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<SEC-DOCUMENT>0000882377-06-002504.txt : 20060717
<SEC-HEADER>0000882377-06-002504.hdr.sgml : 20060717
<ACCEPTANCE-DATETIME>20060714213304
ACCESSION NUMBER:		0000882377-06-002504
CONFORMED SUBMISSION TYPE:	20-F
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20051231
FILED AS OF DATE:		20060717
DATE AS OF CHANGE:		20060714

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:		20-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11176
		FILM NUMBER:		06963618

	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>20-F
<SEQUENCE>1
<FILENAME>p06-1101_20f.htm
<DESCRIPTION>GROUP SIMEC SA DE CV
<TEXT>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">________________________________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 0.9; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ANNUAL
      REPORT PURSUANT TO SECTION 13 OR 15(d) </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OF
      THE
      SECURITIES EXCHANGE ACT OF 1934 </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      the fiscal year ended December 31, 2005</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      File Number 1-11176</strong></font></div>
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      SIMEC, S.A. de C.V.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of Registrant as specified in its charter)</font></div>
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      SIMEC</strong></font></div>
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      of Registrant&#8217;s name into English)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      MEXICAN STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Jurisdiction
      of incorporation or organization)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      Lazaro Cardenas 601</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Colonia
      La Nogalera, Guadalajara,</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Jalisco,
      Mexico 44440</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
      of principal executive offices)</font></div>
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      registered or to be registered pursuant to</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section
      12(b) of the Act.</font></div>
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          <tr>
            <td valign="bottom" width="31%" style="border-bottom: black thin solid;">
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                of Each Class</strong></font></div>
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            <td valign="bottom" width="29%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name
                of Each Exchange</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>on
                Which Registered</strong></font></div>
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          <tr>
            <td valign="bottom" width="31%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">American
                Depositary Shares</font></div>
            </td>
            <td valign="bottom" width="29%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">American
                Stock Exchange</font></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="31%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Series
                B Common Stock</font></div>
            </td>
            <td valign="bottom" width="29%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;American
                Stock Exchange*</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Securities
      registered or to be registered pursuant to Section 12(g) of the
      Act.</strong></font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>

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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Securities
      for which there is a reporting obligation pursuant to Section 15(d) of the
      Act.</strong></font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Indicate
      the number of outstanding shares of each of the issuer&#8217;s classes of common stock
      as of the close of the period covered by the annual
      report.</strong></font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Series
                B Common Stock &#8212; 137,929,599 shares</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(As
                of December 31, 2005)</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
      by check mark if the registrant is a well-known seasoned issuer, as defined
      in
      Rule 405 of the Securities Act.</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="79%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes
                [_]&#160;&#160;&#160; No [X]</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      this
      report is an annual or transition report, indicate by check mark if the
      registrant is not required to file reports pursuant to Section 13 or 15(d)
      of
      the Securities Exchange Act of 1934.</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes
                [_]&#160;&#160;&#160; No [X]</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Note
&#8212;
      Checking the box above will not relieve any registrant required to file reports
      pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from
      their obligations under those Sections.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days.</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes
                [X]&#160;&#160;&#160; No [_]</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or a non-accelerated filer. See definition of &#8220;accelerated
      filer and large accelerated filer&#8221; in Rule 12b-2 of the Exchange Act. (Check
      one):</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Large
                accelerated filer [_]&#160;&#160; &#160;Accelerated filer
                [X]&#160;&#160;&#160; Non-accelerated filer [_]</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
      by check mark which financial statement item the registrant has elected to
      follow.</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                17 [_]&#160;&#160;&#160; Item 18 [X]</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      this
      is an annual report, indicate by check mark whether the registrant is a shell
      company (as defined in Rule 12b-2 of the Exchange Act).</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes
                [_]&#160;&#160; &#160;No [X]</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="1">
      <hr style="MARGIN-TOP: -13px; COLOR: #000000" noshade size="4">
    </div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">__________</div>
    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*Not
      for
      trading, but only in connection with the registration of American Depositary
      Shares.</font></div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
          OF CONTENTS</a></font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="center">
        </div>
      </div>
    </div><br><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="TofC">TABLE
      OF CONTENTS</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><strong><br>&#160;</strong></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td colspan="2" valign="top" width="100%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P1">PART
