.6% in the same
period in 2004 and lower debt levels during the 2005 period. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At March 31, 2005, Simec&#146;s total
consolidated debt consisted of approximately $0.3 million of U.S. dollar denominated debt.
At December 31, 2004, Simec had outstanding approximately $0.3 million of U.S.
dollar-denominated debt. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All figures were prepared in
accordance with Mexican generally accepted accounting principles and are stated in
constant Pesos at March 31, 2005. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec is a mini-mill steel producer
in Mexico and manufactures a broad range of non-flat structural steel products. </FONT></P>

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


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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 ALIGN=LEFT WIDTH=100% SIZE=5 noshade><BR>






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



<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>MEXICAN STOCK
EXCHANGE  <BR>SIFIC / ICS  </B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=600>
<TR VALIGN=Bottom>

    <TD WIDTH=78% ALIGN=LEFT><FONT SIZE="1">STOCK EXCHANGE CODE: <B>SIMEC</B>
      </FONT></TD>

    <TD WIDTH=22% ALIGN=LEFT><FONT SIZE="1">QUARTER: <B>1 </B>YEAR: <B>2005</B>
      </FONT> </TD>
  </TR>
<TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="78%"><FONT SIZE=1>GRUPO SIMEC, S.A. DE C.V</FONT></TD>

    <TD ALIGN=LEFT width="22%"><FONT SIZE=1></FONT></TD>
  </TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Center Head 2 no bold" FSL="Workstation" -->
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>CONSOLIDATED FINANCIAL
STATEMENT</B> <BR>
  AT MARCH 31 OF 2005 AND
2004  <BR>
  (thousands of pesos)  </FONT></P>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 width=700>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=top>
      <td align=center width=24 valign="bottom"><b><font size=1>REF</font></b></td>
      <td align=center width=14 valign="bottom"><b></b></td>
      <td align=center width=379 valign="bottom"><b><font size=1>&nbsp;CATEGORIES</font></b></td>
      <td align=center colspan="3" valign="bottom"><b><font size=1>QUARTER OF PRESENT
      <br>
      FINANCIAL YEAR</font></b></td>
      <td align=center width=10 valign="bottom"><b></b></td>
      <td align=center colspan="3" valign="bottom"><b><font size=1>QUARTER OF PREVIOUS <br>
      FINANCIAL YEAR&nbsp;</font></b></td>
      <td align=LEFT width=12><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=center width="24"><font size=1>S</font></td>
      <td align=LEFT width="14">&nbsp;</td>
      <td align=LEFT width="379"><font size=1>&nbsp;</font></td>
      <td align=center width="73"><font size=1>AMOUNT</font></td>
      <td align=center width="27"><font size=1>&nbsp;</font></td>
      <td align=center width="38"><font size=1>%</font></td>
      <td align=center width="10"><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
      <td align=center width="71"><font size=1>AMOUNT</font></td>
      <td align=center width="29"><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
      <td align=center width="23"><font size=1>%</font></td>
      <td align=center width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>1</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>TOTAL ASSETS</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>9,134,901</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;&nbsp;&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>100</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>6,746,520</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>100</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>2</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>CURRENT ASSETS</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>3,191,541</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>35</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>1,838,718</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>27</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>3</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>CASH AND SHORT-TERM INVESTMENTS</font></td>
      <td align=RIGHT width="73"><font size=1>775,956</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>8</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>795,632</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>12</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>4</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>ACCOUNTS AND DOCUMENTS RECEIVABLE
      (NET)</font></td>
      <td align=RIGHT width="73"><font size=1>1,203,119</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>13</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>554,144</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>8</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>5</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE</font></td>
      <td align=RIGHT width="73"><font size=1>30,882</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>116,370</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>2</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>6</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>INVENTORIES</font></td>
      <td align=RIGHT width="73"><font size=1>1,106,406</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>12</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>369,606</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>5</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>7</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>OTHER CURRENT ASSETS</font></td>
      <td align=RIGHT width="73"><font size=1>75,178</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>1</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>2,966</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>8</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>LONG-TERM</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>0</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>0</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>0</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>0</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>9</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>ACCOUNTS AND DOCUMENTS RECEIVABLE
      (NET)</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>10</font></td>
      <td align=LEFT width="14">&nbsp;</td>
      <td align=LEFT width="379"><font size=1>INVESTMENT IN SHARES OF SUBSIDIARIES
      AND NON-CONSOLIDATED</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>11</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>OTHER INVESTMENTS</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>12</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>PROPERTY, PLANT AND EQUIPMENT</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>5,716,141</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>63</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>4,644,736</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>69</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>13</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>PROPERTY</font></td>
      <td align=RIGHT width="73"><font size=1>2,196,764</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>24</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>2,028,690</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>32</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>14</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>MACHINERY AND INDUSTRIAL</font></td>
      <td align=RIGHT width="73"><font size=1>5,740,824</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>63</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>4,647,371</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>69</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>15</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>OTHER EQUIPMENT</font></td>
      <td align=RIGHT width="73"><font size=1>151,892</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>2</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>148,905</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>2</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>16</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>ACCUMULATED DEPRECIATION</font></td>
      <td align=RIGHT width="73"><font size=1>2,398,284</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>26</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>2,192,956</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>33</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>17</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>CONSTRUCTION IN PROGRESS</font></td>
      <td align=RIGHT width="73"><font size=1>24,945</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>12,726</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>18</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>DEFERRED ASSETS (NET)</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>227,219</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>2</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>263,066</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>4</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>19</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>OTHER ASSETS</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>0</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>0</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>0</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>0</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>20</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>TOTAL LIABILITIES</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>2,262,801</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>100</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>1,473,503</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>100</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>21</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>CURRENT LIABILITIES</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>892,176</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>39</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>555,911</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>38</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>22</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>SUPPLIERS</font></td>
      <td align=RIGHT width="73"><font size=1>571,257</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>25</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>310,723</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>21</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>23</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>BANK LOANS</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>24</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>STOCK MARKET LOANS</font></td>
      <td align=RIGHT width="73"><font size=1>3,411</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>3,517</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>25</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>TAXES TO BE PAID</font></td>
      <td align=RIGHT width="73"><font size=1>132,876</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>6</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>77,966</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>5</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>26</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>OTHER CURRENT LIABILITIES</font></td>
      <td align=RIGHT width="73"><font size=1>184,632</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>8</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>163,705</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>11</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>27</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>LONG-TERM LIABILITIES</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>28</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>BANK LOANS</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>29</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>STOCK MARKET LOANS</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>30</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>OTHER LOANS</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>31</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>DEFERRED LOANS</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>1,370,625</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>61</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>917,592</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>62</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>32</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>OTHER LIABILITIES</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>0</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>0</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>0</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>0</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>33</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>CONSOLIDATED STOCKHOLDERS' EQUITY</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>6,872,100</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>100</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>5,273,017</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>100</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>34</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>MINORITY INTEREST</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>316</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>0</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>267</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>0</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>35</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>MAJORITY INTEREST</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>6,871,784</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>100</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>5,272,750</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>100</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>36</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>CONTRIBUTED CAPITAL</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>4,182,704</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>61</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>3,936,577</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>75</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>37</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>PAID-IN CAPITAL STOCK (NOMINAL)</font></td>
      <td align=RIGHT width="73"><font size=1>1,948,155</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>28</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>1,925,252</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>37</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>38</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>RESTATEMENT OF PAID-IN CAPITAL STOCK</font></td>
      <td align=RIGHT width="73"><font size=1>1,355,077</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>20</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>1,350,264</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>26</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>39</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>PREMIUM ON SALES OF SHARES</font></td>
      <td align=RIGHT width="73"><font size=1>661,061</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>10</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>661,061</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>13</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>40</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES</font></td>
      <td align=RIGHT width="73"><font size=1>218,411</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>3</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>0</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><b><font size=1>41</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="379"><b><font size=1>CAPITAL INCREASE (DECREASE)</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>2,689,080</font></b></td>
      <td align=LEFT width="27"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>39</font></b></td>
      <td align=LEFT width="10"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>1,336,173</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="23"><b><font size=1>25</font></b></td>
      <td align=LEFT width="12"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>42</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>RETAINES EARNINGS AND CAPITAL RESERVE</font></td>
      <td align=RIGHT width="73"><font size=1>2,977,823</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>43</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>1,785,528</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>34</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>43</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>REPURCHASE FUND OF SHARES</font></td>
      <td align=RIGHT width="73"><font size=1>84,889</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>1</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>84,889</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>2</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>44</font></td>
      <td align=LEFT width="14">&nbsp;</td>
      <td align=LEFT width="379"><font size=1>&nbsp;EXCESS (SHORTFALL) IN RESTATEMENT
      OF STOCKHOLDERS EQUITY</font></td>
      <td align=RIGHT width="73"><font size=1>(694,528)</font></td>
      <td align=LEFT width="27">&nbsp;</td>
      <td align=RIGHT width="38"><font size=1>(10)</font></td>
      <td align=LEFT width="10">&nbsp;</td>
      <td align=RIGHT width="71"><font size=1>(811,953)</font></td>
      <td align=LEFT width="29">&nbsp;</td>
      <td align=RIGHT width="23"><font size=1>(15)</font></td>
      <td align=LEFT width="12">&nbsp;</td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="24"><font size=1>45</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="379"><font size=1>NET INCOME FOR THE YEAR</font></td>
      <td align=RIGHT width="73"><font size=1>320,896</font></td>
      <td align=LEFT width="27"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>5</font></td>
      <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>277,709</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="23"><font size=1>5</font></td>
      <td align=LEFT width="12"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
  </table>
  <br>
  <BR>
</div>
<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="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
</table>
<p align="center"><font face="Times New Roman, Times, Serif" size="2"><b><font size="1">CONSOLIDATED FINANCIAL
STATEMENT</font></b> <font size="1"><br>
  BREAKDOWN OF MAIN
CATEGORIES <br>
  (thousands of pesos) </font></font><font size="1"><!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     </font>
</p>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 width=700>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=center width=26><b><font size=1>REF</font></b></td>
      <td align=center width=22><b>&nbsp;&nbsp;&nbsp;&nbsp;</b></td>
      <td align=center width=365><b><font size=1>&nbsp;CATEGORIES</font></b></td>
      <td align=center colspan="3"><b><font size=1>QUARTER OF PRESENT <br>
      YEAR FINANCIAL</font></b></td>
      <td align=center width=13><b></b></td>
      <td align=center colspan="3"><b><font size=1>QUARTER OF PREVIOUS <br>
      FINANCIAL YEAR&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=center width="26"><b><font size=1>S</font></b></td>
      <td align=center width="22"><b></b></td>
      <td align=center width="365"><b><font size=1>&nbsp;</font></b></td>
      <td align=center width="73"><b><font size=1>AMOUNT</font></b></td>
      <td align=center width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=center width="43"><b><font size=1>%</font></b></td>
      <td align=center width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=center width="75"><b><font size=1>AMOUNT</font></b></td>
      <td align=center width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=center width="49"><b><font size=1>%</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><b><font size=1>3</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="365"><b><font size=1>CASH AND SHORT-TERM INVESTMENTS</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>775,956</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="43"><b><font size=1>100</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="75"><b><font size=1>795,632</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="49"><b><font size=1>100</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>46</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>CASH</font></td>
      <td align=RIGHT width="73"><font size=1>146,148</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>19</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>88,208</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>11</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>47</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>SHORT-TERM INVESTMENTS</font></td>
      <td align=RIGHT width="73"><font size=1>629,808</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>81</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>707,424</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>89</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><b><font size=1>18</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="365"><b><font size=1>DEFERRED ASSETS (NET)</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>227,219</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="43"><b><font size=1>100</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="75"><b><font size=1>271,055</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="49"><b><font size=1>100</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>48</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>AMORTIZED OR REDEEMED EXPENSES</font></td>
      <td align=RIGHT width="73"><font size=1>225,261</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>99</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>260,992</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>99</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>49</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>GOODWILL</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>50</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>DEFERRED TAXES</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>51</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>OTHERS</font></td>
      <td align=RIGHT width="73"><font size=1>1,958</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>1</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>2,074</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>1</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><b><font size=1>21</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="365"><b><font size=1>CURRENT LIABILITIES</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>892,176</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="43"><b><font size=1>100</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="75"><b><font size=1>555,911</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="49"><b><font size=1>100</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>52</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>FOREIGN CURRENCY LIABILITIES</font></td>
      <td align=RIGHT width="73"><font size=1>229,700</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>26</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>90,760</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>16</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>53</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>MEXICAN PESOS LIABILITIES</font></td>
      <td align=RIGHT width="73"><font size=1>662,476</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>74</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>465,151</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>84</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><b><font size=1>24</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="365"><b><font size=1>STOCK MARKET LOANS</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>3,411</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="43"><b><font size=1>100</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="75"><b><font size=1>3,517</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="49"><b><font size=1>100</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>54</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>COMMERCIAL PAPER</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>55</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>CURRENT MATURITIES OF MEDIUM TERM
      NOTES</font></td>
      <td align=RIGHT width="73"><font size=1>3,411</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>100</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>3,517</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>100</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>56</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>CURRENT MATURITIES OF BONDS</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><b><font size=1>26</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="365"><b><font size=1>OTHER CURRENT LIABILITIES</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>184,632</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="43"><b><font size=1>100</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="75"><b><font size=1>163,705</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="49"><b><font size=1>100</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>57</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>OTHER CURRENT LIABILITIES WITH COST</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>58</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>OTHER CURRENT LIABILITIES WITHOUT
      COST</font></td>
      <td align=RIGHT width="73"><font size=1>184,632</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>100</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>163,705</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>100</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><b><font size=1>27</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="365"><b><font size=1>LONG-TERM LIABILITIES</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>0</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="43"><b><font size=1>0</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="75"><b><font size=1>0</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="49"><b><font size=1>0</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>59</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>FOREIGN CURRENCY LIABILITIES</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>60</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>MEXICAN PESOS LIABILITIES</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><b><font size=1>29</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="365"><b><font size=1>STOCK MARKET LOANS</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>0</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="43"><b><font size=1>0</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="75"><b><font size=1>0</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="49"><b><font size=1>0</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>61</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>BONDS</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>62</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>MEDIUM TERM NOTES</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><b><font size=1>30</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="365"><b><font size=1>OTHER LOANS</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>0</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="43"><b><font size=1>0</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="75"><b><font size=1>0</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="49"><b><font size=1>0</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>63</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>OTHER LOANS WITH COST</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>64</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>OTHER LOANS WITHOUT COST</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><b><font size=1>31</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="365"><b><font size=1>DEFERRED LOANS</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>1,370,625</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="43"><b><font size=1>100</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="75"><b><font size=1>917,592</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="49"><b><font size=1>100</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>65</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>NEGATIVE GOODWILL</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>66</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>DEFERRED TAXES</font></td>
      <td align=RIGHT width="73"><font size=1>1,348,460</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>98</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>907,548</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>99</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>67</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>OTHERS</font></td>
      <td align=RIGHT width="73"><font size=1>22,165</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>2</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>10,044</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>1</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><b><font size=1>32</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="365"><b><font size=1>OTHER LIABILITIES</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>0</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="43"><b><font size=1>0</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="75"><b><font size=1>0</font></b></td>
      <td align=LEFT width="13"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="49"><b><font size=1>0</font></b></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>68</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>RESERVES</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>69</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>OTHER LIABILITIES</font></td>
      <td align=RIGHT width="73"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="75"><font size=1>0</font></td>
      <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><b><font size=1>44</font></b></td>
      <td align=LEFT width="22">&nbsp;</td>
      <td align=LEFT width="365"><b><font size=1>EXCESS (SHORTFALL) IN RESTATEMENT
      OF STOCKHOLDERS" EQUITY</font></b></td>
      <td align=RIGHT width="73"><b><font size=1>(694,,528)</font></b></td>
      <td align=LEFT width="21">&nbsp;</td>
      <td align=RIGHT width="43"><b><font size=1>(100)</font></b></td>
      <td align=LEFT width="13">&nbsp;</td>
      <td align=RIGHT width="75"><b><font size=1>(811,953)</font></b></td>
      <td align=LEFT width="13">&nbsp;</td>
      <td align=RIGHT width="49"><b><font size=1>(100)</font></b></td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT colspan="10">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>70</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="365"><font size=1>ACCUMULATED INCOME DUE TO MONETARY
      POSITION</font></td>
      <td align=RIGHT width="73"><font size=1>(694,528)</font></td>
      <td align=LEFT width="21">&nbsp;</td>
      <td align=RIGHT width="43"><font size=1>(100)</font></td>
      <td align=LEFT width="13">&nbsp;</td>
      <td align=RIGHT width="75"><font size=1>(811,953)</font></td>
      <td align=LEFT width="13">&nbsp;</td>
      <td align=RIGHT width="49"><font size=1>(100)</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT colspan="10">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="26"><font size=1>71</font></td>
      <td align=LEFT width="22">&nbsp;</td>
      <td align=LEFT width="365"><font size="1">INCOME FROM NON-MONETARY POSITION
      ASSETS</font></td>
      <td align=RIGHT width="73"><font size=1>&nbsp;0</font></td>
      <td align=LEFT width="21">&nbsp;</td>
      <td align=RIGHT width="43"><font size=1>0</font></td>
      <td align=LEFT width="13">&nbsp;</td>
      <td align=RIGHT width="75"><font size=1>0<font></font></font></td>
      <td align=LEFT width="13">&nbsp;</td>
      <td align=RIGHT width="49"><font size=1>0</font></td>
    </tr>
    <tr>
      <td colspan=10>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
  </table>
   <br>
  <BR>
</div>
<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="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><FONT FACE="Times New Roman, Times, Serif" SIZE=4> </FONT></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
</table>


 <br>
<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Workstation" -->
<div align="center"><font face="Times New Roman, Times, Serif" size="1"><b>CONSOLIDATED FINANCIAL
STATEMENT </b><br>
  OTHER CONCEPTS <br>
  (thousands of pesos)  <br>
  </font><!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->


</div>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 width=700>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=top align="center">
      <td width=33 valign="bottom"><b><font size=1>REF</font></b></td>
      <td width=23 valign="bottom"><b><font size=1>&nbsp;</font></b></td>
      <td width=334 valign="bottom"><b><font size=1>CATEGORIES</font></b></td>
      <td width=123 valign="bottom"><b><font size=1>QUARTER OF PRESENT <br>
      FINANCIAL YEAR</font></b></td>
      <td width=44 valign="bottom"><b></b></td>
      <td width=126 valign="bottom"><b><font size=1>QUARTER OF PREVIOUS <br>
      FINANCIAL YEAR</font></b></td>
      <td width=17>&nbsp;</td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom align="center">
      <td width="33"><b><font size=1>S</font></b></td>
      <td width="23"><b></b></td>
      <td width="334"><b><font size=1>&nbsp;</font></b></td>
      <td width="123"><b><font size=1>AMOUNT</font></b></td>
      <td width="44"><b><font size=1>&nbsp;</font></b></td>
      <td width="126"><b><font size=1>AMOUNT</font></b></td>
      <td width="17"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>72</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="334"><font size=1>WORKING CAPITAL</font></td>
      <td align=RIGHT width="123"><font size=1>2,299,365</font></td>
      <td align=LEFT width="44"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="126"><font size=1>1,282,807</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>73</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="334"><font size=1>PENSIONS FUND AND SENIORITY PREMIUMS</font></td>
      <td align=RIGHT width="123"><font size=1>0</font></td>
      <td align=LEFT width="44"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="126"><font size=1>0</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>74</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="334"><font size=1>EXECUTIVES (*)</font></td>
      <td align=RIGHT width="123"><font size=1>44</font></td>
      <td align=LEFT width="44"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="126"><font size=1>26</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>75</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="334"><font size=1>EMPLOYERS (*)</font></td>
      <td align=RIGHT width="123"><font size=1>768</font></td>
      <td align=LEFT width="44"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="126"><font size=1>360</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>76</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="334"><font size=1>WORKERS (*)</font></td>
      <td align=RIGHT width="123"><font size=1>1,181</font></td>
      <td align=LEFT width="44"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="126"><font size=1>884</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>77</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="334"><font size=1>COMMON SHARES (*)</font></td>
      <td align=RIGHT width="123"><font size=1>133,542,984</font></td>
      <td align=LEFT width="44"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="126"><font size=1>131,973,022</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>78</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="334"><font size=1>REPURCHASED SHARES (*)</font></td>
      <td align=RIGHT width="123"><font size=1>0</font></td>
      <td align=LEFT width="44"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="126"><font size=1>0</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
  </table>
  <br>
</div>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(*)&nbsp;&nbsp;&nbsp;&nbsp;
          THESE ITEMS SHOULD BE EXPRESSED IN UNITS </FONT><!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
 <br>
  <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: 34; page: 34" -->













