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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000891092-05-000923.txt : 20050510
<SEC-HEADER>0000891092-05-000923.hdr.sgml : 20050510
<ACCEPTANCE-DATETIME>20050510161603
ACCESSION NUMBER:		0000891092-05-000923
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050510
FILED AS OF DATE:		20050510
DATE AS OF CHANGE:		20050510

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:		05816887

	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>e20871_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>




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

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<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>FORM 6-K </B></FONT></P>
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<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=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>
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<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the month of May, 2005. </FONT></P>

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<P ALIGN=center>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">Group Simec, Inc.</FONT>
<hr size="1" noshade align="center">
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
  (Translation of Registrant&#146;s Name Into
English) </FONT> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</div>
<p align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Mexico</FONT>
<hr size="1" noshade align="center">
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
  (Jurisdiction of incorporation or
organization) </FONT> <!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
</div>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">Av.
Lazaro Cardenas 601, Colonia la
Nogalera, Guadalajara, Jalisco,
Mexico 44440</FONT>
<hr size="1" noshade>
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
  (Address of
principal executive office) </FONT> <!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</div>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Indicate by check mark whether the
registrant files or will file annual reports under cover of Form 20-F or Form 40-F.) </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 20-F |<U>X</U>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 40-F |<U>&nbsp;&nbsp;&nbsp;</U>| </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Indicate by check mark whether the
registrant by furnishing the information contained in this form is also thereby
furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.) </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes |<U>&nbsp;&nbsp;&nbsp;</U>|&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No |<U>X</U>| </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(If &#147;Yes&#148; is marked, indicate below
the file number assigned to the registrant in connection with Rule 12g3-2(b):
82-_______________________.) </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the Company has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></P>

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<table width="100%" border="0" cellspacing="0" cellpadding="0">

  <tr>
    <td width="58%">&nbsp;</td>
    <td width="4%" align="left" valign="top">&nbsp;</td>
    <td width="38%" align="left" valign="top"><font face="Times New Roman, Times, Serif" size=2>GRUPO SIMEC, S.A. de C.V.</font>
      <hr size="1" noshade align="left" width="175">
      <font face="Times New Roman, Times, Serif" size=2>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant) </font></td>
  </tr>
  <tr>
    <td width="58%">&nbsp;</td>
    <td width="4%" align="left" valign="top">&nbsp;</td>
    <td width="38%" align="left" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td width="58%" align="left" valign="top"><font face="Times New Roman, Times, Serif" size=2>Date:
      May 9, 2005.</font></td>
    <td width="4%" align="left" valign="top"><font face="Times New Roman, Times, Serif" size=2>By:</font></td>
    <td width="38%" align="left" valign="top">/s/ <font face="Times New Roman, Times, Serif" size=2>Luis Garc&#237;a Lim&#243;n</font>
      <hr size="1" noshade align="left" width="175">
    </td>
  </tr>
  <tr>
    <td width="58%">&nbsp;</td>
    <td width="4%" align="left" valign="top"><font face="Times New Roman, Times, Serif" size=2>Name:</font></td>
    <td width="38%" align="left" valign="top"><font face="Times New Roman, Times, Serif" size=2>Luis Garc&#237;a Lim&#243;n</font></td>
  </tr>
  <tr>
    <td width="58%">&nbsp;</td>
    <td width="4%" align="left" valign="top"><font face="Times New Roman, Times, Serif" size=2>Title:</font></td>
    <td width="38%" align="left" valign="top">
      <p><font face="Times New Roman, Times, Serif" size=2>Chief Executive Officer </font></p>
      <!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
</td>
  </tr>
</table>
<p>&nbsp;</p><TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><BR>






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<P>&nbsp;</P>



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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="60%"><img src="simeclogo.gif" width="135" height="42"></td>
    <td width="40%" colspan="2"><img src="simeclogo.gif" width="135" height="42"></td>
  </tr>
  <tr align="left" valign="top">
    <td width="60%"><font face="Times New Roman, Times, Serif" size=2><b>PRESS
      RELEASE </b></font></td>
    <td width="10%"><font face="Times New Roman, Times, Serif" size=2>Contact:</font></td>
    <td width="30%"><font face="Times New Roman, Times, Serif" size=2>Adolfo Luna
      Luna <br>
      Jos&#233; Flores Flores <br>
      Grupo Simec, S.A. de C.V. <br>
      Calzada Lazaro Cardenas 601 <br>
      44440 Guadalajara, Jalisco, Mexico <br>
      52 33 1057 5740</font></td>
  </tr>
</table>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>GRUPO SIMEC
ANNOUNCES FINAL AUDITED RESULTS OF OPERATIONS FOR THE YEAR <BR>
  ENDED DECEMBER 31, 2004 </B></FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GUADALAJARA, MEXICO, May 4, 2005-
Grupo Simec, S.A. de C.V. (AMEX-SIM) (&#147;Simec&#148;) announced today its final audited results
of operations for the year ended December 31, 2004. Net sales increased 94% to Ps. 5,683
million in 2004 (including the net sales recorded since August 1, 2004 generated by the
newly acquired plants in Apizaco and Cholula of Ps. 1,193 million), compared to Ps. 2,930
million in 2003, primarily due to higher finished product prices and also resulting from
higher production levels. Primarily as a result of the foregoing, Simec recorded net
income of Ps. 1,406 million in 2004 versus net income of Ps. 308 million in 2003. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On September 10, 2004 Simec
completed the acquisition of the property, plant and equipment and the inventories, and
assumed liabilities associated with seniority premiums of employees of the Mexican
steel-making facilities of Industr&#237;as Ferricas del Norte, S.A. (Corporaci&#243;n
Sidenor of Spain) located in Apizaco, Tlaxcala and Cholula, Puebla. Simec&#146;s total
investment in this transaction was approximately U.S. $135 million, funded with
internally generated resources of Simec and capital contributions from its parent company
Industrias CH, S.A. de C.V. (&#147;ICH&#148;) 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 operations of both plants are
reflected in Simec&#146;s financial results as of such date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec sold 773,297 metric tons of
basic steel products during 2004 (including 155,614 tons produced by the newly acquired
plants in Apizaco and Cholula), an increase of 23% as compared to 628,243 metric tons in
2003. Exports of basic steel products were 97,126 metric tons in 2004 (including 12,394
tons produced by the newly acquired plants in Apizaco and Cholula) versus 80,744 metric
tons in 2003. Additionally Simec sold 41,832 tons of billet in 2004 as compared to 63,616
tons of billet in 2003. Prices of finished products sold in 2004 increased 63% in real
terms versus 2003. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s direct cost of sales was Ps.
3,303 million in 2004 (including Ps. 834 million relating to the newly acquired plants in
Apizaco and Cholula), or 58% of net sales, versus Ps. 1,925 million, or 66% of net sales,
for 2003. The average cost of raw materials used to produce steel products increased 45%
in real terms in 2004 versus 2003, 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. 571 million during 2004
(including Ps. 73 million relating to the newly acquired plants in Apizaco and Cholula),
compared to Ps. 488 million in 2003. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s operating income increased
250% to Ps. 1,809 million during 2004 (including Ps. 286 million relating to the newly
acquired plants in Apizaco and Cholula) from Ps. 517 million in 2003. Operating income
was 32% of net sales in 2004 compared to 18% of net sales in 2003. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded other expense, net,
of Ps. 37 million in 2004 compared to other expense, net, of Ps. 31 million in 2003. In
addition, Simec recorded a provision for income tax and employee profit sharing of Ps.
330 million in 2004 versus a provision of Ps. 152 million in 2003. </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: 9; page: 9" -->




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded financial expense of
Ps. 36 million in 2004 compared to financial expense of Ps. 26 million in 2003 as a
result of (i) net interest income of Ps. 6 million in 2004 compared to net interest
expense of Ps. 13 million in 2003, (ii) an exchange gain of Ps. 4 million in 2004
compared to an exchange loss of Ps. 3 million in 2003, reflecting lower debt levels
during 2004 and a decrease of 0.3% in the value of the peso versus the dollar in 2004
compared to a decrease of 9% in the value of the peso versus the dollar in 2003 and (iii)
a loss from monetary position of Ps. 46 million in 2004 compared to a loss from monetary
position of Ps. 10 million in 2003, reflecting the domestic inflation rate of 5.2% in
2004 compared to the domestic inflation rate of 4% in 2003 and lower debt levels during
the 2004 period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At December 31, 2004, Simec&#146;s total
consolidated debt consisted of approximately $13.9 million of U.S. dollar denominated
debt, including indebtedness in respect of a letter of credit of $13.6 million. At
December 31, 2003, Simec had outstanding approximately $2 million of U.S.
dollar-denominated debt. In March 2004, Simec prepaid the remainder of its outstanding
bank debt. At December 31, 2004 Simec owed no debt to ICH. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All figures were prepared in
accordance with Mexican generally accepted accounting principles and are stated in
constant Pesos at December 31, 2004. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec is a mini-mill steel producer
in Mexico and manufactures a broad range of non-flat structural steel products. </FONT></P>

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


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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><BR>






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




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

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE:  &nbsp;&nbsp;<b>SIMEC</b> <br>
      GRUPO SIMEC, S.A. DE C.V.
      </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><font size="1">CONSOLIDATED
FINANCIAL STATEMENT <BR>
  </font></B><font size="1">AT DECEMBER 31 OF
2004 AND 2003 </font><B><font size="1"><BR>
  </font></B><font size="1">(thousands of
pesos)  </font></FONT> </P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=4><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=4><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>S</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=6% align=RIGHT><font size="1"><b>1</b> </font></td>
    <td width=4% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=45% align=LEFT><font size="1"><b>TOTAL ASSETS</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>8,947,596</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>6,316,897</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>2</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>CURRENT ASSETS</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>2,801,907</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>31</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>1,325,343</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>21</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>3</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>CASH AND SHORT-TERM INVESTMENTS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>506,475</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>6</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>542,940</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>9</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>4</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>ACCOUNTS AND DOCUMENTS RECEIVABLE
      (NET)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>963,201</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>11</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>453,699</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>7</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>5</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>193,778</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>2</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>20,055</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>6</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>INVENTORIES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1,129,862</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>13</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>303,885</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>5</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>7</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>OTHER CURRENT ASSETS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>8,591</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>4,764</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>8</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>LONG-TERM</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>10,835</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>9</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>ACCOUNTS AND DOCUMENTS RECEIVABLE
      (NET)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>10,835</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%" valign="top"><font size=1>10</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>INVESTMENT IN SHARES OF SUBSIDIARIES
      AND NON-CONSOLIDATED</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>11</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>OTHER INVESTMENTS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>12</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>PROPERTY, PLANT AND EQUIPMENT</b>
      </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>5,842,382</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>65</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>4,709,665</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>75</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>13</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>PROPERTY</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>2,179,647</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>24</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>2,017,328</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>32</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>14</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>MACHINERY AND INDUSTRIAL</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>5,924,279</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>66</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>4,750,394</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>75</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>15</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>OTHER EQUIPMENT</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>151,170</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>2</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>142,523</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>2</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>16</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>ACCUMULATED DEPRECIATION</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>2,423,854</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>27</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>2,201,129</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>35</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>17</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>CONSTRUCTION IN PROGRESS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>11,140</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>549</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>18</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>DEFERRED ASSETS (NET)</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>303,307</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>3</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>271,055</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>4</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>19</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>OTHER ASSETS</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="100%" colspan="12">
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>20</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>TOTAL LIABILITIES</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>2,363,766</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>1,450,344</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>21</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>CURRENT LIABILITIES</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>909,352</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>38</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>341,351</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>24</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>22</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>SUPPLIERS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>588,884</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>25</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>217,696</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>15</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>23</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>BANK LOANS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>153,124</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>6</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>20,069</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>24</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>STOCK MARKET LOANS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>3,402</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>3,569</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>25</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>TAXES TO BE PAID</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>38,628</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>2</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>40,993</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>3</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>26</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>OTHER CURRENT LIABILITIES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>125,314</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>5</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>59,024</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>4</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>27</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>LONG-TERM LIABILITIES</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>28</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>BANK LOANS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>29</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>STOCK MARKET LOANS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>30</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>OTHER LOANS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>31</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>DEFERRED LOANS</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>1,454,414</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>62</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>1,108,993</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>76</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>32</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>OTHER LIABILITIES</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="100%" colspan="12">
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>33</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>CONSOLIDATED STOCKHOLDERS&#146;
      EQUITY</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>6,583,830</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>4,866,553</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>34</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>MINORITY INTEREST</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>310</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>264</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>35</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>MAJORITY INTEREST</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>6,583,520</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>4,866,289</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>36</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>CONTRIBUTED CAPITAL</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>4,154,610</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>63</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>3,909,419</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>80</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>37</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>PAID-IN CAPITAL STOCK (NOMINAL)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1,948,155</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>30</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1,925,252</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>40</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>38</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>RESTATEMENT OF PAID-IN CAPITAL STOCK</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1,329,185</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>20</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1,328,345</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>27</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>39</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>PREMIUM ON SALES OF SHARES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>655,822</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>10</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>655,822</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>13</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>40</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>221,448</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>3</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>41</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>CAPITAL INCREASE (DECREASE)</b>
      </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>2,428,910</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>37</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>956,870</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>20</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>42</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>RETAINES EARNINGS AND CAPITAL RESERVE</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1,624,504</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>25</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1,316,315</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>27</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>43</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>REPURCHASE FUND OF SHARES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>84,226</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>84,226</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>2</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%" valign="top"><font size=1>44</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>EXCESS (SHORTFALL) IN RESTATEMENT
      OF STOCKHOLDERS EQUITY</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>(686,212</font></td>
    <td align=LEFT width="3%"><font size=1>)</font></td>
    <td align=RIGHT width="8%"><font size=1>(10</font></td>
    <td align=LEFT width="3%"><font size=1>)</font></td>
    <td align=RIGHT width="8%"><font size=1>(751,860</font></td>
    <td align=LEFT width="3%"><font size=1>)</font></td>
    <td align=RIGHT width="8%"><font size=1>(15</font></td>
    <td align=LEFT width="2%"><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>45</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>NET INCOME FOR THE YEAR</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1,406,392</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>21</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>308,189</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>6</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<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: 11; page: 11" -->




