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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000891092-05-001353.txt : 20050726
<SEC-HEADER>0000891092-05-001353.hdr.sgml : 20050726
<ACCEPTANCE-DATETIME>20050726093509
ACCESSION NUMBER:		0000891092-05-001353
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050725
FILED AS OF DATE:		20050726
DATE AS OF CHANGE:		20050726

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:		05972940

	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>e22212_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=2><B>UNITED STATES
                       <BR>SECURITIES AND EXCHANGE COMMISSION
                             <BR>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><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the month of
                                                        July &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2005. </FONT></P>

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<P ALIGN=CENTER>
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Group Simec,
  Inc. <BR>
  </FONT></div>
<hr width="30%" align="center" noshade size="1">
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(Translation of Registrant&#146;s Name Into English)
</FONT> </div>
<br>
<div align="center"><!-- MARKER FORMAT-SHEET="Center Head 2 no bold" FSL="Workstation" -->
</div>
<P ALIGN=CENTER>
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mexico </FONT><BR>
  <hr width="30%" align="center" noshade size="1">
  <FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(Jurisdiction of incorporation or organization)
  </FONT></div>
<br>
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Av. Lazaro Cardenas 601, Colonia la Nogalera, Guadalajara,
  Jalisco, Mexico 44440 </FONT><BR>
  <hr width="50%" align="center" noshade size="1">
  (<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Address of principal executive office)
</FONT> </div>
<div align="center"><br>
  <!-- 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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<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>
Form
20-F |X|           &nbsp;&nbsp;&nbsp; Form 40-F |_| </FONT></TD>
</TR>
</TABLE>
<BR>

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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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<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>
Yes
 |_|    &nbsp;&nbsp;&nbsp;       No |X| </FONT></TD>
</TR>
</TABLE>
<BR>

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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): <br>
  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% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
    <TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <u>GRUPO
      SIMEC, S.A. de C.V. </u><br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)
      </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
    <TD WIDTH=60%><font face="Times New Roman, Times, Serif" size=2>Date: July
      25, 2005. </font></TD>
    <TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
      Luis Garc&#237;a Lim&#243;n </u><br>
      Name: Luis Garc&#237;a Lim&#243;n <br>
      Title: &nbsp;&nbsp;Chief Executive Officer </FONT></TD>
</TR>
</TABLE>
<BR>

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<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
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<p><img src="simeclogo.gif" width="106" height="43">
</p><TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=40%><font face="Times New Roman, Times, Serif" size=2><b>PRESS RELEASE</b></font></TD>
    <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Contact:
      </FONT></TD>
    <TD WIDTH=40%><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>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>GRUPO SIMEC
ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST SIX MONTHS OF 2005 </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GUADALAJARA, MEXICO, July 21, 2005-
Grupo Simec, S.A. de C.V. (AMEX-SIM) &#147;Simec&#148;) announced today its results of operations
for the six-month period ended June 30, 2005. Net sales increased 51% to Ps. 3,463
million in the first six months of 2005 compared to Ps. 2,295 million in the same period
of 2004, primarily due to the inclusion of net sales generated by the newly acquired
plants in Apizaco and Cholula of Ps. 1,427 million.  Primarily as a result of the
foregoing, Simec recorded net income of Ps. 582 million in the first six months of 2005
versus net income of Ps. 570 million for the first six months of 2004. </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 inventories, and
assumed liabilities associated with seniority premiums of employees of the Mexican
steel-making facilities of Industrias F&#233;rricas 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. of U.S. $19 million for capital stock issued in the second
quarter of 2005. Simec began to operate the plants on August 1, 2004, and, as a result,
the operations of both plants are reflected in Simec&#146;s financial results as of such date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec sold 523,501 metric tons of
basic steel products during the six-month period ended June 30, 2005 (including 212,669
metric tons produced by the newly acquired plants in Apizaco and Cholula), an increase of
60% as compared to 327,329 metric tons in the same period of 2004. Exports of basic steel
products were 74,692 metric tons in the first six months of 2005 (including 12,752 metric
tons produced by the newly acquired plants in Apizaco and Cholula) versus 50,340 metric
tons in the same period of 2004. Additionally Simec sold 12,870 metric tons of billet in
the six-month period ended June 30, 2005 as compared to 39,512 metric tons of billet in
the same period of 2004. Prices of finished products sold in the first six months of 2005
increased 18% in real terms versus the same period of 2004. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s direct cost of sales was Ps.
2,255 million in the six-month period ended June 30, 2005 (including Ps. 1,022 million
relating to the newly acquired plants in Apizaco and Cholula), or 65% of net sales,
versus Ps. 1,350 million, or 59% of net sales, for the 2004 period. The average cost of
raw materials used to produce steel products increased 18% in real terms in the six-month
period ended June 30, 2005 versus the same period of 2004, primarily as a result of
increases in the price of scrap and certain other raw materials. Indirect manufacturing,
selling, general and administrative expenses (including depreciation) were Ps. 363
million during the six-month period ended June 30, 2005 (including Ps. 124 million
relating to the newly acquired plants in Apizaco and Cholula), compared to Ps. 242
million in the same period of 2004. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s operating income increased
20% to Ps. 845 million during the six-month period ended June 30, 2005 (including Ps. 281
million relating to the newly acquired plants in Apizaco and Cholula) from Ps. 703
million in the first six months of 2004. Operating income was 24% of net sales in the
six-month period ended June 30, 2005 compared to 31% of net sales in the same period of
2004. </FONT></P>

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




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<!-- MARKER PAGE="sheet: 6; page: 6" -->



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded other income, net,
from other financial operations of Ps. 7 million in the six-month period ended June 30,
2005 compared to other income, net, of Ps. 13 million in the same period of 2004. In
addition, Simec recorded a provision for income tax and employee profit sharing of Ps.
236 million in the six-month period ended June 30, 2005 versus a provision of Ps. 143
million in the same period of 2004. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded financial expense of
Ps. 34 million in the six-month period ended June 30, 2005 compared to financial expense
of Ps. 3 million in the same period of 2004 as a result of (i) net interest income of Ps.
8 million in six-month period ended June 30, 2005 compared to no net interest income in
the same period of 2004, (ii) an exchange loss of Ps. 35 million in the six-month period
ended June 30, 2005 compared to an exchange gain of Ps. 8 million in the same period of
2004, reflecting lower debt levels in the six-month period ended June 30, 2005 and an
increase of 3.7% in the value of the peso versus the dollar in the six-month period ended
June 30, 2005 compared to a decrease of 1.6% in the value of the peso versus the dollar
in the six-month period ended June 30, 2004 and (iii) a loss from monetary position of
Ps. 7 million in the six-month period ended June 30, 2005 compared to a loss from
monetary position of Ps. 11 million in the six-month period ended June 30, 2004,
reflecting the domestic inflation rate of 0.8% in the six-month period ended June 30,
2005 compared to the domestic inflation rate of 1.6% in the same period in 2004 and lower
debt levels during the 2005 period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At June 30, 2005, Simec&#146;s total
consolidated debt consisted of approximately $0.3 million of U.S. dollar-denominated
debt. At December 31, 2004, Simec had outstanding approximately $13.9 million of U.S.
dollar-denominated debt, including a refinanced letter of credit for U.S. $13.6 million. </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 June 30, 2005. </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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<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>




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





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

<!-- MARKER FORMAT-SHEET="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
FINANCIAL STATEMENT </B><BR>AT JUNE 30 OF 2005 AND 2004
<BR>(thousands of pesos) </FONT> </P>

<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">REF <BR>
        </font></b></td>
      <td valign=top> <b><font size="1">CATEGORIES</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">QUARTER OF PRESENT <BR>
        FINANCIAL YEAR</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr align="center" valign="bottom">
      <td> <b><font size="1">S</font></b></td>
      <td>&nbsp; </td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">%</font></b></td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">%</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">1</font></b></td>
      <td valign=top> <b><font size="1">TOTAL ASSETS</font></b></td>
      <td valign=top align="right"> <b><font size="1">9,136,208</font></b></td>
      <td valign=top align="right"> <b><font size="1">100</font></b></td>
      <td valign=top align="right"> <b><font size="1">7,250,950</font></b></td>
      <td valign=top align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top align="right">&nbsp; </td>
      <td valign=top align="right">&nbsp; </td>
      <td valign=top align="right">&nbsp; </td>
      <td valign=top align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">2</font></b></td>
      <td valign=bottom> <b><font size="1">CURRENT ASSETS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">3,418,125</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">37</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">2,320,316</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">32</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">3</font></td>
      <td valign=bottom> <font size="1">CASH AND SHORT-TERM INVESTMENTS</font></td>
      <td valign=bottom align="right"> <font size="1">1,129,195</font></td>
      <td valign=bottom align="right"> <font size="1">12</font></td>
      <td valign=bottom align="right"> <font size="1">1,195,090</font></td>
      <td valign=bottom align="right"> <font size="1">16</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">4</font></td>
      <td valign=bottom> <font size="1">ACCOUNTS AND DOCUMENTS RECEIVABLE (NET)</font></td>
      <td valign=bottom align="right"> <font size="1">1,184,504</font></td>
      <td valign=bottom align="right"> <font size="1">13</font></td>
      <td valign=bottom align="right"> <font size="1">665,205</font></td>
      <td valign=bottom align="right"> <font size="1">9</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">5</font></td>
      <td valign=bottom> <font size="1">OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE</font></td>
      <td valign=bottom align="right"> <font size="1">39,300</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">91,363</font></td>
      <td valign=bottom align="right"> <font size="1">1</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">6</font></td>
      <td valign=bottom> <font size="1">INVENTORIES</font></td>
      <td valign=bottom align="right"> <font size="1">1,001,986</font></td>
      <td valign=bottom align="right"> <font size="1">11</font></td>
      <td valign=bottom align="right"> <font size="1">364,588</font></td>
      <td valign=bottom align="right"> <font size="1">5</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">7</font></td>
      <td valign=bottom> <font size="1">OTHER CURRENT ASSETS</font></td>
      <td valign=bottom align="right"> <font size="1">63,140</font></td>
      <td valign=bottom align="right"> <font size="1">1</font></td>
      <td valign=bottom align="right"> <font size="1">4,070</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">8</font></b></td>
      <td valign=bottom> <b><font size="1">LONG-TERM</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">10,746</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">9</font></td>
      <td valign=bottom> <font size="1">ACCOUNTS AND DOCUMENTS RECEIVABLE (NET)</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">10,746</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">10</font></td>
      <td valign=bottom> <font size="1">INVESTMENT IN SHARES OF SUBSIDIARIES <BR>
        AND NON-CONSOLIDATED</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">11</font></td>
      <td valign=bottom> <font size="1">OTHER INVESTMENTS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">12</font></b></td>
      <td valign=bottom> <b><font size="1">PROPERTY, PLANT AND EQUIPMENT</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">5,496,364</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">60</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">4,665,747</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">64</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">13</font></td>
      <td valign=bottom> <font size="1">PROPERTY</font></td>
      <td valign=bottom align="right"> <font size="1">2,203,308</font></td>
      <td valign=bottom align="right"> <font size="1">24</font></td>
      <td valign=bottom align="right"> <font size="1">2,031,183</font></td>
      <td valign=bottom align="right"> <font size="1">28</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">14</font></td>
      <td valign=bottom> <font size="1">MACHINERY AND INDUSTRIAL</font></td>
      <td valign=bottom align="right"> <font size="1">5,420,376</font></td>
      <td valign=bottom align="right"> <font size="1">59</font></td>
      <td valign=bottom align="right"> <font size="1">4,749,346</font></td>
      <td valign=bottom align="right"> <font size="1">65</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">15</font></td>
      <td valign=bottom> <font size="1">OTHER EQUIPMENT</font></td>
      <td valign=bottom align="right"> <font size="1">153,215</font></td>
      <td valign=bottom align="right"> <font size="1">2</font></td>
      <td valign=bottom align="right"> <font size="1">142,499</font></td>
      <td valign=bottom align="right"> <font size="1">2</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">16</font></td>
      <td valign=bottom> <font size="1">ACCUMULATED DEPRECIATION</font></td>
      <td valign=bottom align="right"> <font size="1">2,290,592</font></td>
      <td valign=bottom align="right"> <font size="1">25</font></td>
      <td valign=bottom align="right"> <font size="1">2,265,858</font></td>
      <td valign=bottom align="right"> <font size="1">31</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">17</font></td>
      <td valign=bottom> <font size="1">CONSTRUCTION IN PROGRESS</font></td>
      <td valign=bottom align="right"> <font size="1">10,057</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">8,577</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">18</font></b></td>
      <td valign=bottom> <b><font size="1">DEFERRED ASSETS (NET)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">221,719</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">2</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">254,141</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">4</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">19</font></b></td>
      <td valign=bottom> <b><font size="1">OTHER ASSETS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">20</font></b></td>
      <td valign=bottom> <b><font size="1">TOTAL LIABILITIES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">2,137,068</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,744,716</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">21</font></b></td>
      <td valign=bottom> <b><font size="1">CURRENT LIABILITIES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">828,743</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">39</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">499,655</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">29</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">22</font></td>
      <td valign=bottom> <font size="1">SUPPLIERS</font></td>
      <td valign=bottom align="right"> <font size="1">471,209</font></td>
      <td valign=bottom align="right"> <font size="1">22</font></td>
      <td valign=bottom align="right"> <font size="1">246,837</font></td>
      <td valign=bottom align="right"> <font size="1">14</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">23</font></td>
      <td valign=bottom> <font size="1">BANK LOANS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">24</font></td>
      <td valign=bottom> <font size="1">STOCK MARKET LOANS</font></td>
      <td valign=bottom align="right"> <font size="1">3,275</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">3,595</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">25</font></td>
      <td valign=bottom> <font size="1">TAXES TO BE PAID</font></td>
      <td valign=bottom align="right"> <font size="1">201,834</font></td>
      <td valign=bottom align="right"> <font size="1">9</font></td>
      <td valign=bottom align="right"> <font size="1">115,707</font></td>
      <td valign=bottom align="right"> <font size="1">7</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">26</font></td>
      <td valign=bottom> <font size="1">OTHER CURRENT LIABILITIES</font></td>
      <td valign=bottom align="right"> <font size="1">152,425</font></td>
      <td valign=bottom align="right"> <font size="1">7</font></td>
      <td valign=bottom align="right"> <font size="1">133,516</font></td>
      <td valign=bottom align="right"> <font size="1">8</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">27</font></b></td>
      <td valign=bottom> <b><font size="1">LONG-TERM LIABILITIES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">28</font></td>
      <td valign=bottom> <font size="1">BANK LOANS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">29</font></td>
      <td valign=bottom> <font size="1">STOCK MARKET LOANS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">30</font></td>
      <td valign=bottom> <font size="1">OTHER LOANS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">31</font></b></td>
      <td valign=bottom> <b><font size="1">DEFERRED LOANS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,308,325</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">61</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,245,061</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">71</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">32</font></b></td>
      <td valign=bottom> <b><font size="1">OTHER LIABILITIES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">33</font></b></td>
      <td valign=bottom> <b><font size="1">CONSOLIDATED STOCKHOLDERS&#146; EQUITY</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">6,999,140</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">5,506,234</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">34</font></b></td>
      <td valign=bottom> <b><font size="1">MINORITY INTEREST</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">467</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">239</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">35</font></b></td>
      <td valign=bottom> <b><font size="1">MAJORITY INTEREST</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">6,998,673</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">5,505,995</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">36</font></b></td>
      <td valign=bottom> <b><font size="1">CONTRIBUTED CAPITAL</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">4,188,474</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">60</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">3,964,628</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">72</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">37</font></td>
      <td valign=bottom> <font size="1">PAID-IN CAPITAL STOCK (NOMINAL)</font></td>
      <td valign=bottom align="right"> <font size="1">2,012,147</font></td>
      <td valign=bottom align="right"> <font size="1">29</font></td>
      <td valign=bottom align="right"> <font size="1">1,948,155</font></td>
      <td valign=bottom align="right"> <font size="1">35</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">38</font></td>
      <td valign=bottom> <font size="1">RESTATEMENT OF PAID-IN CAPITAL STOCK</font></td>
      <td valign=bottom align="right"> <font size="1">1,357,310</font></td>
      <td valign=bottom align="right"> <font size="1">19</font></td>
      <td valign=bottom align="right"> <font size="1">1,355,386</font></td>
      <td valign=bottom align="right"> <font size="1">25</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">39</font></td>
      <td valign=bottom> <font size="1">PREMIUM ON SALES OF SHARES</font></td>
      <td valign=bottom align="right"> <font size="1">819,017</font></td>
      <td valign=bottom align="right"> <font size="1">12</font></td>
      <td valign=bottom align="right"> <font size="1">661,087</font></td>
      <td valign=bottom align="right"> <font size="1">12</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">40</font></td>
      <td valign=bottom> <font size="1">CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">41</font></b></td>
      <td valign=bottom> <b><font size="1">CAPITAL INCREASE (DECREASE)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">2,810,199</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">40</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,541,367</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">28</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">42</font></td>
      <td valign=bottom> <font size="1">RETAINED EARNINGS AND CAPITAL RESERVE</font></td>
      <td valign=bottom align="right"> <font size="1">3,055,260</font></td>
      <td valign=bottom align="right"> <font size="1">44</font></td>
      <td valign=bottom align="right"> <font size="1">1,637,617</font></td>
      <td valign=bottom align="right"> <font size="1">30</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">43</font></td>
      <td valign=bottom> <font size="1">REPURCHASE FUND OF SHARES</font></td>
      <td valign=bottom align="right"> <font size="1">84,900</font></td>
      <td valign=bottom align="right"> <font size="1">1</font></td>
      <td valign=bottom align="right"> <font size="1">84,900</font></td>
      <td valign=bottom align="right"> <font size="1">2</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">44</font></td>
      <td valign=bottom> <font size="1">EXCESS (SHORTFALL) IN RESTATEMENT OF <br>
        STOCKHOLDERS EQUITY</font></td>
      <td valign=bottom align="right"><font size="1">(912,645)</font></td>
      <td valign=bottom align="right"><font size="1">(13)</font></td>
      <td valign=bottom align="right"><font size="1">(750,954)</font></td>
      <td valign=bottom align="right"><font size="1">(14)</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">45</font></td>
      <td valign=bottom> <font size="1">NET INCOME FOR THE YEAR</font></td>
      <td valign=bottom align="right"> <font size="1">582,684</font></td>
      <td valign=bottom align="right"> <font size="1">8</font></td>
      <td valign=bottom align="right"> <font size="1">569,804</font></td>
      <td valign=bottom align="right"> <font size="1">10</font></td>
    </tr>
  </table>