                I.</a></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="2" href="#I1">Item
                1.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identity
                of Directors, Senior Management and Advisers</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="3" href="#I2">Item
                2.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Offer
                Statistics and Expected Timetable</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I3">Item
                3.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Key
                Information</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I4">Item
                4.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Information
                on the Company</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I5">Item
                5.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                and Financial Review and Prospects</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I6">Item
                6.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Directors,
                Senior Management and Employees</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I7">Item
                7.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Major
                Shareholders and Related Party Transactions</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I8">Item
                8.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                Information</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I9">Item
                9.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Offer
                and Listing Details</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I10">Item
                10.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                Information</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I11">Item
                11.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Quantitative
                and Qualitative Disclosures About Market Risk</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I12">Item
                12.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Description
                of Securities Other than Equity Securities</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td colspan="2" valign="top" width="100%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P2">PART
                II.</a></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I13">Item
                13.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Defaults,
                Dividends Arrearages and Delinquencies</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I14">Item
                14.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Material
                Modifications to the Rights of Security Holders and Use of
                Proceeds</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I15">Item
                15.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Controls
                and Procedures</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I16">Item
                16.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reserved]</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I16A">Item
                16A.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Audit
                Committee Financial Expert</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I16B">Item
                16B.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Code
                of Ethics</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I16C">Item
                16C.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                Accountant Fees and Services</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I16D">Item
                16D.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exemptions
                from the Listing Standards for Audit Committees</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I16E">Item
                16E.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchases
                of Equity Securities by the Issuer and Affiliated Purchasers.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td colspan="2" valign="top" width="100%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#P3">PART
                III.</a></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I17">Item
                17.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                Statements</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I18">Item
                18.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                Statements</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="18%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#I19">Item
                19.</a></font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
          OF CONTENTS</a></font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="center">
        </div>
      </div>
    </div><br><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Presentation
      of Financial Information</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Grupo
      Simec, S.A. de C.V. (collectively with its subsidiaries, &#8220;Simec&#8221; or the
&#8220;Company&#8221;) is a corporation (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>sociedad
      an&#243;nima de capital variable</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)
      organized under the laws of the United Mexican States. The Company publishes
      its
      financial statements in Mexican pesos and pursuant to accounting principles
      generally accepted in Mexico (&#8220;Mexican GAAP&#8221;). Under Mexican GAAP, financial
      statement amounts for all periods in the Consolidated Financial Statements
      of
      the Company and, unless otherwise indicated, throughout this Annual Report,
      have
      been restated in constant pesos as of December&#160;31,&#160;2005 (pesos with
      purchasing power as of that date). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexican
      GAAP differs in significant respects from generally accepted accounting
      principles in the United States (&#8220;U.S. GAAP&#8221;). Certain of the financial
      information set forth below is presented in accordance with U.S. GAAP. The
      effect of the Mexican GAAP inflation accounting principles has not been reversed
      in the reconciliation to U.S. GAAP. Note 19 to the Consolidated Financial
      Statements provides a description of the principal differences between Mexican
      GAAP and U.S. GAAP as they relate to the Company, and a reconciliation to U.S.
      GAAP of net income and total stockholders&#8217; equity.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      this
      Annual Report, references to &#8220;pesos&#8221; or &#8220;Ps.&#8221; are to Mexican pesos and
      references to &#8220;U.S. dollars,&#8221; &#8220;U.S.$,&#8221; &#8220;dollars&#8221; or &#8220;$&#8221; are to United States
      dollars. This Annual Report contains translations of certain peso amounts into
      U.S. dollars at specified rates solely for the convenience of the reader. These
      translations should not be construed as representations that the peso amounts
      actually represent those U.S. dollar amounts or could be converted into U.S.