<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
</table>

<div align="center"><br>
  <font face="Times New Roman, Times, Serif" size="1"><b>CONSOLIDATED EARNING
STATEMENT</b> <br>
  FROM JANUARY 1 TO
MARCH 31 OF 2005 AND 2004 <br>
  (thousands of pesos)   <br>
  <br>
  </font>
<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->

  <table cellpadding=0 cellspacing=0 border=0 width=700>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=center width=23><b><font size=1>REF</font></b></td>
      <td align=center width=22><b></b></td>
      <td align=center width=366><b><font size=1>&nbsp;CATEGORIES</font></b></td>
      <td align=center colspan="4"><b><font size=1>QUARTER OF PRESENT FINANCIAL
      YEAR</font></b><b></b></td>
      <td align=center colspan="4"><b><font size=1>QUARTER OF PREVIOUS FINANCIAL
      YEAR</font></b><b><font size=1>&nbsp;</font></b><b></b><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom align="center">
      <td width="23"><b><font size=1>R</font></b></td>
      <td width="22"><b></b></td>
      <td width="366"><b><font size=1>&nbsp;</font></b></td>
      <td width="77"><b><font size=1>AMOUNT</font></b></td>
      <td width="16"><b><font size=1>&nbsp;</font></b></td>
      <td width="32"><b><font size=1>%</font></b></td>
      <td width="21"><b><font size=1>&nbsp;</font></b></td>
      <td width="77"><b><font size=1>AMOUNT</font></b></td>
      <td width="16"><b><font size=1>&nbsp;</font></b></td>
      <td width="33"><b><font size=1>%</font></b></td>
      <td width="17"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><b><font size=1>1</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="366"><b><font size=1>NET SALES</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>1,763,927</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="32"><b><font size=1>100</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>1,006,646</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>100</font></b></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><font size=1>2</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="366"><font size=1>COST OF SALES</font></td>
      <td align=RIGHT width="77"><font size=1>1,122,692</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="32"><font size=1>64</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="77"><font size=1>666,095</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>66</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><b><font size=1>3</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="366"><b><font size=1>GROSS INCOME</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>641,235</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="32"><b><font size=1>36</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>340,551</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>34</font></b></td>
      <td align=LEFT width="17"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><font size=1>4</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="366"><font size=1>OPERATING EXPENSES</font></td>
      <td align=RIGHT width="77"><font size=1>182,505</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="32"><font size=1>10</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="77"><font size=1>121,532</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>12</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><b><font size=1>5</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="366"><b><font size=1>OPERATING INCOME</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>458,730</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="32"><b><font size=1>26</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>219,019</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>22</font></b></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><font size=1>6</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="366"><font size=1>TOTAL FINANCING COST</font></td>
      <td align=RIGHT width="77"><font size=1>(496)</font></td>
      <td align=LEFT width="16">&nbsp;</td>
      <td align=RIGHT width="32"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="77"><font size=1>16,309</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>2</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><b><font size=1>7</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="366"><b><font size=1>INCOME AFTER FINANCING COST</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>459,226</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="32"><b><font size=1>26</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>202,710</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>20</font></b></td>
      <td align=LEFT width="17"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><font size=1>8</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="366"><font size=1>OTHER FINANCIAL OPERATIONS</font></td>
      <td align=RIGHT width="77"><font size=1>(4,932)</font></td>
      <td align=LEFT width="16">&nbsp;</td>
      <td align=RIGHT width="32"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="77"><font size=1>(9,846)</font></td>
      <td align=LEFT width="16">&nbsp;</td>
      <td align=RIGHT width="33"><font size=1>(1</font></td>
      <td align=LEFT width="17"><font size=1>)</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><b><font size=1>9</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="366"><b><font size=1>INCOME BEFORE TAXES AND WORKERS'
      PROFIT SHARING</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>464,158</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="32"><b><font size=1>26</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>212,556</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>21</font></b></td>
      <td align=LEFT width="17"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><font size=1>10</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="366"><font size=1>RESERVE FOR TAXES AND WORKERS' PROFIT
      SHARING</font></td>
      <td align=RIGHT width="77"><font size=1>143,262</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="32"><font size=1>8</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="77"><font size=1>(65,153)</font></td>
      <td align=LEFT width="16">&nbsp;</td>
      <td align=RIGHT width="33"><font size=1>(6</font></td>
      <td align=LEFT width="17"><font size=1>)</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><b><font size=1>11</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="366"><b><font size=1>NET INCOME AFTER TAXES AND WORKERS'
      PROFIT SHARING</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>320,896</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="32"><b><font size=1>18</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>277,709</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>28</font></b></td>
      <td align=LEFT width="17"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=top>
      <td align=RIGHT width="23"><font size=1>12</font></td>
      <td align=LEFT width="22">&nbsp;</td>
      <td align=LEFT width="366"><font size=1>SHARE IN NET INCOME OF SUBSIDIARIES
      AND NON-CONSOLIDATED <br>
      ASSOCIATES</font></td>
      <td align=RIGHT width="77"><font size=1>0</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="32"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="77"><font size=1>0</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>0</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="700" colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><b><font size=1>13</font></b></td>
      <td align=LEFT width="22"><b></b></td>
      <td align=LEFT width="366"><b><font size=1>&nbsp;CONSOLIDATED NET INCOME FROM
      CONTINUOS OPERATIONS</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>320,896</font></b></td>
      <td align=LEFT width="16"><b></b></td>
      <td align=RIGHT width="32"><b><font size=1>18</font></b></td>
      <td align=LEFT width="21"><b></b></td>
      <td align=RIGHT width="77"><b><font size=1>277,709</font></b></td>
      <td align=LEFT width="16"><b></b></td>
      <td align=RIGHT width="33"><b><font size=1>28</font></b></td>
      <td align=LEFT width="17"><b></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><font size=1>14</font></td>
      <td align=LEFT width="22">&nbsp;</td>
      <td align=LEFT width="366"><font size=1>INCOME FROM DISCONTINUOUS OPERAATIONS</font></td>
      <td align=RIGHT width="77"><font size=1>0</font></td>
      <td align=LEFT width="16">&nbsp;</td>
      <td align=RIGHT width="32"><font size=1>0</font></td>
      <td align=LEFT width="21">&nbsp;</td>
      <td align=RIGHT width="77"><font size=1>0</font></td>
      <td align=LEFT width="16">&nbsp;</td>
      <td align=RIGHT width="33"><font size=1>0</font></td>
      <td align=LEFT width="17">&nbsp;</td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="700" colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><b><font size=1>15</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="366"><b><font size=1>CONSOLIDATED NET INCOME BEFORE
      EXTRAORDINARY ITEMS</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>320,896</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="32"><b><font size=1>18</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>277,709</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>28</font></b></td>
      <td align=LEFT width="17"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><font size=1>16</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="366"><font size=1>EXTRAORDINARY ITEMS NET EXPENSES (INCOME)</font></td>
      <td align=RIGHT width="77"><font size=1>0</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="32"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="77"><font size=1>0</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>0</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=top>
      <td align=RIGHT width="23"><font size=1>17</font></td>
      <td align=LEFT width="22">&nbsp;</td>
      <td align=LEFT width="366"><font size=1>NET EFFECT AT THE BEGINNING OF THE
      YEAR BY CHANGES IN <br>
      ACCOUNTING PRINCIPLES</font></td>
      <td align=RIGHT width="77"><font size=1>0</font></td>
      <td align=LEFT width="16">&nbsp;</td>
      <td align=RIGHT width="32"><font size=1>0</font></td>
      <td align=LEFT width="21">&nbsp;</td>
      <td align=RIGHT width="77"><font size=1>0</font></td>
      <td align=LEFT width="16">&nbsp;</td>
      <td align=RIGHT width="33"><font size=1>0</font></td>
      <td align=LEFT width="17">&nbsp;</td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><b><font size=1>18</font></b></td>
      <td align=LEFT width="22"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="366"><b><font size=1>NET CONSOLIDATED INCOME</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>320,896</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="32"><b><font size=1>18</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="77"><b><font size=1>277,709</font></b></td>
      <td align=LEFT width="16"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>28</font></b></td>
      <td align=LEFT width="17"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><font size=1>19</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="366"><font size=1>NET INCOME OF MINORITY INTEREST</font></td>
      <td align=RIGHT width="77"><font size=1>0</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="32"><font size=1>0</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="77"><font size=1>0</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>0</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="23"><font size=1>20</font></td>
      <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="366"><font size=1>NET INCOME OF MAJORITY INTEREST</font></td>
      <td align=RIGHT width="77"><font size=1>320,896</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="32"><font size=1>18</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="77"><font size=1>277,709</font></td>
      <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>28</font></td>
      <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
  </table>
   <br>
  <BR>
</div>
<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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<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
</table>

<div align="center">
  <p><br>
  <font face="Times New Roman, Times, Serif" size="2"><b><font size="1">CONSOLIDATED EARNING
STATEMENT </font></b><font size="1"><br>
  BREAKDOWN OF MAIN
CONCEPTS <br>
  (thousands of pesos) </font></font></p>
  <table cellpadding=0 cellspacing=0 border=0 width=700>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=bottom align="center">
      <td width=31><font size=1><b>REF</b></font></td>
      <td width=23><b></b></td>
      <td width=364><b><font size=1>&nbsp;CATEGORIES</font></b></td>
      <td colspan="4"><b><font size=1>QUARTER OF PRESENT <br>
      FINANCIAL YEAR</font></b><b></b></td>
      <td colspan="4"><b><font size=1>QUARTER OF PREVIOUS <br>
      FINANCIAL YEAR</font></b><b></b><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom align="center">
      <td width="31"><b><font size=1>R</font></b></td>
      <td width="23"><b></b></td>
      <td width="364"><b><font size=1>&nbsp;</font></b></td>
      <td width="68"><b><font size=1>AMOUNT</font></b></td>
      <td width="20"><b><font size=1>&nbsp;</font></b></td>
      <td width="33"><b><font size=1>%</font></b></td>
      <td width="24"><b><font size=1>&nbsp;</font></b></td>
      <td width="71"><b><font size=1>AMOUNT</font></b></td>
      <td width="15"><b><font size=1>&nbsp;</font></b></td>
      <td width="31"><b><font size=1>%</font></b></td>
      <td width="20"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><b><font size=1>1</font></b></td>
      <td align=LEFT width="23"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="364"><b><font size=1>NET SALES</font></b></td>
      <td align=RIGHT width="68"><b><font size=1>1,763,927</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>100</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>1,006,646</font></b></td>
      <td align=LEFT width="15"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="31"><b><font size=1>100</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>21</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>DOMESTIC</font></td>
      <td align=RIGHT width="68"><font size=1>1,531,816</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>87</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>876,876</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>87</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>22</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>FOREIGN</font></td>
      <td align=RIGHT width="68"><font size=1>232,111</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>13</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>129,770</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>13</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>23</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>TRANSLATED INTO DOLLARS (***)</font></td>
      <td align=RIGHT width="68"><font size=1>20,667</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>11,280</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><b><font size=1>6</font></b></td>
      <td align=LEFT width="23"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="364"><b><font size=1>TOTAL FINANCING COST</font></b></td>
      <td align=RIGHT width="68"><b><font size=1>(496</font></b></td>
      <td align=LEFT width="20"><b><font size=1>)</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>100</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>16,309</font></b></td>
      <td align=LEFT width="15"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="31"><b><font size=1>100</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>24</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>INTEREST PAID</font></td>
      <td align=RIGHT width="68"><font size=1>2,026</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>408</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>6,565</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>40</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>25</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>EXCHANGE LOSSES</font></td>
      <td align=RIGHT width="68"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>362</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>2</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>26</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>INTEREST EARNED</font></td>
      <td align=RIGHT width="68"><font size=1>4,003</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>807</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>2,171</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>13</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>27</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>EXCHANGE PROFITS</font></td>
      <td align=RIGHT width="68"><font size=1>5,924</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>1,194</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>28</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>(GAIN) LOSS FROM MONETARY POSITION</font></td>
      <td align=RIGHT width="68"><font size=1>7,405</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>1,493</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>11,553</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>71</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><b><font size=1>8</font></b></td>
      <td align=LEFT width="23"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="364"><b><font size=1>OTHER FINANCIAL OPERATIONS</font></b></td>
      <td align=RIGHT width="68"><b><font size=1>(4,932</font></b></td>
      <td align=LEFT width="20"><b><font size=1>)</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>(100</font></b></td>
      <td align=LEFT width="24"><b><font size=1>)</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>(9,846</font></b></td>
      <td align=LEFT width="15"><b><font size=1>)</font></b></td>
      <td align=RIGHT width="31"><b><font size=1>(100</font></b></td>
      <td align=LEFT width="20"><b><font size=1>)</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>29</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>OTHER NET EXPENSES (INCOME) NET</font></td>
      <td align=RIGHT width="68"><font size=1>(4,932</font></td>
      <td align=LEFT width="20"><font size=1>)</font></td>
      <td align=RIGHT width="33"><font size=1>(100</font></td>
      <td align=LEFT width="24"><font size=1>)</font></td>
      <td align=RIGHT width="71"><font size=1>(9,846</font></td>
      <td align=LEFT width="15"><font size=1>)</font></td>
      <td align=RIGHT width="31"><font size=1>(100</font></td>
      <td align=LEFT width="20"><font size=1>)</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>30</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>(PROFIT) LOSS ON SALE OF OWN SHARES</font></td>
      <td align=RIGHT width="68"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>31</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>(PROFIT) LOSS ON SALE OF SHORT-TERM
      INVESTMENTS</font></td>
      <td align=RIGHT width="68"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>10</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>RESERVE FOR TAXES AND WORKERS' PROFIT
      SHARING</font></td>
      <td align=RIGHT width="68"><b><font size=1>143,262</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="33"><b><font size=1>100</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="71"><b><font size=1>(65,153</font></b></td>
      <td align=LEFT width="15"><b><font size=1>)</font></b></td>
      <td align=RIGHT width="31"><b><font size=1>100</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>32</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>INCOME TAX</font></td>
      <td align=RIGHT width="68"><font size=1>185,913</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>130</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>7,509</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>12</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>33</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>DEFERRED INCOME TAX</font></td>
      <td align=RIGHT width="68"><font size=1>(42,651</font></td>
      <td align=LEFT width="20"><font size=1>)</font></td>
      <td align=RIGHT width="33"><font size=1>(30</font></td>
      <td align=LEFT width="24"><font size=1>)</font></td>
      <td align=RIGHT width="71"><font size=1>(72,975</font></td>
      <td align=LEFT width="15"><font size=1>)</font></td>
      <td align=RIGHT width="31"><font size=1>(112</font></td>
      <td align=LEFT width="20"><font size=1>)</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>34</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>WORKERS&#146; PROFIT SHARING</font></td>
      <td align=RIGHT width="68"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>313</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="31"><font size=1>35</font></td>
      <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="364"><font size=1>DEFERRED WORKERS' PROFIT SHARING</font></td>
      <td align=RIGHT width="68"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="33"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="71"><font size=1>0</font></td>
      <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
  </table>
 <br>
</div>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(***) THOUSANDS OF DOLLARS </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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<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
</table>
<p align="center">
  <font face="Times New Roman, Times, Serif" size="1"><b>CONSOLIDATED EARNING
STATEMENT </b><br>
  OTHER CONCEPTS <br>
  (thousands of pesos) </font></p>
<div align="center">
<table cellpadding=0 cellspacing=0 border=0 width=700>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom align="center">
      <td width=33><b><font size=1>REF</font></b></td>
      <td width=26><b></b></td>
      <td width=372><b><font size=1>&nbsp;CATEGORIES</font></b></td>
      <td colspan="2"><b><font size=1>QUARTER OF PRESENT <br>
      FINANCIAL YEAR</font></b><b></b></td>
      <td colspan="2"><b><font size=1>QUARTER OF PREVIOUS <br>
      FINANCIAL YEAR</font></b><b></b></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom align="center">
      <td width="33"><b><font size=1>R</font></b></td>
      <td width="26"><b></b></td>
      <td width="372"><b><font size=1>&nbsp;</font></b></td>
      <td colspan="2"><b><font size=1>AMOUNT</font></b><b><font size=1>&nbsp;</font></b></td>
      <td colspan="2"><b><font size=1>AMOUNT</font></b><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>36</font></td>
      <td align=LEFT width="26"><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
      <td align=LEFT width="372"><font size=1>TOTAL SALES</font></td>
      <td align=RIGHT width="92"><font size=1>1,881,168</font></td>
      <td align=LEFT width="45"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="89"><font size=1>1,081,993</font></td>
      <td align=LEFT width="43"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>37</font></td>
      <td align=LEFT width="26"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="372"><font size=1>NET FISCAL INCOME OF THE YEAR</font></td>
      <td align=RIGHT width="92"><font size=1>0</font></td>
      <td align=LEFT width="45"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="89"><font size=1>0</font></td>
      <td align=LEFT width="43"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>38</font></td>
      <td align=LEFT width="26"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="372"><font size=1>NET SALES (**)</font></td>
      <td align=RIGHT width="92"><font size=1>6,495,841</font></td>
      <td align=LEFT width="45"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="89"><font size=1>3,322,964</font></td>
      <td align=LEFT width="43"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>39</font></td>
      <td align=LEFT width="26"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="372"><font size=1>OPERATION INCOME (**)</font></td>
      <td align=RIGHT width="92"><font size=1>2,058,879</font></td>
      <td align=LEFT width="45"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="89"><font size=1>650,860</font></td>
      <td align=LEFT width="43"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>40</font></td>
      <td align=LEFT width="26"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="372"><font size=1>NET INCOME OF MAJORITY INTEREST (**)</font></td>
      <td align=RIGHT width="92"><font size=1>1,383,668</font></td>
      <td align=LEFT width="45"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="89"><font size=1>505,410</font></td>
      <td align=LEFT width="43"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="33"><font size=1>41</font></td>
      <td align=LEFT width="26"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="372"><font size=1>NET CONSOLIDATED INCOME (**)</font></td>
      <td align=RIGHT width="92"><font size=1>1,383,668</font></td>
      <td align=LEFT width="45"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="89"><font size=1>505,410</font></td>
      <td align=LEFT width="43"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
  </table>
  <br>
</div>
<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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<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="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
</table>
<p align="center">
  <font face="Times New Roman, Times, Serif" size="1"><b>CONSOLIDATED EARNING STATEMENTOF
THE SECOND QUARTER </b><br>
  FROM JANUARY 1 TO
MARCH 31 OF 2005 AND 2004 <br>
  (thousands of pesos) </font></p>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 width=700>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom align="center">
      <td width=27><b><font size=1>REF</font></b></td>
      <td width=21><b></b></td>
      <td width=388><b><font size=1>&nbsp;CATEGORIES</font></b></td>
      <td colspan="4"><b><font size=1>QUARTER OF PRESENT FINANCIAL YEAR</font></b></td>
      <td colspan="4"><b><font size=1>&nbsp;QUARTER OF PREVIOUS FINANCIAL YEAR&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom align="center">
      <td width="27"><b><font size=1>R</font></b></td>
      <td width="21"><b></b></td>
      <td width="388"><b><font size=1>&nbsp;</font></b></td>
      <td colspan="2"><b><font size=1>AMOUNT</font></b><b><font size=1>&nbsp;</font></b></td>
      <td width="38"><b><font size=1>%</font></b></td>
      <td width="14"><b><font size=1>&nbsp;</font></b></td>
      <td colspan="2"><b><font size=1>AMOUNT</font></b><b><font size=1>&nbsp;</font></b></td>
      <td width="31"><b><font size=1>%</font></b></td>
      <td width="9"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><b><font size=1>1</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
      <td align=LEFT width="388"><b><font size=1>NET SALES</font></b></td>
      <td align=RIGHT width="65"><b><font size=1>1,763,927</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>100</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="67"><b><font size=1>1,006,646</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="31"><b><font size=1>100</font></b></td>
      <td align=LEFT width="9"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><font size=1>2</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="388"><font size=1>COST OF SALES</font></td>
      <td align=RIGHT width="65"><font size=1>1,122,692</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>64</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="67"><font size=1>666,095</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>66</font></td>
      <td align=LEFT width="9"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><b><font size=1>3</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="388"><b><font size=1>GROSS INCOME</font></b></td>
      <td align=RIGHT width="65"><b><font size=1>641,235</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>36</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="67"><b><font size=1>340,551</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="31"><b><font size=1>34</font></b></td>
      <td align=LEFT width="9"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><font size=1>4</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="388"><font size=1>OPERATING EXPENSES</font></td>
      <td align=RIGHT width="65"><font size=1>182,505</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>10</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="67"><font size=1>121,532</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>12</font></td>
      <td align=LEFT width="9"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><b><font size=1>5</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="388"><b><font size=1>OPERATING INCOME</font></b></td>
      <td align=RIGHT width="65"><b><font size=1>458,730</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>26</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="67"><b><font size=1>219,019</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="31"><b><font size=1>22</font></b></td>
      <td align=LEFT width="9"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><font size=1>6</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="388"><font size=1>TOTAL FINANCING COST</font></td>
      <td align=RIGHT width="65"><font size=1>(496</font></td>
      <td align=LEFT width="20"><font size=1>)</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="67"><font size=1>16,309</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>2</font></td>
      <td align=LEFT width="9"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><b><font size=1>7</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="388"><b><font size=1>INCOME AFTER FINANCING COST</font></b></td>
      <td align=RIGHT width="65"><b><font size=1>459,226</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>26</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="67"><b><font size=1>202,710</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="31"><b><font size=1>20</font></b></td>
      <td align=LEFT width="9"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><font size=1>8</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="388"><font size=1>OTHER FINANCIAL OPERATIONS</font></td>
      <td align=RIGHT width="65"><font size=1>(4,932</font></td>
      <td align=LEFT width="20"><font size=1>)</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="67"><font size=1>(9,846</font></td>
      <td align=LEFT width="20"><font size=1>)</font></td>
      <td align=RIGHT width="31"><font size=1>(1</font></td>
      <td align=LEFT width="9"><font size=1>)</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><b><font size=1>9</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="388"><b><font size=1>INCOME BEFORE TAXES AND WORKERS'
      PROFIT SHARING</font></b></td>
      <td align=RIGHT width="65"><b><font size=1>464,158</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>26</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="67"><b><font size=1>212,556</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="31"><b><font size=1>21</font></b></td>
      <td align=LEFT width="9"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><font size=1>10</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="388"><font size=1>RESERVE FOR TAXES AND WORKERS' PROFIT
      SHARING</font></td>
      <td align=RIGHT width="65"><font size=1>143,262</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>8</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="67"><font size=1>(65,153</font></td>
      <td align=LEFT width="20"><font size=1>)</font></td>
      <td align=RIGHT width="31"><font size=1>(6</font></td>
      <td align=LEFT width="9"><font size=1>)</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><b><font size=1>11</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="388"><b><font size=1>NET INCOME AFTER TAXES AND WORKERS'
      PROFIT SHARING</font></b></td>
      <td align=RIGHT width="65"><b><font size=1>320,896</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>18</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="67"><b><font size=1>277,709</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="31"><b><font size=1>28</font></b></td>
      <td align=LEFT width="9"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=top>
      <td align=RIGHT width="27"><font size=1>12</font></td>
      <td align=LEFT width="21">&nbsp;</td>
      <td align=LEFT width="388"><font size=1>SHARE IN NET INCOME OF SUBSIDIARIES
      AND NON-CONSOLIDATED <br>
      ASSOCIATES </font></td>
      <td align=RIGHT width="65"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="67"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>0</font></td>
      <td align=LEFT width="9"><font size=1>&nbsp;</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT colspan="11">
        <hr noshade color=#000000 size=1>