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




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





<!-- 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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
FINANCIAL STATEMENT <BR></B>BREAKDOWN OF MAIN CATEGORIES
<BR>(thousands of pesos) </FONT> </P>

<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr valign="top" align="center">
      <td> <b><font size="1">REF <BR>
        </font></b></td>
      <td> <b><font size="1">CATEGORIES</font></b></td>
      <td colspan=2> <b><font size="1">QUARTER OF PRESENT <BR>
        FINANCIAL YEAR</font></b></td>
      <td colspan=2> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr valign="bottom" align="center">
      <td> <b><font size="1">S</font></b></td>
      <td>&nbsp; </td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">%</font></b></td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">%</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">3</font></b></td>
      <td valign=bottom> <b><font size="1">CASH AND SHORT-TERM INVESTMENTS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,129,195</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,195,090</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">46</font></td>
      <td valign=bottom> <font size="1">CASH</font></td>
      <td valign=bottom align="right"> <font size="1">145,583</font></td>
      <td valign=bottom align="right"> <font size="1">13</font></td>
      <td valign=bottom align="right"> <font size="1">138,910</font></td>
      <td valign=bottom align="right"> <font size="1">12</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">47</font></td>
      <td valign=bottom> <font size="1">SHORT-TERM INVESTMENTS</font></td>
      <td valign=bottom align="right"> <font size="1">983,612</font></td>
      <td valign=bottom align="right"> <font size="1">87</font></td>
      <td valign=bottom align="right"> <font size="1">1,056,180</font></td>
      <td valign=bottom align="right"> <font size="1">88</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">18</font></b></td>
      <td valign=bottom> <b><font size="1">DEFERRED ASSETS (NET)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">221,719</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">254,141</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">48</font></td>
      <td valign=bottom> <font size="1">AMORTIZED OR REDEEMED EXPENSES</font></td>
      <td valign=bottom align="right"> <font size="1">216,292</font></td>
      <td valign=bottom align="right"> <font size="1">98</font></td>
      <td valign=bottom align="right"> <font size="1">252,098</font></td>
      <td valign=bottom align="right"> <font size="1">99</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">49</font></td>
      <td valign=bottom> <font size="1">GOODWILL</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">50</font></td>
      <td valign=bottom> <font size="1">DEFERRED TAXES</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">51</font></td>
      <td valign=bottom> <font size="1">OTHERS</font></td>
      <td valign=bottom align="right"> <font size="1">5,427</font></td>
      <td valign=bottom align="right"> <font size="1">2</font></td>
      <td valign=bottom align="right"> <font size="1">2,043</font></td>
      <td valign=bottom align="right"> <font size="1">1</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">21</font></b></td>
      <td valign=bottom> <b><font size="1">CURRENT LIABILITIES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">828,743</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">499,655</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">52</font></td>
      <td valign=bottom> <font size="1">FOREIGN CURRENCY LIABILITIES</font></td>
      <td valign=bottom align="right"> <font size="1">138,006</font></td>
      <td valign=bottom align="right"> <font size="1">17</font></td>
      <td valign=bottom align="right"> <font size="1">45,193</font></td>
      <td valign=bottom align="right"> <font size="1">9</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">53</font></td>
      <td valign=bottom> <font size="1">MEXICAN PESOS LIABILITIES</font></td>
      <td valign=bottom align="right"> <font size="1">690,737</font></td>
      <td valign=bottom align="right"> <font size="1">83</font></td>
      <td valign=bottom align="right"> <font size="1">454,462</font></td>
      <td valign=bottom align="right"> <font size="1">91</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">24</font></b></td>
      <td valign=bottom> <b><font size="1">STOCK MARKET LOANS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">3,275</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">3,595</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">54</font></td>
      <td valign=bottom> <font size="1">COMMERCIAL PAPER</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">55</font></td>
      <td valign=bottom> <font size="1">CURRENT MATURITIES OF MEDIUM TERM NOTES</font></td>
      <td valign=bottom align="right"> <font size="1">3,275</font></td>
      <td valign=bottom align="right"> <font size="1">100</font></td>
      <td valign=bottom align="right"> <font size="1">3,595</font></td>
      <td valign=bottom align="right"> <font size="1">100</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">56</font></td>
      <td valign=bottom> <font size="1">CURRENT MATURITIES OF BONDS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">26</font></b></td>
      <td valign=bottom> <b><font size="1">OTHER CURRENT LIABILITIES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">152,425</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">133,516</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">57</font></td>
      <td valign=bottom> <font size="1">OTHER CURRENT LIABILITIES WITH COST</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">58</font></td>
      <td valign=bottom> <font size="1">OTHER CURRENT LIABILITIES WITHOUT COST</font></td>
      <td valign=bottom align="right"> <font size="1">152,425</font></td>
      <td valign=bottom align="right"> <font size="1">100</font></td>
      <td valign=bottom align="right"> <font size="1">133,516</font></td>
      <td valign=bottom align="right"> <font size="1">100</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">27</font></b></td>
      <td valign=bottom> <b><font size="1">LONG-TERM LIABILITIES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">59</font></td>
      <td valign=bottom> <font size="1">FOREIGN CURRENCY LIABILITIES</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">60</font></td>
      <td valign=bottom> <font size="1">MEXICAN PESOS LIABILITIES</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">29</font></b></td>
      <td valign=bottom> <b><font size="1">STOCK MARKET LOANS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">61</font></td>
      <td valign=bottom> <font size="1">BONDS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">62</font></td>
      <td valign=bottom> <font size="1">MEDIUM TERM NOTES</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">30</font></b></td>
      <td valign=bottom> <b><font size="1">OTHER LOANS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">63</font></td>
      <td valign=bottom> <font size="1">OTHER LOANS WITH COST</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">64</font></td>
      <td valign=bottom> <font size="1">OTHER LOANS WITHOUT COST</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">31</font></b></td>
      <td valign=bottom> <b><font size="1">DEFERRED LOANS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,308,325</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,245,061</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">65</font></td>
      <td valign=bottom> <font size="1">NEGATIVE GOODWILL</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">66</font></td>
      <td valign=bottom> <font size="1">DEFERRED TAXES</font></td>
      <td valign=bottom align="right"> <font size="1">1,285,627</font></td>
      <td valign=bottom align="right"> <font size="1">98</font></td>
      <td valign=bottom align="right"> <font size="1">1,234,920</font></td>
      <td valign=bottom align="right"> <font size="1">99</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">67</font></td>
      <td valign=bottom> <font size="1">OTHERS</font></td>
      <td valign=bottom align="right"> <font size="1">22,698</font></td>
      <td valign=bottom align="right"> <font size="1">2</font></td>
      <td valign=bottom align="right"> <font size="1">10,141</font></td>
      <td valign=bottom align="right"> <font size="1">1</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">32</font></b></td>
      <td valign=bottom> <b><font size="1">OTHER LIABILITIES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">68</font></td>
      <td valign=bottom> <font size="1">RESERVES</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">69</font></td>
      <td valign=bottom> <font size="1">OTHER LIABILITIES</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">44</font></b></td>
      <td valign=bottom> <b><font size="1">EXCESS (SHORTFALL) IN RESTATEMENT OF
        <br>
        STOCKHOLDERS&#146;&#146; EQUITY</font></b></td>
      <td valign=bottom align="right"><b><font size="1">(912,645)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> (100)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> (750,954)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> (100)</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">70</font></td>
      <td valign=bottom> <font size="1">ACCUMULATED INCOME DUE TO MONETARY POSITION</font></td>
      <td valign=bottom align="right"> <font size="1">(912,645)</font></td>
      <td valign=bottom align="right"> <font size="1">(100)</font></td>
      <td valign=bottom align="right"> <font size="1">(750,954)</font></td>
      <td valign=bottom align="right"> <font size="1">(100)</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">71</font></td>
      <td valign=bottom> <font size="1">INCOME FROM NON-MONETARY POSITION ASSETS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
  </table>

<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=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
FINANCIAL STATEMENT <BR></B>OTHER CONCEPTS
<BR>(thousands of pesos) </FONT> </P>

<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">REF <BR>
        </font></b></td>
      <td valign=top> <b><font size="1">CATEGORIES</font></b></td>
      <td valign=top> <b><font size="1">QUARTER OF PRESENT <BR>
        FINANCIAL YEAR</font></b></td>
      <td valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr align="center" valign="bottom">
      <td> <b><font size="1">S</font></b></td>
      <td>&nbsp; </td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">AMOUNT</font></b></td>
    </tr>
    <tr>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">72</font></td>
      <td valign=top> <font size="1">WORKING CAPITAL</font></td>
      <td valign=top align="right"> <font size="1">2,589,382</font></td>
      <td valign=top align="right"> <font size="1">1,820,661</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">73</font></td>
      <td valign=top> <font size="1">PENSIONS FUND AND SENIORITY PREMIUMS</font></td>
      <td valign=top align="right"> <font size="1">0</font></td>
      <td valign=top align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">74</font></td>
      <td valign=top> <font size="1">EXECUTIVES (*)</font></td>
      <td valign=top align="right"> <font size="1">42</font></td>
      <td valign=top align="right"> <font size="1">22</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">75</font></td>
      <td valign=top> <font size="1">EMPLOYERS (*)</font></td>
      <td valign=top align="right"> <font size="1">761</font></td>
      <td valign=top align="right"> <font size="1">349</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">76</font></td>
      <td valign=top> <font size="1">WORKERS (*)</font></td>
      <td valign=top align="right"> <font size="1">1,172</font></td>
      <td valign=top align="right"> <font size="1">870</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">77</font></td>
      <td valign=top> <font size="1">COMMON SHARES (*) </font></td>
      <td valign=top align="right"> <font size="1">137,929,599</font></td>
      <td valign=top align="right"> <font size="1">133,542,984</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">78</font></td>
      <td valign=top> <font size="1">REPURCHASED SHARES (*)</font></td>
      <td valign=top align="right"> <font size="1">0</font></td>
      <td valign=top align="right"> <font size="1">0</font></td>
    </tr>
  </table>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(*) THESE ITEMS SHOULD BE EXPRESSED
IN UNITS </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=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED EARNING
STATEMENT <BR></B>FROM JANUARY 1 TO JUNE 30 OF 2005 AND 2004
<BR>(thousands of pesos) </FONT> </P>

<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">REF <BR>
        </font></b></td>
      <td valign=top> <b><font size="1">CATEGORIES</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PRESENT
        <BR>
        FINANCIAL YEAR</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS
        <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr align="center" valign="bottom">
      <td> <b><font size="1">R</font></b></td>
      <td>&nbsp; </td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">%</font></b></td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">%</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">1</font></b></td>
      <td valign=bottom> <b><font size="1">NET SALES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">3,463,057</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">2,294,578</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">2</font></td>
      <td valign=bottom> <font size="1">COST OF SALES</font></td>
      <td valign=bottom align="right"> <font size="1">2,254,665</font></td>
      <td valign=bottom align="right"> <font size="1">65</font></td>
      <td valign=bottom align="right"> <font size="1">1,349,688</font></td>
      <td valign=bottom align="right"> <font size="1">59</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">3</font></b></td>
      <td valign=bottom> <b><font size="1">GROSS INCOME</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,208,392</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">35</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">944,890</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">41</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">4</font></td>
      <td valign=bottom> <font size="1">OPERATING EXPENSES</font></td>
      <td valign=bottom align="right"> <font size="1">363,084</font></td>
      <td valign=bottom align="right"> <font size="1">10</font></td>
      <td valign=bottom align="right"> <font size="1">242,169</font></td>
      <td valign=bottom align="right"> <font size="1">11</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">5</font></b></td>
      <td valign=bottom> <b><font size="1">OPERATING INCOME</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">845,308</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">24</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">702,721</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">31</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">6</font></td>
      <td valign=bottom> <font size="1">TOTAL FINANCING COST</font></td>
      <td valign=bottom align="right"> <font size="1">33,992</font></td>
      <td valign=bottom align="right"> <font size="1">1</font></td>
      <td valign=bottom align="right"> <font size="1">3,111</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">7</font></b></td>
      <td valign=bottom> <b><font size="1">INCOME AFTER FINANCING COST</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">811,316</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">23</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">699,610</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">30</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">8</font></td>
      <td valign=bottom> <font size="1">OTHER FINANCIAL OPERATIONS</font></td>
      <td valign=bottom align="right"> <font size="1">(7,398)</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">(12,789)</font></td>
      <td valign=bottom align="right"> <font size="1">(1)</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">9</font></b></td>
      <td valign=bottom> <b><font size="1">INCOME BEFORE TAXES AND WORKERS&#146; PROFIT
        SHARING</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">818,714</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">24</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">712,399</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">31</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">10</font></td>
      <td valign=bottom> <font size="1">RESERVE FOR TAXES AND WORKERS&#146; PROFIT
        SHARING</font></td>
      <td valign=bottom align="right"> <font size="1">236,030</font></td>
      <td valign=bottom align="right"> <font size="1">7</font></td>
      <td valign=bottom align="right"> <font size="1">142,595</font></td>
      <td valign=bottom align="right"> <font size="1">6</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">11</font></b></td>
      <td valign=bottom> <b><font size="1">NET INCOME AFTER TAXES AND WORKERS&#146;
        PROFIT SHARING</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">582,684</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">17</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">569,804</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">25</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">12</font></td>
      <td valign=bottom> <font size="1">SHARE IN NET INCOME OF SUBSIDIARIES AND
        NON-CONSOLIDATED <br>
        ASSOCIATES</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">13</font></b></td>
      <td valign=bottom> <b><font size="1">CONSOLIDATED NET INCOME FROM CONTINUOUS
        OPERATIONS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 582,684</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 17</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 569,804</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 25</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">14</font></td>
      <td valign=bottom> <font size="1">INCOME FROM DISCONTINUOUS OPERATIONS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">15</font></b></td>
      <td valign=bottom> <b><font size="1">CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY
        ITEMS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 582,684</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 17</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 569,804</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 25</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">16</font></td>
      <td valign=bottom> <font size="1">EXTRAORDINARY ITEMS NET EXPENSES (INCOME)</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">17</font></td>
      <td valign=bottom> <font size="1">NET EFFECT AT THE BEGINNING OF THE YEAR
        BY CHANGES IN <br>
        ACCOUNTING PRINCIPLES</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">18</font></b></td>
      <td valign=bottom> <b><font size="1">NET CONSOLIDATED INCOME</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">582,684</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">17</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">569,804</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">25</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">19</font></td>
      <td valign=bottom> <font size="1">NET INCOME OF MINORITY INTEREST</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">20</font></td>
      <td valign=bottom> <font size="1">NET INCOME OF MAJORITY INTEREST</font></td>
      <td valign=bottom align="right"> <font size="1">582,684</font></td>
      <td valign=bottom align="right"> <font size="1">17</font></td>
      <td valign=bottom align="right"> <font size="1">569,804</font></td>
      <td valign=bottom align="right"> <font size="1">25</font></td>
    </tr>
  </table>