      dollars at the rate indicated. Unless otherwise indicated, U.S. dollar amounts
      that have been translated from pesos have been so translated at an exchange
      rate
      of Ps.&#160;10.7777 to $1.00</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">based
      on
      the average rate of exchange announced by principal Mexican banks for same-day
      settlement of interbank transactions in effect on December&#160;31,&#160;2005 as
      determined by Banco de M&#233;xico. The noon buying rate in New York City for cable
      transfers payable in pesos, as certified by the Federal Reserve Bank of New
      York
      for customs purposes on June 30,&#160;2006 was Ps.&#160;11.2865 to
      $1.00.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      references to tons in this Annual Report are to metric tons. One metric ton
      is
      equal to 1.102 short tons.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Forward
      Looking Statements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Annual Report contains certain forward-looking statements regarding the business
      of Simec. When used in this Annual Report, the words &#8220;anticipates,&#8221; &#8220;plans,&#8221;
&#8220;believes,&#8221; &#8220;estimates,&#8221; &#8220;intends,&#8221; &#8220;expects,&#8221; &#8220;projects&#8221; and similar
      expressions are intended to identify forward-looking statements, although not
      all forward-looking statements contain those words. These statements, including
      but not limited to Simec&#8217;s statements regarding its strategy for raw material
      acquisition, products and markets, production processes and facilities, sales
      and distribution and exports, growth and other trends in the steel industry
      and
      various markets, operations and liquidity and capital resources are based on
      management&#8217;s beliefs, as well as on assumptions made by, and information
      currently available to, management, and involve various risks and uncertainties,
      some of which are beyond Simec&#8217;s control. Simec&#8217;s actual results could differ
      materially from those expressed in any forward-looking statement. In light
      of
      these risks and uncertainties there can be no assurance that forward-looking
      statements will prove to be accurate. Factors that might cause actual results
      to
      differ from forward-looking statements include, but are not limited to, factors
      relating to the steel industry (including the cyclicality of the industry,
      finished product prices, worldwide production capacity, the high degree of
      competition from Mexican and foreign producers and the price of ferrous scrap
      and other raw materials), the ability of Simec to operate at high capacity
      levels, the costs of compliance with U.S. and Mexican environmental laws, the
      integration of the recently acquired Mexican steel manufacturing facilities
      located in Apizaco and Cholula, as well as the acquisition of PAV Republic,
      Inc.
      (&#8220;Republic&#8221;) in the United States, future capital expenditures and acquisitions,
      future devaluations of the peso, the imposition by Mexico of foreign exchange
      controls and price controls, the influence of economic and market conditions
      in
      other countries on Mexican securities as well as the factors set forth in &#8220;Risk
      Factors&#8221; under Item&#160;3 of this Annual Report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="P1">PART
      I.</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I1">Item
      1.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Identity
      of Directors, Senior Management and Advisers</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I2">Item
      2.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Offer
      Statistics and Expected Timetable</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I3">Item
      3.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Key
      Information</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Selected
      Financial Data</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Annual Report includes our Consolidated Financial Statements as of December
      31,
      2004 and 2005 and for each of the three years ended December 31, 2003, 2004
      and
      2005. Our financial statements have been prepared in accordance with Mexican
      GAAP and are presented in Mexican pesos. The financial statements of our
      non-Mexican subsidiaries have been adjusted to conform to Mexican GAAP and
      translated to Mexican pesos. See Note 2(c) to our Consolidated Financial
      Statements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexican
      GAAP differs in certain respects from U.S. GAAP. Note 19 to the Consolidated
      Financial Statements provides a description of the principal differences between
      Mexican GAAP and U.S. GAAP, as they relate to us, a reconciliation to U.S.
      GAAP
      of net income, total stockholders&#8217; equity and resources generated by or used in
      operating, investing and financing activities for Mexican GAAP purposes to
      such
      activities under U.S. GAAP. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to Mexican GAAP, in our financial statements and the selected financial
      information set forth below: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">nonmonetary
                assets (including plant, property and equipment of Mexican origin)
                and
                stockholders&#8217; equity are restated for inflation based on the Mexican
                National Consumer Price Index; plant, property and equipment of
                non-Mexican origin are restated based on the rate of inflation in
                the
                country of origin and converted into Mexican pesos using the prevailing
                exchange rate at the balance sheet date;
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">gains
                and losses in purchasing power from holding monetary liabilities
                or assets
                are recognized in income; and all financial statements are restated
                in
                constant pesos as of December 31, 2005.