<!-- MARKER FORMAT-SHEET="Center Head 3 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><font size="1">CONSOLIDATED
  FINANCIAL STATEMENT <BR>
  </font></B><font size="1">BREAKDOWN OF MAIN CATEGORIES <BR>
  (thousands of pesos) </font></FONT> </P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><B>JUDGED INFORMATION
  </B></FONT></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=4><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=4><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>S</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=RIGHT><font size="1"><b>3</b> </font></td>
    <td width=4% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=50% align=LEFT><font size="1"><b>CASH AND SHORT-TERM INVESTMENTS</b>
      </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>506,475</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>542,940</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>46</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>CASH</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>171,476</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>34</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>173,304</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>32</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>47</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>SHORT-TERM INVESTMENTS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>334,999</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>66</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>369,636</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>68</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>18</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="50%"><font size="1"><b>DEFERRED ASSETS (NET)</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>303,307</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>271,054</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>48</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>AMORTIZED OR REDEEMED EXPENSES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>230,089</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>76</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>271,054</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>100</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>49</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>GOODWILL</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>50</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>DEFERRED TAXES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>51</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>OTHERS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>73,218</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>24</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>21</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="50%"><font size="1"><b>CURRENT LIABILITIES</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>909,352</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>341,351</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>52</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>FOREIGN CURRENCY LIABILITIES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>373,025</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>41</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>88,549</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>26</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>53</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>MEXICAN PESOS LIABILITIES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>536,327</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>59</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>252,802</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>74</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>24</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="50%"><font size="1"><b>STOCK MARKET LOANS</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>3,402</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>3,569</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>54</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>COMMERCIAL PAPER</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>55</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>CURRENT MATURITIES OF MEDIUM TERM
      NOTES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>3,402</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>100</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>3,569</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>100</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>56</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>CURRENT MATURITIES OF BONDS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>26</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="50%"><font size="1"><b>OTHER CURRENT LIABILITIES</b>
      </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>125,314</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>59,024</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>57</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>OTHER CURRENT LIABILITIES WITH COST</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>58</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>OTHER CURRENT LIABILITIES WITHOUT
      COST</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>125,314</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>100</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>59,024</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>100</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>27</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="50%"><font size="1"><b>LONG-TERM LIABILITIES</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>59</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>FOREIGN CURRENCY LIABILITIES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>60</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>MEXICAN PESOS LIABILITIES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>29</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="50%"><font size="1"><b>STOCK MARKET LOANS</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>61</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>BONDS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>62</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>MEDIUM TERM NOTES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>30</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="50%"><font size="1"><b>OTHER LOANS</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>63</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>OTHER LOANS WITH COST</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>64</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>OTHER LOANS WITHOUT COST</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>31</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="50%"><font size="1"><b>DEFERRED LOANS</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>1,454,414</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>1,108,993</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>65</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>NEGATIVE GOODWILL</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>66</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>DEFERRED TAXES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>1,433,194</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>99</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>1,099,539</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>99</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>67</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>OTHERS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>21,220</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>1</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>9,454</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>1</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>32</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="50%"><font size="1"><b>OTHER LIABILITIES</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>68</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>RESERVES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>69</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>OTHER LIABILITIES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%" valign="top"><font size="1"><b>44</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="50%"><font size="1"><b>EXCESS (SHORTFALL) IN RESTATEMENT
      OF STOCKHOLDERS&#146; EQUITY</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>(686,212</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>)</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>(100</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>)</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>(751,860</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>)</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>(100</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>)</b> </font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>70</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>ACCUMULATED INCOME DUE TO MONETARY
      POSITION</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>(686,212</font></td>
    <td align=LEFT width="3%"><font size=1>)</font></td>
    <td align=RIGHT width="7%"><font size=1>(100</font></td>
    <td align=LEFT width="3%"><font size=1>)</font></td>
    <td align=RIGHT width="7%"><font size=1>(751,860</font></td>
    <td align=LEFT width="3%"><font size=1>)</font></td>
    <td align=RIGHT width="7%"><font size=1>(100</font></td>
    <td align=LEFT width="2%"><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>71</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="50%"><font size=1>INCOME FROM NON-MONETARY POSITION
      ASSETS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<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: 12; page: 12" -->



<!-- MARKER FORMAT-SHEET="Center Head 3 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<div align="center"><br>
  <font face="Times New Roman, Times, Serif" size="1"><B>CONSOLIDATED FINANCIAL
  STATEMENT <BR>
  </B>OTHER CONCEPTS <BR>
  (thousands of pesos) </font> <font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
  </font></div>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>S</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
  </tr>
  <tr valign=Bottom>
    <th colspan=8>
      <hr noshade size=1>
    </th>
  </tr>
  <tr valign=Bottom>
    <th colspan=8>
      <hr noshade size=1>
    </th>
  </tr>
  <tr valign=Bottom>
    <td width=9% align=RIGHT> <font size=1>72</font></td>
    <td width=8% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=47% align=LEFT><font size=1>WORKING CAPITAL</font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1>1,892,555</font></td>
    <td width=5% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=11% align=RIGHT><font size=1>983,992</font></td>
    <td width=5% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="9%"><font size=1>73</font></td>
    <td align=LEFT width="8%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="47%"><font size=1>PENSIONS FUND AND SENIORITY PREMIUMS</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="9%"><font size=1>74</font></td>
    <td align=LEFT width="8%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="47%"><font size=1>EXECUTIVES (*)</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>22</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size=1>25</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="9%"><font size=1>75</font></td>
    <td align=LEFT width="8%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="47%"><font size=1>EMPLOYERS (*)</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>802</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size=1>374</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="9%"><font size=1>76</font></td>
    <td align=LEFT width="8%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="47%"><font size=1>WORKERS (*)</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>1,194</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size=1>889</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="9%"><font size=1>77</font></td>
    <td align=LEFT width="8%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="47%"><font size=1>COMMON SHARES (*)</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>133,542,984</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size=1>131,973,022</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="9%"><font size=1>78</font></td>
    <td align=LEFT width="8%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="47%"><font size=1>REPURCHASED SHARES (*)</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<P><font face="Times New Roman, Times, Serif" size="1">(*) THESE ITEMS SHOULD
  BE EXPRESSED IN UNITS </font></P>



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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><BR>





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<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>MEXICAN
  STOCK EXCHANGE <BR>
  SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><font size="1">CONSOLIDATED
  EARNING STATEMENT <BR>
  </font></B><font size="1">FROM JANUARY 1 TO DECEMBER 31 OF 2004 AND 2003 <BR>
  (thousands of pesos) </font></FONT> </P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION</B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=4><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=4><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>R</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width=26><font size="1"><b>1</b> </font></td>
    <td align=LEFT width=16><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width=470><font size="1"><b>NET SALES</b> </font></td>
    <td align=LEFT width=4><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width=50><font size="1"><b>5,682,952</b> </font></td>
    <td align=LEFT width=25><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width=20><font size="1"><b>100</b> </font></td>
    <td align=LEFT width=4><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width=50><font size="1"><b>2,930,138</b> </font></td>
    <td align=LEFT width=4><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width=20><font size="1"><b>100</b> </font></td>
    <td align=LEFT width=11><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size=1>2</font></td>
    <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="470"><font size=1>COST OF SALES</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>3,302,887</font></td>
    <td align=LEFT width="25"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>58</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>1,924,957</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>66</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size="1"><b>3</b> </font></td>
    <td align=LEFT width="16"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="470"><font size="1"><b>GROSS INCOME</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>2,380,065</b> </font></td>
    <td align=LEFT width="25"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>42</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>1,005,181</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>34</b> </font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size=1>4</font></td>
    <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="470"><font size=1>OPERATING EXPENSES</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>570,449</font></td>
    <td align=LEFT width="25"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>10</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>487,754</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>17</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size="1"><b>5</b> </font></td>
    <td align=LEFT width="16"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="470"><font size="1"><b>OPERATING INCOME</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>1,809,616</b> </font></td>
    <td align=LEFT width="25"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>32</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>517,427</b> </font></td>
    <td align=LEFT width="4"><font size="1">&nbsp; </font></td>
    <td align=RIGHT width="20"><font size="1"><b>18</b> </font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size=1>6</font></td>
    <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="470"><font size=1>TOTAL FINANCING COST</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>36,185</font></td>
    <td align=LEFT width="25"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>1</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>25,679</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>1</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size="1"><b>7</b> </font></td>
    <td align=LEFT width="16"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="470"><font size="1"><b>INCOME AFTER FINANCING COST</b>
      </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>1,773,431</b> </font></td>
    <td align=LEFT width="25"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>31</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>491,748</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>17</b> </font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size=1>8</font></td>
    <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="470"><font size=1>OTHER FINANCIAL OPERATIONS</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>36,658</font></td>
    <td align=LEFT width="25"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>1</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>31,158</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>1</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size="1"><b>9</b> </font></td>
    <td align=LEFT width="16"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="470"><font size="1"><b>INCOME BEFORE TAXES AND WORKERS&#146;
      PROFIT SHARING</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>1,736,773</b> </font></td>
    <td align=LEFT width="25"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>31</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>460,590</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>16</b> </font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size=1>10</font></td>
    <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="470"><font size=1>RESERVE FOR TAXES AND WORKERS&#146;
      PROFIT SHARING</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>330,381</font></td>
    <td align=LEFT width="25"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>6</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>152,400</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>5</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size="1"><b>11</b> </font></td>
    <td align=LEFT width="16"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="470"><font size="1"><b>NET INCOME AFTER TAXES AND WORKERS&#146;
      PROFIT SHARING</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>1,406,392</b> </font></td>
    <td align=LEFT width="25"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>25</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>308,190</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>11</b> </font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size=1>12</font></td>
    <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="470"><font size=1>SHARE IN NET INCOME OF SUBSIDIARIES
      AND NON-CONSOLIDATED ASSOCIATES</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>0</font></td>
    <td align=LEFT width="25"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>0</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>0</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>0</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size="1"><b>13</b> </font></td>
    <td align=LEFT width="16"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="470"><font size="1"><b>CONSOLIDATED NET INCOME FROM
      CONTINUOS OPERATIONS</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>1,406,392</b> </font></td>
    <td align=LEFT width="25"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>25</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>308,190</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>11</b> </font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size=1>14</font></td>
    <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="470"><font size=1>INCOME FROM DISCONTINUOUS OPERATIONS</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>0</font></td>
    <td align=LEFT width="25"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>0</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>0</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>0</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size="1"><b>15</b> </font></td>
    <td align=LEFT width="16"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="470"><font size="1"><b>CONSOLIDATED NET INCOME BEFORE
      EXTRAORDINARY ITEMS</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>1,406,392</b> </font></td>
    <td align=LEFT width="25"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>25</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>308,190</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>11</b> </font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size=1>16</font></td>
    <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="470"><font size=1>EXTRAORDINARY ITEMS NET EXPENSES (INCOME)</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>0</font></td>
    <td align=LEFT width="25"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>0</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>0</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>0</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size=1>17</font></td>
    <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="470"><font size=1>NET EFFECT AT THE BEGINNING OF THE
      YEAR BY CHANGES IN ACCOUNTING PRINCIPLES</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>0</font></td>
    <td align=LEFT width="25">&nbsp;</td>
    <td align=RIGHT width="20"><font size=1>0</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>0</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>0</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size="1"><b>18</b> </font></td>
    <td align=LEFT width="16"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="470"><font size="1"><b>NET CONSOLIDATED INCOME</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>1,406,392</b> </font></td>
    <td align=LEFT width="25"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>25</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="50"><font size="1"><b>308,190</b> </font></td>
    <td align=LEFT width="4"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="20"><font size="1"><b>11</b> </font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size=1>19</font></td>
    <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="470"><font size=1>NET INCOME OF MINORITY INTEREST</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>0</font></td>
    <td align=LEFT width="25"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>0</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>1</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>0</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="26"><font size=1>20</font></td>
    <td align=LEFT width="16"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="470"><font size=1>NET INCOME OF MAJORITY INTEREST</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>1,406,392</font></td>
    <td align=LEFT width="25"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>25</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="50"><font size=1>308,189</font></td>
    <td align=LEFT width="4"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="20"><font size=1>11</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><BR>





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




<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>MEXICAN
  STOCK EXCHANGE <BR>
  SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><font size="1">CONSOLIDATED
  EARNING STATEMENT <BR>
  </font></B><font size="1">BREAKDOWN OF MAIN CONCEPTS <BR>
  (thousands of pesos) </font></FONT> </P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=4><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=4><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>R</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=6% align=RIGHT><font size="1"><b>1</b> </font></td>
    <td width=5% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=40% align=LEFT><font size="1"><b>NET SALES</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=9% align=RIGHT><font size="1"><b>5,682,952</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=5% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=9% align=RIGHT><font size="1"><b>2,930,138</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>21</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>DOMESTIC</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>5,076,148</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>89</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>2,594,400</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>89</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>22</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>FOREIGN</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>606,804</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>11</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>335,738</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>11</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>23</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>TRANSLATED INTO DOLLARS (***)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>52,468</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>28,810</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>6</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="40%"><font size="1"><b>TOTAL FINANCING COST</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="9%"><font size="1"><b>36,185</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="9%"><font size="1"><b>25,679</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>24</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>INTEREST PAID</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>16,237</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>45</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>18,672</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>73</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>25</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>EXCHANGE LOSSES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>2,676</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>10</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>26</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>INTEREST EARNED</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>21,806</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>60</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>5,692</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>22</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>27</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>EXCHANGE PROFITS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>3,833</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>11</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>28</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>(GAIN) LOSS FROM MONETARY POSITION</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>45,587</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>126</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>10,023</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>39</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>8</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="40%"><font size="1"><b>OTHER FINANCIAL OPERATIONS</b>
      </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="9%"><font size="1"><b>36,658</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="5%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="9%"><font size="1"><b>31,158</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>29</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>OTHER NET EXPENSES (INCOME) NET</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>36,658</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>100</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>31,158</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>100</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>30</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>(PROFIT) LOSS ON SALE OF OWN SHARES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>31</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>(PROFIT) LOSS ON SALE OF SHORT-TERM
      INVESTMENTS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>10</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>RESERVE FOR TAXES AND WORKERS&#146;
      PROFIT SHARING</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>330,381</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>100</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>152,400</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>100</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>32</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>INCOME TAX</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>22,246</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>7</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>28,151</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>18</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>33</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>DEFERRED INCOME TAX</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>308,135</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>93</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>119,151</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>78</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>34</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>5,098</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>3</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>35</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="40%"><font size=1>DEFERRED WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<P><font face="Times New Roman, Times, Serif" size="1">(***) THOUSANDS OF DOLLARS
  </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>





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



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>MEXICAN
  STOCK EXCHANGE <BR>
  SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><font size="1">CONSOLIDATED
  EARNING STATEMENT <BR>
  </font></B><font size="1">OTHER CONCEPTS <BR>
  (thousands of pesos) </font></FONT> </P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>R</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
  </tr>
  <tr valign=Bottom>
    <th colspan=8>
      <hr noshade size=1>
    </th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=10% align=RIGHT><font size=1>36</font></td>
    <td width=9% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=41% align=LEFT><font size=1>TOTAL SALES</font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1>6,010,077</font></td>
    <td width=7% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=11% align=RIGHT><font size=1>3,141,101</font></td>
    <td width=6% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="10%"><font size=1>37</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="41%"><font size=1>NET FISCAL INCOME OF THE YEAR</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="10%"><font size=1>38</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="41%"><font size=1>NET SALES (**)</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>5,682,952</font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size=1>2,930,138</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="10%"><font size=1>39</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="41%"><font size=1>OPERATION INCOME (**)</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>1,809,616</font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size=1>517,427</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="10%"><font size=1>40</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="41%"><font size=1>NET INCOME OF MAJORITY INTEREST (**)</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>1,406,392</font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size=1>308,189</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="10%"><font size=1>41</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="41%"><font size=1>NET CONSOLIDATED INCOME (**)</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>1,406,392</font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size=1>308,190</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<P><font face="Times New Roman, Times, Serif" size="1">(**) THE RESTATED INFORMATION
  FOR THE LAST TWELVE MONTHS SHOULD BE USED </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>