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




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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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED EARNING
STATEMENT <BR></B>BREAKDOWN OF MAIN CONCEPTS
<BR>(thousands of pesos) </FONT> </P>


<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">REF <BR>
        </font></b></td>
      <td valign=top> <b><font size="1">CATEGORIES</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PRESENT
        <BR>
        FINANCIAL YEAR</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS
        <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr align="center" valign="bottom">
      <td> <b><font size="1">R</font></b></td>
      <td>&nbsp; </td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">%</font></b></td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">%</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">1</font></b></td>
      <td valign=bottom> <b><font size="1">NET SALES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">3,463,057</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">2,294,578</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">21</font></td>
      <td valign=bottom> <font size="1">DOMESTIC</font></td>
      <td valign=bottom align="right"> <font size="1">3,028,465</font></td>
      <td valign=bottom align="right"> <font size="1">87</font></td>
      <td valign=bottom align="right"> <font size="1">1,988,261</font></td>
      <td valign=bottom align="right"> <font size="1">87</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">22</font></td>
      <td valign=bottom> <font size="1">FOREIGN</font></td>
      <td valign=bottom align="right"> <font size="1">434,592</font></td>
      <td valign=bottom align="right"> <font size="1">13</font></td>
      <td valign=bottom align="right"> <font size="1">306,317</font></td>
      <td valign=bottom align="right"> <font size="1">13</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">23</font></td>
      <td valign=bottom> <font size="1">TRANSLATED INTO DOLLARS (***)</font></td>
      <td valign=bottom align="right"> <font size="1">39,355</font></td>
      <td valign=bottom align="right"> <font size="1">1</font></td>
      <td valign=bottom align="right"> <font size="1">26,130</font></td>
      <td valign=bottom align="right"> <font size="1">1</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">6</font></b></td>
      <td valign=bottom> <b><font size="1">TOTAL FINANCING COST</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">33,992</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">3,111</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">24</font></td>
      <td valign=bottom> <font size="1">INTEREST PAID</font></td>
      <td valign=bottom align="right"> <font size="1">2,639</font></td>
      <td valign=bottom align="right"> <font size="1">8</font></td>
      <td valign=bottom align="right"> <font size="1">14,836</font></td>
      <td valign=bottom align="right"> <font size="1">477</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">25</font></td>
      <td valign=bottom> <font size="1">EXCHANGE LOSSES</font></td>
      <td valign=bottom align="right"> <font size="1">34,819</font></td>
      <td valign=bottom align="right"> <font size="1">102</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">26</font></td>
      <td valign=bottom> <font size="1">INTEREST EARNED</font></td>
      <td valign=bottom align="right"> <font size="1">10,833</font></td>
      <td valign=bottom align="right"> <font size="1">32</font></td>
      <td valign=bottom align="right"> <font size="1">15,332</font></td>
      <td valign=bottom align="right"> <font size="1">493</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">27</font></td>
      <td valign=bottom> <font size="1">EXCHANGE PROFITS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">8,131</font></td>
      <td valign=bottom align="right"> <font size="1">261</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">28</font></td>
      <td valign=bottom> <font size="1">(GAIN) LOSS FROM MONETARY POSITION</font></td>
      <td valign=bottom align="right"> <font size="1">7,367</font></td>
      <td valign=bottom align="right"> <font size="1">22</font></td>
      <td valign=bottom align="right"> <font size="1">11,738</font></td>
      <td valign=bottom align="right"> <font size="1">377</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">8</font></b></td>
      <td valign=bottom> <b><font size="1">OTHER FINANCIAL OPERATIONS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">(7,398)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">(100)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">(12,789)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">(100)</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">29</font></td>
      <td valign=bottom> <font size="1">OTHER NET EXPENSES (INCOME) NET</font></td>
      <td valign=bottom align="right"> <font size="1">(7,398)</font></td>
      <td valign=bottom align="right"> <font size="1">(100)</font></td>
      <td valign=bottom align="right"> <font size="1">(12,789)</font></td>
      <td valign=bottom align="right"> <font size="1">(100)</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">30</font></td>
      <td valign=bottom> <font size="1">(PROFIT) LOSS ON SALE OF OWN SHARES</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">31</font></td>
      <td valign=bottom> <font size="1">(PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">10</font></td>
      <td valign=bottom> <font size="1">RESERVE FOR TAXES AND WORKERS&#146; PROFIT
        SHARING</font></td>
      <td valign=bottom align="right"> <font size="1">236,030</font></td>
      <td valign=bottom align="right"> <font size="1">100</font></td>
      <td valign=bottom align="right"> <font size="1">142,595</font></td>
      <td valign=bottom align="right"> <font size="1">100</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">32</font></td>
      <td valign=bottom> <font size="1">INCOME TAX</font></td>
      <td valign=bottom align="right"> <font size="1">299,319</font></td>
      <td valign=bottom align="right"> <font size="1">127</font></td>
      <td valign=bottom align="right"> <font size="1">14,975</font></td>
      <td valign=bottom align="right"> <font size="1">11</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">33</font></td>
      <td valign=bottom> <font size="1">DEFERRED INCOME TAX</font></td>
      <td valign=bottom align="right"> <font size="1">(63,289)</font></td>
      <td valign=bottom align="right"> <font size="1">(27)</font></td>
      <td valign=bottom align="right"> <font size="1">127,620</font></td>
      <td valign=bottom align="right"> <font size="1">89</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">34</font></td>
      <td valign=bottom> <font size="1">WORKERS&#146; PROFIT SHARING</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">35</font></td>
      <td valign=bottom> <font size="1">DEFERRED WORKERS&#146; PROFIT SHARING</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
  </table>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(***) THOUSANDS OF DOLLARS </FONT></P>

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




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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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED EARNING
STATEMENT <BR></B>OTHER CONCEPTS
<BR>(thousands of pesos) </FONT> </P>


<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top width=32> <b><font size="1">REF <BR>
        </font></b></td>
      <td valign=top width=304> <b><font size="1">CATEGORIES</font></b></td>
      <td valign=top width=143> <b><font size="1">QUARTER OF PRESENT <BR>
        FINANCIAL YEAR</font></b></td>
      <td valign=top width=135> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr align="center" valign="bottom">
      <td width=32> <b><font size="1">R</font></b></td>
      <td width=304>&nbsp; </td>
      <td width=143> <b><font size="1">AMOUNT</font></b></td>
      <td width=135> <b><font size="1">AMOUNT</font></b></td>
    </tr>
    <tr>
      <td valign=top width=32>&nbsp; </td>
      <td valign=top width=304>&nbsp; </td>
      <td valign=top width=143>&nbsp; </td>
      <td valign=top width=135>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right" width=32> <font size="1">36</font></td>
      <td valign=bottom width=304> <font size="1">TOTAL SALES</font></td>
      <td valign=bottom align="right" width=143> <font size="1">3,731,463</font></td>
      <td valign=bottom align="right" width=135> <font size="1">2,420,349</font></td>
    </tr>
    <tr>
      <td valign=top align="right" width=32> <font size="1">37</font></td>
      <td valign=bottom width=304> <font size="1">NET FISCAL INCOME OF THE YEAR</font></td>
      <td valign=bottom align="right" width=143> <font size="1">0</font></td>
      <td valign=bottom align="right" width=135> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right" width=32> <font size="1">38</font></td>
      <td valign=bottom width=304> <font size="1">NET SALES (**)</font></td>
      <td valign=bottom align="right" width=143> <font size="1">6,907,493</font></td>
      <td valign=bottom align="right" width=135> <font size="1">3,869,806</font></td>
    </tr>
    <tr>
      <td valign=top align="right" width=32> <font size="1">39</font></td>
      <td valign=bottom width=304> <font size="1">OPERATION INCOME (**)</font></td>
      <td valign=bottom align="right" width=143> <font size="1">1,961,907</font></td>
      <td valign=bottom align="right" width=135> <font size="1">1,002,469</font></td>
    </tr>
    <tr>
      <td valign=top align="right" width=32> <font size="1">40</font></td>
      <td valign=bottom width=304> <font size="1">NET INCOME OF MAJORITY INTEREST
        (**)</font></td>
      <td valign=bottom align="right" width=143> <font size="1">1,353,463</font></td>
      <td valign=bottom align="right" width=135> <font size="1">707,421</font></td>
    </tr>
    <tr>
      <td valign=top align="right" width=32> <font size="1">41</font></td>
      <td valign=bottom width=304> <font size="1">NET CONSOLIDATED INCOME (**)</font></td>
      <td valign=bottom align="right" width=143> <font size="1">1,353,463</font></td>
      <td valign=bottom align="right" width=135> <font size="1">707,422</font></td>
    </tr>
  </table>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(**) THE RESTATED INFORMATION FOR
THE LAST TWELVE MONTHS SHOULD BE USED </FONT></P>

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<!-- 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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED EARNING
STATEMENT OF THE SECOND QUARTER <BR></B>FROM APRIL 1 TO JUNE 30 OF 2005 AND
2004 <BR>(thousands of pesos) </FONT> </P>

<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">REF <BR>
        </font></b></td>
      <td valign=top> <b><font size="1">CATEGORIES</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PRESENT
        <BR>
        FINANCIAL YEAR</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS
        <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr align="center">
      <td valign=bottom> <b><font size="1">R</font></b></td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom> <b><font size="1">AMOUNT</font></b></td>
      <td valign=bottom> <b><font size="1">%</font></b></td>
      <td valign=bottom> <b><font size="1">AMOUNT</font></b></td>
      <td valign=bottom> <b><font size="1">%</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">1</font></b></td>
      <td valign=bottom> <b><font size="1">NET SALES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,698,954</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,287,932</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">2</font></td>
      <td valign=bottom> <font size="1">COST OF SALES</font></td>
      <td valign=bottom align="right"> <font size="1">1,131,861</font></td>
      <td valign=bottom align="right"> <font size="1">67</font></td>
      <td valign=bottom align="right"> <font size="1">683,593</font></td>
      <td valign=bottom align="right"> <font size="1">53</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">3</font></b></td>
      <td valign=bottom> <b><font size="1">GROSS INCOME</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">567,093</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">33</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">604,339</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">47</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">4</font></td>
      <td valign=bottom> <font size="1">OPERATING EXPENSES</font></td>
      <td valign=bottom align="right"> <font size="1">180,561</font></td>
      <td valign=bottom align="right"> <font size="1">11</font></td>
      <td valign=bottom align="right"> <font size="1">120,636</font></td>
      <td valign=bottom align="right"> <font size="1">9</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">5</font></b></td>
      <td valign=bottom> <b><font size="1">OPERATING INCOME</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">386,532</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">23</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">483,703</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">38</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">6</font></td>
      <td valign=bottom> <font size="1">TOTAL FINANCING COST</font></td>
      <td valign=bottom align="right"> <font size="1">34,488</font></td>
      <td valign=bottom align="right"> <font size="1">2</font></td>
      <td valign=bottom align="right"> <font size="1">(13,198)</font></td>
      <td valign=bottom align="right"> <font size="1">(1)</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">7</font></b></td>
      <td valign=bottom> <b><font size="1">INCOME AFTER FINANCING COST</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">352,044</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">21</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">496,901</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">39</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">8</font></td>
      <td valign=bottom> <font size="1">OTHER FINANCIAL OPERATIONS</font></td>
      <td valign=bottom align="right"> <font size="1">(2,466)</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">(2,943)</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">9</font></b></td>
      <td valign=bottom> <b><font size="1">INCOME BEFORE TAXES AND WORKERS&#146; PROFIT
        SHARING</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">354,510</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">21</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">499,844</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">39</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">10</font></td>
      <td valign=bottom> <font size="1">RESERVE FOR TAXES AND WORKERS&#146; PROFIT
        SHARING</font></td>
      <td valign=bottom align="right"> <font size="1">92,754</font></td>
      <td valign=bottom align="right"> <font size="1">5</font></td>
      <td valign=bottom align="right"> <font size="1">207,748</font></td>
      <td valign=bottom align="right"> <font size="1">16</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">11</font></b></td>
      <td valign=bottom> <b><font size="1">NET INCOME AFTER TAXES AND WORKERS&#146;
        PROFIT SHARING</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">261,756</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">15</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">292,096</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">23</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">12</font></td>
      <td valign=bottom> <font size="1">SHARE IN NET INCOME OF SUBSIDIARIES AND
        NON-CONSOLIDATED <br>
        ASSOCIATES</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
      <td valign=bottom align="right"> <font size="1"> 0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">13</font></b></td>
      <td valign=bottom> <b><font size="1">CONSOLIDATED NET INCOME FROM CONTINUOUS
        OPERATIONS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 261,756</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 15</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 292,096</font></b></td>
      <td valign=bottom align="right"> <b><font size="1"> 23</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">14</font></td>
      <td valign=bottom> <font size="1">INCOME FROM DISCONTINUOUS OPERATIONS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">15</font></b></td>
      <td valign=bottom> <b><font size="1">CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY
        ITEMS</font></b></td>
      <td valign=bottom align="right"><b><font size="1">261,756</font></b></td>
      <td valign=bottom align="right"><b><font size="1">15</font></b></td>
      <td valign=bottom align="right"><b><font size="1">292,096</font></b></td>
      <td valign=bottom align="right"><b><font size="1">23</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">16</font></td>
      <td valign=bottom> <font size="1">EXTRAORDINARY ITEMS NET EXPENSES (INCOME)</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">17</font></td>
      <td valign=bottom> <font size="1">NET EFFECT AT THE BEGINNING OF THE YEAR
        BY CHANGES IN <br>
        ACCOUNTING PRINCIPLES</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">18</font></b></td>
      <td valign=bottom> <b><font size="1">NET CONSOLIDATED INCOME</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">261,756</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">15</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">292,096</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">23</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">19</font></td>
      <td valign=bottom> <font size="1">NET INCOME OF MINORITY INTEREST</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">20</font></td>
      <td valign=bottom> <font size="1">NET INCOME OF MAJORITY INTEREST</font></td>
      <td valign=bottom align="right"> <font size="1">261,756</font></td>
      <td valign=bottom align="right"> <font size="1">15</font></td>
      <td valign=bottom align="right"> <font size="1">292,096</font></td>
      <td valign=bottom align="right"> <font size="1">23</font></td>
    </tr>
  </table>

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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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED EARNING
STATEMENT OF THE SECOND QUARTER <BR> </B>BREAKDOWN OF MAIN CONCEPTS
<BR> FROM APRIL 1 TO JUNE 30 OF 2005 AND 2004
<BR>(thousands of pesos) </FONT> </P>