    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><b><font size=1>13</font></b></td>
      <td align=LEFT width="21"><b></b></td>
      <td align=LEFT width="388"><b><font size=1>CONSOLIDATED NET INCOME FROM CONTINUOS
      OPERATIONS</font></b></td>
      <td align=RIGHT width="65"><b><font size=1>320,896</font></b></td>
      <td align=LEFT width="20"><b></b></td>
      <td align=RIGHT width="38"><b><font size=1>18</font></b></td>
      <td align=LEFT width="14"><b></b></td>
      <td align=RIGHT width="67"><b><font size=1>277,709</font></b></td>
      <td align=LEFT width="20"><b></b></td>
      <td align=RIGHT width="31"><b><font size=1>28</font></b></td>
      <td align=LEFT width="9"><b></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><font size=1>14</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="388"><font size=1>INCOME FROM DISCONTINUOUS OPERAATIONS</font></td>
      <td align=RIGHT width="65"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="67"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>0</font></td>
      <td align=LEFT width="9"><font size=1>&nbsp;</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><b><font size=1>15</font></b></td>
      <td align=LEFT width="21"><b></b></td>
      <td align=LEFT width="388"><b><font size=1>CONSOLIDATED NET INCOME BEFORE
      EXTRAORDINARY ITEMS</font></b></td>
      <td align=RIGHT width="65"><b><font size=1>320,896</font></b></td>
      <td align=LEFT width="20"><b></b></td>
      <td align=RIGHT width="38"><b><font size=1>18</font></b></td>
      <td align=LEFT width="14"><b></b></td>
      <td align=RIGHT width="67"><b><font size=1>277,709</font></b></td>
      <td align=LEFT width="20"><b></b></td>
      <td align=RIGHT width="31"><b><font size=1>28</font></b></td>
      <td align=LEFT width="9"><b></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><font size=1>16</font></td>
      <td align=LEFT width="21">&nbsp;</td>
      <td align=LEFT width="388"><font size=1>EXTRAORDINARY ITEMS NET EXPENSES (INCOME)</font></td>
      <td align=RIGHT width="65"><font size=1>0</font></td>
      <td align=LEFT width="20">&nbsp;</td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="14">&nbsp;</td>
      <td align=RIGHT width="67"><font size=1>0</font></td>
      <td align=LEFT width="20">&nbsp;</td>
      <td align=RIGHT width="31"><font size=1>0</font></td>
      <td align=LEFT width="9">&nbsp;</td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=top>
      <td align=RIGHT width="27"><font size=1>17</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="388"><font size=1>NET EFFECT AT THE BEGINNING OF THE
      YEAR BY CHANGES IN <br>
      ACCOUNTING PRINCIPLES</font></td>
      <td align=RIGHT width="65"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="67"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>0</font></td>
      <td align=LEFT width="9"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><b><font size=1>18</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="388"><b><font size=1>NET CONSOLIDATED INCOME</font></b></td>
      <td align=RIGHT width="65"><b><font size=1>320,896</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="38"><b><font size=1>18</font></b></td>
      <td align=LEFT width="14"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="67"><b><font size=1>277,709</font></b></td>
      <td align=LEFT width="20"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="31"><b><font size=1>28</font></b></td>
      <td align=LEFT width="9"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><font size=1>19</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="388"><font size=1>NET INCOME OF MINORITY INTEREST</font></td>
      <td align=RIGHT width="65"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>0</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="67"><font size=1>0</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>0</font></td>
      <td align=LEFT width="9"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="27"><font size=1>20</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="388"><font size=1>NET INCOME OF MAJORITY INTEREST</font></td>
      <td align=RIGHT width="65"><font size=1>320,896</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="38"><font size=1>18</font></td>
      <td align=LEFT width="14"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="67"><font size=1>277,709</font></td>
      <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="31"><font size=1>28</font></td>
      <td align=LEFT width="9"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
  </table>

</div>
<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: 38; page: 38" -->







<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
</table>

<p align="center"><br>
  <font face="Times New Roman, Times, Serif" size="1"><b>CONSOLIDATED EARNING
STATEMENT OF THE SECOND QUARTER </b><br>
  BREAKDOWN OF MAIN
CONCEPTS <br>
  FROM JANUARY 1 TO MARCH
31 OF 2005 AND 2004 <br>
  (thousands of pesos) </font><!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     </p>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 width=700>
    <tr valign=Bottom>
      <th colspan=2><font size=1>REF</font> </th>
      <th width="352"><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> <font size=1></font></th>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom align="center">
      <td width=17><b><font size=1>R</font></b></td>
      <td width=24><b></b></td>
      <td width=352><b><font size=1>&nbsp;</font></b></td>
      <td colspan="2"><b><font size=1>AMOUNT</font></b><b><font size=1>&nbsp;</font></b></td>
      <td width=30><b><font size=1>%</font></b></td>
      <td width=24><b><font size=1>&nbsp;</font></b></td>
      <td colspan="2"><b><font size=1>AMOUNT</font></b><b><font size=1>&nbsp;</font></b></td>
      <td width=29><b><font size=1>%</font></b></td>
      <td width=18><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><b><font size=1>1</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
      <td align=LEFT width="352"><b><font size=1>NET SALES</font></b></td>
      <td align=RIGHT width="81"><b><font size=1>1,763,927</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="30"><b><font size=1>100</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="72"><b><font size=1>1,006,646</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="29"><b><font size=1>100</font></b></td>
      <td align=LEFT width="18"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>21</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>DOMESTIC</font></td>
      <td align=RIGHT width="81"><font size=1>1,531,816</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>87</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>876,876</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>87</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>22</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>FOREIGN</font></td>
      <td align=RIGHT width="81"><font size=1>232,111</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>13</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>129,770</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>13</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>23</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>TRANSLATED INTO DOLLARS (***)</font></td>
      <td align=RIGHT width="81"><font size=1>20,667</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>11,280</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>0</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><b><font size=1>6</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="352"><b><font size=1>TOTAL FINANCING COST</font></b></td>
      <td align=RIGHT width="81"><b><font size=1>(496</font></b></td>
      <td align=LEFT width="29"><b><font size=1>)</font></b></td>
      <td align=RIGHT width="30"><b><font size=1>100</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="72"><b><font size=1>16,309</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="29"><b><font size=1>100</font></b></td>
      <td align=LEFT width="18"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>24</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>INTEREST PAID</font></td>
      <td align=RIGHT width="81"><font size=1>2,026</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>408</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>6,565</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>40</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>25</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>EXCHANGE LOSSES</font></td>
      <td align=RIGHT width="81"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>362</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>2</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>26</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>INTEREST EARNED</font></td>
      <td align=RIGHT width="81"><font size=1>4,003</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>807</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>2,171</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>13</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>27</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>EXCHANGE PROFITS</font></td>
      <td align=RIGHT width="81"><font size=1>5,924</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>1,194</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>0</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>28</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>(GAIN) LOSS FROM MONETARY POSITION</font></td>
      <td align=RIGHT width="81"><font size=1>7,405</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>1,493</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>11,,553</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>71</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><b><font size=1>8</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="352"><b><font size=1>OTHER FINANCIAL OPERATIONS</font></b></td>
      <td align=RIGHT width="81"><b><font size=1>(4,932</font></b></td>
      <td align=LEFT width="29"><b><font size=1>)</font></b></td>
      <td align=RIGHT width="30"><b><font size=1>100</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="72"><b><font size=1>(9,846</font></b></td>
      <td align=LEFT width="24"><b><font size=1>)</font></b></td>
      <td align=RIGHT width="29"><b><font size=1>100</font></b></td>
      <td align=LEFT width="18"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>29</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>OTHER NET EXPENSES (INCOME) NET</font></td>
      <td align=RIGHT width="81"><font size=1>(4,932</font></td>
      <td align=LEFT width="29"><font size=1>)</font></td>
      <td align=RIGHT width="30"><font size=1>100</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>(9,846</font></td>
      <td align=LEFT width="24"><font size=1>)</font></td>
      <td align=RIGHT width="29"><font size=1>100</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>30</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>(PROFIT) LOSS ON SALE OF OWN SHARES</font></td>
      <td align=RIGHT width="81"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>0</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>31</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>(PROFIT) LOSS ON SALE OF SHORT-TERM
      INVESTMENTS</font></td>
      <td align=RIGHT width="81"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>0</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>10</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>RESERVE FOR TAXES AND WORKERS&#146;
      PROFIT SHARING</font></td>
      <td align=RIGHT width="81"><b><font size=1>143,262</font></b></td>
      <td align=LEFT width="29"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="30"><b><font size=1>100</font></b></td>
      <td align=LEFT width="24"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="72"><b><font size=1>(65,153</font></b></td>
      <td align=LEFT width="24"><b><font size=1>)</font></b></td>
      <td align=RIGHT width="29"><b><font size=1>100</font></b></td>
      <td align=LEFT width="18"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>32</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>INCOME TAX</font></td>
      <td align=RIGHT width="81"><font size=1>185,913</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>130</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>7,509</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>12</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>33</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>DEFERRED INCOME TAX</font></td>
      <td align=RIGHT width="81"><font size=1>(42,651</font></td>
      <td align=LEFT width="29"><font size=1>)</font></td>
      <td align=RIGHT width="30"><font size=1>(30</font></td>
      <td align=LEFT width="24"><font size=1>)</font></td>
      <td align=RIGHT width="72"><font size=1>(72,975</font></td>
      <td align=LEFT width="24"><font size=1>)</font></td>
      <td align=RIGHT width="29"><font size=1>(112</font></td>
      <td align=LEFT width="18"><font size=1>)</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>34</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>WORKERS&#146; PROFIT SHARING</font></td>
      <td align=RIGHT width="81"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>313</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>0</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="17"><font size=1>35</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="352"><font size=1>DEFERRED WORKERS' PROFIT SHARING</font></td>
      <td align=RIGHT width="81"><font size=1>0</font></td>
      <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="30"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="72"><font size=1>0</font></td>
      <td align=LEFT width="24"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="29"><font size=1>0</font></td>
      <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
  </table>
   <br>
  <!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     </div>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(***) THOUSANDS OF DOLLARS </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: 39; page: 39" -->







<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
</table>

<p align="center"><br>
  <font face="Times New Roman, Times, Serif" size="1"><b>CONSOLIDATED STATEMENT
OF CHANGES IN FINANCIAL POSITION </b><br>
  FROM JANUARY 1 TO
MARCH 31 OF 2005 AND 2004 <br>
   </font>
<font face="Times New Roman, Times, Serif" size="1">(thousands of pesos) </font><!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     </p>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 width=700>
    <tr valign=Bottom>
      <th colspan=7>
        <hr noshade color=#000000 size=1>
    </th>
    </tr>
    <tr valign=bottom>
      <th colspan=2><font size=1>REF</font></th>
      <th width="382"><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=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td width=15 align=center><b><font size=1>C</font></b></td>
      <td width=21 align=center><b></b></td>
      <td width=382 align=center><b><font size=1>&nbsp;</font></b></td>
      <td colspan="2" align=center><b><font size=1>AMOUNT</font></b><b><font size=1>&nbsp;</font></b></td>
      <td colspan="2" align=center><b><font size=1>AMOUNT</font></b><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><b><font size=1>1</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
      <td align=LEFT width="382"><b><font size=1>CONSOLIDATED NET INCOME</font></b></td>
      <td align=RIGHT width="97"><b><font size=1>320,896</font></b></td>
      <td align=LEFT width="42"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="93"><b><font size=1>277,709</font></b></td>
      <td align=LEFT width="50"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><font size=1>2</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="382"><font size=1>+ (-) ITEMS ADDED TO INCOME WHICH
      DO NOT REQUIRE CASH</font></td>
      <td align=RIGHT width="97"><font size=1>21,194</font></td>
      <td align=LEFT width="42"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="93"><font size=1>(23,330</font></td>
      <td align=LEFT width="50"><font size=1>)</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><b><font size=1>3</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="382"><b><font size=1>CASH FLOW FROM NET INCOME OF THE
      YEAR</font></b></td>
      <td align=RIGHT width="97"><b><font size=1>342,090</font></b></td>
      <td align=LEFT width="42"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="93"><b><font size=1>254,379</font></b></td>
      <td align=LEFT width="50"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><font size=1>4</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="382"><font size=1>CASH FLOW FROM CHANGE IN WORKING CAPITAL</font></td>
      <td align=RIGHT width="97"><font size=1>(47,557</font></td>
      <td align=LEFT width="42"><font size=1>)</font></td>
      <td align=RIGHT width="93"><font size=1>(29,860</font></td>
      <td align=LEFT width="50"><font size=1>)</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><b><font size=1>5</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="382"><b><font size=1>CASH GENERATED (USED) IN OPERATING
      ACTIVITIES</font></b></td>
      <td align=RIGHT width="97"><b><font size=1>294,533</font></b></td>
      <td align=LEFT width="42"><b><font size=1>&nbsp;</font></b></td>
      <td align=RIGHT width="93"><b><font size=1>224,519</font></b></td>
      <td align=LEFT width="50"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><font size=1>6</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="382"><font size=1>CASH FLOW FROM EXTERNAL FINANCING</font></td>
      <td align=RIGHT width="97"><font size=1>(18</font></td>
      <td align=LEFT width="42"><font size=1>)</font></td>
      <td align=RIGHT width="93"><font size=1>(20,309</font></td>
      <td align=LEFT width="50"><font size=1>)</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><font size=1>7</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="382"><font size=1>CASH FLOW FROM INTERNAL FINANCING</font></td>
      <td align=RIGHT width="97"><font size=1>0</font></td>
      <td align=LEFT width="42"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="93"><font size=1>0</font></td>
      <td align=LEFT width="50"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><b><font size=1>8</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="382"><b><font size=1>CASH FLOW GENERATED (USED) BY FINANCING</font></b></td>
      <td align=RIGHT width="97"><b><font size=1>(18</font></b></td>
      <td align=LEFT width="42"><b><font size=1>)</font></b></td>
      <td align=RIGHT width="93"><b><font size=1>(20,309</font></b></td>
      <td align=LEFT width="50"><b><font size=1>)</font></b></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><b><font size=1>9</font></b></td>
      <td align=LEFT width="21"><b><font size=1>&nbsp;</font></b></td>
      <td align=LEFT width="382"><b><font size=1>CASH FLOW GENERATED (USED) IN INVESTMENT
      ACTIVITIES</font></b></td>
      <td align=RIGHT width="97"><b><font size=1>(29,376</font></b></td>
      <td align=LEFT width="42"><b><font size=1>)</font></b></td>
      <td align=RIGHT width="93"><b><font size=1>43,151</font></b></td>
      <td align=LEFT width="50"><b><font size=1>&nbsp;</font></b></td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT colspan="7">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><font size=1>10</font></td>
      <td align=LEFT width="21">&nbsp;</td>
      <td align=LEFT width="382"><font size=1>NET INCREASE (DECREASE) IN CASH AND
      SHORT-TERM INVESTMENTS</font></td>
      <td align=RIGHT width="97"><font size=1>265,139</font></td>
      <td align=LEFT width="42">&nbsp;</td>
      <td align=RIGHT width="93"><font size=1>247,361</font></td>
      <td align=LEFT width="50">&nbsp;</td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT colspan="7">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><font size=1>11</font></td>
      <td align=LEFT width="21">&nbsp;</td>
      <td align=LEFT width="382"><font size=1>CASH AND SHORT-TERM INVESTMENTS AT
      THE BEGINNING OF PERIOD</font></td>
      <td align=RIGHT width="97"><font size=1>510,817</font></td>
      <td align=LEFT width="42">&nbsp;</td>
      <td align=RIGHT width="93"><font size=1>548,271</font></td>
      <td align=LEFT width="50">&nbsp;</td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=RIGHT width="15"><font size=1>12</font></td>
      <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
      <td align=LEFT width="382"><font size=1>CASH AND SHORT TERM INVESTMENTS AT
      THE END OF PERIOD</font></td>
      <td align=RIGHT width="97"><font size=1>775,956</font></td>
      <td align=LEFT width="42"><font size=1>&nbsp;</font></td>
      <td align=RIGHT width="93"><font size=1>795,632</font></td>
      <td align=LEFT width="50"><font size=1>&nbsp;</font></td>
    </tr>
    <tr>
      <td colspan=7>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
  </table>
   <br>
  <BR>
</div>
<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: 40; page: 40" -->