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
      of the financial information set forth below is presented in accordance with
      U.S. GAAP. The effect of inflation accounting under Mexican GAAP has not been
      reversed in the reconciliation to U.S. GAAP of net income and total
      stockholders&#8217; equity, except with respect to some information included in the
      cash flow statement. See Note 19 to our Consolidated Financial
      Statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      selected financial and operating information set forth below has been derived
      in
      part from our Consolidated Financial Statements, which have been reported on
      by
      KPMG C&#225;rdenas, Dosal, S.C. for the fiscal years ended December 31, 2001, 2002,
      2003 and 2004 and by Mancera S.C., a member practice of Ernst &amp; Young
      Global, an independent, registered public accounting firm for the fiscal year
      ended December 31, 2005. In so doing, Mancera, S.C. has relied on the audited
      Consolidated Financial Statements of the Company&#8217;s subsidiary SimRep Corporation
      (&#8220;SimRep&#8221;) and its subsidiaries, reported on by </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BDO
      Hern&#225;ndez Marr&#243;n y C&#237;a., S.C., a member firm of BDO International</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      selected financial and operating information should be read in conjunction
      with,
      and is qualified in its entirety by reference to our Consolidated Financial
      Statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td align="left" valign="bottom" width="32%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="17" valign="bottom" width="65%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Year
                Ended December 31,</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="32%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2001</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2002</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup><strong>(1)</strong></sup></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="14" valign="bottom" width="54%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Millions
                of constant December 31, 2005 pesos, </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">except
                share and per ADS data)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Millions
                of dollars, except share and per ADS data)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Income
                Statement Data:</strong></font></div>
            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Mexican
                GAAP:</em></font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Direct
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,598</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,989</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,413</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,304</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">956.05</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
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            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">747</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">789</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,039</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,459</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,579</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">239.29</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indirect
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">374</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">325</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">306</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">368</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">688</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">63.84</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation
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            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">159</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">176</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">198</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">221</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">323</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">29.96</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">214</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(37</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">73</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(40</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(32</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(38</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">55</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5.10</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
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            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">108</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">476</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,479</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">137.23</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(25</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">158</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">342</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">190</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">318</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.58</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Majority
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            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">274</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">133</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">318</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,272</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">118.02</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.85</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
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            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">54,816</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">99,967</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">119,053</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">132,972</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">137,930</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">137,930</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>U.S.
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            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,883</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,601</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,994</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,407</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,308</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">956.42</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marginal
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            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">753</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">786</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,034</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,465</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,575</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">238.92</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">199</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">253</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">540</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,852</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,534</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">142.33</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                income (expense) </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(3)</sup></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: -3pt">&#160;</font></div>
            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(140</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(27</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(37</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(144</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(13.36</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">653</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">481</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,811</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">137.60</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(182</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">206</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">386</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">196</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18.19</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
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            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">790</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">221</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">275</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,425</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,287</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">119.41</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
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            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.57</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">790</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">221</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">275</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">&#160;</td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">&#160;</td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Balance
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Mexican
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
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            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,002</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,528</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,246</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,494</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">798</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">875</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,146</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,503</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,230</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">206.91</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,316</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,063</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>U.S.
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
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            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,465</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,187</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,454</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,113</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,700</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,363.93</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">798</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">908</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,090</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,466</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,288</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">212.29</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                stockholders&#8217; equity</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: -3pt">&#160;</font></div>
            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,923</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,310</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,012</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,708</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,918</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">734.66</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
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            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Mexican
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            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
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            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">45</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">64</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,277</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">500</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">46.39</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="32%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation
                and amortization from</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">continuing
                operations</font></div>
            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">158</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">176</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">198</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">221</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">324</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">30.06</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="32%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                depreciation and amortization</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: -3pt">&#160;</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">158</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">176</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">198</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">221</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">324</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">30.06</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">__________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;
      </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Peso
      amounts have been translated into U.S. dollars solely for the convenience of
      the
      reader, at the rate of Ps. 10.7777 per $1.00, the interbank transactions rate
      in
      effect on December 31, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;
      </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflects
      different treatment of direct cost of sales, start-up costs, property, plant
      and
      equipment, employee profit sharing and accrued vacation costs (until 2002)
      under
      Mexican GAAP and U.S. GAAP. See Note 19 to the Consolidated Financial
      Statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)&#160;
      </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflects
      different treatment of gain from monetary position and exchange loss capitalized
      under Mexican GAAP and U.S. GAAP. See Note 19 to the Consolidated Financial
      Statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)&#160;
      </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflects
      different treatment of deferred income taxes and employee profit sharing under
      Mexican GAAP and U.S. GAAP. See Note 19 to the Consolidated Financial
      Statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)&#160;
      </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
      debt includes amounts relating to deferred taxes.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6)&#160;
      </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflects
      a reclassification in 2005 from other expenses under Mexican GAAP to operating
      expenses under U.S. GAAP of 38 million due to the cancellation of technical
      assistance.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(7)&#160;
      </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      U.S.