<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">REF <BR>
        </font></b></td>
      <td valign=top> <b><font size="1">CATEGORIES</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PRESENT
        <BR>
        FINANCIAL YEAR</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS
        <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr align="center" valign="bottom">
      <td> <b><font size="1">R</font></b></td>
      <td>&nbsp; </td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">%</font></b></td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">%</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">1</font></b></td>
      <td valign=bottom> <b><font size="1">NET SALES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,698,954</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">1,287,932</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">21</font></td>
      <td valign=bottom> <font size="1">DOMESTIC</font></td>
      <td valign=bottom align="right"> <font size="1">1,496,496</font></td>
      <td valign=bottom align="right"> <font size="1">88</font></td>
      <td valign=bottom align="right"> <font size="1">1,111,385</font></td>
      <td valign=bottom align="right"> <font size="1">86</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">22</font></td>
      <td valign=bottom> <font size="1">FOREIGN</font></td>
      <td valign=bottom align="right"> <font size="1">202,458</font></td>
      <td valign=bottom align="right"> <font size="1">12</font></td>
      <td valign=bottom align="right"> <font size="1">176,547</font></td>
      <td valign=bottom align="right"> <font size="1">14</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">23</font></td>
      <td valign=bottom> <font size="1">TRANSLATED INTO DOLLARS (***)</font></td>
      <td valign=bottom align="right"> <font size="1">18,688</font></td>
      <td valign=bottom align="right"> <font size="1">1</font></td>
      <td valign=bottom align="right"> <font size="1">14,850</font></td>
      <td valign=bottom align="right"> <font size="1">1</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">6</font></b></td>
      <td valign=bottom> <b><font size="1">TOTAL FINANCING COST</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">34,488</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">(13,198)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">24</font></td>
      <td valign=bottom> <font size="1">INTEREST PAID</font></td>
      <td valign=bottom align="right"> <font size="1">613</font></td>
      <td valign=bottom align="right"> <font size="1">2</font></td>
      <td valign=bottom align="right"> <font size="1">8,271</font></td>
      <td valign=bottom align="right"> <font size="1">63</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">25</font></td>
      <td valign=bottom> <font size="1">EXCHANGE LOSSES</font></td>
      <td valign=bottom align="right"> <font size="1">40,744</font></td>
      <td valign=bottom align="right"> <font size="1">118</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">26</font></td>
      <td valign=bottom> <font size="1">INTEREST EARNED</font></td>
      <td valign=bottom align="right"> <font size="1">6,830</font></td>
      <td valign=bottom align="right"> <font size="1">20</font></td>
      <td valign=bottom align="right"> <font size="1">13,161</font></td>
      <td valign=bottom align="right"> <font size="1">100</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">27</font></td>
      <td valign=bottom> <font size="1">EXCHANGE PROFITS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">8,493</font></td>
      <td valign=bottom align="right"> <font size="1">64</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">28</font></td>
      <td valign=bottom> <font size="1">(GAIN) LOSS FROM MONETARY POSITION</font></td>
      <td valign=bottom align="right"> <font size="1">(39)</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">185</font></td>
      <td valign=bottom align="right"> <font size="1">1</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <b><font size="1">8</font></b></td>
      <td valign=bottom> <b><font size="1">OTHER FINANCIAL OPERATIONS</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">(2,466)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">(2,943)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">100</font></b></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">29</font></td>
      <td valign=bottom> <font size="1">OTHER NET EXPENSES (INCOME) NET</font></td>
      <td valign=bottom align="right"> <font size="1">(2,466)</font></td>
      <td valign=bottom align="right"> <font size="1">100</font></td>
      <td valign=bottom align="right"> <font size="1">(2,943)</font></td>
      <td valign=bottom align="right"> <font size="1">100</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">30</font></td>
      <td valign=bottom> <font size="1">(PROFIT) LOSS ON SALE OF OWN SHARES</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">31</font></td>
      <td valign=bottom> <font size="1">(PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">10</font></td>
      <td valign=bottom> <font size="1">RESERVE FOR TAXES AND WORKERS&#146; PROFIT
        SHARING</font></td>
      <td valign=bottom align="right"> <font size="1">92,754</font></td>
      <td valign=bottom align="right"> <font size="1">100</font></td>
      <td valign=bottom align="right"> <font size="1">207,748</font></td>
      <td valign=bottom align="right"> <font size="1">100</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">32</font></td>
      <td valign=bottom> <font size="1">INCOME TAX</font></td>
      <td valign=bottom align="right"> <font size="1">113,388</font></td>
      <td valign=bottom align="right"> <font size="1">122</font></td>
      <td valign=bottom align="right"> <font size="1">7,466</font></td>
      <td valign=bottom align="right"> <font size="1">4</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">33</font></td>
      <td valign=bottom> <font size="1">DEFERRED INCOME TAX</font></td>
      <td valign=bottom align="right"> <font size="1">(20,634)</font></td>
      <td valign=bottom align="right"> <font size="1">(22)</font></td>
      <td valign=bottom align="right"> <font size="1">200,595</font></td>
      <td valign=bottom align="right"> <font size="1">97</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">34</font></td>
      <td valign=bottom> <font size="1">WORKERS&#146; PROFIT SHARING</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">(313)</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="right"> <font size="1">35</font></td>
      <td valign=bottom> <font size="1">DEFERRED WORKERS&#146; PROFIT SHARING</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
  </table>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(***) THOUSANDS OF DOLLARS </FONT></P>

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




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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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
STATEMENT OF CHANGES IN FINANCIAL POSITION <BR> </B>FROM JANUARY 1 TO JUNE 30
OF 2005 AND 2004 <BR>(thousands of pesos) </FONT> </P>

<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center" valign="bottom">
      <td> <b><font size="1">REF <BR>
        </font></b></td>
      <td> <b><font size="1">CATEGORIES</font></b></td>
      <td> <b><font size="1">QUARTER OF PRESENT <BR>
        FINANCIAL YEAR</font></b></td>
      <td> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr align="center" valign="bottom">
      <td> <b><font size="1">C</font></b></td>
      <td>&nbsp; </td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">AMOUNT</font></b></td>
    </tr>
    <tr>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center" height="20"> <b><font size="1">1</font></b></td>
      <td valign=bottom height="20"> <b><font size="1">CONSOLIDATED NET INCOME</font></b></td>
      <td valign=bottom height="20" align="right"> <b><font size="1">582,684</font></b></td>
      <td valign=bottom height="20" align="right"> <b><font size="1">569,804</font></b></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">2</font></td>
      <td valign=bottom> <font size="1">+ (-) ITEMS ADDED TO INCOME WHICH DO NOT
        REQUIRE CASH</font></td>
      <td valign=bottom align="right"> <font size="1">63,615</font></td>
      <td valign=bottom align="right"> <font size="1">226,397</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <b><font size="1">3</font></b></td>
      <td valign=bottom> <b><font size="1">CASH FLOW FROM NET INCOME OF THE YEAR</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">646,299</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">796,201</font></b></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">4</font></td>
      <td valign=bottom> <font size="1">CASH FLOW FROM CHANGE IN WORKING CAPITAL</font></td>
      <td valign=bottom align="right"> <font size="1">91,485</font></td>
      <td valign=bottom align="right"> <font size="1">(160,761)</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <b><font size="1">5</font></b></td>
      <td valign=bottom> <b><font size="1">CASH GENERATED (USED) IN OPERATING
        ACTIVITIES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">737,784</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">635,440</font></b></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">6</font></td>
      <td valign=bottom> <font size="1">CASH FLOW FROM EXTERNAL FINANCING</font></td>
      <td valign=bottom align="right"> <font size="1">(153,195)</font></td>
      <td valign=bottom align="right"> <font size="1">(20,231)</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">7</font></td>
      <td valign=bottom> <font size="1">CASH FLOW FROM INTERNAL FINANCING</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">23,933</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <b><font size="1">8</font></b></td>
      <td valign=bottom> <b><font size="1">CASH FLOW GENERATED (USED) BY FINANCING</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">(153,195)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">3,702</font></b></td>
    </tr>
    <tr>
      <td valign=top align="center"> <b><font size="1">9</font></b></td>
      <td valign=bottom> <b><font size="1">CASH FLOW GENERATED (USED) IN INVESTMENT
        ACTIVITIES</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">34,079</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">8,669</font></b></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">10</font></td>
      <td valign=bottom> <font size="1">NET INCREASE (DECREASE) IN CASH AND SHORT-TERM
        INVESTMENTS</font></td>
      <td valign=bottom align="right"> <font size="1">618,668</font></td>
      <td valign=bottom align="right"><font size="1">647,811</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">11</font></td>
      <td valign=bottom> <font size="1">CASH AND SHORT-TERM INVESTMENTS AT THE
        BEGINNING OF PERIOD</font></td>
      <td valign=bottom align="right"><font size="1">510,527</font></td>
      <td valign=bottom align="right"><font size="1">547,279</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">12</font></td>
      <td valign=bottom> <font size="1">CASH AND SHORT TERM INVESTMENTS AT THE
        END OF PERIOD</font></td>
      <td valign=bottom align="right"> <font size="1">1,129,195</font></td>
      <td valign=bottom align="right"> <font size="1">1,195,090</font></td>
    </tr>
  </table>

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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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED
STATEMENT OF CHANGES IN FINANCIAL POSITION <BR></B>BREAKDOWN OF MAIN
CONCEPTS <BR> (thousands of pesos) </FONT> </P>


<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">REF <BR>
        </font></b></td>
      <td valign=top> <b><font size="1">CATEGORIES</font></b></td>
      <td valign=top> <b><font size="1">QUARTER OF PRESENT <BR>
        FINANCIAL YEAR</font></b></td>
      <td valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr align="center" valign="bottom">
      <td> <b><font size="1">C</font></b></td>
      <td>&nbsp; </td>
      <td> <b><font size="1">AMOUNT</font></b></td>
      <td> <b><font size="1">AMOUNT</font></b></td>
    </tr>
    <tr>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center"> <b><font size="1">2</font></b></td>
      <td valign=bottom> <b><font size="1">+ (-) ITEMS ADDED TO INCOME WHICH DO
        NOT REQUIRE CASH</font></b></td>
      <td valign=bottom align="right"><b><font size="1">63,615</font></b></td>
      <td valign=bottom align="right"><b><font size="1">226,397</font></b></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">13</font></td>
      <td valign=bottom> <font size="1">DEPRECIATION AND AMORTIZATION FOR THE
        YEAR</font></td>
      <td valign=bottom align="right"> <font size="1">126,904</font></td>
      <td valign=bottom align="right"> <font size="1">98,777</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">14</font></td>
      <td valign=bottom> <font size="1">+ (-) NET INCREASE (DECREASE) IN PENSIONS
        FUND AND <br>
        SENIORITY PREMIUMS</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
    </tr>
    <tr valign="middle">
      <td align="center" height="19"> <font size="1">15</font></td>
      <td height="19"> <font size="1">+ (-) NET LOSS (PROFIT) IN MONEY EXCHANGE
        </font></td>
      <td align="right" height="19"><font size="1"> </font> </td>
      <td align="right" height="19"><font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">16</font></td>
      <td valign=bottom> <font size="1">+ (-) NET LOSS (PROFIT) IN ASSETS AND
        LIABILITIES ACTUALIZATION</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">17</font></td>
      <td valign=bottom> <font size="1">+ (-) OTHER ITEMS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">40</font></td>
      <td valign=bottom> <font size="1">+ (-) OTHER ITEMS WHICH DO NOT AFFECT
        EBITDA</font></td>
      <td valign=bottom align="right"> <font size="1">(63,289)</font></td>
      <td valign=bottom align="right"> <font size="1">127,620</font></td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center"> <b><font size="1">4</font></b></td>
      <td valign=bottom> <b><font size="1">CASH FLOW CHANGE IN WORKING CAPITAL</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">91,485</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">(160,761)</font></b></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">18</font></td>
      <td valign=bottom> <font size="1">+ (-) DECREASE (INCREASE) IN ACCOUNT RECEIVABLES</font></td>
      <td valign=bottom align="right"> <font size="1">(213,597)</font></td>
      <td valign=bottom align="right"> <font size="1">(207,880)</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">19</font></td>
      <td valign=bottom> <font size="1">+ (-) DECREASE (INCREASE) IN INVENTORIES</font></td>
      <td valign=bottom align="right"> <font size="1">136,915</font></td>
      <td valign=bottom align="right"> <font size="1">(58,275)</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">20</font></td>
      <td valign=bottom> <font size="1">+ (-) DECREASE (INCREASE) IN OTHER ACCOUNT
        RECEIVABLES</font></td>
      <td valign=bottom align="right"> <font size="1">101,548</font></td>
      <td valign=bottom align="right"> <font size="1">(70,414)</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">21</font></td>
      <td valign=bottom> <font size="1">+ (-) DECREASE (INCREASE) IN SUPPLIER
        ACCOUNT</font></td>
      <td valign=bottom align="right"> <font size="1">(122,386)</font></td>
      <td valign=bottom align="right"> <font size="1">27,402</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">22</font></td>
      <td valign=bottom> <font size="1">+ (-) DECREASE (INCREASE) IN OTHER LIABILITIES</font></td>
      <td valign=bottom align="right"> <font size="1">189,005</font></td>
      <td valign=bottom align="right"> <font size="1">148,406</font></td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center"> <b><font size="1">6</font></b></td>
      <td valign=bottom> <b><font size="1">CASH FLOW FROM EXTERNAL FINANCING</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">(153,195)</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">(20,231)</font></b></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">23</font></td>
      <td valign=bottom> <font size="1">+ SHORT-TERM BANK AND STOCK MARKET FINANCING</font></td>
      <td valign=bottom align="right"> <font size="1">(1,227)</font></td>
      <td valign=bottom align="right"> <font size="1">(666)</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">24</font></td>
      <td valign=bottom> <font size="1">+ LONG-TERM BANK AND STOCK MARKET FINANCING</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">25</font></td>
      <td valign=bottom> <font size="1">+ DIVIDEND RECEIVED</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">26</font></td>
      <td valign=bottom> <font size="1">OTHER FINANCING</font></td>
      <td valign=bottom align="right"> <font size="1">1,308</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">27</font></td>
      <td valign=bottom> <font size="1">BANK FINANCING AMORTIZATION</font></td>
      <td valign=bottom align="right"> <font size="1">(153,276)</font></td>
      <td valign=bottom align="right"> <font size="1">(19,565)</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">28</font></td>
      <td valign=bottom> <font size="1">(-) STOCK MARKET AMORTIZATION</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">29</font></td>
      <td valign=bottom> <font size="1">(-) OTHER FINANCING AMORTIZATION</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center"> <b><font size="1">7</font></b></td>
      <td valign=bottom> <b><font size="1">CASH FLOW FROM INTERNAL FINANCING</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">0</font></b></td>
      <td valign=bottom align="right"> <b><font size="1">23,933</font></b></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">30</font></td>
      <td valign=bottom> <font size="1">+ (-) INCREASE (DECREASE) IN CAPITAL STOCK</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">23,933</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">31</font></td>
      <td valign=bottom> <font size="1">(-) DIVIDENDS PAID</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">32</font></td>
      <td valign=bottom> <font size="1">+ PREMIUM ON SALE OF SHARES</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">33</font></td>
      <td valign=bottom> <font size="1">+ CONTRIBUTION FOR FUTURE CAPITAL INCREASES</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
      <td valign=bottom align="right">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center"> <b><font size="1">9</font></b></td>
      <td valign=bottom> <b><font size="1">CASH FLOW GENERATED (UTILIZED) IN INVESTMENT
        ACTIVITIES</font></b></td>
      <td valign=bottom align="right"><b><font size="1">34,079</font></b></td>
      <td valign=bottom align="right"><b><font size="1">8,669</font></b></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">34</font></td>
      <td valign=bottom> <font size="1">+ (-) INCREASE 8DECREASE) IN STOCK INVESTMENTS
        OF A <br>
        PERMANENT NATURE</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
      <td valign=bottom align="right"><font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">35</font></td>
      <td valign=bottom> <font size="1">(-) ACQUISITION OF PROPERTY, PLANT AND
        EQUIPMENT</font></td>
      <td valign=bottom align="right"> <font size="1">(7,235)</font></td>
      <td valign=bottom align="right"> <font size="1">(8,900)</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">36</font></td>
      <td valign=bottom> <font size="1">(-) INCREASE IN CONSTRUCTION PROGRESS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">37</font></td>
      <td valign=bottom> <font size="1">+ SALE OF OTHER PERMANENT INVESTMENTS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">38</font></td>
      <td valign=bottom> <font size="1">+ SALE OF TANGIBLE FIXED ASSETS</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
      <td valign=bottom align="right"> <font size="1">0</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">39</font></td>
      <td valign=bottom> <font size="1">+ (-) OTHER ITEMS</font></td>
      <td valign=bottom align="right"> <font size="1">41,314</font></td>
      <td valign=bottom align="right"> <font size="1">17,569</font></td>
    </tr>
  </table>


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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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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