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




<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>MEXICAN
  STOCK EXCHANGE <BR>
  SIFIC / ICS </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P ALIGN=CENTER> <FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><font size="1">CONSOLIDATED
  EARNING STATEMENTOF THE SECOND QUARTER <BR>
  </font></B><font size="1">FROM OCTOBER 1 TO DECEMBER 31 OF 2004 AND 2003 <BR>
  (thousands of pesos) </font></FONT> </P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=4><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=4><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>R</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width=33><font size="1"><b>1</b> </font></td>
    <td align=LEFT width=23><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width=351><font size="1"><b>NET SALES</b> </font></td>
    <td align=LEFT width=17><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width=66><font size="1"><b>1,733,068</b> </font></td>
    <td align=LEFT width=21><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width=41><font size="1"><b>100</b> </font></td>
    <td align=LEFT width=19><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width=61><font size="1"><b>795,063</b> </font></td>
    <td align=LEFT width=22><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width=31><font size="1"><b>100</b> </font></td>
    <td align=LEFT width=15><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size=1>2</font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="351"><font size=1>COST OF SALES</font></td>
    <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>1,053,246</font></td>
    <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>61</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="61"><font size=1>526,906</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="31"><font size=1>66</font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size="1"><b>3</b> </font></td>
    <td align=LEFT width="23"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="351"><font size="1"><b>GROSS INCOME</b> </font></td>
    <td align=LEFT width="17"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="66"><font size="1"><b>679,822</b> </font></td>
    <td align=LEFT width="21"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="41"><font size="1"><b>39</b> </font></td>
    <td align=LEFT width="19"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="61"><font size="1"><b>268,157</b> </font></td>
    <td align=LEFT width="22"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="31"><font size="1"><b>34</b> </font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size=1>4</font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="351"><font size=1>OPERATING EXPENSES</font></td>
    <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>157,347</font></td>
    <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>9</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="61"><font size=1>116,606</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="31"><font size=1>15</font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size="1"><b>5</b> </font></td>
    <td align=LEFT width="23"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="351"><font size="1"><b>OPERATING INCOME</b> </font></td>
    <td align=LEFT width="17"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="66"><font size="1"><b>522,475</b> </font></td>
    <td align=LEFT width="21"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="41"><font size="1"><b>30</b> </font></td>
    <td align=LEFT width="19"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="61"><font size="1"><b>151,551</b> </font></td>
    <td align=LEFT width="22"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="31"><font size="1"><b>19</b> </font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size=1>6</font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="351"><font size=1>TOTAL FINANCING COST</font></td>
    <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>20,133</font></td>
    <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>1</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="61"><font size=1>(118</font></td>
    <td align=LEFT width="22"><font size=1>)</font></td>
    <td align=RIGHT width="31"><font size=1>0</font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size="1"><b>7</b> </font></td>
    <td align=LEFT width="23"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="351"><font size="1"><b>INCOME AFTER FINANCING COST</b>
      </font></td>
    <td align=LEFT width="17"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="66"><font size="1"><b>502,342</b> </font></td>
    <td align=LEFT width="21"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="41"><font size="1"><b>29</b> </font></td>
    <td align=LEFT width="19"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="61"><font size="1"><b>151,669</b> </font></td>
    <td align=LEFT width="22"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="31"><font size="1"><b>19</b> </font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size=1>8</font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="351"><font size=1>OTHER FINANCIAL OPERATIONS</font></td>
    <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>53,291</font></td>
    <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>3</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="61"><font size=1>31,455</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="31"><font size=1>4</font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size="1"><b>9</b> </font></td>
    <td align=LEFT width="23"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="351"><font size="1"><b>INCOME BEFORE TAXES AND WORKERS&#146;
      PROFIT SHARING</b> </font></td>
    <td align=LEFT width="17"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="66"><font size="1"><b>449,051</b> </font></td>
    <td align=LEFT width="21"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="41"><font size="1"><b>26</b> </font></td>
    <td align=LEFT width="19"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="61"><font size="1"><b>120,214</b> </font></td>
    <td align=LEFT width="22"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="31"><font size="1"><b>15</b> </font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size=1>10</font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="351"><font size=1>RESERVE FOR TAXES AND WORKERS&#146;
      PROFIT SHARING</font></td>
    <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>103,395</font></td>
    <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>6</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="61"><font size=1>112,431</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="31"><font size=1>14</font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size="1"><b>11</b> </font></td>
    <td align=LEFT width="23"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="351"><font size="1"><b>NET INCOME AFTER TAXES AND WORKERS&#146;
      PROFIT SHARING</b> </font></td>
    <td align=LEFT width="17"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="66"><font size="1"><b>345,656</b> </font></td>
    <td align=LEFT width="21"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="41"><font size="1"><b>20</b> </font></td>
    <td align=LEFT width="19"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="61"><font size="1"><b>7,783</b> </font></td>
    <td align=LEFT width="22"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="31"><font size="1"><b>1</b> </font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33" valign="top"><font size=1>12</font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="351"><font size=1>SHARE IN NET INCOME OF SUBSIDIARIES
      AND NON-CONSOLIDATED <br>
      ASSOCIATES</font></td>
    <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>0</font></td>
    <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>0</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="61"><font size=1>0</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="31"><font size=1>0</font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size="1"><b>13</b> </font></td>
    <td align=LEFT width="23"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="351"><font size="1"><b>CONSOLIDATED NET INCOME FROM
      CONTINUOS OPERATIONS</b> </font></td>
    <td align=LEFT width="17"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="66"><font size="1"><b>345,656</b> </font></td>
    <td align=LEFT width="21"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="41"><font size="1"><b>20</b> </font></td>
    <td align=LEFT width="19"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="61"><font size="1"><b>7,783</b> </font></td>
    <td align=LEFT width="22"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="31"><font size="1"><b>1</b> </font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size=1>14</font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="351"><font size=1>INCOME FROM DISCONTINUOUS OPERATIONS</font></td>
    <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>0</font></td>
    <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>0</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="61"><font size=1>0</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="31"><font size=1>0</font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size="1"><b>15</b> </font></td>
    <td align=LEFT width="23"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="351"><font size="1"><b>CONSOLIDATED NET INCOME BEFORE
      EXTRAORDINARY ITEMS</b> </font></td>
    <td align=LEFT width="17"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="66"><font size="1"><b>345,656</b> </font></td>
    <td align=LEFT width="21"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="41"><font size="1"><b>20</b> </font></td>
    <td align=LEFT width="19"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="61"><font size="1"><b>7,783</b> </font></td>
    <td align=LEFT width="22"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="31"><font size="1"><b>1</b> </font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size=1>16</font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="351"><font size=1>EXTRAORDINARY ITEMS NET EXPENSES (INCOME)</font></td>
    <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>0</font></td>
    <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>0</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="61"><font size=1>0</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="31"><font size=1>0</font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33" valign="top"><font size=1>17</font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="351"><font size=1>NET EFFECT AT THE BEGINNING OF THE
      YEAR BY CHANGES IN <br>
      ACCOUNTING PRINCIPLES</font></td>
    <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>0</font></td>
    <td align=LEFT width="21">&nbsp;</td>
    <td align=RIGHT width="41"><font size=1>0</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="61"><font size=1>0</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="31"><font size=1>0</font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size="1"><b>18</b> </font></td>
    <td align=LEFT width="23"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="351"><font size="1"><b>NET CONSOLIDATED INCOME</b> </font></td>
    <td align=LEFT width="17"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="66"><font size="1"><b>345,656</b> </font></td>
    <td align=LEFT width="21"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="41"><font size="1"><b>20</b> </font></td>
    <td align=LEFT width="19"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="61"><font size="1"><b>7,783</b> </font></td>
    <td align=LEFT width="22"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="31"><font size="1"><b>1</b> </font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size=1>19</font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="351"><font size=1>NET INCOME OF MINORITY INTEREST</font></td>
    <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>0</font></td>
    <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>0</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="61"><font size=1>1</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="31"><font size=1>0</font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="33"><font size=1>20</font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="351"><font size=1>NET INCOME OF MAJORITY INTEREST</font></td>
    <td align=LEFT width="17"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>345,656</font></td>
    <td align=LEFT width="21"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>20</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="61"><font size=1>7,782</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="31"><font size=1>1</font></td>
    <td align=LEFT width="15"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><BR>





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



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>MEXICAN
  STOCK EXCHANGE <BR>
  SIFIC / ICS </B></FONT></P>
<font size="2"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P ALIGN=CENTER> <FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><font size="1">CONSOLIDATED
  EARNING STATEMENT OF THE SECOND QUARTER <BR>
  </font></B><font size="1">BREAKDOWN OF MAIN CONCEPTS <BR>
  FROM OCTOBER 1 TO DECEMBER 31 OF 2004 AND 2003 <BR>
  (thousands of pesos) </font></FONT> </P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=4><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=4><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>R</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>%</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=6% align=RIGHT><font size="1"><b>1</b> </font></td>
    <td width=4% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=45% align=LEFT><font size="1"><b>NET SALES</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>1,733,068</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=7% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=4% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>795,063</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=6% align=RIGHT><font size="1"><b>100</b> </font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>21</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>DOMESTIC</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1,576,201</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>91</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>676,961</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>85</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>22</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>FOREIGN</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>156,867</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>9</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>118,102</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>15</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>23</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>TRANSLATED INTO DOLLARS (***)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>13,863</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>9,971</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>6</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>TOTAL FINANCING COST</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>20,133</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>(118</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>)</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>24</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>INTEREST PAID</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>1,082</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>5</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>506</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>429</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>25</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>EXCHANGE LOSSES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>7,907</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>39</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>26</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>INTEREST EARNED</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>3,150</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>16</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>2,872</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>2,434</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>27</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>EXCHANGE PROFITS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>7,051</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>5,975</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>28</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>(GAIN) LOSS FROM MONETARY POSITION</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>14,294</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>71</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>9,299</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>7,881</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>8</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="45%"><font size="1"><b>OTHER FINANCIAL OPERATIONS</b>
      </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>53,291</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="7%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="8%"><font size="1"><b>31,455</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="6%"><font size="1"><b>100</b> </font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>29</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>OTHER NET EXPENSES (INCOME) NET</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>53,291</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>100</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>31,455</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>100</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>30</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>(PROFIT) LOSS ON SALE OF OWN SHARES</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>31</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>(PROFIT) LOSS ON SALE OF SHORT-TERM
      INVESTMENTS</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>10</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><b><font size=1>RESERVE FOR TAXES AND WORKERS&#146;
      PROFIT SHARING</font></b></td>
    <td align=LEFT width="2%"><b><font size=1>&nbsp;</font></b></td>
    <td align=RIGHT width="8%"><b><font size=1>103,395</font></b></td>
    <td align=LEFT width="3%"><b><font size=1>&nbsp;</font></b></td>
    <td align=RIGHT width="7%"><b><font size=1>100</font></b></td>
    <td align=LEFT width="4%"><b><font size=1>&nbsp;</font></b></td>
    <td align=RIGHT width="8%"><b><font size=1>112,431</font></b></td>
    <td align=LEFT width="3%"><b><font size=1>&nbsp;</font></b></td>
    <td align=RIGHT width="6%"><b><font size=1>100</font></b></td>
    <td align=LEFT width="4%"><b><font size=1>&nbsp;</font></b></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>32</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>INCOME TAX</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>(633</font></td>
    <td align=LEFT width="3%"><font size=1>)</font></td>
    <td align=RIGHT width="7%"><font size=1>(1</font></td>
    <td align=LEFT width="4%"><font size=1>)</font></td>
    <td align=RIGHT width="8%"><font size=1>2,921</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>3</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>33</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>DEFERRED INCOME TAX</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>104,028</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>101</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>105,567</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>94</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>34</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>3,943</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>3</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>35</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="45%"><font size=1>DEFERRED WORKERS&#146; PROFIT SHARING</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font size=1>0</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font size=1>0</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<P><font face="Times New Roman, Times, Serif" size="1">(***) THOUSANDS OF DOLLARS
  </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>





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



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>MEXICAN
  STOCK EXCHANGE <BR>
  SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><font size="1">CONSOLIDATED
  STATEMENT OF CHANGES IN FINANCIAL POSITION <BR>
  </font></B><font size="1">FROM JANUARY 1 TO DECEMBER 31 OF 2004 AND 2003 <BR>
  (thousands of pesos) </font></FONT> </P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>C</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=RIGHT><font size="1"><b>1</b> </font></td>
    <td width=2% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=51% align=LEFT><font size="1"><b>CONSOLIDATED NET INCOME</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=13% align=RIGHT><font size="1"><b>1,406,392</b> </font></td>
    <td width=6% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=13% align=RIGHT><font size="1"><b>308,190</b> </font></td>
    <td width=7% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>2</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51%"><font size=1>+ (-) ITEMS ADDED TO INCOME WHICH
      DO NOT REQUIRE CASH</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>537,435</font></td>
    <td align=LEFT width="6%">&nbsp;</td>
    <td align=RIGHT width="13%"><font size=1>345,044</font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>3</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="51%"><font size="1"><b>CASH FLOW FROM NET INCOME OF
      THE YEAR</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="13%"><font size="1"><b>1,943,827</b> </font></td>
    <td align=LEFT width="6%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="13%"><font size="1"><b>653,23</b>4 </font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>4</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51%"><font size=1>CASH FLOW FROM CHANGE IN WORKING CAPITAL</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>(1,063,786</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
    <td align=RIGHT width="13%"><font size=1>(228,623</font></td>
    <td align=LEFT width="7%"><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>5</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="51%"><font size="1"><b>CASH GENERATED (USED) IN OPERATING
      ACTIVITIES</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="13%"><font size="1"><b>880,041</b> </font></td>
    <td align=LEFT width="6%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="13%"><font size="1"><b>424,611</b> </font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>6</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51%"><font size=1>CASH FLOW FROM EXTERNAL FINANCING</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>143,368</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>(352,793</font></td>
    <td align=LEFT width="7%"><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>7</b> </font></td>
    <td align=LEFT width="2%"><font size="1">&nbsp; </font></td>
    <td align=LEFT width="51%"><font size="1">CASH FLOW FROM INTERNAL FINANCING
      </font></td>
    <td align=LEFT width="3%"><font size="1">&nbsp; </font></td>
    <td align=RIGHT width="13%"><font size="1">245,191 </font></td>
    <td align=LEFT width="6%"><font size="1">&nbsp; </font></td>
    <td align=RIGHT width="13%"><font size="1">377,255 </font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>8</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="51%"><font size="1"><b>CASH FLOW GENERATED (USED) BY
      FINANCING</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="13%"><font size="1"><b>388,559</b> </font></td>
    <td align=LEFT width="6%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="13%"><font size="1"><b>24,462</b> </font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size="1"><b>9</b> </font></td>
    <td align=LEFT width="2%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="51%"><font size="1"><b>CASH FLOW GENERATED (USED) IN
      INVESTMENT ACTIVITIES</b> </font></td>
    <td align=LEFT width="3%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="13%"><font size="1"><b>(1,305,065</b> </font></td>
    <td align=LEFT width="6%"><font size="1"><b>)</b> </font></td>
    <td align=RIGHT width="13%"><font size="1"><b>(25,404</b> </font></td>
    <td align=LEFT width="7%"><font size="1"><b>)</b> </font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>10</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51%"><font size=1>NET INCREASE (DECREASE) IN CASH AND
      SHORT-TERM INVESTMENTS</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>(36,465</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
    <td align=RIGHT width="13%"><font size=1>423,669</font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>11</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51%"><font size=1>CASH AND SHORT-TERM INVESTMENTS AT
      THE BEGINNING OF PERIOD</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>542,940</font></td>
    <td align=LEFT width="6%">&nbsp;</td>
    <td align=RIGHT width="13%"><font size=1>119,271</font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="5%"><font size=1>12</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51%"><font size=1>CASH AND SHORT TERM INVESTMENTS AT
      THE END OF PERIOD</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>506,475</font></td>
    <td align=LEFT width="6%">&nbsp;</td>
    <td align=RIGHT width="13%"><font size=1>542,940</font></td>
    <td align=LEFT width="7%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<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: 19; page: 19" -->