<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
</table>
<p align="center">
  <font face="Times New Roman, Times, Serif" size="1"><b>CONSOLIDATED STATEMENT
OF CHANGES IN FINANCIAL POSITION </b><br>
  BREAKDOWN OF MAIN
CONCEPTS <br>
  (thousands of pesos) </font></p>
<div align="center">
  <table border=0 cellspacing=0 cellpadding=0 width="700">

    <tr valign="top" align="center">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom" align="center">

      <td width=24>

        <p align=center><font size="1"><b>REF</b></font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p align=center><font size="1"><b>CATEGORIES </b></font></p>
      </td>
      <td colspan="2">

        <p align=center><font size="1"><b>QUARTER OF PRESENT <br>
          </b></font><font size="1"><b>FINANCIAL YEAR </b></font></p>
      </td>
      <td colspan="2">

        <p align=center><font size="1"><b>QUARTER OF PREVIOUS </b></font><font size="1"><b><br>
          FINANCIAL YEAR </b></font></p>
      </td>
    </tr>

    <tr valign="bottom" align="center">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom" align="center">

      <td width=24>

        <p align=center><font size="1"><b>C</b></font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p align=center><font size="1"><b>&nbsp;</b></font></p>
      </td>
      <td colspan="2">

        <p align=center><font size="1"><b>AMOUNT</b></font></p>
      </td>
      <td width=132 colspan="2">

        <p align=center><font size="1"><b>AMOUNT</b></font></p>
      </td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1"><b>2</b></font></p>
      </td>
      <td width=43>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
      <td width=361>

        <p><font size="1"><b>+ (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE
          CASH</b></font></p>
      </td>
      <td width=92>

        <p align=right><font size="1"><b>21,194</b></font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1"><b>(23,330)</b></font></p>
      </td>
      <td width=47>&nbsp;&nbsp;&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">13</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">DEPRECIATION AND AMORTIZATION FOR THE YEAR</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">63,845</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">49,645</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="top">

      <td width=24>

        <p align=center><font size="1">14</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ (-) NET INCREASE (DECREASE) IN PENSIONS FUND AND <br>
          SENIORITY PREMIUMS</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">15</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ (-) NET LOSS (PROFIT) IN MONEY EXCHANGE</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">16</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ (-) NET LOSS (PROFIT) IN ASSETS AND LIABILITIES ACTUALIZATION</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">17</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ (-) OTHER ITEMS</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">40</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ (-) OTHER ITEMS WHICH DO NOT AFFECT EBITDA</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">(42,651)</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">(72,975)</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1"><b>4</b></font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1"><b>CASH FLOW CHANGE IN WORKING CAPITAL</b></font></p>
      </td>
      <td width=92>

        <p align=right><font size="1"><b>(47,557)</b></font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1"><b>(29,860)</b></font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">18</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ (-) DECREASE (INCREASE) IN ACCOUNT RECEIVABLES</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">(173,737)</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">(80,577)</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">19</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ (-) DECREASE (INCREASE) IN INVENTORIES</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">28,170</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">(76,785)</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">20</font></p>
      </td>
      <td width=43>&nbsp; </td>
      <td width=361>

        <p><font size="1">+ (-) DECREASE (INCREASE) IN OTHER ACCOUNT RECEIVABLES</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">165,008</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">55,751</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">21</font></p>
      </td>
      <td width=43>&nbsp; </td>
      <td width=361>

        <p><font size="1">+ (-) DECREASE (INCREASE) IN SUPPLIER ACCOUNT</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">(166,455)</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">(88,428)</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">22</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ (-) DECREASE (INCREASE) IN OTHER LIABILITIES</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">99,457</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">(16,677)</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1"><b>6</b></font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1"><b>CASH FLOW FROM EXTERNAL FINANCING</b></font></p>
      </td>
      <td width=92>

        <p align=right><font size="1"><b>(18)</b></font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1"><b>(20,309)</b></font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">23</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ SHORT-TERM BANK AND STOCK MARKET FINANCING</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">(18)</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">(742)</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">24</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ LONG-TERM BANK AND STOCK MARKET FINANCING</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">25</font></p>
      </td>
      <td width=43>&nbsp; </td>
      <td width=361>

        <p><font size="1">+ DIVIDEND RECEIVED</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">26</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">OTHER FINANCING</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">78</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">27</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">BANK FINANCING AMORTIZATION</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">(19,567)</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">28</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">(-) STOCK MARKET AMORTIZATION</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">29</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">(-) OTHER FINANCING AMORTIZATION</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1"><b>7</b></font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1"><b>CASH FLOW FROM INTERNAL FINANCING</b></font></p>
      </td>
      <td width=92>

        <p align=right><font size="1"><b>0</b></font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1"><b>0</b></font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">30</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ (-) INCREASE (DECREASE) IN CAPITAL STOCK</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">31</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">(-) DIVIDENDS PAID</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">32</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ PREMIUM ON SALE OF SHARES</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">33</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ CONTRIBUTION FOR FUTURE CAPITAL INCREASES</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1"><b>9</b></font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1"><b>CASH FLOW GENERATED (UTILIZED) IN INVESTMENT ACTIVITIES</b></font></p>
      </td>
      <td width=92>

        <p align=right><font size="1"><b>(29,376)</b></font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1"><b>43,151</b></font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="top">

      <td width=24>

        <p align=center><font size="1">34</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ (-) INCREASE 8DECREASE) IN STOCK INVESTMENTS OF A
          PERMANENT <br>
          NATURE</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">35</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">(-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">(3,148)</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">(6,099)</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">36</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">(-) INCREASE IN CONSTRUCTION PROGRESS</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">37</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ SALE OF OTHER PERMANET INVESTMENTS</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">38</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ SALE OF TANGIBLE FIXED ASSETS</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">0</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td width=24>

        <p align=center><font size="1">39</font></p>
      </td>
      <td width=43>&nbsp;</td>
      <td width=361>

        <p><font size="1">+ (-) OTHER ITEMS</font></p>
      </td>
      <td width=92>

        <p align=right><font size="1">(26,228)</font></p>
      </td>
      <td width=48>&nbsp;</td>
      <td width=85>

        <p align=right><font size="1">49,250</font></p>
      </td>
      <td width=47>&nbsp;</td>
    </tr>

    <tr valign="bottom">

      <td colspan="7">

        <hr noshade size="1">
      </td>
    </tr>

  </table>
</div>
<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="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
</table>
<p align="center">
  <font face="Times New Roman, Times, Serif" size="1"><b>RATIOS</b> <br>
  CONSOLIDATED<B> </B></font></p>
<div align="center">
  <table  width="700" border=0 cellspacing=0 cellpadding=0>
    <tr>
      <td valign=top width=700 colspan="6">
        <hr noshade size="1">
      </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=center><font size="1"><b>REF</b></font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p align=center><font size="1"><b>CATEGORIES</b></font></p>
      </td>
      <td width=124>


        <p align=center><font size="1"><b>QUARTER OF PRESENT <br>
                FINANCIAL YEAR</b></font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1"><b>QUARTER OF PREVIOUS <br>
                FINANCIAL YEAR</b></font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=center><font size="1"><b>P</b></font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p align=center><font size="1"><b>&nbsp;</b></font></p>
      </td>
      <td width=124>


        <p align=center><font size="1"><b>&nbsp;</b></font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1"><b>&nbsp;</b></font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1"><b>YIELD</b></font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">1</font></p>
      </td>
      <td width=16><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
      <td width=390>


        <p><font size="1">NET INCOME TO NET SALES</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">18.19%</font></p>
      </td>
      <td width=19><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
      <td width=133>


        <p align=center><font size="1">27.59%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">2</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">NET INCOME TO STOCKHOLDERS&#146; EQUITY (**)</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">20.14%</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">9.59%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">3</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">NET INCOME TO TOTAL ASSETS (**)</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">15.15%</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">7.49%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">4</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">0.00%</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">0.00%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">5</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">INCOME DUE TO MONETARY POSITION TO NET INCOME</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">(2.31)%</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">(4.16)%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=center><font size="1"><b>&nbsp;</b></font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1"><b>ACTIVITY</b></font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">6</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">NET SALES TO NET ASSETS (**)</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">0.71 times</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">0.49 times</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">7</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">NET SALES TO FIXED ASSETS (**)</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">1.14 times</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">0.72 times</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">8</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">INVENTORIES ROTATION (**)</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">3.39 times</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">5.91 times</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">9</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">ACCOUNTS RECEIVABLE IN DAYS OF SALES</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">53 days</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">43 days</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">10</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">PAID INTEREST TO TOTAL LIABILITIES WITH COST (**)</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">220.46%</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">638.95%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1"><b>LEVERAGE</b></font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">11</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">TOTAL LIABILITIES TO TOTAL ASSETS</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">24.77%</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">21.84%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">12</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">TOTAL LIABILITIES TO STOCKHOLDERS&#146; EQUITY</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">0.33 times</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">0.28 times</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">13</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">10.15%</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">6.16%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">14</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">LONG-TERM LIABILITIES TO FIXED ASSETS</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">0.00%</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">0.00%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">15</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">OPERATING INCOME TO INTEREST PAID</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">226.42 times</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">33.36 times</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 height="18" colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18 height="18">


        <p align=right><font size="1">16</font></p>
      </td>
      <td width=16 height="18"><font size="1"></font></td>
      <td width=390 height="18">


        <p><font size="1">NET SALES TO TOTAL LIABILITIES (**)</font></p>
      </td>
      <td width=124 height="18">


        <p align=center><font size="1">2.87 times</font></p>
      </td>
      <td width=19 height="18"><font size="1"></font></td>
      <td width=133 height="18">


        <p align=center><font size="1">2.26 times</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1"><b>LIQUIDITY</b></font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">17</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">CURRENT ASSETS TO CURRENT LIABILITIES</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">3.58 times</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">3.31 times</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">18</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">2.34 times</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">2.64 times</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">19</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">CURRENT ASSETS TO TOTAL LIABILITIES</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">1.41 times</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">1.25 times</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">20</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">AVAILABLE ASSETS TO CURRENT LIABILITIES</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">86.97%</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">143.12%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1"><b>CASH FLOW</b></font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">&nbsp;</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">21</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">CASH FLOW FROM NET INCOME TO NET SALES</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">19.39%</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">25.27%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">22</font></p>
      </td>
      <td width=16>&nbsp;</td>
      <td width=390>


        <p><font size="1">CASH FLOW FROM CHANGES IN WORKING CAPITAL TO NET
                SALES</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">(2.70)%</font></p>
      </td>
      <td width=19>&nbsp;</td>
      <td width=133>


        <p align=center><font size="1">(2.97)%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">23</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">CASH GENERATED (USED) IN OPERATING TO INTEREST
                PAID</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">145.38 times</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">34.20 times</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">24</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">EXTERNAL FINANCING TO CASH GENERATED (USED) IN
                FINANCING</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">100.00%</font></p>
      </td>
      <td width=19>&nbsp;</td>
      <td width=133>


        <p align=center><font size="1">(100.00)%</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=18>


        <p align=right><font size="1">25</font></p>
      </td>
      <td width=16>&nbsp;</td>
      <td width=390>


        <p><font size="1">INTERNAL FINANCING TO CASH GENERATED (USED) IN
                FINANCING</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">0.00%</font></p>
      </td>
      <td width=19><font size="1"></font></td>
      <td width=133>


        <p align=center><font size="1">0.00%</font></p>
      </td>
    </tr>


    <tr valign="top">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="top">


      <td width=18>


        <p align=right><font size="1">26</font></p>
      </td>
      <td width=16><font size="1"></font></td>
      <td width=390>


        <p><font size="1">ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO
                CASH <br>
                GENERATED (USED) IN INVESTMENT ACTIVITIES</font></p>
      </td>
      <td width=124>


        <p align=center><font size="1">10.72%</font></p>
      </td>
      <td width=19>&nbsp;</td>
      <td width=133>


        <p align=center><font size="1">(14.13)%</font></p>
      </td>
    </tr>


    <tr valign="top">


      <td width=700 colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


  </table>
  <br>
    <!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     </div>
<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>






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 42; page: 42" -->










<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
</table>

<p align="center"><font face="Times New Roman, Times, Serif" size="1"><b>ATE PER SHARE</b> <br>
  CONSOLIDATED</font></p>
<div align="center">
  <table border=0 cellspacing=0 cellpadding=0 width="700">

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td>

        <p align=center><font size="1"><b>REF</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1"><b>CATEGORIES</b></font></p>
      </td>
      <td>

        <p align=center><font size="1"><b>QUARTER OF PRESENT <br>
          </b></font><font size="1"><b>FINANCIAL YEAR</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1"><b>QUARTER OF PREVIOUS <br>
          </b></font><font size="1"><b>FINANCIAL YEAR</b></font></p>
      </td>
    </tr>

    <tr valign="bottom">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td align="center">

        <p><font size="1"><b>D</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p><font size="1">&nbsp;</font></p>
      </td>
      <td>

        <p align=center><font size="1">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">&nbsp;</font></p>
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right" colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right">

        <p align=right><font size="1">1</font></p>
      </td>
      <td align="right">&nbsp;&nbsp;&nbsp;&nbsp;</td>
      <td>

        <p><font size="1">BASIC PROFIT PER ORDINARY SHARE (**)</font></p>
      </td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 10.38</font></p>
      </td>
      <td>&nbsp;&nbsp;&nbsp;&nbsp;</td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 4.05</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right">

        <p align=right><font size="1">2</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">BASIC PROFIT PER PREFERENCE SHARE (**)</font></p>
      </td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right">

        <p align=right><font size="1">3</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">DILUTED PROFIT PER ORDINARY SHARE (**)</font></p>
      </td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right">

        <p align=right><font size="1">4</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">CONTINUOUS OPERATING PROFIT PER COMMON SHARE (**)</font></p>
      </td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 10.38</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 4.05</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="top">

      <td align="right">

        <p align=right><font size="1">5</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">EFFECT OF DISCONTINUED OPERATIONS ON CONTINUOUS OPERATING
          <br>
          PROFIT PER SHARE (**)</font></p>
      </td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="top">

      <td align="right">

        <p align=right><font size="1">6</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON CONTINUOUS OPERATING
          <br>
          PROFIT PER SHARE (**)</font></p>
      </td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="top">

      <td align="right">

        <p align=right><font size="1">7</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">EFFECT BY CHANGES IN ACCOUNTING POLICIES ON CONTINUOUS
          OPERATING <br>
          PROFIT PER SHARE (**)</font></p>
      </td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right">

        <p align=right><font size="1">8</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">CARRYING VALUE PER SHARE</font></p>
      </td>
      <td>

        <p align=center><font size="1">$ 51.85</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">$ 39.95</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right">

        <p align=right><font size="1">9</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">CASHH DIVIDEND ACCUMULATED PER SHARE</font></p>
      </td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">$&nbsp;&nbsp; 0.00</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right">

        <p align=right><font size="1">10</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">DIVIDEND IN SHARES PER SHARE</font></p>
      </td>
      <td>

        <p align=center><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.00 shares</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.00 shares</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right">

        <p align=right><font size="1">11</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">MARKET PRICE TO CARRYING VALUE</font></p>
      </td>
      <td>

        <p align=center><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.00 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.98 times</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right">

        <p align=right><font size="1">12</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">MARKET PRICE TO BASIC PROFIT PER COMMON SHARE (**)</font></p>
      </td>
      <td>

        <p align=center><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.97 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.67 times</font></p>
      </td>
    </tr>

    <tr valign="top">

      <td colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right">

        <p align=right><font size="1">13</font></p>
      </td>
      <td align="right">&nbsp;</td>
      <td>

        <p><font size="1">MARKET PRICE TO BASIC PROFIT PER PREFERENCE SHARE (**)</font></p>
      </td>
      <td>

        <p align=center><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.00 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>

        <p align=center><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.00 times</font></p>
      </td>
    </tr>

    <tr valign="bottom">

      <td align="right" colspan="6">

        <hr noshade size="1">
      </td>
    </tr>

  </table>
 <br>
</div>
<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="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=78% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=22% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="22%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="78%">&nbsp;</td>
    <td align=LEFT width="22%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="100%" colspan="2"><font face="Times New Roman, Times, Serif" size="1"><b>FINANCIAL STATEMENT
NOTES </b>  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="78%">&nbsp;</td>
    <td align=LEFT width="22%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="78%">&nbsp;</td>
    <td align=center width="22%"><font size=1>CONSOLIDATED</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>s35.-
Stockholders&#146; Equity: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effects of inflation &#150; The
effects of inflation on stockholders&#146; equity at March 31, 2005 are as follows: </FONT></P>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 width=600>