<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">REF <BR>
        </font></b></td>
      <td valign=top> <b><font size="1">CATEGORIES</font></b></td>
      <td valign=top> <b><font size="1">QUARTER OF PRESENT <BR>
        FINANCIAL YEAR</font></b></td>
      <td valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr align="center">
      <td valign=top> <b><font size="1">P</font></b></td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top>&nbsp; </td>
      <td valign=bottom> <font size="1"><b>YIELD</b></font></td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">1</font></td>
      <td valign=bottom> <font size="1">NET INCOME TO NET SALES</font></td>
      <td valign=bottom align="center"> <font size="1">16.83%</font></td>
      <td valign=bottom align="center"> <font size="1">24.83%</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">2</font></td>
      <td valign=bottom> <font size="1">NET INCOME TO STOCKHOLDERS&#146; EQUITY (**)</font></td>
      <td valign=bottom align="center"> <font size="1">19.34%</font></td>
      <td valign=bottom align="center"> <font size="1">12.85%</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">3</font></td>
      <td valign=bottom> <font size="1">NET INCOME TO TOTAL ASSETS (**)</font></td>
      <td valign=bottom align="center"> <font size="1">14.81%</font></td>
      <td valign=bottom align="center"> <font size="1">9.76%</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">4</font></td>
      <td valign=bottom> <font size="1">CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME</font></td>
      <td valign=bottom align="center"> <font size="1">0.00%</font></td>
      <td valign=bottom align="center"> <font size="1">0.00%</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">5</font></td>
      <td valign=bottom> <font size="1">INCOME DUE TO MONETARY POSITION TO NET
        INCOME</font></td>
      <td valign=bottom align="center"> <font size="1">(1.26)%</font></td>
      <td valign=bottom align="center"> <font size="1">(2.06)%</font></td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom> <font size="1"><b>ACTIVITY</b></font></td>
      <td valign=bottom align="center">&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">6</font></td>
      <td valign=bottom> <font size="1">NET SALES TO NET ASSETS (**)</font></td>
      <td valign=bottom align="center"> <font size="1">0.76 times</font></td>
      <td valign=bottom align="center"> <font size="1">0.53 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">7</font></td>
      <td valign=bottom> <font size="1">NET SALES TO FIXED ASSETS (**)</font></td>
      <td valign=bottom align="center"> <font size="1">1.26 times</font></td>
      <td valign=bottom align="center"> <font size="1">0.83 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">8</font></td>
      <td valign=bottom> <font size="1">INVENTORIES ROTATION (**)</font></td>
      <td valign=bottom align="center"> <font size="1">4.19 times</font></td>
      <td valign=bottom align="center"> <font size="1">6.53 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">9</font></td>
      <td valign=bottom> <font size="1">ACCOUNTS RECEIVABLE IN DAYS OF SALES</font></td>
      <td valign=bottom align="center"> <font size="1">53 days</font></td>
      <td valign=bottom align="center"> <font size="1">45 days</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">10</font></td>
      <td valign=bottom> <font size="1">PAID INTEREST TO TOTAL LIABILITIES WITH
        COST (**)</font></td>
      <td valign=bottom align="center"> <font size="1">127.33%</font></td>
      <td valign=bottom align="center"> <font size="1">445.17%</font></td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom> <font size="1"><b>LEVERAGE</b></font></td>
      <td valign=bottom align="center">&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">11</font></td>
      <td valign=bottom> <font size="1">TOTAL LIABILITIES TO TOTAL ASSETS</font></td>
      <td valign=bottom align="center"> <font size="1">23.39%</font></td>
      <td valign=bottom align="center"> <font size="1">24.06%</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">12</font></td>
      <td valign=bottom> <font size="1">TOTAL LIABILITIES TO STOCKHOLDERS&#146; EQUITY</font></td>
      <td valign=bottom align="center"> <font size="1">0.31 times</font></td>
      <td valign=bottom align="center"> <font size="1">0.32 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">13</font></td>
      <td valign=bottom> <font size="1">FOREIGN CURRENCY LIABILITIES TO TOTAL
        LIABILITIES</font></td>
      <td valign=bottom align="center"> <font size="1">6.46%</font></td>
      <td valign=bottom align="center"> <font size="1">2.59%</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">14</font></td>
      <td valign=bottom> <font size="1">LONG-TERM LIABILITIES TO FIXED ASSETS</font></td>
      <td valign=bottom align="center"> <font size="1">0.00%</font></td>
      <td valign=bottom align="center"> <font size="1">0.00%</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">15</font></td>
      <td valign=bottom> <font size="1">OPERATING INCOME TO INTEREST PAID</font></td>
      <td valign=bottom align="center"> <font size="1">320.31 times</font></td>
      <td valign=bottom align="center"> <font size="1">47.37 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">16</font></td>
      <td valign=bottom> <font size="1">NET SALES TO TOTAL LIABILITIES (**)</font></td>
      <td valign=bottom align="center"> <font size="1">3.23 times</font></td>
      <td valign=bottom align="center"> <font size="1">2.22 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom> <font size="1"><b>LIQUIDITY</b></font></td>
      <td valign=bottom align="center">&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">17</font></td>
      <td valign=bottom> <font size="1">CURRENT ASSETS TO CURRENT LIABILITIES</font></td>
      <td valign=bottom align="center"> <font size="1">4.12 times</font></td>
      <td valign=bottom align="center"> <font size="1">4.64 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">18</font></td>
      <td valign=bottom> <font size="1">CURRENT ASSETS LESS INVENTORY TO CURRENT
        LIABILITIES</font></td>
      <td valign=bottom align="center"> <font size="1">2.92 times</font></td>
      <td valign=bottom align="center"> <font size="1">3.91 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">19</font></td>
      <td valign=bottom> <font size="1">CURRENT ASSETS TO TOTAL LIABILITIES</font></td>
      <td valign=bottom align="center"> <font size="1">1.60 times</font></td>
      <td valign=bottom align="center"> <font size="1">1.33 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">20</font></td>
      <td valign=bottom> <font size="1">AVAILABLE ASSETS TO CURRENT LIABILITIES</font></td>
      <td valign=bottom align="center"> <font size="1">136.25%</font></td>
      <td valign=bottom align="center"> <font size="1">239.18%</font></td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom>&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center">&nbsp; </td>
      <td valign=bottom> <font size="1"><b>CASH FLOW</b></font></td>
      <td valign=bottom align="center">&nbsp; </td>
      <td valign=bottom align="center">&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">21</font></td>
      <td valign=bottom> <font size="1">CASH FLOW FROM NET INCOME TO NET SALES</font></td>
      <td valign=bottom align="center"> <font size="1">18.66%</font></td>
      <td valign=bottom align="center"> <font size="1">34.70%</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">22</font></td>
      <td valign=bottom> <font size="1">CASH FLOW FROM CHANGES IN WORKING CAPITAL
        TO NET SALES</font></td>
      <td valign=bottom align="center"><font size="1">2.64%</font></td>
      <td valign=bottom align="center"> <font size="1"> (7.01)%</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">23</font></td>
      <td valign=bottom> <font size="1">CASH GENERATED (USED) IN OPERATING TO
        INTEREST PAID</font></td>
      <td valign=bottom align="center"> <font size="1">279.57 times</font></td>
      <td valign=bottom align="center"> <font size="1">42.83 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">24</font></td>
      <td valign=bottom> <font size="1">EXTERNAL FINANCING TO CASH GENERATED (USED)
        IN FINANCING</font></td>
      <td valign=bottom align="center"><font size="1">100.00%</font></td>
      <td valign=bottom align="center"><font size="1">(546.49)%</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">25</font></td>
      <td valign=bottom> <font size="1">INTERNAL FINANCING TO CASH GENERATED (USED)
        IN FINANCING</font></td>
      <td valign=bottom align="center"> <font size="1"> 0.00%</font></td>
      <td valign=bottom align="center"> <font size="1"> 646.49%</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">26</font></td>
      <td valign=bottom> <font size="1">ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT
        TO <br>
        CASH GENERATED (USED) IN INVESTMENT ACTIVITIES</font></td>
      <td valign=bottom align="center"> <font size="1"> (21.23)%</font></td>
      <td valign=bottom align="center"> <font size="1"> (102.66)%</font></td>
    </tr>
  </table>


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

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




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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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


<!-- MARKER FORMAT-SHEET="Center Head 2 Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DATE PER SHARE
<BR></B>CONSOLIDATED </FONT> </P>


<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">REF <BR>
        </font></b></td>
      <td valign=top> <b><font size="1">CATEGORIES</font></b></td>
      <td valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PRESENT <BR>
        FINANCIAL YEAR</font></b></td>
      <td valign=top> <b><font size="1">QUARTER&nbsp;OF&nbsp;PREVIOUS <BR>
        FINANCIAL YEAR</font></b></td>
    </tr>
    <tr align="center">
      <td valign=bottom> <b><font size="1">D</font></b></td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">1</font></td>
      <td valign=bottom> <font size="1">BASIC PROFIT PER ORDINARY SHARE (**)</font></td>
      <td valign=bottom align="center"> <font size="1">$10.08</font></td>
      <td valign=bottom align="center"> <font size="1">$ 5.53</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">2</font></td>
      <td valign=bottom> <font size="1">BASIC PROFIT PER PREFERENCE SHARE (**)</font></td>
      <td valign=bottom align="center"> <font size="1">$ 0.00</font></td>
      <td valign=bottom align="center"> <font size="1">$ 0.00</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">3</font></td>
      <td valign=bottom> <font size="1">DILUTED PROFIT PER ORDINARY SHARE (**)</font></td>
      <td valign=bottom align="center"> <font size="1">$ 0.00</font></td>
      <td valign=bottom align="center"> <font size="1">$ 0.00</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">4</font></td>
      <td valign=bottom> <font size="1">CONTINUOUS OPERATING PROFIT PER COMMON
        SHARE (**)</font></td>
      <td valign=bottom align="center"> <font size="1">$ 10.08</font></td>
      <td valign=bottom align="center"> <font size="1">$ 5.53</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">5</font></td>
      <td valign=bottom> <font size="1">EFFECT OF DISCONTINUED OPERATIONS ON CONTINUOUS
        <br>
        OPERATING PROFIT PER SHARE (**)</font></td>
      <td valign=bottom align="center"><font size="1">$ 0.00</font></td>
      <td valign=bottom align="center"><font size="1">$ 0.00</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">6</font></td>
      <td valign=bottom> <font size="1">EFFECT OF EXTRAORDINARY PROFIT AND LOSS
        ON CONTINUOUS<br>
        OPERATING PROFIT PER SHARE (**)</font></td>
      <td valign=bottom align="center"><font size="1">$ 0.00</font></td>
      <td valign=bottom align="center"><font size="1">$ 0.00</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">7</font></td>
      <td valign=bottom> <font size="1">EFFECT BY CHANGES IN ACCOUNTING POLICIES
        ON CONTINUOUS <br>
        OPERATING PROFIT PER SHARE (**)</font></td>
      <td valign=bottom align="center"><font size="1">$ 0.00</font></td>
      <td valign=bottom align="center"><font size="1">$ 0.00</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">8</font></td>
      <td valign=bottom> <font size="1">CARRYING VALUE PER SHARE</font></td>
      <td valign=bottom align="center"> <font size="1">$50.74</font></td>
      <td valign=bottom align="center"> <font size="1">$41.23</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">9</font></td>
      <td valign=bottom> <font size="1">CASH DIVIDEND ACCUMULATED PER SHARE</font></td>
      <td valign=bottom align="center"> <font size="1">$ 0.00</font></td>
      <td valign=bottom align="center"> <font size="1">$ 0.00</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">10</font></td>
      <td valign=bottom> <font size="1">DIVIDEND IN SHARES PER SHARE</font></td>
      <td valign=bottom align="center"> <font size="1">0.00 shares</font></td>
      <td valign=bottom align="center"> <font size="1">0.00 shares</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">11</font></td>
      <td valign=bottom> <font size="1">MARKET PRICE TO CARRYING VALUE</font></td>
      <td valign=bottom align="center"> <font size="1">0.88 times</font></td>
      <td valign=bottom align="center"> <font size="1">0.91 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">12</font></td>
      <td valign=bottom> <font size="1">MARKET PRICE TO BASIC PROFIT PER COMMON
        SHARE (**)</font></td>
      <td valign=bottom align="center"> <font size="1">4.45 times</font></td>
      <td valign=bottom align="center"> <font size="1">6.79 times</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">13</font></td>
      <td valign=bottom> <font size="1">MARKET PRICE TO BASIC PROFIT PER PREFERENCE
        SHARE (**)</font></td>
      <td valign=bottom align="center"> <font size="1">0.00 times</font></td>
      <td valign=bottom align="center"> <font size="1">0.00 times</font></td>
    </tr>
  </table>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(**) TO CALCULATE THE DATE PER SHARE
USE THE NET INCOME FOR THE LAST TWELVE MONTHS. </FONT></P>

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<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%>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>s35.- Stockholders&#146; Equity: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effects of inflation - The effects
of inflation on stockholders&#146; equity at June 30, 2005 are as follows: </FONT></P>


<table border=0 cellspacing=0 cellpadding=2 width="640">
    <tr>
      <td valign=top>
        <p>&nbsp;</p>
      </td>
      <td valign=top align="center">
        <p><font size="2">Historical <BR>
          Cost</font></p>
      </td>
      <td valign=top align="center">
        <p><font size="2">Restated <BR>
          Amount</font></p>
      </td>
      <td valign=top align="center">
        <p><font size="2"> <BR>
          Total</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p><font size="2">Capital stock</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">Ps. 2,012,147</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">Ps. 1,357,310</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">Ps. 3,369,457</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p><font size="2">Additional paid-in capital</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">702,224</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">116,830</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">819,017</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p><font size="2">Contributions for future Capital increases</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">0</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">0</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">0</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p><font size="2">Retained earnings</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">3,140,633</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">582,211</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2">3,722,844</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p><font size="2">Excess resulting from restating <BR>
          &nbsp;&nbsp;&nbsp;Stockholders&#146; equity to reflect <BR>
          &nbsp;&nbsp;&nbsp;Certain effects of inflation</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2"> <BR>
          <BR>
          -</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2"> <BR>
          <BR>
          (34,702)</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2"> <BR>
          <BR>
          (34,702)</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p><font size="2">Effect deferred income tax <BR>
          &nbsp;&nbsp;&nbsp;Bulletin D-4</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2"> <BR>
          (662,340)</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2"> <BR>
          (215,603)</font></p>
      </td>
      <td valign=top align="right">
        <p><font size="2"> <BR>
          (877,943)</font></p>
      </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 and April 29, 2005. </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. 1,285,627 at Jun 30, 2005 compared
to Ps. 1,234,920 at June 30, 2004. The effect on Simec&#146;s consolidated statement of income
in the six-month period ended June 30, 2005 was a decrease of Ps. 63,289 in the provision
for income tax and employee profit sharing compared to an increase of Ps. 127,620 in the
same period of 2004. These provisions do not affect the cash flow of Simec. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>r26.- Simec doesn&#146;t have interest
earned in UDI&#146;s </FONT></P>

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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=600>
  <TR VALIGN=Bottom>
    <TD COLSPAN=2><FONT SIZE=2></FONT></TD>
    <TD COLSPAN=2 align="center"><FONT SIZE=2>June 30, 2005</FONT></TD>
    <TD COLSPAN=2 align="center"><FONT SIZE=2>June 30, 2004</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=65% ALIGN=LEFT><FONT SIZE=2>Net loss (profit) in money exchange</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT SIZE=2>Ps.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(606</FONT></TD>
    <TD ALIGN=LEFT WIDTH=3%><FONT SIZE=2>)</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT SIZE=2>Ps.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(293</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="65%"><FONT SIZE=2>Net loss (profit) in liabilities actualization</FONT></TD>
    <TD ALIGN=LEFT width="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="10%"><FONT SIZE=2>(1,252</FONT></TD>
    <TD ALIGN=LEFT width="3%"><FONT SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT width="10%"><FONT SIZE=2>(382</FONT></TD>
    <TD ALIGN=LEFT width="3%"><FONT SIZE=2>)</FONT></TD>
  </TR>
</TABLE>


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

<!-- MARKER FORMAT-SHEET="2 col" FSL="Project" -->
<TABLE WIDTH=100%>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>DIRECTOR REPORT
<BR>ANNEX 1  </B></FONT></P>