<!-- MARKER FORMAT-SHEET="Center Head 3 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><font size="1">CONSOLIDATED
  STATEMENT OF CHANGES IN FINANCIAL POSITION <BR>
  </font></B><font size="1">BREAKDOWN OF MAIN CONCEPTS <BR>
  (thousands of pesos) </font></FONT></P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>C</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
  </tr>
  <tr valign=Bottom>
    <th colspan=8>
      <hr noshade size=1>
    </th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=6% align=RIGHT><font size="1"><b>2</b> </font></td>
    <td width=4% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=53% align=LEFT><font size="1"><b>+ (-) ITEMS ADDED TO INCOME WHICH
      DO NOT REQUIRE CASH</b> </font></td>
    <td width=1% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=12% align=RIGHT><font size="1"><b>537,435</b> </font></td>
    <td width=6% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=12% align=RIGHT><font size="1"><b>345,044</b> </font></td>
    <td width=6% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>13</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>DEPRECIATION AND AMORTIZATION FOR
      THE YEAR</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>213,858</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>191,635</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>14</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) NET INCREASE (DECREASE) IN PENSIONS
      FUND AND SENIORITY PREMIUMS</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>1,286</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>260</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>15</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) NET LOSS (PROFIT) IN MONEY EXCHANGE</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%">&nbsp;</td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>16</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) NET LOSS (PROFIT) IN ASSETS
      AND LIABILITIES ACTUALIZATION</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>17</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) OTHER ITEMS</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>40</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) OTHER ITEMS WHICH DO NOT AFFECT
      EBITDA</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>322,291</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>153,149</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>4</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="53%"><font size="1"><b>CASH FLOW CHANGE IN WORKING CAPITAL</b>
      </font></td>
    <td align=LEFT width="1%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>(1,063,786</b> </font></td>
    <td align=LEFT width="6%"><font size="1"><b>)</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>(228,623</b> </font></td>
    <td align=LEFT width="6%"><font size="1"><b>)</b> </font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>18</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) DECREASE (INCREASE) IN ACCOUNT
      RECEIVABLES</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>(509,502</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
    <td align=RIGHT width="12%"><font size=1>(21,135</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>19</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) DECREASE (INCREASE) IN INVENTORIES</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>(825,977</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
    <td align=RIGHT width="12%"><font size=1>(9,529</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>20</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) DECREASE (INCREASE) IN OTHER
      ACCOUNT RECEIVABLES</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>(163,466</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
    <td align=RIGHT width="12%"><font size=1>40,427</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>21</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) DECREASE (INCREASE) IN SUPPLIER
      ACCOUNT</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>371,188</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>(10,166</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>22</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) DECREASE (INCREASE) IN OTHER
      LIABILITIES</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>63,971</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>(228,220</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>6</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="53%"><font size="1"><b>CASH FLOW FROM EXTERNAL FINANCING</b>
      </font></td>
    <td align=LEFT width="1%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>143,368</b> </font></td>
    <td align=LEFT width="6%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>(352,793</b> </font></td>
    <td align=LEFT width="6%"><font size="1"><b>)</b> </font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>23</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ SHORT-TERM BANK AND STOCK MARKET
      FINANCING</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>151,958</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>1,661</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>24</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ LONG-TERM BANK AND STOCK MARKET
      FINANCING</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>25</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ DIVIDEND RECEIVED</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>26</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>OTHER FINANCING</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>10,480</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>78</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>27</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>BANK FINANCING AMORTIZATION</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>(19,070</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
    <td align=RIGHT width="12%"><font size=1>(354,532</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>28</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>(-) STOCK MARKET AMORTIZATION</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>29</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>(-) OTHER FINANCING AMORTIZATION</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>7</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="53%"><font size="1"><b>CASH FLOW FROM INTERNAL FINANCING</b>
      </font></td>
    <td align=LEFT width="1%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>245,191</b> </font></td>
    <td align=LEFT width="6%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>377,255</b> </font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>30</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) INCREASE (DECREASE) IN CAPITAL
      STOCK</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>23,743</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>377,255</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>31</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>(-) DIVIDENDS PAID</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>32</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ PREMIUM ON SALE OF SHARES</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>33</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ CONTRIBUTION FOR FUTURE CAPITAL
      INCREASES</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>221,448</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size="1"><b>9</b> </font></td>
    <td align=LEFT width="4%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="53%"><font size="1"><b>CASH FLOW GENERATED (UTILIZED)
      IN INVESTMENT ACTIVITIES</b> </font></td>
    <td align=LEFT width="1%"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>(1,305,065</b> </font></td>
    <td align=LEFT width="6%"><font size="1"><b>)</b> </font></td>
    <td align=RIGHT width="12%"><font size="1"><b>(25,404</b> </font></td>
    <td align=LEFT width="6%"><font size="1"><b>)</b> </font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>34</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) INCREASE 8DECREASE) IN STOCK
      INVESTMENTS OF A PERMANENT NATURE</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>35</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>(-) ACQUISITION OF PROPERTY, PLANT
      AND EQUIPMENT</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>(1,235,529</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
    <td align=RIGHT width="12%"><font size=1>(61,895</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>36</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>(-) INCREASE IN CONSTRUCTION PROGRESS</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>37</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ SALE OF OTHER PERMANET INVESTMENTS</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>38</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ SALE OF TANGIBLE FIXED ASSETS</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="6%"><font size=1>39</font></td>
    <td align=LEFT width="4%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="53%"><font size=1>+ (-) OTHER ITEMS</font></td>
    <td align=LEFT width="1%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>(69,536</font></td>
    <td align=LEFT width="6%"><font size=1>)</font></td>
    <td align=RIGHT width="12%"><font size=1>36,491</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><BR>





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



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>MEXICAN
  STOCK EXCHANGE <BR>
  SIFIC / ICS </B></FONT></P>
<font size="2"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER> <FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><font size="1">RATIOS
  <BR>
  </font></B><font size="1">CONSOLIDATED </font></FONT> </P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>P</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=4% align=RIGHT>&nbsp;</td>
    <td width=3% align=LEFT>&nbsp;</td>
    <td width=48% align=LEFT><font size=1>&nbsp;<b>YIELD</b> </font></td>
    <td width=5% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=13% align=RIGHT>&nbsp;</td>
    <td width=9% align=LEFT>&nbsp;</td>
    <td width=10% align=RIGHT>&nbsp;</td>
    <td width=8% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>1</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>NET INCOME TO NET SALES</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>24.75</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>10.52</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>2</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>NET INCOME TO STOCKHOLDERS&#146; EQUITY
      (**)</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>21.36</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>6.33</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>3</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>NET INCOME TO TOTAL ASSETS (**)</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>15.72</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>4.88</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>4</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>CASH DIVIDENDS TO PREVIOUS YEAR NET
      INCOME</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>0.00</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>0.00</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>5</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>INCOME DUE TO MONETARY POSITION TO
      NET INCOME</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>(3.24)</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>(3.25)</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%">&nbsp;</td>
    <td align=LEFT width="3%">&nbsp;</td>
    <td align=LEFT width="48%"><font size=1>&nbsp;<b>ACTIVITY</b></font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%">&nbsp;</td>
    <td align=LEFT width="9%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>6</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>NET SALES TO NET ASSETS (**)</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>0.64 times</font></td>
    <td align=LEFT width="9%"><font size=1> </font></td>
    <td align=RIGHT width="10%"><font size=1>0.46 times</font></td>
    <td align=LEFT width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>7</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>NET SALES TO FIXED ASSETS (**)</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>0.97 times</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size=1>0.62 times</font></td>
    <td align=LEFT width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>8</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>INVENTORIES ROTATION (**)</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>2.92 times</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size=1>6.33 times</font></td>
    <td align=LEFT width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>9</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>ACCOUNTS RECEIVABLE IN DAYS OF SALES</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>53 days</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size=1>49 days</font></td>
    <td align=LEFT width="8%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>10</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>PAID INTEREST TO TOTAL LIABILITIES
      WITH COST (**)</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>10.37</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>78.99</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%">&nbsp;</td>
    <td align=LEFT width="3%">&nbsp;</td>
    <td align=LEFT width="48%"><font size=1>&nbsp;<b>LEVERAGE</b></font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%">&nbsp;</td>
    <td align=LEFT width="9%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>11</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>TOTAL LIABILITIES TO TOTAL ASSETS</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>26.42</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>22.96</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>12</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>TOTAL LIABILITIES TO STOCKHOLDERS&#146;
      EQUITY</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>0.36 times</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size=1>0.30 times</font></td>
    <td align=LEFT width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>13</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>FOREIGN CURRENCY LIABILITIES TO TOTAL
      LIABILITIES</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>15.78</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>6.11</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>14</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>LONG-TERM LIABILITIES TO FIXED ASSETS</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>0.00</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>0.00</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>15</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>OPERATING INCOME TO INTEREST PAID</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>111.45</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size=1>27.71 times</font></td>
    <td align=LEFT width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>16</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>NET SALES TO TOTAL LIABILITIES (**)</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>2.40 times</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size=1>2.02 times</font></td>
    <td align=LEFT width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%">&nbsp;</td>
    <td align=LEFT width="3%">&nbsp;</td>
    <td align=LEFT width="48%"><font size=1>&nbsp;<b>LIQUIDITY</b> </font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%">&nbsp;</td>
    <td align=LEFT width="9%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>17</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>CURRENT ASSETS TO CURRENT LIABILITIES</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>3.08 times</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size=1>3.88 times</font></td>
    <td align=LEFT width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>18</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>CURRENT ASSETS LESS INVENTORY TO CURRENT
      LIABILITIES</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>1.84 times</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size=1>2.99 times</font></td>
    <td align=LEFT width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>19</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>CURRENT ASSETS TO TOTAL LIABILITIES</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>1.19 times</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size=1>0.91 times</font></td>
    <td align=LEFT width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>20</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>AVAILABLE ASSETS TO CURRENT LIABILITIES</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>55.70</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>159.06</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%">&nbsp;</td>
    <td align=LEFT width="3%">&nbsp;</td>
    <td align=LEFT width="48%"><font size=1>&nbsp;<b>CASH FLOW</b> </font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%">&nbsp;</td>
    <td align=LEFT width="9%">&nbsp;</td>
    <td align=RIGHT width="10%">&nbsp;</td>
    <td align=LEFT width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>21</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>CASH FLOW FROM NET INCOME TO NET SALES</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>34.20</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>22.29</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>22</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>CASH FLOW FROM CHANGES IN WORKING
      CAPITAL TO NET SALES</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>(18.72)</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>(7.80</font></td>
    <td align=LEFT width="8%"><font size=1>)%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>23</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>CASH GENERATED (USED) IN OPERATING
      TO INTEREST PAID</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>54.20 times</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font size=1>22.74 times </font> </td>
    <td align=LEFT width="8%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>24</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>EXTERNAL FINANCING TO CASH GENERATED
      (USED) IN FINANCING</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>36.90</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>(1,442.21</font></td>
    <td align=LEFT width="8%"><font size=1>)%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%"><font size=1>25</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>INTERNAL FINANCING TO CASH GENERATED
      (USED) IN FINANCING</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>63.10</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>1,542.21</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="4%" valign="top"><font size=1>26</font></td>
    <td align=LEFT width="3%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="48%"><font size=1>ACQUISITION OF PROPERTY, PLANT AND
      EQUIPMENT TO CASH GENERATED (USED) IN INVESTMENT ACTIVITIES</font></td>
    <td align=LEFT width="5%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font size=1>94.67</font></td>
    <td align=LEFT width="9%"><font size=1>%</font></td>
    <td align=RIGHT width="10%"><font size=1>243.64</font></td>
    <td align=LEFT width="8%"><font size=1>%</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<P><font face="Times New Roman, Times, Serif" size="1">(**) IN THESE RATIOS PROVIDE
  INFORMATION FOR THE LAST TWELVE MONTHS </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>





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



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>MEXICAN
  STOCK EXCHANGE <BR>
  SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><font size="1">DATE
  PER SHARE <BR>
  </font></B><font size="1">CONSOLIDATED </font></FONT> </P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>REF</font></th>
    <th colspan=2><font size=1>CATEGORIES</font></th>
    <th colspan=2><font size=1>QUARTER OF PRESENT<br>
      FINANCIAL YEAR</font></th>
    <th colspan=2><font size=1>QUARTER OF PREVIOUS<br>
      FINANCIAL YEAR</font></th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>D</font></th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=3% align=RIGHT><font size=1>1</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=54% align=LEFT><font size=1>BASIC PROFIT PER ORDINARY SHARE (**)</font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1>$10.58</font></td>
    <td width=6% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1>$2.59</font></td>
    <td width=9% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%"><font size=1>2</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>BASIC PROFIT PER PREFERENCE SHARE
      (**)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%"><font size=1>3</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>DILUTED PROFIT PER ORDINARY SHARE
      (**)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%"><font size=1>4</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>CONTINUOUS OPERATING PROFIT PER COMMON
      SHARE (**)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$10.58</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$2.59</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%" valign="top"><font size=1>5</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>EFFECT OF DISCONTINUED OPERATIONS
      ON CONTINUOUS OPERATING PROFIT PER SHARE (**)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%" valign="top"><font size=1>6</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>EFFECT OF EXTRAORDINARY PROFIT AND
      LOSS ON CONTINUOUS OPERATING PROFIT PER SHARE (**)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%" valign="top"><font size=1>7</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>EFFECT BY CHANGES IN ACCOUNTING POLICIES
      ON CONTINUOUS OPERATING PROFIT PER SHARE (**)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%"><font size=1>8</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>CARRYING VALUE PER SHARE</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$49.30</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$36.87</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%"><font size=1>9</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>CASHH DIVIDEND ACCUMULATED PER SHARE</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="6%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>$0.00</font></td>
    <td align=LEFT width="9%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%"><font size=1>10</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>DIVIDEND IN SHARES PER SHARE</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0.00 shares</font></td>
    <td align=LEFT width="6%">&nbsp;</td>
    <td align=RIGHT width="12%"><font size=1>0.00 shares</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%"><font size=1>11</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>MARKET PRICE TO CARRYING VALUE</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>1.83 times</font></td>
    <td align=LEFT width="6%">&nbsp;</td>
    <td align=RIGHT width="12%"><font size=1>1.07 times</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%"><font size=1>12</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>MARKET PRICE TO BASIC PROFIT PER COMMON
      SHARE (**)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>8.51 times</font></td>
    <td align=LEFT width="6%">&nbsp;</td>
    <td align=RIGHT width="12%"><font size=1>15.23 times</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=RIGHT width="3%"><font size=1>13</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="54%"><font size=1>MARKET PRICE TO BASIC PROFIT PER PREFERENCE
      SHARE (**)</font></td>
    <td align=LEFT width="2%"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="12%"><font size=1>0.00 times</font></td>
    <td align=LEFT width="6%">&nbsp;</td>
    <td align=RIGHT width="12%"><font size=1>0.00 times</font></td>
    <td align=LEFT width="9%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<P><font face="Times New Roman, Times, Serif" size="1">(**) TO CALCULATE THE DATE
  PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS. </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>