      GAAP and Mexican GAAP purposes, the weighted average shares outstanding were
      calculated to give effect to the reverse stock split described in Note 13(a)
      to
      the Consolidated Financial Statements.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
          OF CONTENTS</a></font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="center">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Exchange
      Rates</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
      November&#160;1991, Mexico has had a free market for foreign exchange. Prior to
      December&#160;21,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1994,
      the
      Mexican Central Bank, Banco de M&#233;xico, had kept the peso/U.S. dollar exchange
      rate within a range prescribed by the Mexican government through intervention
      in
      the foreign exchange markets. On December&#160;21,&#160;1994, the Mexican
      government announced its decision to suspend intervention in the foreign
      exchange market by the Mexican Central Bank and to allow the peso to float
      freely against the U.S. dollar. The peso/U.S. dollar exchange rate has
      experienced periods of significant volatility since the peso was allowed to
      float freely against the U.S. dollar. There can be no assurance that the Mexican
      government will maintain its current policies with regard to the peso or that
      the peso will not fluctuate significantly in the future.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth, for the periods indicated, the high and low rate
      for
      the purchase of dollars as well as average and period end rates for each full
      year period indicated, expressed in nominal pesos per dollar based upon the
      noon
      buying rate. The average figures represent the average of month-end
      rates.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" width="66%">

          <tr>
            <td align="justify" valign="top" width="17%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 50.25pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Periods</strong></font></div>
            </td>
            <td valign="top" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>High</strong></font></div>
            </td>
            <td valign="top" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Low</strong></font></div>
            </td>
            <td valign="top" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Average</strong></font></div>
            </td>
            <td valign="top" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Period
                End</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                9.97</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                8.95</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                9.33</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                9.16</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2002</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.43</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                9.00</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                9.66</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.43</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.41</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.11</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.79</font></div>
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            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.24</font></div>
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            <td align="justify" valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.64</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.81</font></div>
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            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.29</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.15</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.41</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.63</font></div>
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            <td valign="top" width="12%">&#160;</td>
            <td valign="top" width="12%">&#160;</td>
            <td valign="top" width="12%">&#160;</td>
            <td valign="top" width="12%">&#160;</td>
          </tr>
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            <td align="justify" valign="top" width="17%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 50.25pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Periods</strong></font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>High</strong></font></div>
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            <td valign="top" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Low</strong></font></div>
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            <td valign="top" width="12%">&#160;</td>
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            <td align="justify" valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
            </td>
            <td valign="top" width="12%">&#160;</td>
            <td valign="top" width="12%">&#160;</td>
            <td valign="top" width="12%" bgcolor="#ffffff">&#160;</td>
            <td valign="top" width="12%" bgcolor="#ffffff">&#160;</td>
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            <td align="justify" valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">January</font></div>
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            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.64</font></div>
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            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.44</font></div>
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            <td valign="top" width="12%">&#160;</td>
            <td valign="top" width="12%">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">February</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.43</font></div>
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            <td valign="top" width="12%" bgcolor="#ffffff">&#160;</td>
            <td valign="top" width="12%" bgcolor="#ffffff">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.95</font></div>
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            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.46</font></div>
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            <td valign="top" width="12%">&#160;</td>
            <td valign="top" width="12%">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April</font></div>
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            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.16</font></div>