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


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

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At June 30, 2005, Simec&#146;s total
consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (&#147;MTN&#146;s&#148;) due
1998 (accrued interest at June 30, 2005 was U.S. $295,601) which were issued in 1993 as
part of a U.S. $68 million issuance.  At December 31, 2004, Simec had outstanding
approximately $13.9 million of U.S. dollar-denominated debt, including a refinanced
letter of credit for $13.6 million and $0.3 million of MTN&#146;s due 1998.  At June 30, 2005
Simec owed no debt to its parent company, Industrias CH, S.A. de C.V. (&#147;ICH&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec&#146;s bank debt repayment in March
2004 resulted in the payment in full of its outstanding bank debt. This payment permitted
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 Industrias F&#233;rricas 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 issued in the second quarter of 2005. Simec began operating the
plants in Apizaco, Tlaxcala and Cholula, Puebla on August 1, 2004, and, as a result, the
operation of both plants is reflected in Simec&#146;s financial results as of such date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net resources provided by operations
were Ps. 738 million in the six-month period ended June 30, 2005 versus Ps. 635 million
of net resources provided by operations in the same period of 2004. Net resources used by
financing activities were Ps. 153 million in the six-month period ended June 30, 2005
versus Ps. 4 million of net resources provided by financing activities in the same period
of 2004 (which amount reflects the prepayment of Ps. 20 million (U.S. $1.7 million) of
bank debt). Net resources provided by investing activities (to acquire property, plant
and equipment and other non-current assets) were Ps. 34 million in the six-month period
ended June 30, 2005 versus net resources provided by investing activities of Ps. 9
million in the same period of 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2 no 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="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Six-Month Period Ended
June 30, 2005 compared to Six-Month Period Ended June 30, 2004 </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>Net Sales </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales of Simec increased 51% to
Ps. 3,463 million in the six-month period ended June 30, 2005 (including the net sales
generated by the newly acquired plants in Apizaco and Cholula of Ps. 1,427 million),
compared to Ps. 2,295 million in same period of 2004. Sales in metric tons of basic steel
products increased 60% to 523,501 metric tons in the six-month period ended June 30, 2005
(including 212,669 metric tons produced by the newly  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>acquired plants in Apizaco and
Cholula) compared to 327,329 metric tons in the same period of 2004. Exports of basic
steel products increased 48% to 74,692 metric tons in the six-month period ended June 30,
2005 (including 12,752 metric tons produced by the newly acquired plants in Apizaco and
Cholula) versus 50,340 metric tons in the same period of 2004. Additionally, Simec sold
12,870 metric tons of billet in the six-month period ended June 30, 2005, compared to
39,512 metric tons of billet in the first six months of 2004. The average price of steel
products increased 18% in real terms in the six-month period ended June 30, 2005 versus
the same period of 2004. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simecs direct cost of sales
increased 67% to Ps. 2,255 million in the six-month period ended June 30, 2005 (including
Ps. 1,022 million relating to the newly acquired plants in Apizaco and Cholula) compared
to Ps. 1,350 million in the same period of 2004. Direct cost of sales as a percentage of
net sales was 65% in the six-month period ended June 30, 2005 compared to 59% in the same
period of 2004. The average cost of raw materials used to produce steel products
increased 18% in real terms in the six-month period ended June 30, 2005 versus the same
period of 2004, primarily as a result of increases in the price of scrap and certain
other raw materials. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simecs marginal profit increased 28%
to Ps. 1,208 million in the six-month period ended June 30, 2005 (including Ps. 405
million relating to the newly acquired plants in Apizaco and Cholula) compared to Ps. 945
million in the first six months of 2004. As a percentage of net sales, marginal profit
was 35% in the six-month period ended June 30, 2005 compared to 41% in the same period of
2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Indirect
Manufacturing, Selling, General and Administrative Expenses </B></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 50% to Ps. 363 million in the six-month period ended June 30, 2005 (including
Ps. 124 million relating to the newly acquired plants in Apizaco and Cholula) from Ps.
242 million in the same period of 2004; Simec recorded an increase of Ps. 28 million in
depreciation and amortization expense, which in the six-month period ended June 30, 2005
was Ps. 127 million (including Ps. 29 million relating to the newly acquired plants in
Apizaco and Cholula) compared to Ps. 99 million in the same period of 2004. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simecs operating income increased
20% to Ps. 845 million in the six-month period ended June 30, 2005 (including Ps. 281
million relating to the newly acquired plants in Apizaco and Cholula) compared to Ps. 703
million in the same period of 2004. Operating income was 24% of net sales in the
six-month period ended June 30, 2005 and 31% of net sales in the same period of 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Financial Income
(Expense) </B></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. 34 million in the six-month period ended June 30, 2005 compared to financial expense
of Ps. 3 million in the same period of 2004. Simec recorded an exchange loss of
approximately Ps. 35 million in the six-month period ended June 30, 2005 compared to an
exchange gain of Ps. 8 million in the same period of 2004, reflecting a 3.7% increase in
the value of the peso versus the dollar in the six-month period ended June 30, 2005
compared to a 1.6% decrease in the value of the peso versus the dollar in the same period
of 2004 and lower debt levels in the six-month period ended June 30, 2005. Net interest
income was Ps. 8 million in the six-month period ended June 30, 2005 versus no net
interest income in the same period of 2004. Simec recorded a loss from monetary position
of Ps. 7 million in the six-month period ended June 30, 2005 compared to a loss from
monetary position of Ps. 11 million in the same period of 2004, reflecting the domestic
inflation rate of 0.8% in the six-month period ended June 30, 2005 as compared to 1.6% in
the same period of 2004 and lower debt levels during the six-month period ended June 30,
2005. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded other income, net, of
Ps. 7 million in the six-month period ended June 30, 2005 compared to other income, net,
of Ps. 13 million in the same period of 2004 (reflecting (i) income from the recovery of
an account recorded as a doubtful account of Ps. 11 million and (ii) other income, net
related to other financial operations of Ps. 2 million). </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec recorded a provision of Ps.
236 million for income tax and employee profit sharing in the six-month period ended June
30, 2005 (including a decrease in the provision of Ps. 63 million from the application of
Bulletin D-4 with respect to deferred income tax described below) compared to a provision
of Ps. 143 million in the same period of 2004 (including a provision of Ps. 128 million
from the application of Bulletin D-4 with respect to deferred income tax described below). </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a result of the  foregoing,
 Simec  recorded net income of Ps. 582 million in the  six-month  period ended June 30,
2005 compared to net income of Ps. 570 million in the same period of 2004. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Pronouncements
Applicable to Mexican GAAP </B></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. 1,286 million at June 30, 2005 compared to Ps.
1,235 million at June 30, 2004. The effect on Simec&#146;s consolidated statement of income in
the six-month period ended June 30, 2005 was a decrease of Ps. 63 million in the
provision for income tax and employee profit sharing compared to an increase in the
provision of Ps. 128 million in the same period of 2004. These provisions do not affect
the cash flow of Simec. </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%>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>FINANCIAL STATEMENT
NOTES                                                         <BR>ANNEX 2 </B></FONT></P>

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<P ALIGN=Right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSOLIDATED </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 &#150; </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
  &#150; </B>As part of the financial debt restructuring agreement into during
  1997, Compa&#241;&#237;a Sider&#250;rgica de Guadalajara, S.A. de C.V. (&#147;CSG&#148;)
  assumed all of the debt of the Company in return for an equity interest in its
  subsidiaries. As a result of the above, the Company is the principal shareholder
  of CSG, and CSG is the principal shareholder of the other subsidiaries that
  Grupo Simec, S.A. de C.V. (&#147;Simec&#148;) controlled before the restructuring. </FONT>
</P>

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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%>
  <TR>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3% VALIGN=top></TD>
    <TD WIDTH=95% VALIGN=top><FONT SIZE=2>Compa&#241;&#237;a
Sider&#250;rgica de California, S.A. de C.V.</FONT></TD></TR></TABLE>

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3% VALIGN=top></TD>
    <TD WIDTH=95% VALIGN=top><FONT SIZE=2>Industrias
del Acero y del Alambre, S.A. de C.V.</FONT></TD></TR></TABLE>

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<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=2% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=3% VALIGN=top></TD>
    <TD WIDTH=95% VALIGN=top><FONT SIZE=2>Pacific
Steel Inc.</FONT></TD></TR></TABLE>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>c. Cash and cash equivalents
  &#150; </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 &#150;
  </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 &#150; 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 &#150; According
  to purchase prices prevailing in the market at the balance sheet date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Materials, supplies and rollers
  &#150; At historical cost, restated by applying the steel industry inflation
  index. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company presents as non-current
inventories the rollers and spare parts, which according to historical data and
production trends will not be used within a one-year period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>e.- Derivative financial
  instruments &#150; </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 &#150; </B>Property, plant and equipment of domestic origin are restated
  by using factors derived from The National Consumer Price Index (&#147;NCPI&#148;) from
  the date of their acquisition, and imported machinery and equipment are restated
  by applying devaluation and inflation factors of the country of origin. Depreciation
  recorded in the consolidated statement of income (loss) is computed based upon
  the estimated useful life and the restated cost of each asset. In addition,
  Financial expense incurred during the construction period is capitalized as
  construction in progress. The capitalized amounts are restated using a factor
  derived from the NCPI cumulative from the date of capitalization through period-end
  and are amortized over the average depreciation period of the corresponding
  assets. The estimated useful lives of assets as of June 30, 2005 are as follows:
  </FONT> </P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2><FONT SIZE=2></FONT></TH>
    <TH COLSPAN=2 align="center"><FONT SIZE=2>Years</FONT>
      <hr size="1" noshade width="50">
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=67% ALIGN=LEFT><FONT SIZE=2>Buildings</FONT></TD>
    <TD WIDTH=8% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=25% ALIGN=center colspan="2"><FONT SIZE=2>15 to 50</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT SIZE=2>Machinery and equipment</FONT></TD>
    <TD ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center colspan="2"><FONT SIZE=2>10 to 40</FONT><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>g. Other assets &#150;
  </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 &#150; </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 &#150;
  </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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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>j. Cost of sales &#150;
  </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 &#150; </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 &#150; </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>&#150;  </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>&#150; </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>&#150; </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>&#150; </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>&#150; </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 &#150; </B>The Company sells its products primarily to distributors
  for the construction industry with no specific geographic concentration. Additionally,
  no single customer accounted for a significant amount of the Company&#146;s sales,
  and there were no significant accounts receivable from a single customer or
  affiliate at June 30, 2005 and 2004. The Company performs evaluations of its
  customers&#146; credit histories and establishes and allowance for doubtful accounts
  based upon the credit risk of specific customers and historical trends. </FONT>
</P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>n. Other income (expenses)
  &#150; </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 &#150; </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) &#150; </B>This is determined by multiplying
  capital stock contributions and retained earnings (losses) by factors derived
  from the NCPI, which measure the </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>cumulative inflation from the date
when capital stock contributions were made and earnings (losses) were generated, through
the latest period-end. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>q. Effect of restatement
  of stockholders&#146; equity &#150; </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 ALIGN=LEFT><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 June 30, 2005, Simec&#146;s total
consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (&#147;MTN&#146;s&#148;) due
1998 (accrued interest at June 30, 2005 was U.S. $295,601) which were issued in 1993 as
part of a U.S. $68 million issuance. At December 31, 2004, Simec had outstanding
approximately $13.9 million of U.S. dollar-denominated debt, including a refinanced
letter of credit for $13.6 million and $0.3 million of MTN&#146;s due 1998. At June 30, 2005
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 ALIGN=LEFT><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. 16,896 (U.S.
$1,558,294) at June 30, 2005, (included in accrued liabilities) relating to these
actions; the reduction of this reserve from previous levels reflects clean-up activities
undertaken by Simec. Management believes the ultimate liability with respect to this
matter will not exceed the amounts that have been accrued. </FONT></P>

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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 Sider&#250;rgica
de Guadalajara, S.A. de C.V. has entered into a gas and liquid oxygen purchase agreement
with Praxair de M&#233;xico, S.A. de C.V., under which it is committed to acquire monthly
over a fifteen-year period beginning January 1, 1989, a certain amount of product. At
present required purchases amount to Ps. 1,166 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=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>RELATIONS OF SHARES
INVESTMENTS <BR>ANNEX 3 </B></FONT></P>

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

<table border=1 cellspacing=0 cellpadding=2 width="640">
  <tr align="center">
    <td valign=top> <b><font size="1">COMPANY NAME</font></b></td>
    <td valign=top> <b><font size="1">MAIN <br>
      ACTIVITIES</font></b></td>
    <td valign=top> <b><font size="1">NUMBER OF <BR>
      SHARES</font></b></td>
    <td valign=top> <b><font size="1">OWNERSHIP <BR>
      </font></b></td>
    <td colspan=2 valign=top> <b><font size="1">TOTAL AMOUNT <BR>
      (Thousands of Pesos)</font></b></td>
  </tr>
  <tr>
    <td valign=top> <font size="1">SUBSIDIARIES</font></td>
    <td valign=top align="center">&nbsp; </td>
    <td valign=top align="center">&nbsp; </td>
    <td valign=top align="center">&nbsp; </td>
    <td valign=top align="center"> <font size="1">ACQUISITION <BR>
      COST</font></td>
    <td valign=top align="center"> <font size="1">PRESENT <BR>
      VALUE</font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">1 CIA SIDERURGICA DE <BR>
      GUADALAJARA</font></td>
    <td align="center"> <font size="1">MINI-MILL</font></td>
    <td align="right"> <font size="1">474,393,215</font></td>
    <td align="right"> <font size="1">99.99</font></td>
    <td align="right"> <font size="1">38,359</font></td>
    <td align="right"> <font size="1">4,875,117</font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">2 ADMINISTRADORA DE CARTERA DE <BR>
      OCCIDENTE</font></td>
    <td> <font size="1"> <BR>
      </font></td>
    <td align="right"> <font size="1"> 49,999</font></td>
    <td align="right"> <font size="1"> 99.99</font></td>
    <td align="right"> <font size="1"> 50</font></td>
    <td align="right"> <font size="1"> (29,604)</font></td>
  </tr>
  <tr valign="bottom">
    <td> <b><font size="1"> TOTAL INVESTMENT IN SUBSIDIARIES</font></b></td>
    <td>&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right"> <b><font size="1"> 38,409</font></b></td>
    <td align="right"> <b><font size="1"> 4,845,513</font></b></td>
  </tr>
  <tr valign="bottom">
    <td> <b><font size="1"> ASSOCIATEDS</font></b></td>
    <td>&nbsp; </td>
    <td align="right"><font size="1">0</font></td>
    <td align="right"> <font size="1"> 0.00</font></td>
    <td align="right"> <b><font size="1"> 0</font></b></td>
    <td align="right"> <font size="1"> 0</font></td>
  </tr>
  <tr valign="bottom">
    <td> <b><font size="1"> TOTAL INVESTMENT IN ASSOCIATEDS</font></b></td>
    <td>&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right"> <b><font size="1"> 0</font></b></td>
    <td align="right"> <font size="1"> 0</font></td>
  </tr>
  <tr valign="bottom">
    <td> <b><font size="1">OTHER PERMANENT INVESTMENTS</font></b></td>
    <td>&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td> <b><font size="1"> TOTAL</font></b></td>
    <td>&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right"> <b><font size="1"> 4,845,513</font></b></td>
  </tr>
</table>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTES </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=700>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CREDITS BREAK DOWN
                             <BR> (THOUSANDS OF PESOS)
                                 <BR>    ANNEX 5 </B></FONT></P>