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



<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>MEXICAN
  STOCK EXCHANGE <BR>
  SIFIC / ICS </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><font size="1"><b>FINANCIAL STATEMENT NOTES</b></font></P>
<P align="right"><font size="1">CONSOLIDATED <!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
  </font></P>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>
<font size="1"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</font>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>s35.- Stockholders&#146;
  Equity:<br>
  </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effects of inflation
  - The effects of inflation on stockholders&#146; equity at December 31, 2004
  are as follows: </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr valign=Bottom>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size="2">Historical<br>
      Cost</font></th>
    <th width="2%">&nbsp;</th>
    <th colspan=2><font size="2">Restated<br>
      Amount</font></th>
    <th width="2%">&nbsp;</th>
    <th colspan=2><font size="2">Total</font></th>
  </tr>
  <tr valign=Bottom>
    <td width=50% align=LEFT><font size="2">Capital stock</font></td>
    <td width=2% align=LEFT><font size="2">&nbsp;</font></td>
    <td width=11% align=RIGHT><font size="2">Ps.&nbsp;1,948,155</font></td>
    <td width=1% align=LEFT><font size="2">&nbsp;</font></td>
    <td width=2% align=right>&nbsp;</td>
    <td width=10% align=RIGHT><font size="2">Ps.&nbsp;1,329,185</font></td>
    <td width=2% align=LEFT><font size="2">&nbsp;</font></td>
    <td width=2% align=right>&nbsp;</td>
    <td width=15% align=RIGHT><font size="2">Ps.&nbsp;3,277,340</font></td>
    <td width=5% align=LEFT><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="50%"><font size="2">Additional paid-in capital</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size="2">549,517</font></td>
    <td align=LEFT width="1%"><font size="2">&nbsp;</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size="2">106,305</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=RIGHT width="15%"><font size="2">655,822</font></td>
    <td align=LEFT width="5%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="50%"><font size="2">Contributions for future Capital
      increases</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size="2">216,699</font></td>
    <td align=LEFT width="1%"><font size="2">&nbsp;</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size="2">4,749</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=RIGHT width="15%"><font size="2">221,448</font></td>
    <td align=LEFT width="5%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="50%"><font size="2">Retained earnings</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size="2">2,557,949</font></td>
    <td align=LEFT width="1%"><font size="2">&nbsp;</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size="2">557,173</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=RIGHT width="15%"><font size="2">3,115,122</font></td>
    <td align=LEFT width="5%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="50%"><font size="2">Excess resulting from restating</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="50%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Stockholders&#146;
      equity to reflect</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="50%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Certain
      effects of inflation</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size="2">&#151;</font></td>
    <td align=LEFT width="1%"><font size="2">&nbsp;</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size="2">184,763</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=RIGHT width="15%"><font size="2">184,763</font></td>
    <td align=LEFT width="5%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="50%"><font size="2">Effect deferred income tax</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="50%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Bulletin
      D-4</font></td>
    <td align=LEFT width="2%"><font size="2">&nbsp;</font></td>
    <td align=RIGHT width="11%"><font size="2">(662,340</font></td>
    <td align=LEFT width="1%"><font size="2">)</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=RIGHT width="10%"><font size="2">(208,635</font></td>
    <td align=LEFT width="2%"><font size="2">)</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=RIGHT width="15%"><font size="2">(870,975</font></td>
    <td align=LEFT width="5%"><font size="2">)</font></td>
  </tr>
  <tr>
    <td colspan=10>
      <hr noshade size=1>
    </td>
  </tr>
</table>
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<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. 1,433,194 at December 31, 2004
compared to Ps. 1,099,539 at December 31, 2003. The effect on Simec&#146;s consolidated
statement of income in 2004 was an increase of Ps. 308,135 in the provision for income
tax and employee profit sharing compared to an increase of Ps. 119,151 in 2003. 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>

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<P><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>






<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr valign=Bottom>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2><font size="2">December 31, 2004</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font size="2">December 31, 2003</font></th>
  </tr>
  <tr valign=Bottom>
    <td width=62% align=LEFT><font size="2">Net loss (profit) in money exchange</font></td>
    <td width=3% align=LEFT><font size="2">&nbsp;</font></td>
    <td width=3% align=right>&nbsp;</td>
    <td width=8% align=RIGHT><font size="2">Ps.&nbsp;&nbsp; (325</font></td>
    <td width=5% align=LEFT><font size="2">)</font></td>
    <td width=3% align=right>&nbsp;</td>
    <td width=8% align=RIGHT><font size="2">Ps.&nbsp;&nbsp;&nbsp;5,814</font></td>
    <td width=2% align=LEFT><font size="2">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="2">Net loss (profit) in liabilities actualization</font></td>
    <td align=LEFT><font size="2">&nbsp;</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size="2">(1,166</font></td>
    <td align=LEFT><font size="2">)</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font size="2">(14,413</font></td>
    <td align=LEFT><font size="2">)</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
</table>
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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><BR>





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<!-- MARKER FORMAT-SHEET="Center Head 3 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <B>MEXICAN
  STOCK EXCHANGE <BR>
  SIFIC / ICS </B></FONT></P>

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>DIRECTOR
  REPORT<br>
  </b></FONT><font size="1"><b><FONT FACE="Times New Roman, Times, Serif">ANNEX
  1</FONT> </b></font></P>
<P align="right"><font face="Times New Roman, Times, Serif" size="1"> CONSOLIDATED
  </font></P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER> <font face="Times New Roman, Times, Serif" size="1">INFORMATION
  CONCERNING LIQUIDITY AND CAPITAL RESOURCES AND DEBT OBLIGATIONS <BR>
  WITH BANKS AND COMMERCIAL CREDITORS </font> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Liquidity and Capital Resources </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At December 31, 2004, Simec&#146;s total
consolidated debt consisted of approximately $13.9 million of U.S. dollar denominated
debt, including indebtedness in respect of a letter of credit of $13.6 million and $0.3
million of MTN&#146;s due 1998 (accrued interest at December 31, 2004 was $282,121) which were
issued in 1993 as part of a $68 million issuance. At December 31, 2003, Simec had
outstanding approximately $2 million of U.S. dollar-denominated debt. In March 2004,
Simec prepaid $1.7 million of the remainder of its outstanding bank debt. At December 31,
2004 Simec owed no debt to its parent company, Industrias CH, S.A. de C.V. (&#147;ICH&#148;). </FONT></P>

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<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>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On September 10, 2004 Simec
completed the acquisition of the property, plant and equipment and the inventories, and
assumed liabilities associated with seniority premiums of employees, of the Mexican
steel-making facilities of Industr&#237;as Ferricas del Norte, S.A. (Corporaci&#243;n
Sidenor of Spain) located in Apizaco, Tlaxcala and Cholula, Puebla. Simec&#146;s total
investment in this transaction was approximately U.S. $135 million, funded with
internally generated resources of Simec and capital contributions from ICH of U.S. $19
million for capital stock to be issued in the 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>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In November 2003, ICH converted into
common shares of Simec the capital contribution to Simec made in May 2003, in the amount
of $14.5 million (the proceeds of which were used to retire debt owed to ICH) for capital
stock issued in the fourth quarter of 2003, at a conversion price equivalent to U.S $1.41
(Ps. 14.588) per American Depositary Share. In May 2004, certain minority shareholders of
Simec exercised their pre-emptive rights arising as a result of this conversion by ICH to
purchase capital stock for Ps. 23.7 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. 880 million in 2004 versus Ps. 425 million of net resources provided by
operations in 2003 (which amount for 2003 reflects the conversion of loans into common
shares of Simec for Ps. 194 million). Net resources provided by financing activities were
Ps. 389 million in 2004 (which  </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>
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<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>amount reflects prepayment of bank
debt and a capital contribution from ICH to Simec in the amount of Ps. 221 million ($19
million) for capital stock to be issued in the second quarter of 2005) versus Ps. 24
million of net resources provided by financing activities in 2003 (which amount reflects
the prepayment of Ps. 355 million ($31.4 million) of bank debt, the conversion by ICH of
Ps. 194 million of loans (plus accrued interest thereon) into common shares and a capital
contribution from ICH to Simec in the amount of Ps. 163 million ($14.5 million) for
capital stock issued in 2003). Net resources used in investing activities (to acquire
property, plant and equipment and other non-current assets) were Ps. 1,305 million in
2004 (which amount reflects the acquisition of the Apizaco and Cholula facilities) versus
net resources used in investing activities of Ps. 25 million in 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">MANAGEMENT&#146;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
<BR>AND RESULTS OF OPERATIONS </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Year Ended December 31, 2004
compared to Year Ended December 31, 2003 </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales of Simec increased 94% to
Ps. 5,683 million in 2004 (including the net sales generated since August 1, 2004 by the
newly acquired plants in Apizaco and Cholula of Ps. 1,193 million), compared to Ps. 2,930
million in 2003. Sales in tons of basic steel products increased 23% to 773,297 tons in
2004 (including 155,614 tons produced by the newly acquired plants in Apizaco and
Cholula) compared to 628,243 tons in 2003. Exports of basic steel products increased 20%
to 97,126 tons in 2004 (including 12,394 tons produced by the newly acquired plants in
Apizaco and Cholula) versus 80,744 tons in 2003. Additionally, Simec sold 41,832 tons of
billet in 2004, compared to 63,616 tons of billet in 2003. The average price of steel
products increased 63% in real terms in 2004 versus 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="left head 2 italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Direct Cost of Sales </I></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
increased 72% to Ps. 3,303 million in 2004 (including Ps. 834 million relating to the
newly acquired plants in Apizaco and Cholula) compared to Ps. 1,925 million in 2003.
Direct cost of sales as a percentage of net sales was 58% in 2004 compared to 66% in
2003. The average cost of raw materials used to produce steel products increased 45% in
real terms in 2004 versus 2003, primarily as a result of increases in the price of scrap
and certain other raw materials. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s  marginal profit
 increased 137% to Ps. 2,380 million in 2004 (including Ps. 359 million  relating to the
newly acquired plants in Apizaco and Cholula)  compared to Ps. 1,005 million in 2003. As
a percentage of net sales,  marginal profit was 42% in 2004 compared to 34% in 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="left head 2 italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Indirect
Manufacturing, Selling, General And Administrative Expenses </I></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indirect  manufacturing,  selling,
 general, and administrative expenses (which include depreciation and amortization)
increased 17% to Ps. 571 million in 2004  (including Ps. 73 million  relating to the
newly acquired  plants in Apizaco and Cholula) from Ps. 488 million in 2003;  Simec
recorded an increase of Ps. 22 million in  depreciation  and  amortization  expense,
 which in 2004 was Ps. 214 million (including Ps. 25 million relating to the newly
acquired plants in Apizaco and Cholula) compared to Ps. 192 million in 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="left head 2 italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Operating Income </I></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 250% to Ps. 1,809 million in 2004 (including Ps. 286 million relating to the
newly acquired plants in Apizaco and  Cholula)  compared to Ps. 517  million in 2003.
 Operating  income was 32% of net sales in 2004 and 18% of net sales in 2003. </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>
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<!-- MARKER FORMAT-SHEET="left head 2 italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Financial Income
(Expense) </I></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded financial expense of
Ps. 36 million in 2004 compared to financial expense of Ps. 26 million in 2003. Net
interest income was Ps. 6 million in 2004 versus net interest expense of Ps. 13 million
in 2003. Simec recorded an exchange gain of approximately Ps. 4 million in 2004 compared
to an exchange loss of Ps. 3 million in 2003, reflecting a 0.3% decrease in the value of
the peso versus the dollar in 2004 compared to a 9% decrease in the value of the peso
versus the dollar in 2003 and lower debt levels in 2004. Simec recorded a loss from
monetary position of Ps. 46 million in 2004 compared to a loss from monetary position of
Ps. 10 million in 2003, reflecting the domestic inflation rate of 5.2% in 2004 as
compared to 4% in 2003 and lower debt levels during 2004. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded  other  expense,
 net, of Ps. 37 million in 2004  (reflecting  (i) income from the recovery of an account
 recorded as a doubtful account of Ps. 14 million (ii) a reserve of Ps. 6 million
 relating to the clean-up of contaminated  land at the Pacific Steel facilities,  (iii) a
reserve of Ps. 13 million  relating to the realizable  value of idle  machinery and
equipment,  (iv) a reserve for doubtful  accounts  of Ps. 10 million and (iv) other
 expense  related to  financial  operations  of Ps. 22 million)  compared to other
expense,  net, of Ps. 31 million in 2003 (reflecting (i) a reserve of Ps. 11 million
 relating to the clean-up of contaminated  land at the Pacific Steel  facilities,  (ii) a
reserve of Ps. 19 million  relating to the realizable  value of idle machinery and
equipment and (iii) other expense related to other financial operations of Ps. 1 million). </FONT></P>

<!-- MARKER FORMAT-SHEET="left head 2 italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Income Tax and
Employee Profit Sharing </I></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded a provision of Ps.
330 million for income tax and employee profit sharing in 2004 (including a provision of
Ps. 308 million from the application of Bulletin D-4 with respect to deferred income tax
described below) compared to a provision of Ps. 152 million in 2003 (including a
provision of Ps. 119 million from the application of Bulletin D-4 with respect to
deferred income tax described below). </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a result of the  foregoing,
 Simec  recorded  net income of Ps. 1,406  million in 2004  compared to net income of Ps.
308 million in 2003. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 1999, the Mexican Institute of
Public Accountants issued Bulletin D-4, &#147;Accounting for Income and Asset Taxes and
Employee Profit Sharing&#148;, which is effective for all fiscal years beginning January 1,
2000. Bulletin D-4 establishes financial accounting and reporting standards for the
effects of asset tax, income tax and employee profit sharing that result from enterprise
activities during the current and preceding years. Simec&#146;s long-term liability resulting
from the adoption of this Bulletin was Ps. 1,433 million at December 31, 2004 compared to
Ps. 1,100 million at December 31, 2003. The effect on Simec&#146;s consolidated statement of
income in 2004 was an increase of Ps. 308 million in the provision for income tax and
employee profit sharing compared to an increase in the provision of Ps. 119 million in
2003. These provisions do not affect the cash flow of Simec. </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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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>FINANCIAL
  STATEMENT NOTES<br>
  </b></FONT><font size="1" face="Times New Roman, Times, Serif"><b>ANNEX 2 </b>
  </font></P>
<P align="right"><font face="Times New Roman, Times, Serif" size="1">CONSOLIDATED
  </font></P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

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<P ALIGN=LEFT><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&#241;&#237;a
Siderurgica de Guadalajara, S.A. de C.V. (&#147;CSG&#148;) assumed all of the debt of the Company
in return for an equity interest in its subsidiaries. As a result of the above, the
Company is the principal shareholder of CSG, and CSG is the principal shareholder of the
other subsidiaries that Grupo Simec, S.A. de C.V. (&#147;Simec&#148;) controlled before the
restructuring. </FONT> </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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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </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>Compa&#241;&#237;a
Siderurgica de California, S.A. de C.V.  </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>&#149; </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>Industrias
del Acero y del Alambre, S.A. de C.V.  </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>&#149; </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>Pacific
Steel Inc. </FONT></TD>
</TR>
</TABLE>
<BR>

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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. 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 - At the latest production cost for the month. </FONT></P>

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

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

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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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<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>
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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 December 31, 2004 are as follows: </FONT> </P>



<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr valign=Bottom>
    <th colspan=2>&nbsp;</th>
    <th colspan=2 width="12%"><font size="2">Years</font>
      <hr noshade size=1>
    </th>
  </tr>
  <tr valign=Bottom>
    <td width=67% align=LEFT><font size="2">Buildings</font></td>
    <td width=21% align=LEFT><font size="2">&nbsp;</font></td>
    <td width=12% align=center colspan="2"><font size="2">15 to 50&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="67%"><font size="2">Machinery and equipment</font></td>
    <td align=LEFT width="21%"><font size="2">&nbsp;</font></td>
    <td align=center colspan="2" width="12%"><font size="2">10 to 40&nbsp;</font></td>
  </tr>
</table>
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<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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<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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<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"><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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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Monetary
items at the exchange rate at the balance sheet date. </FONT></TD>
</TR>
</TABLE>
<BR>

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

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
resulting foreign currency translation differences are included in the financial income
(expense) in the statement of      income (loss). </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
resulting Mexican peso amounts are restated for the effects of      inflation in
accordance with the dispositions of Bulletin B-10 using the      NCPI, where such effects
are considered significant. </FONT></TD>
</TR>
</TABLE>
<BR>

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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 December 31, 2004
and 2003. The Company performs evaluations of its customers&#146; credit histories and
establishes and allowance for doubtful accounts based upon the credit risk of specific
customers and historical trends. </FONT> </P>

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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>

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<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>