    <tr valign=Bottom>
      <td align=LEFT width="321"><b></b></td>
      <td align=center colspan="2"><b><font size=2>&nbsp;Historical  <br>
        Cost</font></b></td>
      <td align=center width="11"><b></b></td>
      <td align=center colspan="2"><b><font size=2>Restated <br>
        Amount</font></b></td>
      <td align=center width="14"><b></b></td>
      <td align=center colspan="2" width="86"><b><font size=2>Total</font></b></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="321"><font size=2>Capital stock</font></td>
      <td align=right colspan="2"><font size=2>Ps. 1,948,</font><font size=2>155</font></td>
      <td align=right width="11">&nbsp;&nbsp;</td>
      <td align=right colspan="2"><font size=2>Ps. 1,355,</font><font size=2>077</font></td>
      <td align=right width="14">&nbsp;&nbsp;</td>
      <td align=right colspan="2" width="86"><font size=2>Ps. 3,303,</font><font size=2>232</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="321"><font size=2>Additional paid-in capital</font></td>
      <td align=right colspan="2"><font size=2>549,517</font></td>
      <td align=right width="11">&nbsp;</td>
      <td align=right colspan="2"><font size=2>111,544</font></td>
      <td align=right width="14">&nbsp;</td>
      <td align=right colspan="2" width="86"><font size=2>661,061</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="321"><font size=2>Contributions for future  Capital increases</font></td>
      <td align=right colspan="2"><font size=2>216,699</font></td>
      <td align=right width="11">&nbsp;</td>
      <td align=right colspan="2"><font size=2>1,712</font></td>
      <td align=right width="14">&nbsp;</td>
      <td align=right colspan="2" width="86"><font size=2>218,411</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="321"><font size=2>Retained earnings</font></td>
      <td align=right colspan="2"><font size=2>2,802,432</font></td>
      <td align=right width="11">&nbsp;</td>
      <td align=right colspan="2"><font size=2>581,176</font></td>
      <td align=right width="14">&nbsp;</td>
      <td align=right colspan="2" width="86"><font size=2>3,383,608</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="321"><font size=2>Excess resulting from restating</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="321"><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;Stockholders&#146; equity to reflect</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="321"><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;Certain effects of inflation</font></td>
      <td align=right colspan="2"><font size=2>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>&nbsp;</font></td>
      <td align=right width="11">&nbsp;</td>
      <td align=right colspan="2"><font size=2>183,328</font></td>
      <td align=right width="14">&nbsp;</td>
      <td align=right colspan="2" width="86"><font size=2>183,328</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="321"><font size=2>Effect deferred income tax</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="321"><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;Bulletin D-4</font></td>
      <td align=right colspan="2"><font size=2>(662,340</font><font size=2>)</font></td>
      <td align=right width="11">&nbsp;</td>
      <td align=right colspan="2"><font size=2>(215,516</font><font size=2>)</font></td>
      <td align=right width="14">&nbsp;</td>
      <td align=right colspan="2" width="86"><font size=2>(877,856</font><font size=2>)</font></td>
    </tr>
  </table>
  <br>
</div>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>s39.- Premium in subscription of
Capital Stock made in March 29, 2001. </FONT></P>

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<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. 1,505,769 at March 31, 2005 compared
to Ps. 1,099,540 at March 31, 2004. The effect on Simec&#146;s consolidated statement of
income in the three-month period ended March 31, 2005 was a decrease of Ps. 42,651 in the
provision for income tax and employee profit sharing compared to a decrease of Ps. 72,975
in the same period of 2004. These provisions do not affect the cash flow of Simec. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>r24.- Simec doesn&#146;t have
interest paid in UDI&#146;s </FONT></P>

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<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="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c02.- Consolidated
Statements of Changes in Financial Position </FONT></P>
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<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>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>

    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT WIDTH=355><b><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></b></TD>
      <TD ALIGN=right colspan="3"><b><FONT SIZE=2>&nbsp;&nbsp;March 31, 2005</FONT></b></TD>
      <TD ALIGN=right WIDTH=13>&nbsp;</TD>
      <TD ALIGN=right colspan="4"><b><FONT SIZE=2>&nbsp;&nbsp;&nbsp;March 31, 2004</FONT></b></TD>
    </TR>

    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="355"><FONT SIZE=2>Net loss (profit) in money exchange</FONT></TD>
      <TD ALIGN=right width="59"><FONT SIZE=2>Ps.</FONT></TD>
      <TD ALIGN=right width="16"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=right width="35"><FONT SIZE=2>9</FONT></TD>
      <TD ALIGN=right width="13">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
      <TD ALIGN=right width="57"><FONT SIZE=2>Ps.</FONT></TD>
      <TD ALIGN=right width="16"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT></TD>
      <TD ALIGN=right width="39"><FONT SIZE=2>(375</FONT></TD>
      <TD ALIGN=LEFT width="10"><FONT SIZE=2>)</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="355"><FONT SIZE=2>Net loss (profit) in liabilities actualization</FONT></TD>
      <TD ALIGN=right width="59"><FONT SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=right width="16"><FONT SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=right width="35"><FONT SIZE=2>(27)</FONT></TD>
      <TD ALIGN=right width="13">&nbsp;</TD>
      <TD ALIGN=right width="57"><FONT SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=right width="16"><FONT SIZE=2>&nbsp;</FONT></TD>
      <TD ALIGN=right width="39"><FONT SIZE=2>(367</FONT></TD>
      <TD ALIGN=LEFT width="10"><FONT SIZE=2>)</FONT></TD>
    </TR>
  </TABLE>
  <!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>
</div>
<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: 44; page: 44" -->




<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=70% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=30% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="70%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="30%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="70%">&nbsp;</td>
    <td align=LEFT width="30%">&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td colspan="2"><font face="Times New Roman, Times, Serif" size="1"><b>DIRECTOR REPORT <br>
      ANNEX 1
      </b></font></td>
  </tr>


  <tr valign=Bottom>

    <td align=center width="70%">&nbsp;</td>
    <td align=center width="30%"><font size=1>CONSOLIDATED</font></td>
  </tr>

</table>
<br>
<div align="center"></div>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">INFORMATION
CONCERNING LIQUIDITY AND CAPITAL RESOURCES AND DEBT OBLIGATIONS <BR>WITH BANKS AND COMMERCIAL
CREDITORS </FONT> </P>



<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Liquidity and Capital
Resources </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At March 31, 2005, Simec&#146;s total
consolidated debt consisted of $302,000 of 8 7/8% MTN&#146;s due 1998 (accrued interest at
March 31, 2005 was $289,031) which were issued in 1993 as part of a $68 million issuance.
At December 31, 2004, Simec had outstanding approximately $0.3 million of U.S.
dollar-denominated debt. At March 31, 2005 Simec owed no debt to its parent company,
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 repayment 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&iacute;as Ferricas del Norte, S.A. (Corporaci&oacute;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 second quarter of 2005. 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>

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<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. 23.9 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. 295 million in the three-month period ended March 31, 2005 versus Ps. 225
million of net resources provided by operations in the same period of 2004. Net resources
provided by financing activities were Ps. 0 million in the three-month period ended March
31, 2005 versus Ps. 20 million of net resources used in financing activities in the same
period of 2004 (which amount reflects the  </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: 45; page: 45" -->




<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>prepayment of Ps. 20 million ($1.7
million) of bank debt). Net resources used in investing activities (to acquire property,
plant and equipment and other non-current assets) were Ps. 29 million in the three-month
period ended March 31, 2005 versus net resources provided by investing activities of Ps.
43 million in the same period of 2004.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">MANAGEMENT&acute;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION <BR>AND RESULTS OF
OPERATIONS</FONT> </P>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Three-Month Period Ended
March 31, 2005 compared to Three-Month Period Ended March 31, 2004 </font></H1>
<font size="2"><!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Workstation" -->
</font>
<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Net Sales </font></H1>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales of Simec increased 75% to
Ps. 1,764 million in the three-month period ended March 31, 2005 (including the net sales
generated by the newly acquired plants in Apizaco and Cholula of Ps. 706 million),
compared to Ps. 1,007 million in same period of 2004. Sales in tons of basic steel
products increased 44% to 246,202 tons in the three-month period ended March 31, 2005
(including 98,068 tons produced by the newly acquired plants in Apizaco and Cholula)
compared to 170,389 tons in the same period of 2004. Exports of basic steel products
increased 43% to 36,796 tons in the three-month period ended March 31, 2005 (including
9,353 tons produced by the newly acquired plants in Apizaco and Cholula) versus 25,698
tons in the same period of 2004. Additionally, Simec sold 12,870 tons of billet in the
three-month period ended March 31, 2005, compared to 19,505 tons of billet in the first
three months of 2004. The average price of steel products increased 26% in real terms in
the three-month period ended March 31, 2005 versus the same period of 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Workstation" -->
<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Direct Cost of Sales </font></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&acute;s direct cost of sales
increased 69% to Ps. 1,123 million in the three-month period ended March 31, 2005
(including Ps. 500 million relating to the newly acquired plants in Apizaco and Cholula)
compared to Ps. 666 million in the same period of 2004. Direct cost of sales as a
percentage of net sales was 64% in the three-month period ended March 31, 2005 compared to
66% in the same period of 2004. The average cost of raw materials used to produce steel
products increased 23% in real terms in the three-month period ended March 31, 2005 versus
the same period of 2004, primarily as a result of increases in the price of scrap and
certain other raw materials. </FONT></P>

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<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Marginal Profit </font></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&acute;s marginal profit
increased 88% to Ps. 641 million in the three-month period ended March 31, 2005 (including
Ps. 205 million relating to the newly acquired plants in Apizaco and Cholula) compared to
Ps. 341 million in the first three months of 2004. As a percentage of net sales, marginal
profit was 36% in the three-month period ended March 31, 2005 compared to 34% in the same
period of 2004. </FONT></P>

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<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Indirect Manufacturing,
Selling, General And Administrative Expenses </font></H1>
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</font>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indirect manufacturing, selling,
general, and administrative expenses (which include depreciation and amortization)
increased 49% to Ps. 182 million in the three-month period ended March 31, 2005 (including
Ps. 62 million relating to the newly acquired plants in Apizaco and Cholula) from Ps. 122
million in the same period of 2004; Simec recorded an increase of Ps. 14 million in
depreciation and amortization expense, which in the three-month period ended March 31,
2005 was Ps. 64 million (including Ps. 14 million relating to the newly acquired plants in
Apizaco and Cholula) compared to Ps. 50 million in the first quarter of 2004. </FONT></P>

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<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Operating Income </font></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&acute;s operating income
increased 110% to Ps. 459 million in the three-month period ended March 31, 2005
(including Ps. 143 million relating to the newly acquired plants in Apizaco and Cholula)
compared to Ps. 219 million in the first quarter of 2004. Operating income was 26% of net
sales in the three-month period ended March 31, 2005 and 22% of net sales in the same
period of 2004. </FONT></P>




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</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
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<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Financial Income
(Expense) </font></H1>
<font size="2"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Default" -->
</font>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded financial expense of
Ps. 0 million in the three-month period ended March 31, 2005 compared to financial expense
of Ps. 16 million in the same period of 2004. Simec recorded an exchange gain of
approximately Ps. 6 million in the three-month period ended March 31, 2005 compared to an
exchange loss of Ps. 0 million in the first quarter of 2004, reflecting a 0.3% decrease in
the value of the peso versus the dollar in the three-month period ended March 31, 2005
compared to a 0.7% increase in the value of the peso versus the dollar in the same period
of 2004 and lower debt levels in the three-month period ended March 31, 2005. Net interest
income was Ps. 2 million in the three-month period ended March 31, 2005 versus net
interest expense of Ps. 4 million in the same period of 2004. Simec recorded a loss from
monetary position of Ps. 8 million in the three-month period ended March 31, 2005 compared
to a loss from monetary position of Ps. 12 million in the same period of 2004, reflecting
the domestic inflation rate of 0.8% in the three-month period ended March 31, 2005 as
compared to 1.6% in the same period of 2004 and lower debt levels during the three-month
period ended March 31, 2005. </FONT></P>

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<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Other Income (Expense),
Net </font></H1>
<font size="2"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Default" -->
</font>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded other income, net, of
Ps. 5 million in the three-month period ended March 31, 2005 compared to other income,
net, of Ps. 10 million in the first quarter of 2004 (reflecting (i) income from the
recovery of an account recorded as a doubtful account of Ps. 9 million and (ii) other
income, net related to other financial operations of Ps. 1 million). </FONT></P>

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<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Income Tax and Employee
Profit Sharing </font></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded a provision of Ps. 143
million for income tax and employee profit sharing in the three-month period ended March
31, 2005 (including a decrease in the provision of Ps. 43 million from the application of
Bulletin D-4 with respect to deferred income tax described below) compared to a positive
provision of Ps. 65 million in the same period of 2004 (including a decrease in the
provision of Ps. 73 million from the application of Bulletin D-4 with respect to deferred
income tax described below). </FONT></P>

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<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Net Income </font></H1>

<font size="2">As a result of the foregoing,  Simec recorded net income of Ps. 321 million in the three-month  period ended March 31, 2005 compared to
net income of Ps. 278 million in the same period of 2004.



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</font>
<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Pronouncements
Applicable to Mexican GAAP </font></H1>

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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. 1,348 million at March 31, 2005
compared to Ps. 908 million at March 31, 2004. The effect on Simec&#146;s consolidated
statement of income in the three-month period ended March 31, 2005 was a decrease of Ps.
43 million in the provision for income tax and employee profit sharing compared to a
decrease in the provision of Ps. 73 million in the same period of 2004. These provisions
do not affect the cash flow of Simec. </FONT></P>


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</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
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<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="33%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="67%">&nbsp;</td>
    <td align=LEFT width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td colspan="2"><font face="Times New Roman, Times, Serif" size="1"><b>FINANCIAL STATEMENT
NOTES</b></font></td>
  </tr>

  <tr valign=Bottom>

    <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 2</b></font></td>
    <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
  </tr>

</table>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(1) Operations preparation bases and summary of significant accounting policies:</B> </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>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>b. Principles of
Consolidation </B>- As part of the financial debt restructuring agreement into
during 1997, Compa&ntilde;&iacute;a Sider&uacute;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>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The main subsidiaries of CSG are the
following: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&deg; Compa&ntilde;&iacute;a
Sider&uacute;rgica de California, S.A. de C.V.
 <br>
  &deg; Industrias del Acero y del
Alambre, S.A. de C.V. <br>

&deg; Pacific Steel Inc. </FONT></P>

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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>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>d. Inventories</b>
- - The inventories are originally stated at average cost and           subsequently
adjusted to replacement value at the balance sheet date. The           replacement values
do not exceed market and are determined as follows:  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Billet finished goods and work in
process &#151; 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 &#151; 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
&#150; At historical cost, restated by applying the steel industry inflation index. </FONT></P>





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</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>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>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>e.  Derivative financial
instruments </B>- The Company is using derivative financial instruments for hedging
risks associated with natural gas prices and conducted studies on historical consumption,
future requirements and commitments; thus it avoided exposure to risks other than the
normal operating risks. Management of the Company examines its financial risks by
continually analyzing price, credit and liquidity risks. </FONT></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>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>f. Property,
plant and equipment </B>- Property, plant and equipment of domestic origin are
restated by using factors derived from The National Consumer Price Index (&#147;NCPI&#148;)
from the date of their acquisition, and imported machinery and equipment are
restated by applying devaluation and inflation factors of the country of
origin. Depreciation recorded in the consolidated statement of income (loss) is
computed based upon the estimated useful life and the restated cost of each
asset. In addition, Financial expense incurred during the construction period
is capitalized as construction in progress. The capitalized amounts are
restated using a factor derived from the NCPI cumulative from the date of
capitalization through period-end and are amortized over the average
depreciation period of the corresponding assets. The estimated useful lives of
assets as of March 31, 2005 are as follows: </FONT></P>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
    <TR VALIGN=Bottom>
      <TD WIDTH=67% ALIGN=LEFT>&nbsp;</TD>
      <TD WIDTH=23% ALIGN=center><font size="2"><u><b>Years</b></u></font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD WIDTH=67% ALIGN=LEFT><FONT SIZE=2>Buildings</FONT></TD>
      <TD WIDTH=23% ALIGN=center><FONT SIZE=2>15 to 50</FONT></TD>
    </TR>
    <TR VALIGN=Bottom>

      <TD ALIGN=LEFT><FONT SIZE=2>Machinery and equipment</FONT></TD>
      <TD ALIGN=center><FONT SIZE=2>10 to 40</FONT></TD>
    </TR>
  </TABLE>
   <br>
</div>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>g. Other assets </B>- Organization
and pre-operating expenses are capitalized and restated using a factor derived
from the NCPI cumulative from the date of generation through period-end, and
their amortization is calculated by the straight-line method over a period of
20 years. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>h. Seniority premiums and severance
payments </B>- According to Federal Labor Law, employees are entitled to
seniority premiums after fifteen years or more of services. These premiums are
recognized as expenses in the years in which the services are rendered, using
actuarial calculations based on the projected unit credit method, and since
1996 by applying real interest and salary increases. </FONT> </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><b>i.           Pension plan</b> - Until
1995, the Company provided pension benefits for           all personnel with a minimum of
10 years of service and 35 years of age. The           Company had established an
irrevocable trust for its contributions, which were           based on actuarial
calculations. In December 1995, the board of directors of the           Company, in
agreement with the trade union, discontinued these benefits and           related
contributions to the trust fund. This decision was made because of the           new
Mexican pension fund system, Administradoras de Fondos para el Retiro, which
          establishes similar benefits for the employees. The balance of the trust fund
          will be applied to the retirement benefits of qualifying employees until the
          fund is exhausted due to the irrevocable status of the fund.  </FONT></P>







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</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
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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"><B>j. Cost of sales </B>- Cost
of sales related to sales of inventory items is recorded at standard cost,
which approximates the replacement cost at the date of sale. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>k. Income tax and employee
profit sharing </B>- In 1999, the Mexican Institute of Public Accountants
issued Bulletin D-4, &#147;Accounting for Income and Asset Taxes and Employee
Profit Sharing&#148;, which is effective for all fiscal years beginning January
1, 2000. Bulletin D-4 establishes financial accounting and reporting standards
for the effects of asset tax, income tax and employee profit sharing that
result from enterprise activities during the current and preceding years. </FONT> </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"><B>l. Foreign currency
transactions and exchange differences </B>- All transactions in foreign
currency are recorded at the exchange rates prevailing on the date of their
execution or liquidation. Foreign currency denominated assets and liabilities
are translated at the exchange rates prevailing at the balance sheet date. Any
exchange differences incurred with regard to assets or liabilities denominated
in foreign currency are charged to operations of the period and are included in
financial income (expense) in the accompanying consolidated statements of
income (loss). </FONT> </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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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </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>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </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>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </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>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </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>