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

<table border=1 cellspacing=0 cellpadding=1 width="700">
  <tr align="center">
    <td valign=bottom width="10%"><font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"><font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"><font size="1">&nbsp;</font></td>
    <td colspan=2 valign=bottom><font size="1">&nbsp;</font></td>
    <td colspan=6 valign=bottom><font size="1">&nbsp;</font></td>
    <td colspan=6 valign=bottom><font size="1">&nbsp;</font></td>
  </tr>
  <tr align="center">
    <td valign=bottom width="10%"> <b><font size="1">Credit<br>
      Type / <br>
      Institution </font></b></td>
    <td valign=bottom width="5%"> <b><font size="1">Amortization<br>
      Date </font></b></td>
    <td valign=bottom width="5%"> <b><font size="1">Rate of<br>
      Interest </font></b></td>
    <td colspan=2 valign=bottom> <b><font size="1">Denominated <br>
      In Pesos</font></b></td>
    <td colspan=6 valign=bottom> <b><font size="1">Amortization of Credits in
      Foreign Currency <br>
      With National Entities <br>
      (Thousands of Pesos)</font></b></td>
    <td colspan=6 valign=bottom> <b><font size="1">Amortization of Credits in
      Foreign Currency <br>
      With Foreign Entities <br>
      (Thousands of Pesos)</font></b></td>
  </tr>
  <tr align="center">
    <td valign=bottom width="10%"><font size="1">&nbsp;</font> </td>
    <td valign=bottom align="center" width="5%"><font size="1">&nbsp;</font> </td>
    <td valign=bottom align="center" width="5%"><font size="1">&nbsp;</font> </td>
    <td colspan=2 valign=bottom><font size="1">&nbsp;</font> </td>
    <td valign=bottom colspan="6"> <font size="1">Time Interval</font> </td>
    <td valign=bottom colspan="6"> <font size="1">Time Interval</font></td>
  </tr>
  <tr align="center">
    <td valign=bottom width="10%"><font size="1">&nbsp;</font> </td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">Until <br>
      1 Year</font></td>
    <td valign=bottom width="5%"> <font size="1">More <br>
      Than<br>
      1 Year </font></td>
    <td valign=bottom width="5%"> <font size="1">Current<br>
      Year </font></td>
    <td valign=bottom width="5%"> <font size="1">Until <br>
      1 Year</font></td>
    <td valign=bottom width="5%"> <font size="1">Until <br>
      2 Years</font></td>
    <td valign=bottom width="5%"> <font size="1">Until <br>
      3 Years</font></td>
    <td valign=bottom width="5%"> <font size="1">Until <br>
      4 Years</font></td>
    <td valign=bottom width="5%"> <font size="1">Until <br>
      5 Years <br>
      or More</font></td>
    <td valign=bottom width="5%"> <font size="1">Current <br>
      Year<br>
      </font></td>
    <td valign=bottom width="5%"> <font size="1">Until <br>
      1 Year</font></td>
    <td valign=bottom width="5%"> <font size="1">Until <br>
      2 Years</font></td>
    <td valign=bottom width="5%"> <font size="1">Until <br>
      3 Years</font></td>
    <td valign=bottom width="5%"> <font size="1">Until <br>
      4 Years</font></td>
    <td valign=bottom width="5%"> <font size="1">Until <br>
      5 Years <br>
      or More</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>BANKS</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>WITH <br>
      WARRANTY</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom width="5%"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>TOTAL BANKS</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>LISTED IN THE <br>
      MEXICAN <br>
      STOCK <br>
      EXCHANGE</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>UNSECURED <br>
      DEBT</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1">MEDIUM <br>
      TERM <br>
      NOTES</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">12/15/1998</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">9.33</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">3,275</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>TOTAL<br>
      STOCK <br>
      EXCHANGE</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">3,275</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>SUPPLIERS</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1">VARIOUS</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">358,758</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">101,701</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">10,750</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>TOTAL <br>
      SUPPLIERS</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">358,758</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">101,701</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">10,750</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>OTHER <br>
      CURRENT <br>
      LIABILITIES <br>
      AND OTHER <br>
      CREDITS</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
    <td valign=bottom align="right" width="5%"> <font size="1"><b>&nbsp;</b></font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1">VARIOUS</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">130,145</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">22,280</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>OTHER <br>
      CURRENT <br>
      LIABILITIES <br>
      AND OTHER <br>
      CREDITS</b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">130,145</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">22,280</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=bottom width="10%"> <font size="1"><b>TOTAL </b></font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="center" width="5%"> <font size="1">&nbsp;</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">488,903</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">101,701</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">3,275</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">33,030</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
    <td valign=bottom align="right" width="5%"> <font size="1">0</font></td>
  </tr>
</table>

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
THE
EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT JUNE 30, 2005 WAS PS. 10.8428 </FONT></TD>
</TR>
</TABLE>

<p></p>
<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>




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




<!-- 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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</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>MONETARY POSITION IN
FOREIGN EXCHANGE                           <BR> (Thousands of Pesos) </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>ANNEX 6  </B></FONT></P>

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


<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top>
        <p>&nbsp;</p>
      </td>
      <td colspan=2 valign=top> <b><font size="1">DOLLARS</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">OTHER CURRENCIES</font></b></td>
      <td valign=top> <b><font size="1">TOTAL</font></b></td>
    </tr>
    <tr align="center">
      <td valign=top> <b><font size="1">TRADE BALANCE</font></b></td>
      <td valign=top> <b><font size="1">THOUSANDS <br>
        OF DOLLARS</font></b></td>
      <td valign=top> <b><font size="1">THOUSANDS <br>
        OF PESOS</font></b></td>
      <td valign=top> <b><font size="1">THOUSANDS <br>
        OF DOLLARS</font></b></td>
      <td valign=top> <b><font size="1">THOUSANDS <br>
        OF PESOS</font></b></td>
      <td valign=top> <b><font size="1">THOUSANDS <br>
        OF PESOS</font></b></td>
    </tr>
    <tr>
      <td valign=top> <b><font size="1">FOREIGN MONETARY POSITION</font></b></td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td> <b><font size="1">TOTAL ASSETS</font></b></td>
      <td align="right"> <b><font size="1">141.450</font></b></td>
      <td align="right"> <b><font size="1">1,533,711</font></b></td>
      <td align="right"> <font size="1">0</font></td>
      <td align="right"> <font size="1">0</font></td>
      <td align="right"> <b><font size="1">1,533,711</font></b></td>
    </tr>
    <tr valign="bottom">
      <td>&nbsp; </td>
      <td align="right">&nbsp; </td>
      <td align="right">&nbsp; </td>
      <td align="right">&nbsp; </td>
      <td align="right">&nbsp; </td>
      <td align="right">&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td> <b><font size="1">LIABILITIES POSITION</font></b></td>
      <td align="right"> <b><font size="1">12,500</font></b></td>
      <td align="right"> <b><font size="1">135,532</font></b></td>
      <td align="right"> <b><font size="1">228</font></b></td>
      <td align="right"> <b><font size="1">2,474</font></b></td>
      <td align="right"> <b><font size="1">138,006</font></b></td>
    </tr>
    <tr valign="bottom">
      <td> <font size="1">SHORT TERM LIABILITIES POSITION</font></td>
      <td align="right"> <font size="1">12,500</font></td>
      <td align="right"> <font size="1">135,532</font></td>
      <td align="right"> <font size="1">228</font></td>
      <td align="right"> <font size="1">2,474</font></td>
      <td align="right"> <font size="1">138,006</font></td>
    </tr>
    <tr valign="bottom">
      <td> <font size="1">LONG TERM LIABILITIES POSITION</font></td>
      <td align="right"> <font size="1">0</font></td>
      <td align="right"> <font size="1">0</font></td>
      <td align="right"> <font size="1">0</font></td>
      <td align="right"> <font size="1">0</font></td>
      <td align="right"> <font size="1">0</font></td>
    </tr>
    <tr valign="bottom">
      <td>&nbsp; </td>
      <td align="right">&nbsp; </td>
      <td align="right">&nbsp; </td>
      <td align="right">&nbsp; </td>
      <td align="right">&nbsp; </td>
      <td align="right">&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td> <b><font size="1">NET BALANCE</font></b></td>
      <td align="right"> <b><font size="1">128,950</font></b></td>
      <td align="right"> <b><font size="1">1,398,179</font></b></td>
      <td align="right"> <b><font size="1">(228)</font></b></td>
      <td align="right"> <b><font size="1">(2,474)</font></b></td>
      <td align="right"> <b><font size="1">1,395,705</font></b></td>
    </tr>
  </table>

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
THE
EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT JUNE 30, 2005 WAS PS. 10.8428 </FONT></TD>
</TR>
</TABLE>
<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=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>INTEGRATION AND
INCOME                         <BR>CALCULATION BY MONETARY POSITION
                              <BR>(Thousands of Pesos) </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ANNEX 7  </B></FONT></P>

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


<table border=1 cellspacing=0 cellpadding=2 width="640">
  <tr align="center" valign="bottom">
    <td> <b><font size="1"> <BR>
      <BR>
      <BR>
      MONTH</font></b></td>
    <td> <b><font size="1"> <BR>
      <BR>
      MONETARY <BR>
      ASSETS</font></b></td>
    <td> <b><font size="1"> <BR>
      <BR>
      MONETARY <BR>
      LIABILITIES</font></b></td>
    <td> <b><font size="1">(ASSET) <br>
      LIABILITIES <br>
      MONETARY <br>
      POSITION</font></b></td>
    <td> <b><font size="1"> <BR>
      <BR>
      MONTHLY INFLATION</font></b></td>
    <td> <b><font size="1"> <BR>
      <BR>
      MONTHLY PROFIT <br>
      AND (LOSS)</font></b></td>
  </tr>
  <tr>
    <td valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">JANUARY</font></td>
    <td align="right"> <font size="1">1,799,870</font></td>
    <td align="right"> <font size="1">972,894</font></td>
    <td align="right"> <font size="1">(826,976)</font></td>
    <td align="right"> <font size="1">0.00</font></td>
    <td align="right"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">FEBRUARY</font></td>
    <td align="right"> <font size="1">1,918,511</font></td>
    <td align="right"> <font size="1">1,026,720</font></td>
    <td align="right"> <font size="1">(891,791)</font></td>
    <td align="right"> <font size="1">0.33</font></td>
    <td align="right"> <font size="1">(2,971)</font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">MARCH</font></td>
    <td align="right"> <font size="1">1,948,041</font></td>
    <td align="right"> <font size="1">966,819</font></td>
    <td align="right"> <font size="1">(981,222)</font></td>
    <td align="right"> <font size="1">0.45</font></td>
    <td align="right"> <font size="1">(4,423)</font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">APRIL</font></td>
    <td align="right"> <font size="1">2,091,477</font></td>
    <td align="right"> <font size="1">914,341</font></td>
    <td align="right"> <font size="1">(1,177,136)</font></td>
    <td align="right"> <font size="1">0.36</font></td>
    <td align="right"> <font size="1">(4,192)</font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">MAY</font></td>
    <td align="right"> <font size="1">2,169,331</font></td>
    <td align="right"> <font size="1">1,037,828</font></td>
    <td align="right"> <font size="1">(1,131,503)</font></td>
    <td align="right"> <font size="1">(0.25)</font></td>
    <td align="right"> <font size="1">2,843</font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">JUNE</font></td>
    <td align="right"> <font size="1">2,293,416</font></td>
    <td align="right"> <font size="1">859,419</font></td>
    <td align="right"> <font size="1">(1,433,997)</font></td>
    <td align="right"> <font size="1">(0.10)</font></td>
    <td align="right"> <font size="1">1,376</font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">ACTUALIZATION</font></td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">CAPITALIZATION</font></td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right"><font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="1">FOREIGN CORPORATION</font></td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right"><font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">OTHER</font></td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right"> <font size="1">0</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td> <font size="1">TOTAL</font></td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right">&nbsp; </td>
    <td align="right"> <font size="1">(7,367)</font></td>
  </tr>
</table>

<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%>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>BONDS AND MEDIUM
TERM NOTES LISTING IN STOCK MARKET </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ANNEX 8  </B></FONT></P>

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

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>FINANCIAL LIMITED
BASED IN ISSUED DEED AND/OR TITLE </B></FONT></P>

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
       A)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Current
assets to current liabilities must be 1.0 times or more. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 B)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total
liabilities to total assets do not be more than 0.60. </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
       C)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating
income plus items added to income which do not require using        cash must be 2.0
times or more. </FONT></TD>
</TR>
</TABLE>
<BR>

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

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ACTUAL SITUATION OF
FINANCIAL LIMITED </B></FONT></P>

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

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<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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
       A)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accomplished
the actual situation is 4.12 times. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 B)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accomplished
the        actual situation is 0.23  </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=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
C)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accomplished
the actual situation is 368.40 </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 June 30, 2005, the remaining balance of the MTNs not exchanged amounts to Ps. 3,275
($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 Financial Officer </FONT></TD>
</TR>
</TABLE>
<BR>

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

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<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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PLANTS, COMMERCE
CENTERS OR DISTRIBUTION CENTERS </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ANNEX 9 </B></FONT></P>

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


<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">PLANT OR CENTER</font></b></td>
      <td valign=top> <b><font size="1">ECONOMIC ACTIVITY</font></b></td>
      <td valign=top> <b><font size="1">PLANT CAPACITY</font></b></td>
      <td valign=top> <b><font size="1">UTILIZATION (%)</font></b></td>
    </tr>
    <tr>
      <td valign=top> <font size="1">GUADALAJARA MINI MILL</font></td>
      <td valign=top> <font size="1">PRODUCTION AND SALES OF <br>
        STEEL PRODUCTS</font></td>
      <td valign=top align="center"> <font size="1"> <BR>
        480</font></td>
      <td valign=top align="center"> <font size="1"> <BR>
        84</font></td>
    </tr>
    <tr>
      <td valign=top> <font size="1">MEXICALI MINI MILL</font></td>
      <td valign=top> <font size="1">PRODUCTION AND SALES OF <br>
        STEEL PRODUCTS</font></td>
      <td valign=top align="center"> <font size="1"> <BR>
        250</font></td>
      <td valign=top align="center"> <font size="1"> <BR>
        84</font></td>
    </tr>
    <tr>
      <td valign=top> <font size="1">INDUSTRIAS DEL ACERO Y <br>
        DEL ALAMBRE</font></td>
      <td valign=top> <font size="1"> SALE OF STEEL PRODUCTS</font></td>
      <td valign=top align="center"> <font size="1"> <BR>
        0</font></td>
      <td valign=top align="center"> <font size="1"> <BR>
        0</font></td>
    </tr>
    <tr>
      <td valign=top> <font size="1">APIZACO AND CHOLULA PLANTS</font></td>
      <td valign=top> <font size="1">PRODUCTION AND SALES OF <br>
        STEEL PRODUCTS</font></td>
      <td valign=top align="center"> <font size="1"> <BR>
        460</font></td>
      <td valign=top align="center"> <font size="1"> <BR>
        92</font></td>
    </tr>
  </table>

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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="2 col" FSL="Project" -->
<TABLE WIDTH=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>MAIN RAW MATERIALS </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ANNEX 10  </B></FONT></P>

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

<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr valign="bottom" align="center">
      <td> <b><font size="1"> <BR>
        DOMESTIC</font></b></td>
      <td> <b><font size="1"> <BR>
        MAIN SUPPLIERS</font></b></td>
      <td> <b><font size="1"> <BR>
        FOREIGN</font></b></td>
      <td> <b><font size="1"> <BR>
        MAIN SUPPLIERS</font></b></td>
      <td> <b><font size="1">DOMESTIC <br>
        SUBSTITUTION</font></b></td>
      <td> <b><font size="1">COST <br>
        PRODUCTION (%)</font></b></td>
    </tr>
    <tr valign="top">
      <td> <font size="1">SCRAP</font></td>
      <td> <font size="1">VARIOUS</font></td>
      <td> <font size="1">SCRAP</font></td>
      <td> <font size="1">VARIOUS</font></td>
      <td align="center"> <font size="1">YES</font></td>
      <td align="center"> <font size="1">50.17</font></td>
    </tr>
    <tr valign="top">
      <td> <font size="1">ELECTRICITY</font></td>
      <td> <font size="1">C.F.E</font></td>
      <td>&nbsp; </td>
      <td>&nbsp; </td>
      <td align="center"> <font size="1">NO</font></td>
      <td align="center"> <font size="1">9.21</font></td>
    </tr>
    <tr valign="top">
      <td> <font size="1">FERROALLOYS</font></td>
      <td> <font size="1">MINERA AUTLAN</font></td>
      <td> <font size="1">FERROALLOYS</font></td>
      <td> <font size="1">GFM TRADING</font></td>
      <td align="center"> <font size="1">YES</font></td>
      <td align="center"> <font size="1">8.59</font></td>
    </tr>
    <tr valign="top">
      <td> <font size="1">ELECTRODES</font></td>
      <td> <font size="1">UCAR CARBON MEXICANA</font></td>
      <td> <font size="1">ELECTRODES</font></td>
      <td> <font size="1">SGL CARBON GROUP</font></td>
      <td align="center"> <font size="1"> YES</font></td>
      <td align="center"> <font size="1"> 1.63</font></td>
    </tr>
  </table>