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            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.86</font></div>
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            <td valign="top" width="12%" bgcolor="#ffffff">&#160;</td>
            <td valign="top" width="12%" bgcolor="#ffffff">&#160;</td>
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            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.30</font></div>
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            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.84</font></div>
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            <td valign="top" width="12%">&#160;</td>
            <td valign="top" width="12%">&#160;</td>
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            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.28</font></div>
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            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.46</font></div>
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            <td valign="top" width="12%" bgcolor="#ffffff">&#160;</td>
            <td valign="top" width="12%" bgcolor="#ffffff">&#160;</td>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fluctuations
      in the exchange rate between the peso and the U.S. dollar will affect the dollar
      equivalent of the peso price of shares of series B common stock on the Mexican
      Stock Exchange and the price of American Depositary Shares (&#8220;ADSs&#8221;) on the
      American Stock Exchange. Cash dividends, if any, will be paid by the Company
      in
      pesos, and exchange rate fluctuations will affect the dollar amounts received
      by
      holders of ADSs on conversion by the Depositary of cash dividends on the shares
      of series B common stock underlying ADSs.</font></div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Risk
      Factors</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>The
      following are risk factors relating to Simec and an investment in shares of
      its
      series B common stock or ADSs. The risks described below are not the only ones
      facing the Company. Additional risks, including those described elsewhere in
      this Annual Report, may impair Simec&#8217;s business operations. The Company&#8217;s
      business, results of operations or financial condition could be harmed if any
      of
      these risks materialize and, as a result, the price of ADSs representing its
      series B common stock could decline and investors could lose all or part of
      their investment.</em></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Risk</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>s
      Related to our Business</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
      Company&#8217;s results of operations are significantly influenced by the cyclical
      nature of steel industry. </em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      steel
      industry is cyclical in nature and sensitive to general national and
      international macroeconomic conditions. Prices for Simec&#8217;s products are
      significantly influenced by global demand for steel as well as overall supply
      levels. Changes in these two factors will likely impact Simec&#8217;s operating
      results. Although global steel prices increased significantly during 2004,
      global steel prices fell significantly in 2005 over 2004 levels. However, global
      steel prices increased significantly in the first four months of 2006 over
      2005
      levels. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      cost
      of ferrous scrap, the principal raw material used in Simec&#8217;s steel operations,
      is subject to price fluctuations. Although Simec&#8217;s wholly-owned scrap collection
      and processing operations furnish a material portion of its scrap requirements,
      Simec must acquire the remainder of its scrap from other sources. Because
      increases in the prices Simec is able to charge for its finished steel products
      may lag increases in ferrous scrap prices, such increases in scrap prices can
      adversely affect the operating results of Simec. In 2004, the price of scrap
      increased significantly. However, scrap prices decreased significantly in 2005
      over 2004 levels. In the first four months of 2006, scrap prices remained
      similar to 2005 levels. There can be no assurance that scrap prices will not
      increase and, if so, there can be no assurance that Simec will be able to pass
      all or a portion of these increases on through higher finished product
      prices.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
      energy costs involved in our production processes are subject to fluctuations
      that are beyond our control and could significantly increase our costs of
      production.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Energy
      costs constitute a significant component of Simec&#8217;s costs of operations. Our
      manufacturing processes are dependent on adequate supplies of electricity and
      natural gas. A substantial increase in the cost of natural gas or electricity
      could have a material adverse effect on our margins. In addition, a disruption
      or curtailment in supply could have a material adverse effect on our production
      and sales levels.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Mexican government is currently the only domestic supplier of energy and has,
      in
      some cases, increased prices above international levels. Simec, like all other
      high volume users of electricity, pays special rates to the CFE for electricity.
      Simec also pays special rates to Pemex, the national oil company, for gas used
      at the Guadalajara facility. There can be no assurance these special rates
      will
      continue to be available to Simec or that these rates may not increase
      significantly in the future. Simec has not always been able to pass the effect
      of these increases on to its customers and there is no assurance that Simec
      will
      be able to pass the effect of these increases on to its customers in the future.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
      Company may not be able to successfully integrate its recently acquired steel
      facilities into its operations. </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2005,
      Simec and its parent company, Industrias CH, S.A. de C.V. (&#8220;Industrias CH&#8221;),
      acquired 100% of the stock of Republic, a producer of special bar quality