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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>&#151; </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>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>m. Geographic
concentration of credit risk </B>- The Company sells its products primarily to
distributors for the construction industry with no specific geographic
concentration. Additionally, no single customer accounted for a significant
amount of the Company&#146;s sales, and there were no significant accounts
receivable from a single customer or affiliate at March 31, 2005 and 2004. 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>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>n. Other
income (expenses)</B> - Other income (expenses) shown in the consolidated
statements of operations primarily includes other financial operations. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>o. Gain
on monetary position </B>- The gain on monetary position in the consolidated
statements of income (loss) is determined by applying to net monetary assets or
liabilities at the beginning of each month the factor of inflation derived from
the NCPI and is restated at period-end with the corresponding factor. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>p. Restatement of capital
stock and retained earnings (losses) </B>- This is determined by multiplying
capital stock contributions and retained earnings (losses) by factors derived
from the NCPI, which measure the </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><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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"><B>q. Effect of restatement of
stockholders&#146; equity </B>- The effect resulting from restating stockholders&#146; equity
includes the accumulated effect from holding non-monetary assets, which
represents the change in the specific price level of those assets compared to
the change in the NCPI. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(2)  Financial Debt:  <br>
  </B></FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At March 31, 2005, Simec&#146;s total
consolidated debt consisted of $302,000 of 8 7/8% MTN&#146;s due 1998 (accrued interest at
March 31, 2005 was $289,031) which were issued in 1993 as part of a $68 million issuance.
At December 31, 2004, Simec had outstanding approximately $0.3 million of U.S.
dollar-denominated debt. At March 31, 2005 Simec owed no debt to its parent company,
Industrias CH, S.A. de C.V. (&#147;ICH&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(3) Commitments and
contingent liabilities: <br>
  </B></FONT><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. 17,996 (U.S. $1,593,372) at March 31,           2005,
(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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<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&ntilde;&iacute;a
Sider&uacute;rgica de Guadalajara, S.A. de C.V. has           entered into a gas and
liquid oxygen purchase agreement with Praxair de           M&eacute;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. 1,207 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>







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<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="33%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="67%">&nbsp;</td>
    <td align=LEFT width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td colspan="2"><font face="Times New Roman, Times, Serif" size="1"><b>RELATIONS OF SHARES
INVESTMENTS</b></font><font face="Times New Roman, Times, Serif" size=4></font></td>
  </tr>

  <tr valign=Bottom>

    <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 3</b></font></td>
    <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
  </tr>

</table>
<br>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 width=700>
    <tr valign=Bottom>
      <th colspan=11>
        <hr noshade color=#000000 size=1>
    </th>
    </tr>
    <tr valign=bottom>
      <th width="311"><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 <br>
      OF SHARES</font></th>
      <th colspan=2><font size="1">OWNERSHIP</font></th>
      <th colspan=4><font size="1">TOTAL AMOUNT <br>
      (Thousands ofPesos)</font></th>
    </tr>
    <tr valign=Bottom>
      <th colspan=11><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade color=#000000 size=1>
    </th>
    </tr>
    <tr valign=Bottom>
      <th width="311"><font size="1">SUBSIDIARIES</font></th>
      <th colspan=2>&nbsp;</th>
      <th colspan=2>&nbsp;</th>
      <th colspan=2>&nbsp;</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=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width=311><font size="1">1 CIA SIDERURGICA DE GUADALAJARA</font></td>
      <td align=center width=74><font size="1">MINI-MILL</font></td>
      <td align=LEFT width=5><font size="1">&nbsp;</font></td>
      <td align=RIGHT width=59><font size="1">474,393,215</font></td>
      <td align=LEFT width=11><font size="1">&nbsp;</font></td>
      <td align=RIGHT width=55><font size="1">99.99</font></td>
      <td align=LEFT width=24><font size="1">&nbsp;</font></td>
      <td align=RIGHT width=62><font size="1">38,359</font></td>
      <td align=LEFT width=33><font size="1">&nbsp;</font></td>
      <td align=RIGHT width=53><font size="1">4,779,332</font></td>
      <td align=LEFT width=13><font size="1">&nbsp;</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width=311><font size="1">2 ADMINISTRADORA DE CARTERA DE OCCIDENTE</font></td>
      <td align=RIGHT width=74><font size="1"></font></td>
      <td align=LEFT width=5><font size="1"></font></td>
      <td align=RIGHT width=59><font size="1">49,999</font></td>
      <td align=LEFT width=11><font size="1"></font></td>
      <td align=RIGHT width=55><font size="1">99.99</font></td>
      <td align=LEFT width=24><font size="1"></font></td>
      <td align=RIGHT width=62><font size="1">50</font></td>
      <td align=LEFT width=33><font size="1"></font></td>
      <td align=RIGHT width=53><font size="1">(27,073</font></td>
      <td align=LEFT width=13><font size="1">)</font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width=311><font size="1"><b>TOTAL INVESTMENT IN SUBSIDIARIES</b></font></td>
      <td align=RIGHT width=74><font size="1"></font></td>
      <td align=LEFT width=5><font size="1"></font></td>
      <td align=RIGHT width=59><font size="1"></font></td>
      <td align=LEFT width=11><font size="1"></font></td>
      <td align=RIGHT width=55><font size="1"></font></td>
      <td align=LEFT width=24><font size="1"></font></td>
      <td align=RIGHT width=62><font size="1"><b>38,409</b></font></td>
      <td align=LEFT width=33><font size="1"></font></td>
      <td align=RIGHT width=53><font size="1"><b>4,752,259</b></font></td>
      <td align=LEFT width=13><font size="1"></font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width=311><font size="1"><b>ASSOCIATEDS</b></font></td>
      <td align=RIGHT width=74><font size="1"></font></td>
      <td align=LEFT width=5><font size="1"></font></td>
      <td align=RIGHT width=59><font size="1">0</font></td>
      <td align=LEFT width=11><font size="1"></font></td>
      <td align=RIGHT width=55><font size="1">0.00</font></td>
      <td align=LEFT width=24><font size="1"></font></td>
      <td align=RIGHT width=62><font size="1"><b>0</b></font></td>
      <td align=LEFT width=33><font size="1"></font></td>
      <td align=RIGHT width=53><font size="1">0</font></td>
      <td align=LEFT width=13><font size="1"></font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width=311><font size="1"><b>TOTAL INVESTMENT IN ASSOCIATEDS</b></font></td>
      <td align=RIGHT width=74><font size="1"></font></td>
      <td align=LEFT width=5><font size="1"></font></td>
      <td align=RIGHT width=59><font size="1"></font></td>
      <td align=LEFT width=11><font size="1"></font></td>
      <td align=RIGHT width=55><font size="1"></font></td>
      <td align=LEFT width=24><font size="1"></font></td>
      <td align=RIGHT width=62><font size="1"><b>0</b></font></td>
      <td align=LEFT width=33><font size="1"></font></td>
      <td align=RIGHT width=53><font size="1">0</font></td>
      <td align=LEFT width=13><font size="1"></font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width=311><font size="1"><b>OTHER PERMANENT INVESTMENTS</b></font></td>
      <td align=RIGHT width=74><font size="1"></font></td>
      <td align=LEFT width=5><font size="1"></font></td>
      <td align=RIGHT width=59><font size="1"></font></td>
      <td align=LEFT width=11><font size="1"></font></td>
      <td align=RIGHT width=55><font size="1"></font></td>
      <td align=LEFT width=24><font size="1"></font></td>
      <td align=RIGHT width=62><font size="1"></font></td>
      <td align=LEFT width=33><font size="1"></font></td>
      <td align=RIGHT width=53><font size="1">0</font></td>
      <td align=LEFT width=13><font size="1"></font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT colspan="11">
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width=311><font size="1"><b>TOTAL</b></font></td>
      <td align=RIGHT width=74><font size="1"></font></td>
      <td align=LEFT width=5><font size="1"></font></td>
      <td align=RIGHT width=59><font size="1"></font></td>
      <td align=LEFT width=11><font size="1"></font></td>
      <td align=RIGHT width=55><font size="1"></font></td>
      <td align=LEFT width=24><font size="1"></font></td>
      <td align=RIGHT width=62><font size="1"></font></td>
      <td align=LEFT width=33><font size="1"></font></td>
      <td align=RIGHT width=53><font size="1"><b>4,752,259</b></font></td>
      <td align=LEFT width=13><font size="1"></font></td>
    </tr>
    <tr>
      <td colspan=11>
        <hr noshade color=#000000 size=1>
    </td>
    </tr>
  </table>
  <br>
</div>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTES </FONT><!-- 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>





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<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></H1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="33%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="67%">&nbsp;</td>
    <td align=LEFT width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td colspan="2"><font face="Times New Roman, Times, Serif" size="1"><b>MEXICAN STOCK EXCHANGE <br>
      </b>ANNEX 05 <br>
      CREDITS BREAK DOWN<b>
      </b> <br>
      (THOUSANDS OF PESOS)
       </font></td>
  </tr>

  <tr valign=Bottom>

    <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 5</b></font></td>
    <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
  </tr>

</table>
 <br>
<table cellpadding=0 cellspacing=0 border=0 width=100%>

  <tr valign=Bottom align="center">
    <td colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom align="center">
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td colspan="11"><font size="1">Amortization of Credits in Foreign Currency
      <br>
      With National Entities (Thousands of Pesos) </font>
      <hr noshade size="1">
      <font size="1"> </font></td>
    <td><font size="1"></font></td>
    <td colspan="12"><font size="1">Amortization of Credits in Foreign Currency
      With <br>
      Foreing Entities (Thousands of Pesos) </font>
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom align="center">
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td><font size="1"></font></td>
    <td colspan="3"><font size="1">Denominated <br>
      In Pesos </font></td>
    <td colspan="11"><font size="1">Time Interval </font></td>
    <td><font size="1"></font></td>
    <td colspan="12"><font size="1">Time Interval </font></td>
  </tr>
  <tr valign=Bottom align="center">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="28">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom align="center">
    <td><font size="1">Credit <br>
      Type / <br>
      Institution </font></td>
    <td><font size="1">Amortization <br>
      Date </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Rate of <br>
      Interest </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Until <br>
      1 Year </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">More <br>
      Than 1 <br>
      Year </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Current <br>
      Year </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Until <br>
      1 Year </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Until <br>
      2 Years </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Until <br>
      3 Years </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Until <br>
      4 Years</font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Until <br>
      5 Years <br>
      or More </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Current <br>
      Year </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Until <br>
      1 Year </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Until <br>
      2 Years </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Until <br>
      3 Years </font></td>
    <td><font size="1"></font></td>
    <td><font size="1">Until <br>
      4 Years </font></td>
    <td><font size="1"></font></td>
    <td colspan="2"><font size="1">Until 5 <br>
      Years or <br>
      More </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>BANKS</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=RIGHT><font size=1></font></td>
    <td align=LEFT><font size=1>&nbsp;&nbsp;&nbsp;</font></td>
    <td align=right colspan="2">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>WITH WARRANTY</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>TOTAL BANKS</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2"><font size=1>0</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>LISTED IN THE <br>
      MEXICAN STOCK <br>
      EXCHANGE</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>UNSECURED <br>
      DEBT </font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>MEDIUM TERM<br>
      NOTES</font></td>
    <td align=RIGHT><font size=1>12/15/1998</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>9.33</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>3,411</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2"><font size=1>0</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>TOTAL STOCK <br>
      EXCHANGE </font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>3,411</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</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>&nbsp;</td>
    <td align=right colspan="2"><font size=1>0</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>SUPPLIERS</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>VARIOUS</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>368,330</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>189,538</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>13,389</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2"><font size=1>0</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>TOTAL SUPPLIERS</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>368,330</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>189,538</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>13,389</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2"><font size=1>0</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>OTHER CURRENT <br>
      LIABILITIES AND <br>
      OTHER CREDITS</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>VARIOUS</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>161,270</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>169</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>23,193</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2"><font size=1>0</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>OTHER CURRENT <br>
      LIABILITIES AND <br>
      OTHER CREDITS </font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>161,270</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>169</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>23,193</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2"><font size=1>0</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>TOTAL</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>529,600</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>189,707</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>3,411</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size=1>36,582</font></td>
    <td align=LEFT>&nbsp;</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>&nbsp;</td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=right colspan="2"><font size=1>0</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="33">
      <hr noshade 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=1><B>NOTES: </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Footnote Left" FSL="Workstation" -->
<TABLE WIDTH=100%><TR><TD WIDTH=4% ALIGN=left VALIGN=top><FONT SIZE="1">1. </FONT></TD><TD WIDTH=2%><FONT SIZE="1">-</FONT></TD>
<TD WIDTH=94% ALIGN=left VALIGN=top><FONT SIZE="1">
The exchange rate of the peso to the U.S. Dollar at March 31, 2005 was Ps. 11.2942</FONT></TD></TR></TABLE>




<!-- 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: 53; page: 53" -->




<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></h1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="33%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="67%">&nbsp;</td>
    <td align=LEFT width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td colspan="2"><font face="Times New Roman, Times, Serif" size="1"><b>MONETARY POSITION IN
FOREIGN EXCHANGE  </b><br>
      (THOUSANDS OF PESOS)
       </font></td>
  </tr>

  <tr valign=Bottom>

    <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 6</b></font></td>
    <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
  </tr>

</table>
<br>
<div align="center">
  <table border=0 cellspacing=0 cellpadding=0 width="600" align="center">


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=208>


        <p><font size="1"><b>&nbsp;</b></font></p>
      </td>
      <td colspan=4>


        <p align=center><font size="1"><b>DOLLARS</b></font></p>
      </td>
      <td colspan=4>


        <p align=center><font size="1"><b>OTHER CURRENCIES</b></font></p>
      </td>
      <td width=64>


        <p align=center><font size="1"><b>TOTAL</b></font></p>
      </td>
      <td width=20>&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom" align="center">


      <td width=208>


        <p align=center><font size="1"><b>TRADE BALANCE</b></font></p>
      </td>
      <td colspan="2">


        <p align=center><font size="1"><b>THOUSANDS <br>
                OF DOLLARS</b></font></p>
      </td>
      <td colspan="2">


        <p align=center><font size="1"><b>THOUSANDS <br>
                OF PESOS</b></font></p>
      </td>
      <td colspan="2">


        <p align=center><font size="1"><b>THOUSANDS <br>
                OF DOLLARS</b></font></p>
      </td>
      <td colspan="2">


        <p align=center><font size="1"><b>THOUSANDS <br>
                OF PESOS</b></font></p>
      </td>
      <td colspan="2">


        <p align=center><font size="1"><b>THOUSANDS <br>
                OF PESOS</b></font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=208>


        <p><font size="1"><b>FOREING MONETARY POSITION</b></font></p>
      </td>
      <td width=57>


        <p>&nbsp;</p>
      </td>
      <td width=20>&nbsp;</td>
      <td width=62>


        <p>&nbsp;</p>
      </td>
      <td width=15>&nbsp;</td>
      <td width=53>


        <p>&nbsp;</p>
      </td>
      <td width=24>&nbsp;</td>
      <td width=53>


        <p>&nbsp;</p>
      </td>
      <td width=24>&nbsp;</td>
      <td width=64>


        <p>&nbsp;</p>
      </td>
      <td width=20>&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=208>


        <p><font size="1"><b>TOTAL ASSETS</b></font></p>
      </td>
      <td width=57>


        <p align=right><font size="1"><b>92,900</b></font></p>
      </td>
      <td width=20>&nbsp;</td>
      <td width=62>


        <p align=right><font size="1"><b>1,049,220</b></font></p>
      </td>
      <td width=15>&nbsp;</td>
      <td width=53>


        <p align=right><font size="1">0</font></p>
      </td>
      <td width=24>&nbsp;</td>
      <td width=53>


        <p align=right><font size="1">0</font></p>
      </td>
      <td width=24>&nbsp;</td>
      <td width=64>


        <p align=right><font size="1"><b>1,049,220</b></font></p>
      </td>
      <td width=20>&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=208>


        <p><font size="1"><b>LIABILITIES POSITION</b></font></p>
      </td>
      <td width=57>


        <p align=right><font size="1"><b>19,840</b></font></p>
      </td>
      <td width=20>&nbsp;</td>
      <td width=62>


        <p align=right><font size="1"><b>224,088</b></font></p>
      </td>
      <td width=15>&nbsp;</td>
      <td width=53>


        <p align=right><font size="1"><b>195</b></font></p>
      </td>
      <td width=24>&nbsp;</td>
      <td width=53>


        <p align=right><font size="1"><b>2,201</b></font></p>
      </td>
      <td width=24>&nbsp;</td>
      <td width=64>


        <p align=right><font size="1"><b>226,289</b></font></p>
      </td>
      <td width=20>&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=208>


        <p><font size="1">SHORT TERM LIABILITIES POSITION</font></p>
      </td>
      <td width=57>


        <p align=right><font size="1">19,840</font></p>
      </td>
      <td width=20>&nbsp;</td>
      <td width=62>


        <p align=right><font size="1">224,088</font></p>
      </td>
      <td width=15>&nbsp;</td>
      <td width=53>


        <p align=right><font size="1">195</font></p>
      </td>
      <td width=24>&nbsp;</td>
      <td width=53>


        <p align=right><font size="1">2,201</font></p>
      </td>
      <td width=24>&nbsp;</td>
      <td width=64>


        <p align=right><font size="1">226,289</font></p>
      </td>
      <td width=20>&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=208 height="18">


        <p><font size="1">LONG TERM LIABILITIES POSITION</font></p>
      </td>
      <td width=57 height="18">


        <p align=right><font size="1">0</font></p>
      </td>
      <td width=20 height="18">&nbsp;</td>
      <td width=62 height="18">


        <p align=right><font size="1">0</font></p>
      </td>
      <td width=15 height="18">&nbsp;</td>
      <td width=53 height="18">


        <p align=right><font size="1">0</font></p>
      </td>
      <td width=24 height="18">&nbsp;</td>
      <td width=53 height="18">


        <p align=right><font size="1">0</font></p>
      </td>
      <td width=24 height="18">&nbsp;</td>
      <td width=64 height="18">


        <p align=right><font size="1">0</font></p>
      </td>
      <td width=20 height="18">&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=208>


        <p><font size="1"><b>NET BALANCE</b></font></p>
      </td>
      <td width=57>


        <p align=right><font size="1"><b>73,060</b></font></p>
      </td>
      <td width=20>&nbsp;</td>
      <td width=62>


        <p align=right><font size="1"><b>825,132</b></font></p>
      </td>
      <td width=15>&nbsp;</td>
      <td width=53>


        <p align=right><font size="1"><b>(195)</b></font></p>
      </td>
      <td width=24>&nbsp;</td>
      <td width=53>


        <p align=right><font size="1"><b>(2,201)</b></font></p>
      </td>
      <td width=24>&nbsp;</td>
      <td width=64>


        <p align=right><font size="1"><b>822,931</b></font></p>
      </td>
      <td width=20>&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


  </table>
</div>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOTES  </B></FONT>
<!-- 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 MARCH 31, 2005 WAS PS. 11.2942  </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: 54; page: 54" -->




<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></h1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="33%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="67%">&nbsp;</td>
    <td align=LEFT width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td colspan="2">
      <font face="Times New Roman, Times, Serif" size="1"><b>INTEGRATION AND INCOME <br>
  CALCULATION BY
MONETARY POSITION</b> </font><font size="1"><!-- MARKER FORMAT-SHEET="Head Major Center Bold 1" FSL="Default" -->
</font><font face="Times New Roman, Times, Serif" size="1"><br>
      (THOUSANDS OF PESOS)
       </font>
      </td>
  </tr>

  <tr valign=Bottom>

    <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 7</b></font></td>
    <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
  </tr>

</table>
<br>
<div align="center">
  <table border=0 cellspacing=0 cellpadding=0 width="600" align="center">


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width="175">


        <p align=center><b><font size="1">MONTH </font></b></p>
      </td>
      <td colspan="2">


        <p align=center><b><font size="1">MONETARY <br>
                ASSETS </font></b></p>
      </td>
      <td colspan="2">