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<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 cumulative inflation from the date when capital stock contributions were made
and earnings (losses) were generated, through the latest period-end. </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"><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>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At December 31, 2004, Simec&#146;s total
consolidated debt consisted of approximately $13.9 million of U.S. dollar denominated
debt, including indebtedness in respect of a letter of credit of $13.6 million and $0.3
million of MTN&#146;s due 1998 (accrued interest at December 31, 2004 was $282,121) which were
issued in 1993 as part of a $68 million issuance. At December 31, 2003, Simec had
outstanding approximately $2 million of U.S. dollar-denominated debt. In March 2004,
Simec prepaid $1.7 million of the remainder of its outstanding bank debt. At December 31,
2004 Simec owed no debt to its parent company, Industrias CH, S.A. de C.V. (&#147;ICH&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>(3) Commitments and contingent
liabilities:</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a. Pacific Steel, Inc. (a
wholly-owned subsidiary located in the U.S.A.) has been named in various claims and suits
relating to the generation, storage, transport, disposal and cleanup of materials
classified as hazardous waste. The Company has accrued approximately Ps. 18,925 (U.S.
$1,680,048) at December 31, 2004, (included in accrued liabilities) relating to these
actions; the reduction of this reserve from previous levels reflects clean-up activities
undertaken by Simec. Management believes the ultimate liability with respect to this
matter will not exceed the amounts that have been accrued. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b. The Company is subject to various
other legal proceeding and claims, which have arisen, in the ordinary course of its
business. It is the opinion of management that their ultimate resolution will not have a
material adverse effect on the Company&#146;s consolidated financial position or consolidated
results of operations. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c. Compa&#241;&#237;a Siderurgica de
Guadalajara, S.A. de C.V. has entered into a gas and liquid oxygen purchase agreement
with Praxair de M&#233;xico, S.A. de C.V., under which it is committed to acquire monthly
over a fifteen-year period beginning January 1, 1989, a certain amount of product. At
present required purchases amount to Ps. 1,207 per month. </FONT></P>





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

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><font face="Times New Roman, Times, Serif" size="1"><b>RELATIONS
  OF SHARES INVESTMENTS<br>
  </b></font><b><font size="1"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --><FONT FACE="Times New Roman, Times, Serif">ANNEX
  3 </FONT></font></b> </P>
<P align="right"><font face="Times New Roman, Times, Serif" size="1">CONSOLIDATED
  </font></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><B>JUDGED INFORMATION </B></FONT></P>


<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th width="301"><font size=1>COMPANY NAME</font></th>
    <th width="5">&nbsp;</th>
    <th colspan=2><font size=1>MAIN<br>
      ACTIVITIES</font></th>
    <th colspan=2><font size=1>NUMBER OF<br>
      SHARES</font></th>
    <th colspan=2><font size=1>OWNERSHIP</font></th>
    <th colspan=4><font size=1>TOTAL AMOUNT<br>
      (Thousands of Pesos)</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th width="301"><font size=1>SUBSIDIARIES</font></th>
    <th width="5">&nbsp;</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=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=301><font size=1>1 CIA SIDERURGICA DE GUADALAJARA</font></td>
    <td align=LEFT width=5><font size=1>&nbsp;</font></td>
    <td align=center width=69><font size=1>MINI-MILL</font></td>
    <td align=LEFT width=10><font size=1>&nbsp;</font></td>
    <td align=right width=82><font size=1>10,495,205,984</font></td>
    <td align=LEFT width=5><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=70><font size=1>99.99</font></td>
    <td align=LEFT width=6><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=66><font size=1>1,049,521</font></td>
    <td align=LEFT width=23><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=53><font size=1>4,536,294</font></td>
    <td align=LEFT width=10><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="301"><font size=1>2 ADMINISTRADORA DE CARTERA DE OCCIDENTE</font></td>
    <td align=LEFT width="5">&nbsp;</td>
    <td align=LEFT width="69">&nbsp;</td>
    <td align=LEFT width="10">&nbsp;</td>
    <td align=right width="82"><font size=1>49,999</font></td>
    <td align=LEFT width="5">&nbsp;</td>
    <td align=RIGHT width="70"><font size=1>99.99</font></td>
    <td align=LEFT width="6">&nbsp;</td>
    <td align=RIGHT width="66"><font size=1>50</font></td>
    <td align=LEFT width="23">&nbsp;</td>
    <td align=RIGHT width="53"><font size=1>(25,390</font></td>
    <td align=LEFT width="10"><font size=1>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="700" colspan="12">
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="301"><font size="1"><b>TOTAL INVESTMENT IN SUBSIDIARIES</b>
      </font></td>
    <td align=LEFT width="5">&nbsp;</td>
    <td align=LEFT width="69">&nbsp;</td>
    <td align=LEFT width="10">&nbsp;</td>
    <td align=right width="82">&nbsp;</td>
    <td align=LEFT width="5">&nbsp;</td>
    <td align=RIGHT width="70">&nbsp;</td>
    <td align=LEFT width="6">&nbsp;</td>
    <td align=RIGHT width="66"><font size="1"><b>1,049,571</b> </font></td>
    <td align=LEFT width="23">&nbsp;</td>
    <td align=RIGHT width="53"><font size="1"><b>4,510,904</b></font></td>
    <td align=LEFT width="10">&nbsp;</td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="301"><font size="1"><b>ASSOCIATEDS</b> </font></td>
    <td align=LEFT width="5"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="69"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
    <td align=right width="82"><font size=1>0</font></td>
    <td align=LEFT width="5"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="70"><font size=1>0.00</font></td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="53"><font size=1>0</font></td>
    <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="301"><font size="1"><b>TOTAL INVESTMENT IN ASSOCIATEDS</b></font></td>
    <td align=LEFT width="5"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="69"><font size="1"> </font></td>
    <td align=LEFT width="10"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="82"><font size="1"> </font></td>
    <td align=LEFT width="5"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="70">&nbsp;</td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><b><font size=1>0</font></b></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="53"><font size=1>0</font></td>
    <td align=LEFT width="10"><font size=1>&nbsp;</font></td>  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="301"><font size="1"><b>OTHER PERMANENT INVESTMENTS</b></font></td>
    <td align=LEFT width="5"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="69">&nbsp;</td>
    <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="82">&nbsp;</td>
    <td align=LEFT width="5"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="70">&nbsp;</td>
    <td align=LEFT width="6">&nbsp;</td>
    <td align=RIGHT width="66"><font size=1> </font></td>
    <td align=LEFT width="23">&nbsp;</td>
    <td align=RIGHT width="53"><font size=1>0</font></td>
    <td align=LEFT width="10"><font size=1>&nbsp;</font></td>  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="301"><font size="1"><b>TOTAL</b> </font></td>
    <td align=LEFT width="5"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="69"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
    <td align=right width="82">&nbsp;</td>
    <td align=LEFT width="5"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="70">&nbsp;</td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size="1"> </font></td>
    <td align=LEFT width="23"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="53"><font size="1"><b>4,510,904</b></font></td>
    <td align=LEFT width="10"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<P><font face="Times New Roman, Times, Serif" size="1">NOTES </font></P>




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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><BR>





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

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      <b>GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><font face="Times New Roman, Times, Serif" size="1">ANNEX 05<br>
  CREDITS BREAK DOWN<br>
  <br>
  (THOUSANDS OF PESOS) </font></P>
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<p align="right"><font face="Times New Roman, Times, Serif" size="1">CONSOLIDATED
  </font></p>
<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<p><font face="Times New Roman, Times, Serif" size=1><b>JUDGED INFORMATION</b></font></p>
<table border=0 cellspacing=0 cellpadding=0 width=100%>
  <tr align="center">
    <td nowrap valign=bottom rowspan="5"> <b><font size="1">Credit  </font></b>
      <b><font size="1">Type / </font></b> <b><font size="1"><br>
      Institution </font></b> <b><font size="1">&nbsp; </font></b></td>
    <td nowrap valign=bottom rowspan="5"> <b><font size="1">Amortization  </font></b><b><font size="1"><br>
      Date </font></b></td>
    <td nowrap valign=bottom rowspan="5"> <b><font size="1">Rate of  </font></b><b><font size="1"><br>
      Interest </font></b></td>
    <td nowrap colspan=2 valign=bottom rowspan="2"> <b><font size="1">Denominated<br>
      In </font></b> <b><font size="1">Pesos </font></b></td>
    <td nowrap colspan=6 valign=bottom> <b><font size="1">Amortization of Credits
      in Foreign Currency <br>
      With National Entities (Thousands of Pesos) </font></b>
      <hr size="1" noshade>
    </td>
    <td nowrap colspan=6 valign=bottom> <b><font size="1">Amortization of Credits
      in Foreign Currency <br>
      With Foreing Entities (Thousands of Pesos) </font></b>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center">
    <td nowrap valign=bottom colspan="6"> <b><font size="1">&nbsp; </font></b>
      <b><font size="1">&nbsp; </font></b> <b><font size="1">Time Interval </font></b>
    </td>
    <td nowrap valign=bottom colspan="6"> <b><font size="1">&nbsp; </font></b>
      <b><font size="1">&nbsp; </font></b> <b><font size="1">Time Interval </font></b></td>
  </tr>
  <tr align="center">
    <td nowrap valign=bottom colspan="14">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr align="center">
    <td nowrap valign=bottom rowspan="2"> <b><font size="1">Until 1<br>
      Year </font></b></td>
    <td nowrap valign=bottom rowspan="2"> <b><font size="1">More <br>
      Than </font></b><b><font size="1"><br>
      1 Year </font></b></td>
    <td nowrap valign=bottom rowspan="2"> <b><font size="1">Current </font></b><b><font size="1"><br>
      Year </font></b></td>
    <td nowrap valign=bottom rowspan="2"> <b><font size="1">Until 1<br>
       </font></b><b><font size="1">Year </font></b></td>
    <td nowrap valign=bottom rowspan="2"> <b><font size="1">Until 2 </font></b><b><font size="1"><br>
      Years </font></b></td>
    <td nowrap valign=bottom rowspan="2"> <b><font size="1">Until 3 </font></b><b><font size="1"><br>
      Years </font></b></td>
    <td nowrap valign=bottom rowspan="2"> <b><font size="1">Until 4 </font></b><b><font size="1"><br>
      Years </font></b></td>
    <td nowrap valign=bottom rowspan="2"> <b><font size="1">Until 5<br>
       </font></b><b><font size="1">Years <br>
      or More </font></b></td>
    <td nowrap valign=bottom rowspan="2"> <b><font size="1">Current </font></b>
      <b><font size="1"><br>
      Year </font></b></td>
    <td nowrap valign=bottom rowspan="2"> <b><font size="1">Until 1 </font></b><b><font size="1"><br>
      Year </font></b></td>
    <td nowrap valign=bottom height="15" rowspan="2"> <b><font size="1">Until
      2 </font></b><b><font size="1"><br>
      Years </font></b></td>
    <td nowrap valign=bottom height="15" rowspan="2"> <b><font size="1">Until
      3 </font></b><b><font size="1"><br>
      Years </font></b></td>
    <td nowrap valign=bottom height="15" rowspan="2"> <b><font size="1">Until
      4 </font></b><br>
      <b><font size="1">Years </font></b></td>
    <td nowrap valign=bottom height="15" rowspan="2"> <b><font size="1">Until
      5 </font></b> <b><font size="1"><br>
      Years <br>
      or More </font></b></td>
  </tr>
  <tr align="center"> <TD></TD></tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>LETTER OF CREDIT</b> </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1">BBVA Bancomer </font></td>
    <td nowrap valign=bottom align="center"> <font size="1">3/31/2005 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">3.37 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">153,124 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="center"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right">
      <hr size="1" noshade>
    </td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>TOTAL BANKS</b> </font></td>
    <td nowrap valign=bottom align="center"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">153,124 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="center"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>LISTED IN THE MEXICAN</b> </font></td>
    <td nowrap valign=bottom align="center"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>STOCK EXCHANGE</b> </font></td>
    <td nowrap valign=bottom align="center"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>UNSECURED DEBT</b> </font></td>
    <td nowrap valign=bottom align="center"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1">MEDIUM  TERM  NOTES </font></td>
    <td nowrap valign=bottom align="center"> <font size="1">12/15/1998 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">9.33 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">3,402 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>TOTAL  STOCK EXCHANGE</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">3,402 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>SUPPLIERS</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1">VARIOUS </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">415,546 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">118,613 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">54,725 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>TOTAL SUPPLIERS</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">415,546 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">118,613 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">54,725 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>OTHER CURRENT LIABILITIES</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>AND OTHER CREDITS</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1">VARIOUS </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">82,153 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">19,150 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">24,011 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>OTHER CURRENT LIABILITIES</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">82,153 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">19,150 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">24,011 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>AND OTHER CREDITS</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1"><b>&nbsp;</b> </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
  <tr>
    <td nowrap valign=bottom> <font size="1"><b>TOTAL </b> </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">&nbsp; </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">497,699 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">290,887 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">3,402 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">78,736 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
    <td nowrap valign=bottom align="right"> <font size="1">0 </font></td>
  </tr>
  <tr>
    <td nowrap valign=bottom colspan="17">
      <hr size="1" noshade>
    </td>
  </tr>
</table>
<p><font size="1"><b>NOTES:</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.- The exchange rate of the peso to the
  U.S. Dollar at December 31, 2004 was Ps. 11.2648</font><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: 5; page: 5" -->




<!-- 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>MONETARY
  POSITION IN FOREIGN EXCHANGE <br>
  </b></FONT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Thousands
  of Pesos) </FONT></b></P>
<b><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --> </b>
<P align="center"><font face="Times New Roman, Times, Serif" size="1"><b>ANNEX
  6 </b></font></P>
<P align="right"><font face="Times New Roman, Times, Serif" size="1"><b>CONSOLIDATED
  </b></font></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=1><B>JUDGED INFORMATION </B></FONT></p>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr valign=Bottom>
    <th colspan=2>&nbsp;</th>
    <th colspan=4><font size=1>DOLLARS</font></th>
    <th colspan=4><font size=1>OTHER CURRENCIES</font></th>
    <th colspan=2><font size=1>TOTAL</font></th>
  </tr>
  <tr valign=Bottom>
    <th colspan=12>
      <hr noshade size=1>
    </th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>TRADE BALANCE</font></th>
    <th colspan=2><font size=1>THOUSANDS<br>
      OF DOLLARS</font></th>
    <th colspan=2><font size=1>THOUSANDS<br>
      OF PESOS</font></th>
    <th colspan=2><font size=1>THOUSANDS<br>
      OF DOLLARS</font></th>
    <th colspan=2><font size=1>THOUSANDS<br>
      OF PESOS</font></th>
    <th colspan=2><font size=1>THOUSANDS<br>
      OF PESOS</font></th>
  </tr>
  <tr valign=Bottom>
    <th colspan=12>
      <hr noshade size=1>
    </th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2 align="left">
      <div align="left"><font size=1>FOREING MONETARY POSITION</font></div>
    </th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=41% align=LEFT><font size="1"><b>TOTAL ASSETS</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>68,091</b> </font></td>
    <td width=3% align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td width=8% align=RIGHT><font size="1"><b>767,017</b> </font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=8% align=RIGHT><font size=1>0</font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=8% align=RIGHT><font size=1>0</font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=8% align=RIGHT><font size="1"><b>767,017</b> </font></td>
    <td width=2% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1"><b>LIABILITIES POSITION</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>32,809</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>369,600</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>304</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>3,425</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>373,025</b> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>SHORT TERM LIABILITIES POSITION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>32,809</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>369,600</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>304</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>3,425</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>373,025</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>LONG TERM LIABILITIES POSITION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1"><b>NET BALANCE</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>35,282</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>397,417</b> </font></td>
    <td align=LEFT><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT><font size="1"><b>(304</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>(3,425</b> </font></td>
    <td align=LEFT><font size="1"><b>)</b> </font></td>
    <td align=RIGHT><font size="1"><b>393,992</b> </font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=1><B>NOTES </B></FONT></p>
<font size="1"><!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
</font>
<P><font face="Times New Roman, Times, Serif" size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE
  EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT DECEMBER 31, 2004 WAS PS. 11.2648
  </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: 6; page: 6" -->