      (&#8220;SBQ&#8221;) steel in the United States. Simec, Industrias CH&#8217;s largest subsidiary,
      acquired 50.2% of Republic&#8217;s stock through its majority owned subsidiary,
      SimRep, and Industrias CH purchased the remaining 49.8% through SimRep. In
      addition, in 2004, Simec acquired the property, plant and equipment and
      inventories of the Mexican steel manufacturing facilities of Industrias Ferricas
      del Norte, S.A. located in Apizaco, Tlaxcala and Cholula, Puebla. Simec has
      been
      operating these facilities since August 1, 2004. These facilities manufacture
      a
      significant amount of Simec&#8217;s total production. Simec&#8217;s future results will be
      subject to its ability to fully integrate the operations of the foregoing into
      its historic operations. Furthermore, while Simec has not yet encountered any
      material problems related to the assets acquired, there can be no assurance
      that
      problems will not arise in the future and that the costs associated with those
      problems, should they arise, will not be significant and, if so, that Simec
      will
      not ultimately have adequate recourse to the seller of those
      assets.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Unanticipated
      problems with Simec&#8217;s manufacturing equipment and facilities could have an
      adverse impact on Simec&#8217;s business.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      capacity of Simec to manufacture steel products depends on the suitable
      operation of its manufacturing equipment, including electric arc furnaces,
      strand continuous banana casters, reheating furnaces and rolling mills. Although
      Simec performs maintenance to its equipment on a continuous basis, breakdowns
      requiring significant time and/or resources to repair, as well as the occurrence
      of adverse events such as fires, explosions or adverse meteorological
      conditions, could cause temporary production interruptions that could adversely
      affect its results of operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      has
      not obtained insurance against all risks, and does not maintain insurance
      covering losses resulting from catastrophes or business interruptions. In the
      event Simec is not able to quickly and cost-effectively remedy problems creating
      any significant interruption of its manufacturing capabilities, Simec&#8217;s
      operations could be adversely affected. In addition, in the event any of Simec&#8217;s
      plants were destroyed or significantly damaged or its production capabilities
      otherwise significantly decreased, Simec would likely suffer significant losses;
      furthermore, the capital investments necessary to repair any destroyed or
      damaged facilities or machinery would adversely affect its cash flows and its
      profitability.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Because
      a significant portion of our sales is to the automotive industry, a decrease
      in
      the demand of this industry could reduce our cash flow and adversely affect
      our
      results of operations. </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Demand
      for our products is affected by, among other things, the relative strength
      or
      weakness of the U.S. automotive industry. The U.S. automotive industry is highly
      cyclical and may be adversely affected by international competition. In
      addition, the U.S. automotive industry is significantly unionized and subject
      to
      work slowdowns and stoppages resulting from labor disputes. We also sell to
      independent forgers, components suppliers and steel service centers, all of
      which sell to the automotive market as well as other markets.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>If
      we are unable to obtain or maintain quality and environmental management
      certifications for our facilities, we may lose existing customers and fail
      to
      attract new customers.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ISO
      is a
      worldwide federation of national standards bodies which have united to develop
      internationally accepted standards so that customers and manufacturers have
      a
      system in place to provide a product of known quality and standards. The
      standards set by ISO cover every facet of quality from management responsibility
      to service and delivery. The facilities at Apizaco and Cholula have received
      ISO
      9001:2000 certification from International Quality Certifications covering
      the
      period January 16, 2004 to January 15, 2007. Most of the automotive parts
      customers of the Apizaco and Cholula facilities require that they have these
      certifications.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ISO
      14001
      is the international standard defining the organizational structure,
      responsibilities, procedures, processes and resources for implementing
      environmental management systems. Most of Republic&#8217;s, Simec&#8217;s majority-owned
      subsidiary, automotive customers require that it have this certification. All
      of
      Republic&#8217;s facilities are currently ISO 14001 certified. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      the
      foregoing certifications are canceled or approvals withdrawn, or if necessary
      additional standards are not obtained in a timely fashion, our ability to
      continue to serve our targeted market, retain our customers or attract new
      customers may be impaired. For example, our failure to maintain these
      certifications could cause customers to refuse shipments, which could materially
      affect our revenue and results of operations. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      order
      to continue to serve the premium part of the SBQ products market, Republic,
      Simec&#8217;s majority-owned subsidiary, will need to maintain existing quality
      certifications in the United States such as QS-9000, the quality system standard
      established by the Chrysler, Ford and General Motors Supplier Quality
      Requirements Task Force, and to update its certification standards where
      necessary to remain current. The QS-9000 standard will no longer be a
      certification standard as of December 15, 2006. Suppliers currently certified
      under QS-9000 will need to update their certifications to comply with the ISO/TS
      16949 standard, which was developed by the International Automotive Task Force
      and provides for a single quality management system of continuous improvement,
      defect prevention and reduction of variation and waste in the supply chain.