        <p align=center><b><font size="1">MONETARY <br>
                LIABILITIES </font></b></p>
      </td>
      <td colspan="2">


        <p align=center><b><font size="1">(ASSET) <br>
                LIABILITIES <br>
                MONETARY <br>
                POSITION </font></b></p>
      </td>
      <td colspan="2">


        <p align=center><b><font size="1">MONTHLY <br>
                INFLATION </font></b></p>
      </td>
      <td colspan="2">


        <p align=center><b><font size="1">MONTHLY PROFIT <br>
                AND (LOSS) </font></b></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width="175">


        <p><font size="1">JANUARY</font></p>
      </td>
      <td width="66">


        <p align=right><font size="1">1,799,870</font></p>
      </td>
      <td width="21">&nbsp;&nbsp;</td>
      <td width="64">


        <p align=right><font size="1">972,894</font></p>
      </td>
      <td width="23">&nbsp;&nbsp;</td>
      <td width="63">


        <p align=right><font size="1">(826976)</font></p>
      </td>
      <td width="23">&nbsp;&nbsp;</td>
      <td width="51">


        <p align=right><font size="1">0.00</font></p>
      </td>
      <td width="31">&nbsp;&nbsp;</td>
      <td width="56">


        <p align=right><font size="1">0</font></p>
      </td>
      <td width="27">&nbsp;&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width="175">


        <p><font size="1">FEBRUARY</font></p>
      </td>
      <td width="66">


        <p align=right><font size="1">1,918,511</font></p>
      </td>
      <td width="21">&nbsp;</td>
      <td width="64">


        <p align=right><font size="1">1,026,720</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="63">


        <p align=right><font size="1">(891,791)</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="51">


        <p align=right><font size="1">0.33</font></p>
      </td>
      <td width="31">&nbsp;</td>
      <td width="56">


        <p align=right><font size="1">(2,971)</font></p>
      </td>
      <td width="27">&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width="175">


        <p><font size="1">MARCH</font></p>
      </td>
      <td width="66">


        <p align=right><font size="1">1,948,041</font></p>
      </td>
      <td width="21">&nbsp;</td>
      <td width="64">


        <p align=right><font size="1">966,819</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="63">


        <p align=right><font size="1">(981,222)</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="51">


        <p align=right><font size="1">0.45</font></p>
      </td>
      <td width="31">&nbsp;</td>
      <td width="56">


        <p align=right><font size="1">(4,423)</font></p>
      </td>
      <td width="27">&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width="175">


        <p><font size="1">ACTUALIZATION</font></p>
      </td>
      <td width="66">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="21">&nbsp;</td>
      <td width="64">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="63">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="51">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="31">&nbsp;</td>
      <td width="56">


        <p align=right><font size="1">(11)</font></p>
      </td>
      <td width="27">&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width="175">


        <p><font size="1">CAPITALIZATION</font></p>
      </td>
      <td width="66">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="21">&nbsp;</td>
      <td width="64">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="63">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="51">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="31">&nbsp;</td>
      <td width="56">


        <p align=right><font size="1">0</font></p>
      </td>
      <td width="27">&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width="175">


        <p><font size="1">FOREIGN CORPOPATION</font></p>
      </td>
      <td width="66">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="21">&nbsp;</td>
      <td width="64">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="63">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="51">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="31">&nbsp;</td>
      <td width="56">


        <p align=right><font size="1">0</font></p>
      </td>
      <td width="27">&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width="175">


        <p><font size="1">OTHER</font></p>
      </td>
      <td width="66">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="21">&nbsp;</td>
      <td width="64">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="63">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="51">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="31">&nbsp;</td>
      <td width="56">


        <p align=right><font size="1">0</font></p>
      </td>
      <td width="27">&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width="175">


        <p><font size="1">TOTAL</font></p>
      </td>
      <td width="66">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="21">&nbsp;</td>
      <td width="64">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="63">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="23">&nbsp;</td>
      <td width="51">


        <p align=right><font size="1">&nbsp;</font></p>
      </td>
      <td width="31">&nbsp;</td>
      <td width="56">


        <p align=right><font size="1">(7,405)</font></p>
      </td>
      <td width="27">&nbsp;</td>
    </tr>


    <tr valign="bottom">


      <td colspan="11">


        <hr noshade size="1">
            </td>
    </tr>


  </table>
  <br>
  <br>
</div>
<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: 55; page: 55" -->




<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></h1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="33%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="67%">&nbsp;</td>
    <td align=LEFT width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td colspan="2">
      <h1 align=CENTER><font face="Times New Roman, Times, Serif" size="1">BONDS AND MEDIUM TERM
NOTES LISTING IN STOCK MARKET </font><font face="Times New Roman, Times, Serif" size="1">
       </font>
      </h1>
      </td>
  </tr>

  <tr valign=Bottom>

    <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 8</b></font></td>
    <td align=center width="33%"><font size=1>CONSOLIDATED</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>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>MEDIUM TERM NOTES  </B></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>&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>


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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)
Total liabilities to total assets do not be more than 0.60.  </FONT></TD>
</TR>
</TABLE>


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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)
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>

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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>
This
notes was offered in the international market.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>ACTUAL SITUATION OF
FINANCIAL LIMITED  </B></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>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
MEDIUM
TERM NOTES </FONT></TD>
</TR>
</TABLE>
<BR>

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<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)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Accomplished
the actual situation is 3.58 times.  </FONT></TD>
</TR>
</TABLE>


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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)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Accomplished
the actual situation is 0.25  </FONT></TD>
</TR>
</TABLE>


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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)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Accomplished
the actual situation is 121.59  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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 March 31, 2005, the remaining balance of the MTNs not exchanged amounts to Ps. 3,411
($302,000 dollars).  </FONT></TD>
</TR>
</TABLE>
<BR>

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<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.
Jos&eacute; Flores Flores <br>
      Chief
Corporate Financial Planning Officer
      </FONT></TD>
</TR>
</TABLE>


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<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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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></h1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="33%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="67%">&nbsp;</td>
    <td align=LEFT width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td colspan="2">
      <h1 align=CENTER><font face="Times New Roman, Times, Serif" size="1">PLANTS, COMMERCE
CENTERS OR DISTRIBUTION CENTERS</font><font face="Times New Roman, Times, Serif" size=4></font><font face="Times New Roman, Times, Serif" size="1">
       </font>
      </h1>
    </td>
  </tr>

  <tr valign=Bottom>

    <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 9</b></font></td>
    <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
  </tr>

</table>
 <br>
<table border=0 cellspacing=0 cellpadding=0 align="center">

  <tr valign="bottom">

    <td width=676 colspan="4">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="bottom">

    <td width=169>

      <p align=center><font size="2"><b><font size="1">PLANT OR CENTER</font></b></font></p>
    </td>
    <td width=169>

      <p align=center><font size="2"><b><font size="1">ECONOMIC ACTIVITY</font></b></font></p>
    </td>
    <td width=169>

      <p align=center><font size="2"><b><font size="1">PLANT CAPACITY</font></b></font></p>
    </td>
    <td width=169>

      <p align=center><font size="2"><b><font size="1">UTILIZATION
          (%)</font></b></font></p>
    </td>
  </tr>

  <tr valign="top">

    <td width=676 colspan="4">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="top">

    <td width=169>

      <p><font size="1">GUADALAJARA MINI MILL</font></p>
    </td>
    <td width=169>

      <p><font size="1">PRODUCTION AND SALES OF STEEL PRODUCTS</font></p>
    </td>
    <td width=169 align="center" valign="bottom">

      <p><font size="1">480</font></p>
    </td>
    <td width=169 align="center" valign="bottom">

      <p><font size="1">80</font></p>
    </td>
  </tr>

  <tr valign="top">

    <td width=676 colspan="4">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="top">

    <td width=169>

      <p><font size="1">MEXICALI MINI MILL</font></p>
    </td>
    <td width=169>

      <p><font size="1">PRODUCTION AND SALES OF STEEL PRODUCTS</font></p>
    </td>
    <td width=169 valign="bottom">

      <p align=center><font size="1">250</font></p>
    </td>
    <td width=169 valign="bottom">

      <p align=center><font size="1">81</font></p>
    </td>
  </tr>

  <tr valign="top">

    <td width=676 colspan="4">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="top">

    <td width=169>

      <p><font size="1">INDUSTRIAS DEL ACERO Y <br>
          DEL ALAMBRE</font></p>
    </td>
    <td width=169>

      <p><font size="1">SALE OF STEEL PRODUCTS</font></p>
    </td>
    <td width=169 valign="bottom">

      <p align=center><font size="1"> &nbsp;&nbsp;&nbsp;&nbsp;0</font></p>
    </td>
    <td width=169 valign="bottom">

      <p align=center><font size="1"> &nbsp;&nbsp;0</font></p>
    </td>
  </tr>

  <tr valign="top">

    <td width=676 colspan="4">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="top">

    <td width=169>

      <p><font size="1">APIZACO AND CHOLULA <br>
          PLANTS</font></p>
    </td>
    <td width=169>

      <p><font size="1">PRODUCTION AND SALES OF STEEL PRODUCTS</font></p>
    </td>
    <td width=169 valign="bottom">

      <p align=center><font size="1">460</font></p>
    </td>
    <td width=169 valign="bottom">

      <p align=center><font size="1">85</font></p>
    </td>
  </tr>

  <tr valign="top">

    <td width=676 colspan="4">

      <hr noshade size="1">
      </td>
  </tr>

</table>
<br>
<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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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></h1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="33%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="67%">&nbsp;</td>
    <td align=LEFT width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td colspan="2">
      <h1 align=CENTER><font face="Times New Roman, Times, Serif" size="1">MAIN RAW MATERIALS</font><font face="Times New Roman, Times, Serif" size=4></font><font face="Times New Roman, Times, Serif" size="1">       </font>
      </h1>
    </td>
  </tr>

  <tr valign=Bottom>

    <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 10</b></font></td>
    <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
  </tr>

</table>
<br>
<div align="center">
  <table border=0 cellspacing=0 cellpadding=0 width="700" align="center">


    <tr valign="bottom">


      <td colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=120>


        <p align=center><font size="1"><b>DOMESTIC </b></font></p>
      </td>
      <td width=158>


        <p align=center><font size="1"><b>MAIN SUPPLIERS </b></font></p>
      </td>
      <td width=97>


        <p align=center><font size="1"><b>FOREIGN </b></font></p>
      </td>
      <td width=112>


        <p align=center><font size="1"><b>MAIN SUPPLIERS </b></font></p>
      </td>
      <td width=99>


        <p align=center><font size="1"><b>DOMESTIC <br>
                SUBSTITUTION </b></font></p>
      </td>
      <td width=114>


        <p align=center><font size="1"><b>COST <br>
                PRODUCTION (%) </b></font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=120>


        <p><font size="1">SCRAP</font></p>
      </td>
      <td width=158>


        <p><font size="1">VARIOUS</font></p>
      </td>
      <td width=97>


        <p><font size="1">SCRAP</font></p>
      </td>
      <td width=112>


        <p><font size="1">VARIOUS</font></p>
      </td>
      <td width=99>


        <p align=center><font size="1">YES</font></p>
      </td>
      <td width=114>


        <p align=center><font size="1">50.17</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=120>


        <p><font size="1">ELECTRICITY</font></p>
      </td>
      <td width=158>


        <p><font size="1">C.F.E</font></p>
      </td>
      <td width=97>


        <p><font size="1">&nbsp;</font></p>
      </td>
      <td width=112>


        <p><font size="1">&nbsp;</font></p>
      </td>
      <td width=99>


        <p align=center><font size="1">NO</font></p>
      </td>
      <td width=114>


        <p align=center><font size="1">9.21</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=120>


        <p><font size="1">FERROALLOYS</font></p>
      </td>
      <td width=158>


        <p><font size="1">MINERA AUTLAN</font></p>
      </td>
      <td width=97>


        <p><font size="1">FERROALLOYS</font></p>
      </td>
      <td width=112>


        <p><font size="1">GFM TRADING</font></p>
      </td>
      <td width=99>


        <p align=center><font size="1">YES</font></p>
      </td>
      <td width=114>


        <p align=center><font size="1">8.59</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


    <tr valign="bottom">


      <td width=120>


        <p><font size="1">ELECTRODES</font></p>
      </td>
      <td width=158>


        <p><font size="1">UCAR CARBON MEXICANA</font></p>
      </td>
      <td width=97>


        <p><font size="1">ELECTRODES</font></p>
      </td>
      <td width=112>


        <p><font size="1">SGL CARBON GROUP</font></p>
      </td>
      <td width=99>


        <p align=center><font size="1">YES</font></p>
      </td>
      <td width=114>


        <p align=center><font size="1">1.63</font></p>
      </td>
    </tr>


    <tr valign="bottom">


      <td colspan="6">


        <hr noshade size="1">
            </td>
    </tr>


  </table>
  <br>
    <!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>
</div>
<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: 58; page: 58" -->



<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></h1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="33%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="67%">&nbsp;</td>
    <td align=LEFT width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td colspan="2">
      <h1 align=CENTER><font face="Times New Roman, Times, Serif" size="1">SELLS DISTRIBUTION BY
PRODUCT </font></h1>
    </td>
  </tr>

  <tr valign=Bottom>

    <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 11</b></font></td>
    <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=center width="67%">&nbsp;</td>
    <td align=center width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=center width="100%" colspan="2"><font face="Times New Roman, Times, Serif" size="1"><b>DOMESTIC SELLS</b></font><font face="Times New Roman, Times, Serif" size=4></font></td>
  </tr>

</table>
<br>
<table border=0 cellspacing=0 cellpadding=0 align="center" width="640">


  <tr valign="bottom">


    <td colspan="12"><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font>


      <hr noshade size="1">
            </td>
  </tr>


  <tr valign="bottom" align="center">


    <td width=172><font size="1"><b>MAIN PRODUCTS</b></font></td>
    <td colspan="4"><font size="1"><b>TOTAL PRODUCTION</b></font></td>
    <td colspan="4"><font size="1"><b>NET SELLS</b></font></td>
    <td colspan=3><font size="1"><b>MAIN DESTINATION</b></font></td>
  </tr>


  <tr valign="bottom">


    <td colspan="12">


      <hr noshade size="1">
            </td>
  </tr>


  <tr valign="bottom">


    <td width=172>


      <p>&nbsp;</p>
    </td>
    <td colspan="2">


      <p align=center><font size="1"><b>VOLUME</b></font></p>
    </td>
    <td colspan="2">


      <p align=center><font size="1"><b>AMOUNT</b></font></p>
    </td>
    <td colspan="2">


      <p align=center><font size="1"><b>VOLUME</b></font></p>
    </td>
    <td colspan="2">


      <p align=center><font size="1"><b>AMOUNT</b></font></p>
    </td>
    <td colspan=2>


      <p align=center><font size="1"><b>TRADEMARKS</b></font></p>
    </td>
    <td width=96>


      <p align=center><font size="1"><b>COSTUMERS</b></font></p>
    </td>
  </tr>


  <tr valign="bottom">


    <td colspan="12"><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font>


      <hr noshade size="1">
            </td>
  </tr>


  <tr valign="bottom">


    <td width=172>


      <p><font size="1">STRUCTURAL PROFILES</font></p>
    </td>
    <td width=39>


      <p align=right><font size="1">40</font></p>
    </td>
    <td width=23><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td width=54>


      <p align=right><font size="1">163,137</font></p>
    </td>
    <td width=20><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td width=39>


      <p align=right><font size="1">40</font></p>
    </td>
    <td width=23><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td width=54>


      <p align=right><font size="1">287,059</font></p>
    </td>
    <td width=16><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td colspan=2>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td width=96>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>


  <tr valign="bottom">


    <td colspan="12"><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font>


      <hr noshade size="1">
            </td>
  </tr>


  <tr valign="bottom">


    <td width=172>


      <p><font size="1">COMMERCIAL PROFILES</font></p>
    </td>
    <td width=39>


      <p align=right><font size="1">30</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">128,034</font></p>
    </td>
    <td width=20><font size="1"></font></td>
    <td width=39>


      <p align=right><font size="1">26</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">176,255</font></p>
    </td>
    <td width=16><font size="1"></font></td>
    <td colspan=2>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td width=96>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>


  <tr valign="bottom">


    <td colspan="12"><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font>


      <hr noshade size="1">
            </td>
  </tr>


  <tr valign="bottom">


    <td width=172>


      <p><font size="1">REBAR</font></p>
    </td>
    <td width=39>


      <p align=right><font size="1">67</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">250,368</font></p>
    </td>
    <td width=20><font size="1"></font></td>
    <td width=39>


      <p align=right><font size="1">47</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">284,164</font></p>
    </td>
    <td width=16><font size="1"></font></td>
    <td colspan=2>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td width=96>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>


  <tr valign="bottom">


    <td colspan="12"><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font>


      <hr noshade size="1">
            </td>
  </tr>


  <tr valign="bottom">


    <td width=172>


      <p><font size="1">FLAT BAR</font></p>
    </td>
    <td width=39>


      <p align=right><font size="1">40</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">193,745</font></p>
    </td>
    <td width=20><font size="1"></font></td>
    <td width=39>


      <p align=right><font size="1">37</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">255,586</font></p>
    </td>
    <td width=16><font size="1"></font></td>
    <td colspan=2>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td width=96>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>


  <tr valign="bottom">


    <td colspan="12"><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font>


      <hr noshade size="1">
            </td>
  </tr>


  <tr valign="bottom">


    <td width=172>


      <p><font size="1">STEEL BARS</font></p>
    </td>
    <td width=39>


      <p align=right><font size="1">64</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">324,539</font></p>
    </td>
    <td width=20><font size="1"></font></td>
    <td width=39>


      <p align=right><font size="1">58</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">454,152</font></p>
    </td>
    <td width=16><font size="1"></font></td>
    <td colspan=2>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td width=96>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>


  <tr valign="bottom">


    <td colspan="12"><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font>


      <hr noshade size="1">
            </td>
  </tr>


  <tr valign="bottom">


    <td width=172>


      <p><font size="1">OTHER</font></p>
    </td>
    <td width=39>


      <p align=right><font size="1">0</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">0</font></p>
    </td>
    <td width=20><font size="1"></font></td>
    <td width=39>


      <p align=right><font size="1">2</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">16,452</font></p>
    </td>
    <td width=16><font size="1"></font></td>
    <td colspan=2>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td width=96>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>


  <tr valign="bottom">


    <td colspan="12"><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font>


      <hr noshade size="1">
            </td>
  </tr>


  <tr valign="bottom">


    <td width=172>


      <p><font size="1">BILLET</font></p>
    </td>
    <td width=39>


      <p align=right><font size="1">13</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">37,496</font></p>
    </td>
    <td width=20><font size="1"></font></td>
    <td width=39>


      <p align=right><font size="1">13</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1">58,148</font></p>
    </td>
    <td width=16><font size="1"></font></td>
    <td colspan=2>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td width=96>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>


  <tr valign="bottom">


    <td colspan="12"><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font>


      <hr noshade size="1">
            </td>
  </tr>


  <tr valign="bottom">


    <td width=172>


      <p><font size="1"><b>T O T A L</b></font></p>
    </td>
    <td width=39>


      <p align=right><font size="1">&nbsp;</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1"><b>1,097,319</b></font></p>
    </td>
    <td width=20><font size="1"></font></td>
    <td width=39>


      <p align=right><font size="1">&nbsp;</font></p>
    </td>
    <td width=23><font size="1"></font></td>
    <td width=54>