<!-- 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      GRUPO SIMEC, S.A. DE C.V. </font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P align="center"><font face="Times New Roman, Times, Serif" size="1"><b>INTEGRATION
  AND INCOME <br>
  CALCULATION BY MONETARY POSITION<br>
  </b></font><b><font size="1"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --><FONT FACE="Times New Roman, Times, Serif">(Thousands
  of Pesos) </FONT><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
  </font></b></P>
<P align="center"><b><font face="Times New Roman, Times, Serif" size="1">ANNEX
  7 </font></b></P>
<P align="right"><b><font face="Times New Roman, Times, Serif" size="1">CONSOLIDATED
  </font></b></P>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=1><B>JUDGED INFORMATION</B></FONT></p>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>MONTH</font></th>
    <th colspan=2><font size=1>MONETARY<br>
      ASSETS</font></th>
    <th colspan=2><font size=1>MONETARY<br>
      LIABILITIES</font></th>
    <th colspan=2><font size=1>(ASSET)<br>
      LIABILITIES<br>
      MONETARY<br>
      POSITION</font></th>
    <th colspan=2><font size=1>MONTHLY<br>
      INFLATION</font></th>
    <th colspan=2><font size=1>MONTHLY PROFIT<br>
      AND (LOSS)</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=29% align=LEFT><font size=1>JANUARY</font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1>3,668,488</font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1>3,021,189</font></td>
    <td width=3% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1>(647,299</font></td>
    <td width=4% align=LEFT><font size=1>)</font></td>
    <td width=4% align=RIGHT><font size=1>0.62</font></td>
    <td width=4% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=RIGHT><font size=1>(4,023</font></td>
    <td width=2% align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>FEBRUARY</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,181,183</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>468,147</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(713,036</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.60</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(4,265</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>MARCH</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,400,780</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>596,467</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(804,313</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.34</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(2,725</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>APRIL</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,411,536</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>542,155</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(869,381</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.15</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(1,312</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>MAY</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,528,433</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>552,485</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(975,948</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>(0.25</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>2,448</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>JUNE</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,748,525</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>551,719</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(1,196,806</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.16</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(1,918</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>JULY</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,890,011</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>488,639</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(1,401,372</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.26</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(3,673</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>AUGUST</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>2,097,374</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>484,552</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(1,612,822</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.62</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(9,956</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>SEPTEMBER</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,413,141</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>814,566</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(598,575</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.83</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(4,949</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>OCTOBER</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,468,531</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>640,756</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(827,775</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.69</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(5,733</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>NOVEMBER</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,673,344</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>697,878</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(975,466</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.85</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(8,321</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>DECEMBER</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,687,983</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>674,451</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(1,013,532</font></td>
    <td align=LEFT><font size=1>)</font></td>
    <td align=RIGHT><font size=1>0.21</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(2,094</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>ACTUALIZATION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(783</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>CAPITALIZATION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>FOREIGN CORPORATION</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>0</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>OTHER</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>1,717</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size=1>TOTAL</font></td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT><font size=1>&nbsp;</font></td>
    <td align=RIGHT><font size=1>(45,587</font></td>
    <td align=LEFT><font size=1>)</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><BR>





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<!-- MARKER FORMAT-SHEET="Center Head 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      <b>GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>BONDS AND
  MEDIUM TERM NOTES LISTING IN STOCK MARKET </b></FONT></P>
<div align="center"><font size="1"><b><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
  </b> </font></div>
<P align="center"><font size="1" face="Times New Roman, Times, Serif"><b>ANNEX
  8 </b></font></P>
<P align="right"><font size="1" face="Times New Roman, Times, Serif"><b>CONSOLIDATED
  </b></font></P>

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

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><B>FINANCIAL LIMITED
  BASED IN ISSUED DEED AND/OR TITLE </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>MEDIUM TERM NOTES </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> A) Current assets
      to current liabilities must be 1.0 times or more.<br>
      B) Total liabilities to total assets do not be more than 0.60. </FONT></TD>
</TR>
</TABLE>
<!-- MARKER FORMAT-SHEET="Para Flush 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
C)
Operating income plus items added to income which do not require using        cash must
be 2.0 times or more. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
This
notes was offered in the international market. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>ACTUAL SITUATION OF
FINANCIAL LIMITED </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
MEDIUM
TERM NOTES </FONT></TD>
</TR>
</TABLE>
<BR>

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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)
Accomplished the actual situation is 3.08 times.  </FONT></TD>
</TR>
</TABLE>
<!-- MARKER FORMAT-SHEET="Para Flush 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
B)
Accomplished the        actual situation is 0.26  </FONT></TD>
</TR>
</TABLE>
<!-- MARKER FORMAT-SHEET="Para Flush 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
C)
Accomplished the actual situation is 124.70 </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
As
of December 31, 2004, the remaining balance of the MTNs not exchanged amounts to Ps.
3,402 ($302,000 dollars). </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
C.P.
Jos&#233; Flores Flores        <BR>Chief Corporate Financial Planning Officer </FONT></TD>
</TR>
</TABLE>
<BR>




<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>BONDS AND/OR MEDIUM
TERM NOTES CERTIFICATE </B></FONT></P>



<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><BR>





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




<!-- 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      <b>GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>PLANTS,
  COMMERCE CENTERS OR DISTRIBUTION CENTERS </b></FONT></P>
<div align="center"><font size="1"><b><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
  </b> </font> </div>
<P align="center"><font size="1" face="Times New Roman, Times, Serif"><b>ANNEX
  9 </b></font></P>
<P align="right"><font size="1" face="Times New Roman, Times, Serif"><b>CONSOLIDATED
  </b></font></P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>PLANT OR CENTER</font></th>
    <th colspan=2><font size=1>ECONOMIC ACTIVITY</font></th>
    <th colspan=2><font size=1>PLANT CAPACITY</font></th>
    <th colspan=2><font size=1>UTILIZATION (%)</font></th>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=213><font size=1>GUADALAJARA MINI MILL</font></td>
    <td align=LEFT width=13><font size=1>&nbsp;</font></td>
    <td align=LEFT width=231><font size=1>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=LEFT width=29><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=66><font size=1>480</font></td>
    <td align=LEFT width=45><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=60><font size=1>87</font></td>
    <td align=LEFT width=43><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="213"><font size=1>MEXICALI MINI MILL</font></td>
    <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="231"><font size=1>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>250</font></td>
    <td align=LEFT width="45"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="60"><font size=1>75</font></td>
    <td align=LEFT width="43"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="213"><font size=1>INDUSTRIAS DEL ACERO Y DEL ALAMBRE</font></td>
    <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="231"><font size=1>SALE OF STEEL PRODUCTS</font></td>
    <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>0</font></td>
    <td align=LEFT width="45"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="60"><font size=1>0</font></td>
    <td align=LEFT width="43"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="213"><font size=1>APIZACO AND CHOLULA PLANTS</font></td>
    <td align=LEFT width="13"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="231"><font size=1>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="66"><font size=1>460</font></td>
    <td align=LEFT width="45"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="60"><font size=1>84</font></td>
    <td align=LEFT width="43"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<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: 9; page: 9" -->



<!-- 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      <b>GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>MAIN RAW
  MATERIALS <br>
  </b></FONT><font size="1"><b><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --></b></font><font size="1" face="Times New Roman, Times, Serif"><b>ANNEX
  10</b></font> </P>
<P align="right"><font size="1" face="Times New Roman, Times, Serif"><b> CONSOLIDATED
  </b></font></P>
<p><font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" --></font><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED
  INFORMATION </B></font></p>
<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>DOMESTIC</font></th>
    <th colspan=2><font size=1>MAIN SUPPLIERS</font></th>
    <th colspan=2><font size=1>FOREIGN</font></th>
    <th colspan=2><font size=1>MAIN SUPPLIERS</font></th>
    <th colspan=2><font size=1>DOMESTIC<br>
      SUBSTITUTION</font></th>
    <th colspan=2><font size=1>COST<br>
      PRODUCTION (%)</font></th>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=97><font size=1>SCRAP</font></td>
    <td align=LEFT width=29><font size=1>&nbsp;</font></td>
    <td align=LEFT width=140><font size=1>VARIOUS</font></td>
    <td align=LEFT width=18><font size=1>&nbsp;</font></td>
    <td align=LEFT width=78><font size=1>SCRAP</font></td>
    <td align=LEFT width=20><font size=1>&nbsp;</font></td>
    <td align=LEFT width=113><font size=1>VARIOUS</font></td>
    <td align=LEFT width=2><font size=1>&nbsp;</font></td>
    <td align=center width=89><font size=1>YES</font></td>
    <td align=LEFT width=8><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=84><font size=1>52.10</font></td>
    <td align=LEFT width=22><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="97"><font size=1>ELECTRICITY</font></td>
    <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="140"><font size=1>C.F.E</font></td>
    <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="78">&nbsp;</td>
    <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="113">&nbsp;</td>
    <td align=LEFT width="2"><font size=1>&nbsp;</font></td>
    <td align=center width="89"><font size=1>NO</font></td>
    <td align=LEFT width="8"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="84"><font size=1>9.31</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="97"><font size=1>FERROALLOYS</font></td>
    <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="140"><font size=1>MINERA AUTLAN</font></td>
    <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="78"><font size=1>FERROALLOYS</font></td>
    <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="113"><font size=1>GFM TRADING</font></td>
    <td align=LEFT width="2"><font size=1>&nbsp;</font></td>
    <td align=center width="89"><font size=1>YES</font></td>
    <td align=LEFT width="8"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="84"><font size=1>7.00</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="97"><font size=1>ELECTRODES</font></td>
    <td align=LEFT width="29"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="140"><font size=1>UCAR CARBON MEXICANA</font></td>
    <td align=LEFT width="18"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="78"><font size=1>ELECTRODES</font></td>
    <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="113"><font size=1>SGL CARBON GROUP</font></td>
    <td align=LEFT width="2"><font size=1>&nbsp;</font></td>
    <td align=center width="89"><font size=1>YES</font></td>
    <td align=LEFT width="8"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="84"><font size=1>1.74</font></td>
    <td align=LEFT width="22"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=12>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<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: 10; page: 10" -->




<!-- 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      <b>GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>SELLS DISTRIBUTION
  BY PRODUCT<br>
  </b></FONT><font size="1"><b><FONT FACE="Times New Roman, Times, Serif">ANNEX
  11 </FONT> </b></font></P>
<P align="right"><font size="1" face="Times New Roman, Times, Serif"><b>CONSOLIDATED
  </b></font></P>
<font size="1"><b><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</b> </font>
<P align="center"><font size="1" face="Times New Roman, Times, Serif"><b>DOMESTIC
  SELLS </b></font></P>
<font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font>
<P ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="1"><B>JUDGED INFORMATION
  </B></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>MAIN PRODUCTS</font></th>
    <th colspan=4><font size=1>TOTAL PRODUCTION</font></th>
    <th colspan=4><font size=1>NET SELLS</font></th>
    <th colspan=4><font size=1>MAIN DESTINATION</font></th>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>VOLUME</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>VOLUME</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>TRADEMARKS</font></th>
    <th colspan=2><font size=1>COSTUMERS</font></th>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=170><font size=1>STRUCTURAL PROFILES</font></td>
    <td align=LEFT width=6><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=42><font size=1>185</font></td>
    <td align=LEFT width=19><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=75><font size=1>744,404</font></td>
    <td align=LEFT width=39><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=54><font size=1>168</font></td>
    <td align=LEFT width=33><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=54><font size=1>1,210,888</font></td>
    <td align=LEFT width=11><font size=1>&nbsp;</font></td>
    <td align=LEFT width=51>&nbsp;</td>
    <td align=LEFT width=51><font size=1>&nbsp;</font></td>
    <td align=LEFT width=29>&nbsp;</td>
    <td align=LEFT width=66><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="170"><font size=1>COMMERCIAL PROFILES</font></td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="42"><font size=1>87</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="75"><font size=1>373,131</font></td>
    <td align=LEFT width="39"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>83</font></td>
    <td align=LEFT width="33"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>609,624</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51">&nbsp;</td>
    <td align=LEFT width="51"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="29">&nbsp;</td>
    <td align=LEFT width="66"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="170"><font size=1>REBAR</font></td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="42"><font size=1>186</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="75"><font size=1>680,647</font></td>
    <td align=LEFT width="39"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>136</font></td>
    <td align=LEFT width="33"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>950,251</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51">&nbsp;</td>
    <td align=LEFT width="51"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="29">&nbsp;</td>
    <td align=LEFT width="66"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="170"><font size=1>FLAT BAR</font></td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="42"><font size=1>78</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="75"><font size=1>358,333</font></td>
    <td align=LEFT width="39"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>72</font></td>
    <td align=LEFT width="33"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>533,128</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51">&nbsp;</td>
    <td align=LEFT width="51"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="29">&nbsp;</td>
    <td align=LEFT width="66"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="170"><font size=1>STEEL BARS</font></td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="42"><font size=1>220</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="75"><font size=1>941,299</font></td>
    <td align=LEFT width="39"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>208</font></td>
    <td align=LEFT width="33"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>1,556,056</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51">&nbsp;</td>
    <td align=LEFT width="51"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="29">&nbsp;</td>
    <td align=LEFT width="66"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="170"><font size=1>OTHER</font></td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="42"><font size=1>4</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="75"><font size=1>3,048</font></td>
    <td align=LEFT width="39"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>8</font></td>
    <td align=LEFT width="33"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>48,794</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51">&nbsp;</td>
    <td align=LEFT width="51"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="29">&nbsp;</td>
    <td align=LEFT width="66"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="170"><font size=1>BILLET</font></td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="42"><font size=1>42</font></td>
    <td align=LEFT width="19"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="75"><font size=1>107,321</font></td>
    <td align=LEFT width="39"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>42</font></td>
    <td align=LEFT width="33"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="54"><font size=1>167,407</font></td>
    <td align=LEFT width="11"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51">&nbsp;</td>
    <td align=LEFT width="51"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="29">&nbsp;</td>
    <td align=LEFT width="66"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="170"><font size="1"><b>T O T A L</b> </font></td>
    <td align=LEFT width="6"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="42"><font size="1"> </font></td>
    <td align=LEFT width="19"><font size="1"> </font></td>
    <td align=RIGHT width="75"><font size="1"><b>3,208,183</b> </font></td>
    <td align=LEFT width="39"><font size="1"> </font></td>
    <td align=RIGHT width="54"><font size="1"> </font></td>
    <td align=LEFT width="33">&nbsp;</td>
    <td align=RIGHT width="54"><font size=1><b>5,076,148</b> </font></td>
    <td align=LEFT width="11">&nbsp;</td>
    <td align=LEFT width="51"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="51"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="29">&nbsp;</td>
    <td align=LEFT width="66"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<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: 11; page: 11" -->