<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=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SELLS DISTRIBUTION
BY PRODUCT </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ANNEX 11  </B></FONT></P>

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

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

<table border=1 cellspacing=0 cellpadding=2 width="640">
  <tr align="center">
    <td valign=top> <b><font size="1">MAIN PRODUCTS</font></b></td>
    <td colspan=2 valign=top> <b><font size="1">TOTAL PRODUCTION</font></b></td>
    <td valign=top colspan="2"> <b><font size="1">NET SELLS</font></b><b></b></td>
    <td colspan=3 valign=top> <b><font size="1">MAIN DESTINATION </font></b></td>
  </tr>
  <tr align="center">
    <td valign=top>&nbsp; </td>
    <td valign=top> <b><font size="1">VOLUME</font></b></td>
    <td valign=top> <b><font size="1">AMOUNT</font></b></td>
    <td valign=top> <b><font size="1">VOLUME</font></b></td>
    <td valign=top> <b><font size="1">AMOUNT</font></b></td>
    <td colspan=2 valign=top> <b><font size="1">TRADEMARKS</font></b></td>
    <td valign=top> <b><font size="1">COSTUMERS</font></b></td>
  </tr>
  <tr>
    <td valign=top> <font size="1">STRUCTURAL PROFILES</font></td>
    <td valign=top align="right"> <font size="1">87</font></td>
    <td valign=top align="right"> <font size="1">350,073</font></td>
    <td valign=top align="right"> <font size="1">87</font></td>
    <td valign=top align="right"> <font size="1">598,609</font></td>
    <td colspan=2 valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top> <font size="1">COMMERCIAL PROFILES</font></td>
    <td valign=top align="right"> <font size="1">63</font></td>
    <td valign=top align="right"> <font size="1">256,038</font></td>
    <td valign=top align="right"> <font size="1">56</font></td>
    <td valign=top align="right"> <font size="1">364,055</font></td>
    <td colspan=2 valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top> <font size="1">REBAR</font></td>
    <td valign=top align="right"> <font size="1">141</font></td>
    <td valign=top align="right"> <font size="1">532,218</font></td>
    <td valign=top align="right"> <font size="1">94</font></td>
    <td valign=top align="right"> <font size="1">513,041</font></td>
    <td colspan=2 valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top> <font size="1">FLAT BAR</font></td>
    <td valign=top align="right"> <font size="1">87</font></td>
    <td valign=top align="right"> <font size="1">413,297</font></td>
    <td valign=top align="right"> <font size="1">85</font></td>
    <td valign=top align="right"> <font size="1">554,036</font></td>
    <td colspan=2 valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top> <font size="1">STEEL BARS</font></td>
    <td valign=top align="right"> <font size="1">129</font></td>
    <td valign=top align="right"> <font size="1">600,564</font></td>
    <td valign=top align="right"> <font size="1">123</font></td>
    <td valign=top align="right"> <font size="1">912,718</font></td>
    <td colspan=2 valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top> <font size="1">OTHER</font></td>
    <td valign=top align="right"> <font size="1">0</font></td>
    <td valign=top align="right"> <font size="1">0</font></td>
    <td valign=top align="right"> <font size="1">3</font></td>
    <td valign=top align="right"> <font size="1">27,853</font></td>
    <td colspan=2 valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top> <font size="1">BILLET</font></td>
    <td valign=top align="right"> <font size="1">13</font></td>
    <td valign=top align="right"> <font size="1">37,360</font></td>
    <td valign=top align="right"> <font size="1">13</font></td>
    <td valign=top align="right"> <font size="1">58,153</font></td>
    <td colspan=2 valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
  </tr>
  <tr>
    <td valign=top> <b><font size="1">T O T A L</font></b></td>
    <td valign=top align="right">&nbsp; </td>
    <td valign=top align="right"> <b><font size="1">2,187,550</font></b></td>
    <td valign=top align="right">&nbsp; </td>
    <td valign=top align="right"> <b><font size="1">3,028,465</font></b></td>
    <td colspan=2 valign=top>&nbsp; </td>
    <td valign=top>&nbsp; </td>
  </tr>
  <tr>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
  </tr>
</table>


<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=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SELLS DISTRIBUTION
BY PRODUCT </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ANNEX 11  </B></FONT></P>

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

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



<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">MAIN PRODUCTS</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">TOTAL PRODUCTION</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">NET SELLS</font></b></td>
      <td colspan=3 valign=top> <b><font size="1">MAIN DESTINATION </font></b></td>
    </tr>
    <tr align="center">
      <td valign=top>&nbsp; </td>
      <td valign=top> <b><font size="1">VOLUME</font></b></td>
      <td valign=top> <b><font size="1">AMOUNT</font></b></td>
      <td valign=top> <b><font size="1">VOLUME</font></b></td>
      <td valign=top> <b><font size="1">AMOUNT</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">TRADEMARKS</font></b></td>
      <td valign=top> <b><font size="1">COSTUMERS</font></b></td>
    </tr>
    <tr>
      <td valign=top> <font size="1">STRUCTURAL PROFILES</font></td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top align="right"> <font size="1">4</font></td>
      <td valign=top align="right"> <font size="1">20,448</font></td>
      <td colspan=2 valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top> <font size="1">COMMERCIAL PROFILES</font></td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top align="right"> <font size="1">5</font></td>
      <td valign=top align="right"> <font size="1">28,204</font></td>
      <td colspan=2 valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top> <font size="1">REBAR</font></td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top align="right"> <font size="1">50</font></td>
      <td valign=top align="right"> <font size="1">271,170</font></td>
      <td colspan=2 valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top> <font size="1">STEEL BARS</font></td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top align="right"> <font size="1">13</font></td>
      <td valign=top align="right"> <font size="1">97,460</font></td>
      <td colspan=2 valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top> <font size="1">FLAT BAR</font></td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top align="right"> <font size="1">3</font></td>
      <td valign=top align="right"> <font size="1">17,310</font></td>
      <td colspan=2 valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top> <b><font size="1">T O T A L</font></b></td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top align="right">&nbsp; </td>
      <td valign=top align="right"> <b><font size="1">434,592</font></b></td>
      <td colspan=2 valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
    </tr>
  </table>



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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=640>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


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

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>INTEGRATION OF THE
PAID SOCIAL CAPITAL STOCK                           <BR>CHARACTERISTICS OF THE SHARES </B></FONT></P>

<table border=1 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <b><font size="1">SERIES</font></b></td>
      <td valign=top> <b><font size="1">NOMINAL <BR>
        VALUE</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">VALID <BR>
        CUPON</font></b></td>
      <td colspan=4 valign=top> <b><font size="1">NUMBER OF SHARES</font></b></td>
      <td colspan=2 valign=top> <b><font size="1">CAPITAL STOCK <BR>
        (Thousands of Pesos)</font></b></td>
    </tr>
    <tr align="center">
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td colspan=2 valign=top>&nbsp; </td>
      <td valign=bottom> <b><font size="1">FIXED <br>
        PORTION</font></b></td>
      <td valign=bottom> <b><font size="1">VARIABLE PORTION</font></b></td>
      <td valign=bottom> <b><font size="1"> MEXICAN</font></b></td>
      <td valign=bottom><b><font size="1">FREE <br>
        SUBSCRIPTION</font></b></td>
      <td valign=bottom> <b><font size="1"> FIXED</font></b></td>
      <td valign=bottom> <b><font size="1"> VARIABLE</font></b></td>
    </tr>
    <tr>
      <td valign=top align="center"> <font size="1">B</font></td>
      <td valign=top>&nbsp; </td>
      <td colspan=2 valign=top>&nbsp; </td>
      <td valign=top align="right"> <font size="1">30,283,350</font></td>
      <td valign=top align="right"> <font size="1">107,646,249</font></td>
      <td valign=top align="right"> <font size="1">0</font></td>
      <td valign=top align="right"> <font size="1">137,929,599 </font></td>
      <td valign=top align="right"> <font size="1">441,786</font></td>
      <td valign=top align="right"> <font size="1">1,570,361</font></td>
    </tr>
    <tr>
      <td valign=top align="center"> <b><font size="1">TOTAL</font></b></td>
      <td valign=top>&nbsp; </td>
      <td colspan=2 valign=top>&nbsp; </td>
      <td valign=top align="right"> <b><font size="1">30,283,350</font></b></td>
      <td valign=top align="right"> <b><font size="1">107,646,249</font></b></td>
      <td valign=top align="right"> <b><font size="1">0</font></b></td>
      <td valign=top align="right"> <b><font size="1">137,929,599</font></b></td>
      <td valign=top align="right"> <b><font size="1">441,786</font></b></td>
      <td valign=top align="right"> <b><font size="1">1,570,361</font></b></td>
    </tr>
    <tr>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
      <td></td>
    </tr>
  </table>


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<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>137,929,599 </FONT> </P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SHARES PROPORTION BY: </B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=center WIDTH=100%>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2><FONT SIZE=2></FONT></TH>
    <TH COLSPAN=2 align="left"><FONT SIZE=2></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=LEFT><b><FONT SIZE=2>CPO&#146;S:</FONT></b></TD>
    <TD WIDTH=10% ALIGN=LEFT><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left width="79%"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=left width="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="10%"><b><FONT SIZE=2>ADRS&#146;s:</FONT></b></TD>
    <TD ALIGN=LEFT width="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left width="79%"><FONT SIZE=2>2,986,951 ADR&#146;S OF 1 SHARE EACH ONE.</FONT></TD>
    <TD ALIGN=left width="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="10%"><b><FONT SIZE=2>UNITS:</FONT></b></TD>
    <TD ALIGN=LEFT width="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left width="79%"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=left width="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="10%"><b><FONT SIZE=2>GDRS&#146;s:</FONT></b></TD>
    <TD ALIGN=LEFT width="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left width="79%"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=left width="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="10%"><b><FONT SIZE=2>ADS&#146;s:</FONT></b></TD>
    <TD ALIGN=LEFT width="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left width="79%"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=left width="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT width="10%"><b><FONT SIZE=2>GDS&#146;s:</FONT></b></TD>
    <TD ALIGN=LEFT width="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left width="79%"><FONT SIZE=2>0</FONT></TD>
    <TD ALIGN=left width="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>REPURCHASED
  OWN SHARES </B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom align="center">
    <TD><b></b></TD>
    <TD><b></b></TD>
    <TD><b></b></TD>
    <TD><b></b></TD>
    <TD><b></b></TD>
    <TD><b></b></TD>
    <TD colspan="2"><b></b></TD>
  </TR>
  <TR VALIGN=Bottom align="center">
    <TD><b><font size="2">&nbsp;</font></b></TD>
    <TD><b></b></TD>
    <TD><b><font size="2">NUMBER OF SHARES</font></b></TD>
    <TD><b><font size="2">&nbsp;</font></b></TD>
    <TD colspan="4"><b><font size="2">&nbsp;MARKET VALUE OF THE SHARE&nbsp;&nbsp;&nbsp;</font></b></TD>
  </TR>
  <TR VALIGN=Bottom align="center">
    <TD><b><font size="2">SERIES</font></b></TD>
    <TD><b></b></TD>
    <TD><b></b></TD>
    <TD><b><font size="2">&nbsp;</font></b></TD>
    <TD><b><font size="2">AT REPURCHASE</font></b></TD>
    <TD><b><font size="2">&nbsp;</font></b></TD>
    <TD colspan="2"><b><font size="2">AT QUARTER&nbsp;</font></b></TD>
  </TR>
</TABLE>

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

<!-- MARKER FORMAT-SHEET="2 col" FSL="Project" -->
<TABLE WIDTH=100%>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CONSTRUCTION IN
PROGRESS </B><BR>
(Project, Total Investment and % of Advance) </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ANNEX 13  </B></FONT></P>

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

<table border=0 cellspacing=0 cellpadding=2 width="640">
    <tr align="center">
      <td valign=top> <font size="1">PROJECTS IN PROGRESS</font></td>
      <td valign=top> <font size="1">TOTAL INVESTMENT</font></td>
      <td valign=top> <font size="1">PHYSICAL ADVANCE</font></td>
      <td valign=top> <font size="1">FINISHED AT</font></td>
    </tr>
    <tr>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top> <font size="1">VARIOUS</font></td>
      <td valign=top align="right"> <font size="1">10,057</font></td>
      <td valign=top>&nbsp;</td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top><font size="1"><b>TOTAL INVESTMENT AT JUNE 30, 2005</b></font></td>
      <td valign=top align="right"><font size="1"><b>10,057</b></font></td>
      <td valign=top>&nbsp; </td>
      <td valign=top>&nbsp; </td>
    </tr>
    <tr>
      <td valign=top>&nbsp;</td>
      <td valign=top align="right">
        <hr noshade size="2" width="65%" align="right">
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>&nbsp;</td>
    </tr>
  </table>

<br>
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<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>




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





<!-- 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="2 col" FSL="Project" -->
<TABLE WIDTH=100%>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>FOREIGN CURRENCY
TRANSACTION AND EXCHANGE DIFFERENCES </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ANNEX 14 </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSOLIDATED
  </FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Foreign currency transactions
  and exchange differences &#150;</b> All transactions in foreign currency are
  recorded at the exchange rates prevailing on the date of their execution or
  liquidation. Foreign currency denominated assets and liabilities are translated
  at the exchange rates prevailing at the balance sheet date. Any exchange differences
  incurred with regard to assets or liabilities denominated in foreign currency
  are charged to operations of the period and are included in financial income
  (expense) in the accompanying consolidated statements of income (loss). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The financial statements
  of foreign subsidiaries are translated into Mexican pesos in conformity with
  Bulletin B-15 &#147;Transactions in Foreign Currency and Translation of Financial
  Statements of Foreign Operations&#148;. All foreign subsidiaries are considered
  to be &#147;integrated foreign operations&#148;, as defined in Bulletin B-15,
  and accordingly such financial statements were translated as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2>&#150; </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>&#150; </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>&#150; </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>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
resulting foreign currency translation differences are included in the financial income
(expense) in the statement of      income (loss). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All
resulting Mexican peso amounts are restated for the effects of      inflation in
accordance with the dispositions of Bulletin B-10 using the      NCPI, where such effects
are considered significant. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="5 pt rule no space" FSL="Workstation" -->
<HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>




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





<!-- 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="2 col" FSL="Project" -->
<TABLE WIDTH=100%>
  <TR ALIGN="left" VALIGN=top>
    <TD WIDTH=50%><FONT SIZE="1">STOCK
EXCHANGE CODE: <B>SIMEC </B><BR>GRUPO SIMEC, S.A. DE C.V. </FONT> </TD>
    <TD WIDTH=5%>&nbsp;&nbsp;</TD>
    <TD WIDTH=45% align="right"> <FONT SIZE="1">QUARTER: <B>2 </B>&nbsp;&nbsp;YEAR:
      <B>2005</B> </FONT> </TD>
  </TR>
 </TABLE>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSOLIDATED
  </FONT></P>
<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>DECLARATION OF THE
COMPANY OFFICIALS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THIS REPORT. </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LUIS GARCIA LIMON AND JOSE FLORES
FLORES CERTIFY THAT BASED ON OUR KNOWLEDGE, THIS REPORT DOES NOT CONTAIN ANY UNTRUE
STATEMENT OF A MATERIAL FACT OR OMIT TO STATE A MATERIAL FACT NECESSARY TO MAKE THE
STATEMENTS MADE HEREIN, IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH SUCH STATEMENTS WERE
MADE, NOT MISLEADING WITH RESPECT TO THE PERIOD COVERED BY THIS THIRD QUARTER REPORT. </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=TOP>
    <TD WIDTH=20% colspan="3"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      &nbsp; </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
    <TD WIDTH=40%><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ING LUIS
      GARCIA LIMON <br>
      CHIEF EXECUTIVE OFFICER </FONT></b></TD>
    <TD WIDTH=40%><b><font face="Times New Roman, Times, Serif" size=2>C.P. JOSE
      FLORES FLORES <br>
      CHIEF FINANCIAL OFFICER </font></b></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>GUADALAJARA,
  JAL, AT JULY 21 OF 2005 </B></FONT></P>
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