      <p align=right><font size="1"><b>1,531,816</b></font></p>
    </td>
    <td width=16><font size="1"></font></td>
    <td colspan=2>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td width=96>


      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>


  <tr valign="bottom">


    <td colspan="12"><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font>


      <hr noshade size="1">
            </td>
  </tr>


  <tr height=0>


    <td width=172></td>
    <td width=39></td>
    <td width=23></td>
    <td width=54></td>
    <td width=20></td>
    <td width=39></td>
    <td width=23></td>
    <td width=54></td>
    <td width=16></td>
    <td width=52></td>
    <td width=52></td>
    <td width=96></td>
  </tr>


</table>
<br>
<!-- 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: 59; page: 59" -->




<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></h1>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
  <tr valign=Bottom>

    <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
    <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
    <td align=LEFT width="33%"><font size=1></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="67%">&nbsp;</td>
    <td align=LEFT width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td colspan="2">
      <h1 align=CENTER><font face="Times New Roman, Times, Serif" size="1">SELLS DISTRIBUTION BY
PRODUCT </font></h1>
    </td>
  </tr>

  <tr valign=Bottom>

    <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 11</b></font></td>
    <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=center width="67%">&nbsp;</td>
    <td align=center width="33%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=center width="100%" colspan="2"><font face="Times New Roman, Times, Serif" size="1"><b>FOREIGN  SELLS</b></font><font face="Times New Roman, Times, Serif" size=4></font></td>
  </tr>

</table>
<br>
<table border=0 cellspacing=0 cellpadding=0 align="center" width="600">

  <tr valign="bottom">

    <td colspan="10"><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font><font size="1"></font>

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="bottom" align="center">

    <td><font size="1"><b>MAIN PRODUCTS</b></font></td>
    <td colspan="2"><font size="1"><b>TOTAL PRODUCTION</b></font><font size="1"></font></td>
    <td colspan="3"><font size="1"><b>NET SELLS</b></font><font size="1"></font></td>
    <td>&nbsp;</td>
    <td colspan=3><font size="1"><b>MAIN DESTINATION</b></font><font size="1"></font></td>
  </tr>

  <tr valign="bottom">

    <td colspan="10">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="bottom">

    <td>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td>

      <p align=center><font size="1"><b>VOLUME</b></font></p>
    </td>
    <td>

      <p align=center><font size="1"><b>AMOUNT</b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font size="1"><b>VOLUME</b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font size="1"><b>AMOUNT</b></font></p>
    </td>
    <td colspan=2>

      <p align=center><font size="1"><b>TRADEMARKS</b></font></p>
    </td>
    <td>

      <p align=center><font size="1"><b>COSTUMERS</b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="10">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="bottom">

    <td>

      <p><font size="1">STRUCTURAL PROFILES</font></p>
    </td>
    <td>

      <p align=right><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td>

      <p align=right><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td>

      <p align=right><font size="1">2</font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p align=right><font size="1">8,385</font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td colspan=2>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="10">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="bottom">

    <td>

      <p><font size="1">COMMERCIAL PROFILES</font></p>
    </td>
    <td>

      <p align=right><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td>

      <p align=right><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td>

      <p align=right><font size="1">3</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1">16,384</font></p>
    </td>
    <td>&nbsp;</td>
    <td colspan=2>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="10">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="bottom">

    <td>

      <p><font size="1">REBAR</font></p>
    </td>
    <td>

      <p align=right><font size="1">&nbsp;</font></p>
    </td>
    <td>

      <p align=right><font size="1">&nbsp;</font></p>
    </td>
    <td>

      <p align=right><font size="1">21</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1">117,184</font></p>
    </td>
    <td>&nbsp;</td>
    <td colspan=2>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="10">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="bottom">

    <td>

      <p><font size="1">STEEL BARS</font></p>
    </td>
    <td>

      <p align=right><font size="1">&nbsp;</font></p>
    </td>
    <td>

      <p align=right><font size="1">&nbsp;</font></p>
    </td>
    <td>

      <p align=right><font size="1">9</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1">74,420</font></p>
    </td>
    <td>&nbsp;</td>
    <td colspan=2>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="10">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="bottom">

    <td>

      <p><font size="1">FLAT BAR</font></p>
    </td>
    <td>

      <p align=right><font size="1">&nbsp;</font></p>
    </td>
    <td>

      <p align=right><font size="1">&nbsp;</font></p>
    </td>
    <td>

      <p align=right><font size="1">2</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1">15,738</font></p>
    </td>
    <td>&nbsp;</td>
    <td colspan=2>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="10">

      <hr noshade size="1">
      </td>
  </tr>

  <tr valign="bottom">

    <td>

      <p><font size="1"><b>T O T A L</b></font></p>
    </td>
    <td>

      <p align=right><font size="1">&nbsp;</font></p>
    </td>
    <td>

      <p align=right><font size="1">&nbsp;</font></p>
    </td>
    <td>

      <p align=right><font size="1">&nbsp;</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1"><b>232,111</b></font></p>
    </td>
    <td>&nbsp;</td>
    <td colspan=2>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
    <td>

      <p><font size="1"><b>&nbsp;</b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="10">

      <hr noshade size="1">
      </td>
  </tr>

  <tr height=0>

    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
  </tr>

</table>
<br>
<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: 60; page: 60" -->







<h1 align=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></h1>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
    <tr valign=Bottom>

      <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
      <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
    </tr>
    <tr valign=Bottom>

      <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
      <td align=LEFT width="33%"><font size=1></font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="67%">&nbsp;</td>
      <td align=LEFT width="33%">&nbsp;</td>
    </tr>
    <tr valign=Bottom align="center">
      <td colspan="2">
        <h1 align=CENTER><font face="Times New Roman, Times, Serif" size="1">INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK <br>
          CHRACTERISTICS OF THE SHARES
          </font></h1>
      </td>
    </tr>
    <tr valign=Bottom>

      <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
      <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
    </tr>






  </table>
  <br>
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640>



    <TR>
      <TD COLSPAN=17 height="21">
        <HR noshade COLOR=#000000 SIZE=1>
      </TD>
    </TR>
    <TR VALIGN=Bottom align="center">
      <TD><b><font size="1">SERIES</font>

      </b></TD>
      <TD><b>&nbsp;&nbsp;</b></TD>
      <TD><b><font size="1">NOMINAL<br>
VALUE</font>

      </b></TD>
      <TD><b>&nbsp;&nbsp;</b></TD>
      <TD><b><font size="1">VALID<br>
CUPON</font>

      </b></TD>
      <TD><b>&nbsp;&nbsp;</b></TD>
      <TD colspan="8"><b><font size="1">NUMBER OF SHARES</font>
</b></TD>
      <TD colspan="3"><b><font size="1">CAPITAL STOCK<br>
(Thousands of Pesos)</font>
</b></TD>
    </TR>
    <TR VALIGN=Bottom align="center">
      <TD><b></b></TD>
      <TD><b></b></TD>
      <TD><b></b></TD>
      <TD><b></b></TD>
      <TD><b></b></TD>
      <TD><b></b></TD>
      <th colspan=2><b><font size="1">FIXED  <br>
        PORTION</font>

      </b></th>
      <th colspan=2><b><font size="1">VARIABLE<br>
PORTION</font>

      </b></th>
      <th colspan=2><b><font size="1">MEXICAN</font>

      </b></th>
      <th colspan=2><b><font size="1">FREE  <br>
        SUSCRIPTION</font>

      </b></th>
      <th colspan=2><b><font size="1">FIXED</font>

      </b></th>
      <th><b><font size="1">VARIABLE</font>

      </b></th>
    </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>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=RIGHT><font size="1">15,283,350</font></TD>
      <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT><font size="1">118,259,634</font></TD>
      <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;&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;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=RIGHT><font size="1">222,963</font></TD>
      <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=center><font size="1">1,725,192</font></TD>
    </TR>
    <TR>
      <TD COLSPAN=17>
        <HR noshade COLOR=#000000 SIZE=1>
      </TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT><font size="1">&nbsp;&nbsp;TOT</font></TD>
      <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</TD>
      <TD ALIGN=LEFT>&nbsp;</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=center><font size="1">1,725,192</font></TD>
    </TR>
    <TR>
      <TD COLSPAN=17>
        <HR noshade COLOR=#000000 SIZE=1>
      </TD>
    </TR>
  </TABLE> <br>
  <!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</div>
<P><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>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
133,542,984 </FONT></TD>
</TR>
</TABLE>


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<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>

    <TD WIDTH=20% ALIGN=LEFT><FONT SIZE=2>CPO&#146;S :</FONT></TD>
    <TD WIDTH=80% ALIGN=left colspan="2"><FONT SIZE=2>0</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="20%"><FONT SIZE=2>ADRS&#146;s :</FONT></TD>
    <TD ALIGN=left colspan="2" width="80%"><FONT SIZE=2>3</FONT><FONT SIZE=2>,270,351</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="20%"><FONT SIZE=2>UNITS :</FONT></TD>
    <TD ALIGN=left colspan="2" width="80%"><FONT SIZE=2>0</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="20%"><FONT SIZE=2>GDRS&#146;s :</FONT></TD>
    <TD ALIGN=left colspan="2" width="80%"><FONT SIZE=2>0</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="20%"><FONT SIZE=2>ADS&#146;s :</FONT></TD>
    <TD ALIGN=left colspan="2" width="80%"><FONT SIZE=2>0</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="20%"><FONT SIZE=2>GDS&#146;s :</FONT></TD>
    <TD ALIGN=left colspan="2" width="80%"><FONT SIZE=2>0</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>








<br>
<div align="center">
<table width="600" border="0" cellspacing="0" cellpadding="0">
    <tr>
      <td>&nbsp;</td>
      <td colspan="7" align="center" valign="bottom"><b><font face="Times New Roman, Times, Serif" size="1">REPURCHASED OWN SHARES </font></b></td>
    </tr>

    <tr>
      <td>&nbsp;</td>
      <td align="center" valign="bottom"><b></b></td>
      <td align="center" valign="bottom"><b></b></td>
      <td align="center" valign="bottom"><b><font face="Times New Roman, Times, Serif" size="1">NUMBER OF  </font></b></td>
      <td align="center" valign="bottom"><b></b></td>
      <td colspan="3" align="center" valign="bottom"><b><font face="Times New Roman, Times, Serif" size="1">MARKET VALUE OF THE SHARE </font></b></td>
    </tr>
    <tr>
      <td>&nbsp;</td>
      <td align="center" valign="top"><b><font face="Times New Roman, Times, Serif" size="1">SERIES</font></b></td>
      <td align="center" valign="top"><b><font size="1">&nbsp;&nbsp;</font></b></td>
      <td align="center" valign="top">
        <p><b><font face="Times New Roman, Times, Serif" size="1">SHARES</font></b><b><font size="1"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</font></b></p>
      </td>
      <td align="center" valign="top"><b><font size="1">&nbsp;&nbsp;</font></b></td>
      <td align="center" valign="top">
        <p><b><font face="Times New Roman, Times, Serif" size="1">AT REPURCHASE  </font></b><b><font size="1"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</font></b></p>
      </td>
      <td align="center" valign="top"><b><font size="1">&nbsp;&nbsp;</font></b></td>
      <td align="center" valign="top"><b><font face="Times New Roman, Times, Serif" size="1">AT QUARTER</font></b></td>
    </tr>


  </table>
  <br>
    </div>
<font size="2"><!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
</font>
<H1 ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">NOTES</font><FONT FACE="Times New Roman, Times, Serif" SIZE=3> </FONT></H1>


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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: 61; page: 61" -->




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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></h1>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
    <tr valign=Bottom>

      <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
      <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
    </tr>
    <tr valign=Bottom>

      <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
      <td align=LEFT width="33%"><font size=1></font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="67%">&nbsp;</td>
      <td align=LEFT width="33%">&nbsp;</td>
    </tr>
    <tr valign=Bottom align="center">
      <td colspan="2">
        <font face="Times New Roman, Times, Serif" size="1"><b>CONSTRUCTION IN
PROGRESS </b><br>
  (Project, Total
Investment and % of Advance) </font>
      </td>
    </tr>

    <tr valign=Bottom>

      <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 13</b></font></td>
      <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
    </tr>



  </table>
  <br>
</div>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE PROYECTS IN PROGRESS AT MARCH 31,
2005, ARE: </FONT></P>
<div align="center">
  <TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=640>

    <TR VALIGN=Bottom align="center">
      <TD ALIGN=left WIDTH=298><b><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PROYECTS IN PROGRESS</font>
        </b></TD>
      <TD colspan="2"><b><font size="1">TOTAL INVESTMENT</font>
        </b></TD>
      <TD WIDTH=10><b></b></TD>
      <TD colspan="2"><b><font size="1">PHISICAL ADVANCE</font>
        </b></TD>
      <TD WIDTH=6>&nbsp;</TD>
      <TD WIDTH=96><b><font size="1">FINISHED AT</font>
        </b></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT WIDTH=298><font size="1"></font></TD>
      <TD ALIGN=RIGHT WIDTH=110><font size="1"></font></TD>
      <TD ALIGN=LEFT WIDTH=10><font size="1"></font></TD>
      <TD ALIGN=LEFT WIDTH=10>&nbsp;</TD>
      <TD ALIGN=RIGHT WIDTH=89><font size="1"></font></TD>
      <TD ALIGN=LEFT WIDTH=21><font size="1"></font></TD>
      <TD ALIGN=LEFT WIDTH=6><font size="1"></font></TD>
      <TD ALIGN=RIGHT WIDTH=96><font size="1"></font></TD>
    </TR>


    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT WIDTH=298><font size="1">EXCHANGE HEATER FOR FURNACE ROLLING MILL</font></TD>
      <TD ALIGN=RIGHT WIDTH=110><font size="1">7,765</font></TD>
      <TD ALIGN=LEFT WIDTH=10><font size="1">&nbsp;&nbsp;&nbsp;</font></TD>
      <TD ALIGN=LEFT WIDTH=10>&nbsp;&nbsp;</TD>
      <TD ALIGN=RIGHT WIDTH=89><font size="1">95</font></TD>
      <TD ALIGN=LEFT WIDTH=21><font size="1">%</font></TD>
      <TD ALIGN=LEFT WIDTH=6><font size="1">&nbsp;&nbsp;</font></TD>
      <TD ALIGN=center WIDTH=96><font size="1">MARCH 2005</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="298"><font size="1">INCREASE PRODUCTIVITY IN DEMAG ROLLING MILL</font></TD>
      <TD ALIGN=RIGHT width="110"><font size="1">10,061</font></TD>
      <TD ALIGN=LEFT width="10"><font size="1">&nbsp;</font></TD>
      <TD ALIGN=LEFT width="10">&nbsp;</TD>
      <TD ALIGN=RIGHT width="89"><font size="1">83</font></TD>
      <TD ALIGN=LEFT width="21"><font size="1">%</font></TD>
      <TD ALIGN=LEFT width="6"><font size="1"></font></TD>
      <TD ALIGN=center width="96"><font size="1">JULY 2005</font></TD>
    </TR>
    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="298"><font size="1">VARIOUS</font></TD>
      <TD ALIGN=RIGHT width="110"><font size="1">7,119</font></TD>
      <TD ALIGN=LEFT width="10"><font size="1">&nbsp;</font></TD>
      <TD ALIGN=LEFT width="10">&nbsp;</TD>
    </TR>

    <TR VALIGN=Bottom>
      <TD ALIGN=LEFT width="298"><font size="1"><b>TOTAL INVESTMENT AT <br>
        MARCH 31, 2005</b></font></TD>
      <TD ALIGN=RIGHT width="110"><font size="1"><b>24,945</b></font>
        <hr size="1" noshade align="right" width="35">
      </TD>
      <TD ALIGN=LEFT width="10"><font size="1">&nbsp;</font></TD>
      <TD ALIGN=LEFT width="10">&nbsp;</TD>
    </TR>
  </TABLE>
  <!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>
</div>
<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: 63; page: 63" -->




<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></h1>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
    <tr valign=Bottom>

      <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
      <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
    </tr>
    <tr valign=Bottom>

      <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
      <td align=LEFT width="33%"><font size=1></font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="67%">&nbsp;</td>
      <td align=LEFT width="33%">&nbsp;</td>
    </tr>
    <tr valign=Bottom align="center">
      <td colspan="2">
        <font face="Times New Roman, Times, Serif" size=1><b>FOREIGN CURRENCY
TRANSACTION AND EXCHANGE DIFFERENCES</b></font>
      </td>
    </tr>

    <tr valign=Bottom>

      <td align=center width="67%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font face="Times New Roman, Times, Serif" size="1"><b>ANNEX 14</b></font></td>
      <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
    </tr>



  </table>
  <br>
</div>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><b>Foreign currency transactions and
exchange differences</b> <B>- </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>

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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>&#151; </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>


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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>&#151; </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>


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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>&#151; </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>


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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>&#151; </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>


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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>&#151; </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>





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<!-- MARKER PAGE="sheet: 62; page: 62" -->




<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<h1 align=CENTER><font face="Times New Roman, Times, Serif" size="2">MEXICAN STOCK EXCHANGE <br>
  </font><font face="Times New Roman, Times, Serif" size="2">SIFIC / ICS</font><font face="Times New Roman, Times, Serif" size=4> </font></h1>
<div align="center">
  <table cellpadding=0 cellspacing=0 border=0 align=Center width=600>
    <tr valign=Bottom>

      <td width=67% align=LEFT><font size="1">STOCK EXCHANGE CODE: <b>SIMEC</b>
      </font></td>
      <td width=33% align=LEFT><font size="1">QUARTER: <b>1 </b>YEAR: <b>2005</b>
      </font> </td>
    </tr>
    <tr valign=Bottom>

      <td align=LEFT width="67%"><font size=1>GRUPO SIMEC, S.A. DE C.V</font></td>
      <td align=LEFT width="33%"><font size=1></font></td>
    </tr>
    <tr valign=Bottom>
      <td align=LEFT width="67%">&nbsp;</td>
      <td align=LEFT width="33%">&nbsp;</td>
    </tr>


    <tr valign=Bottom>

      <td align=center width="67%">&nbsp;</td>
      <td align=center width="33%"><font size=1>CONSOLIDATED</font></td>
    </tr>



  </table>
</div>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>

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<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>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LUIS GARCIA LIMON AND JOSE FLORES
FLORES 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><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</P>
<div align="center">
  <table width="640" border="0" cellspacing="0" cellpadding="0">
    <tr>
      <td align="center">
        <div align="center"></div>
        <p><b><font face="Times New Roman, Times, Serif" size="1">ING LUIS GARCIA LIMON <br>
          CHIEF EXECUTIVE OFFICER
          </font></b></p>
      </td>
      <td align="center"><b><font size="1">&nbsp;&nbsp;&nbsp;</font></b></td>
      <td align="center"><b><font face="Times New Roman, Times, Serif" size="1">C.P. JOSE FLORES FLORES <br>
          CHIEF
CORPORATE FINANCIAL PLANNING OFFICER</font></b></td>
    </tr>
    <tr>
      <td colspan="3" align="center">&nbsp;</td>
    </tr>

    <tr>
      <td colspan="3" align="center"><b><font face="Times New Roman, Times, Serif" size="1">GUADALAJARA, JAL, AT APRIL 20 OF
2005 </font></b></td>
    </tr>
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  <br>
  <br>
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