<!-- 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      <b>GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>SELLS DISTRIBUTION
  BY PRODUCT<br>
  </b></FONT><font size="1" face="Times New Roman, Times, Serif"><b>ANNEX 11 </b></font></P>
<P align="right"><font size="1" face="Times New Roman, Times, Serif"><b>CONSOLIDATED
  </b></font></P>
<div align="center"><font size="1"><b><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
  </b> </font> </div>
<P align="center"><font size="1" face="Times New Roman, Times, Serif"><b>FOREIGN
  SELLS </b></font></P>
<font size="1"><b><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</b> </font>
<P ALIGN=LEFT><font size="1" face="Times New Roman, Times, Serif"><b>JUDGED INFORMATION
  </b></font></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>MAIN PRODUCTS</font></th>
    <th colspan=4><font size=1>TOTAL PRODUCTION</font></th>
    <th colspan=4><font size=1>NET SELLS</font></th>
    <th colspan=4><font size=1>MAIN DESTINATION</font></th>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>VOLUME</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>VOLUME</font></th>
    <th colspan=2><font size=1>AMOUNT</font></th>
    <th colspan=2><font size=1>TRADEMARKS</font></th>
    <th colspan=2><font size=1>COSTUMERS</font></th>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width=190><font size=1>STRUCTURAL PROFILES</font></td>
    <td align=LEFT width=6><font size=1>&nbsp;</font></td>
    <td align=LEFT width=13>&nbsp;</td>
    <td align=LEFT width=55><font size=1>&nbsp;</font></td>
    <td align=LEFT width=13>&nbsp;</td>
    <td align=LEFT width=59><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=41><font size=1>12</font></td>
    <td align=LEFT width=28><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=52><font size=1>78,528</font></td>
    <td align=LEFT width=20><font size=1>&nbsp;</font></td>
    <td align=LEFT width=38>&nbsp;</td>
    <td align=LEFT width=76><font size=1>&nbsp;</font></td>
    <td align=LEFT width=33>&nbsp;</td>
    <td align=LEFT width=76><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="190"><font size=1>COMMERCIAL PROFILES</font></td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="13">&nbsp;</td>
    <td align=LEFT width="55"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="13">&nbsp;</td>
    <td align=LEFT width="59"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>7</font></td>
    <td align=LEFT width="28"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="52"><font size=1>47,997</font></td>
    <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="38">&nbsp;</td>
    <td align=LEFT width="76"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="33">&nbsp;</td>
    <td align=LEFT width="76"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="190"><font size=1>REBAR</font></td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="13">&nbsp;</td>
    <td align=LEFT width="55"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="13">&nbsp;</td>
    <td align=LEFT width="59"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>56</font></td>
    <td align=LEFT width="28"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="52"><font size=1>354,096</font></td>
    <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="38">&nbsp;</td>
    <td align=LEFT width="76"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="33">&nbsp;</td>
    <td align=LEFT width="76"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="190"><font size=1>STEEL BARS</font></td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="13">&nbsp;</td>
    <td align=LEFT width="55"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="13">&nbsp;</td>
    <td align=LEFT width="59"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>20</font></td>
    <td align=LEFT width="28"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="52"><font size=1>115,160</font></td>
    <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="38">&nbsp;</td>
    <td align=LEFT width="76"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="33">&nbsp;</td>
    <td align=LEFT width="76"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="190"><font size=1>FLAT BAR</font></td>
    <td align=LEFT width="6"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="13">&nbsp;</td>
    <td align=LEFT width="55"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="13">&nbsp;</td>
    <td align=LEFT width="59"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="41"><font size=1>2</font></td>
    <td align=LEFT width="28"><font size=1>&nbsp;</font></td>
    <td align=RIGHT width="52"><font size=1>11,023</font></td>
    <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="38">&nbsp;</td>
    <td align=LEFT width="76"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="33">&nbsp;</td>
    <td align=LEFT width="76"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="190"><font size="1"><b>T O T A L</b> </font></td>
    <td align=LEFT width="6"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="13"><font size="1"> </font></td>
    <td align=LEFT width="55"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="13"><font size="1"> </font></td>
    <td align=LEFT width="59"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="41"><font size="1"> </font></td>
    <td align=LEFT width="28"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="52"><font size="1"><b>606,804</b> </font></td>
    <td align=LEFT width="20"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="38">&nbsp;</td>
    <td align=LEFT width="76"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="33">&nbsp;</td>
    <td align=LEFT width="76"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=14>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<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: 12; page: 12" -->




<!-- 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      <b>GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><b>CONSOLIDATED
  </b></FONT></P>
<div align="center"><font size="1"><b><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
  </b> </font> </div>
<P align="center"><font size="1" face="Times New Roman, Times, Serif"><b>INTEGRATION
  OF THE PAID SOCIAL CAPITAL STOCK <br>
  CHARACTERISTICS OF THE SHARES </b></font></P>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><B>JUDGED INFORMATION </B></FONT></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr>
    <td colspan=18>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font size=1>SERIES</font></th>
    <th colspan=2><font size=1>NOMINAL<br>
      VALUE</font></th>
    <th colspan=2><font size=1>VALID<br>
      CUPON</font></th>
    <th colspan=8><font size=1>NUMBER OF SHARES</font></th>
    <th colspan=4><font size=1>CAPITAL STOCK<br>
      (Thousands of Pesos)</font></th>
  </tr>
  <tr>
    <td colspan=18>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <th colspan=2>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th colspan=2><font size=1>FIXED<br>
      PORTION</font></th>
    <th colspan=2><font size=1>VARIABLE<br>
      PORTION</font></th>
    <th colspan=2><font size=1>MEXICAN</font></th>
    <th colspan=2><font size=1>FREE<br>
      SUSCRIPTION</font></th>
    <th colspan=2><font size=1>FIXED</font></th>
    <th colspan=2><font size=1>VARIABLE</font></th>
  </tr>
  <tr>
    <td colspan=18>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=CENTER width=56><font size=1>B</font></td>
    <td align=LEFT width=6><font size=1>&nbsp;</font></td>
    <td align=LEFT width=15>&nbsp;</td>
    <td align=LEFT width=61><font size=1>&nbsp;</font></td>
    <td align=LEFT width=11>&nbsp;</td>
    <td align=LEFT width=43><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=65><font size=1>15,283,350</font></td>
    <td align=LEFT width=17><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=72><font size=1>118,259,634</font></td>
    <td align=LEFT width=19><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=43><font size=1>0</font></td>
    <td align=LEFT width=31><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=80><font size=1>133,542,984</font></td>
    <td align=LEFT width=26><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=49><font size=1>222,963</font></td>
    <td align=LEFT width=13><font size=1>&nbsp;</font></td>
    <td align=RIGHT width=67><font size=1>1,725,192</font></td>
    <td align=LEFT width=26><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=18>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=CENTER width="56"><font size="1"><b>TOTAL</b> </font></td>
    <td align=LEFT width="6"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="15"><font size="1"> </font></td>
    <td align=LEFT width="61"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=LEFT width="11"><font size="1"> </font></td>
    <td align=LEFT width="43"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="65"><font size="1"><b>15,283,350</b> </font></td>
    <td align=LEFT width="17"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="72"><font size="1"><b>118,259,634</b> </font></td>
    <td align=LEFT width="19"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="43"><font size="1"><b>0</b> </font></td>
    <td align=LEFT width="31"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="80"><font size="1"><b>133,542,984</b> </font></td>
    <td align=LEFT width="26"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="49"><font size="1"><b>222,963</b> </font></td>
    <td align=LEFT width="13"><font size="1"><b>&nbsp;</b> </font></td>
    <td align=RIGHT width="67"><font size="1"><b>1,725,192</b> </font></td>
    <td align=LEFT width="26"><font size=1>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=18>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>TOTAL NUMBER
  OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE
  INFORMATION: </B></FONT></P>

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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>
<BR>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SHARES PROPORTION BY : </B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 align="center">
  <TR VALIGN=Bottom>
    <TH COLSPAN=2></TH>
    <TH COLSPAN=2></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1"><B>CPO&#146;S </B>:</font></TD>
    <td align=left><font size="1">0</font></td>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT height="20"><font size="1"><B>ADRS&#146;s </B>:</font></TD>
    <td align=left colspan="3" height="20"><font size="1">3,043,117 ADR&#146;S OF 1
      SHARE EACH ONE.</font></td>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1"><B>UNITS:</B></font></TD>
    <td align=left><font size="1">0</font></td>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1"><B>GDRS&#146;s:</B></font></TD>
    <td align=left><font size="1">0</font></td>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1"><B>ADS&#146;s:</B></font></TD>
    <td align=left><font size="1">0</font></td>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1"><B>GDS&#146;s:</B></font></TD>
    <td align=left><font size="1">0</font></td>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>



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<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>REPURCHASED
  OWN SHARES </b></FONT></P>

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<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr valign=Bottom align="center">
    <td width=32%>&nbsp;</td>
    <td width=1%>&nbsp;</td>
    <td width=14%>&nbsp;</td>
    <td width=11%>&nbsp;</td>
    <td width=29% colspan="2"><b><font face="Times New Roman, Times, Serif" size="1">MARKET
      VALUE OF THE SHARE</font></b></td>
    <td width=2%>&nbsp;</td>
  </tr>
  <tr valign=Bottom align="center">
    <td width=32%><b><font face="Times New Roman, Times, Serif" size="1">SERIES</font></b></td>
    <td width=1%>&nbsp;</td>
    <td width=14%><b><font face="Times New Roman, Times, Serif" size="1">NUMBER
      OF <br>
      SHARES</font></b></td>
    <td width=11%>&nbsp; </td>
    <td width=12%><b><font face="Times New Roman, Times, Serif" size="1">AT REPURCHASE</font></b></td>
    <td width=17%><b><font face="Times New Roman, Times, Serif" size="1">AT QUARTER</font></b></td>
    <td width=2%>&nbsp;</td>
  </tr>
</table>
<P><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" --> </P>

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOTES </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>





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



<!-- 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      <b>GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><font face="Times New Roman, Times, Serif" size="1"><b>CONSTRUCTION
  IN PROGRESS</b></font><b><font size="1"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" --><br>
  </font></b><b><font face="Times New Roman, Times, Serif" size="1">(Project,
  Total Investment and % of Advance) </font></b></P>
<div align="center"><b><font size="1"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
  </font> </b> </div>
<P align="center"><b><font face="Times New Roman, Times, Serif" size="1">ANNEX
  13 </font></b></P>
<P align="right"><b><font face="Times New Roman, Times, Serif" size="1">CONSOLIDATED
  </font></b></P>
<b><font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" --></font></b><b><font face="Times New Roman, Times, Serif" size="1">JUDGED
INFORMATION </font></b><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE PROYECTS IN PROGRESS AT DECEMBER
31, 2004, ARE: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROYECTS IN PROGRESS
                 TOTAL INVESTMENT           PHISICAL ADVANCE             FINISHED AT </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 align=Center width=700>
  <tr valign=Bottom>
    <th colspan=2><font size=1>PROYECTS IN PROGRESS</font> </th>
    <th colspan=2><font size=1>TOTAL INVESTMENT</font> </th>
    <th colspan=2><font size=1>PHISICAL ADVANCE</font> </th>
    <th colspan=2><font size=1>FINISHED AT</font> </th>
  </tr>
  <tr valign=Bottom>
    <td width=32% align=LEFT>&nbsp;</td>
    <td width=1% align=LEFT>&nbsp;</td>
    <td width=14% align=RIGHT>&nbsp;</td>
    <td width=11% align=LEFT>&nbsp;</td>
    <td width=12% align=LEFT>&nbsp;</td>
    <td width=17% align=LEFT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td width=11% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=32% align=LEFT><font size=1>VARIOUS</font></td>
    <td width=1% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=14% align=RIGHT><font size=1>11,140</font></td>
    <td width=11% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=12% align=LEFT>&nbsp;</td>
    <td width=17% align=LEFT><font size=1>&nbsp;</font></td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td width=11% align=LEFT><font size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="32%">&nbsp;</td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=RIGHT width="14%">
      <hr noshade size=1 width="30" align="right">
    </td>
    <td align=LEFT width="11%">&nbsp;</td>
    <td align=LEFT width="12%">&nbsp;</td>
    <td align=LEFT width="17%">&nbsp;</td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="11%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="32%"><b><font size=1>TOTAL INVESTMENT AT DECEMBER 31,
      2004</font></b></td>
    <td align=LEFT width="1%"><b><font size=1>&nbsp;</font></b></td>
    <td align=RIGHT width="14%"><b><font size=1>11,140</font></b></td>
    <td align=LEFT width="11%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="12%">&nbsp;</td>
    <td align=LEFT width="17%"><font size=1>&nbsp;</font></td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="11%"><font size=1>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="32%">&nbsp;</td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=RIGHT width="14%">
      <hr noshade size=2 width="30" align="right">
    </td>
    <td align=LEFT width="11%">&nbsp;</td>
    <td align=LEFT width="12%">&nbsp;</td>
    <td align=LEFT width="17%">&nbsp;</td>
    <td align=LEFT width="2%">&nbsp;</td>
    <td align=LEFT width="11%">&nbsp;</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: 14; page: 14" -->




<!-- 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      <b>GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="center"><font face="Times New Roman, Times, Serif" size="1"><b>FOREIGN
  CURRENCY TRANSACTION AND EXCHANGE DIFFERENCES </b></font></P>
<div align="center"><b><font size="1"><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
  </font> </b> </div>
<P align="center"><b><font face="Times New Roman, Times, Serif" size="1">ANNEX
  14 </font></b></P>
<P align="right"><b><font face="Times New Roman, Times, Serif" size="1">CONSOLIDATED
  </font></b></P>
<b><font size="1"><!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
</font> </b>
<P ALIGN=LEFT><b><font face="Times New Roman, Times, Serif" size="1">JUDGED INFORMATION
  </font></b></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Foreign currency transactions and
exchange differences </B>&#151; All transactions in foreign currency are recorded at the exchange
rates prevailing on the date of their execution or liquidation. Foreign currency
denominated assets and liabilities are translated at the exchange rates prevailing at the
balance sheet date. Any exchange differences incurred with regard to assets or
liabilities denominated in foreign currency are charged to operations of the period and
are included in financial income (expense) in the accompanying consolidated statements of
income (loss). </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The financial statements of foreign
subsidiaries are translated into Mexican pesos in conformity with Bulletin B-15
&#147;Transactions in Foreign Currency and Translation of Financial Statements of Foreign
Operations&#148;. All foreign subsidiaries are considered to be &#147;integrated foreign
operations&#148;, as defined in Bulletin B-15, and accordingly such financial statements were
translated as follows:  </FONT></P>

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

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

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
resulting foreign currency translation differences are included in the financial income
(expense) in the statement of      income (loss). </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
resulting Mexican peso amounts are restated for the effects of      inflation in
accordance with the dispositions of Bulletin B-10 using the      NCPI, where such effects
are considered significant. </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
</FONT></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT><BR>






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

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="57%"><font size="1">STOCK EXCHANGE CODE: &nbsp;&nbsp;<b>SIMEC</b>
      <br>
      <b>GRUPO SIMEC, S.A. DE C.V. </b></font></td>
    <td width="26%"><font size="1">&nbsp;&nbsp;</font></td>
    <td width="17%"><font size="1">QUARTER:&nbsp;&nbsp; <b>4</b> &nbsp;&nbsp;&nbsp;YEAR:&nbsp;&nbsp;<b>2004</b></font></td>
  </tr>
</table>
<P align="right"><b><font size="1">CONSOLIDATED <!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
  </font></b></P>
<P ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=1><B>JUDGED INFORMATION
  </B></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 FOURTH QUARTER REPORT. </FONT></P>

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<TABLE WIDTH=100%>
  <TR ALIGN="center" VALIGN=top>
    <TD WIDTH=30%><font size="1"><b>ING LUIS GARCIA LIMON <br>
      CHIEF EXECUTIVE OFFICER </b></font></TD>
    <TD WIDTH=5%><font size="1"><b>&nbsp;&nbsp;</b></font></TD>
    <TD WIDTH=30%><font size="1"><b>&nbsp;C.P. JOSE FLORES FLORES <br>
      CHIEF CORPORATE FINANCIAL PLANNING OFFICER </b></font></TD>
  </TR>
</TABLE>



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<BR>
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=60% ALIGN=center><FONT SIZE="1"><b>GUADALAJARA, JAL, AT MAY 3 OF
      2005 </b> </FONT></TD>
    <TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp;</FONT></TD></TR></TABLE>
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