      We
      are currently working toward transitioning to this standard. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>In
      the event of environmental violations at our facilities, we may incur
      significant liabilities.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      operations are subject to a broad range of environmental laws and regulations
      regulating our impact on air, water, soil and groundwater and exposure to
      hazardous substances. We cannot assure you that we will at all times operate
      in
      compliance with environmental laws and regulations. If we fail to comply with
      these laws and regulations, we may be assessed fines or penalties, be required
      to make large expenditures to comply with such laws and regulations and/or
      be
      forced to shut down noncompliant operations. You should also consider that
      environmental laws and regulations are becoming increasingly stringent and
      it is
      possible that future laws and regulations may require us to incur material
      environmental compliance liabilities and costs. In addition, we need to maintain
      existing and obtain future environmental permits in order to operate our
      facilities. The failure to obtain necessary permits or consents or the loss
      of
      any permits could result in significant fines or penalties or prevent us from
      operating our facilities. We may also be subject, from time to time, to legal
      proceedings brought by private parties or governmental agencies with respect
      to
      environmental matters, including matters involving alleged property damage
      or
      personal injury that could result in significant liability.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>If
      we are required to remediate contamination at our facilities, we may incur
      significant liabilities.</em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      may be
      required to remediate contamination at certain of our facilities and have
      established a reserve to deal with such liabilities. However, we cannot assure
      you that our environmental reserves will be adequate to cover such liabilities
      or that our environmental expenditures will not differ significantly from our
      estimates or materially increase in the future. Failure to comply with any
      legal
      obligations requiring remediation of contamination could result in liabilities,
      imposition of cleanup liens and fines, and we could incur large expenditures
      to
      bring the facilities into compliance.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
      could incur losses due to product liability claims, and we may be unable to
      maintain product liability insurance at acceptable
      costs.</em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      could
      experience losses from defects or alleged defects in our steel products that
      subject us to claims for damages. For example, many of our products are used
      in
      automobiles and light trucks and it is possible that a defect in one of these
      vehicles could result in product liability claims against us. In accordance
      with
      normal commercial sales, some of our products include implied warranties that
      such products are free from defect, are suitable for their intended purposes
      and
      meet certain agreed upon manufacturing specifications. We cannot provide you
      with any assurance that future product liability claims will not be made against
      us, that we will not incur product liability in excess of our insurance
      coverage, or that we will be able to maintain product liability insurance with
      adequate coverage levels and at acceptable costs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Simec&#8217;s
      controlling shareholder Industrias CH is able to exert significant influence
      on
      the business and policies of Simec and its interests may differ from those
      of
      other shareholders.</em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2001
      Industrias CH acquired a 62% interest in Simec from Simec&#8217;s predecessor parent,
      Group Sidek, and Industrias CH has since increased its ownership interest in
      Simec to approximately 85% at May 31, 2006. All of the current members of the
      Board of Directors of Simec were nominated and elected by Industrias CH, and
      Industrias CH continues to be in the position to elect directors in the future
      and to exercise substantial influence and control over the business and policies
      of the Company. It is possible that the interests of Industrias CH could differ
      from those of other shareholders. Furthermore, as a result of the significant
      equity position of Industrias CH, there is limited liquidity in Simec&#8217;s series B
      common stock and its ADSs.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Risks</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
      Related to Mexico</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Mexican
      governmental, political and economic factors may adversely impact Simec&#8217;s
      business.</em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Mexican government has exercised, and continues to exercise, significant
      influence over the Mexican economy. Accordingly, Mexican governmental actions
      concerning the economy and state-owned enterprises could have a significant
      impact on Mexican private sector entities in general and the Company in
      particular, and on market conditions, prices and returns on Mexican securities,
      including those of the Company. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company&#8217;s financial condition, results of operations and prospects may also be
      affected by currency fluctuations, inflation, interest rates, regulation,
      taxation, social instability and other political, social and economic
      developments in or affecting Mexico. There can be no assurance that future
      developments in the Mexican political, economic or social environment, over
      which the Company has no control, will not have a material adverse effect on
      the
      Company&#8217;s business, results of operations, financial condition or prospects or
      adversely affect the market price of the ADSs and the series B common
      stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      Mexican national elections held on July 2, 2000, Vicente Fox of the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Partido
      Accion Nacional</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
      National Action Party) or PAN, won the presidency. His victory ended more than
      70 years of presidential rule by the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Partido
      Revolucionario Institucional </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(the
      Institutional Revolutionary Party) or PRI. Neither the PRI nor the PAN succeeded
      in securing a majority in either house of the Mexican Congress. Further,
      elections held in 2003 and 2004, resulted in a reduction in the number of seats
      held by the PAN in the Mexican Congress and state governorships. The resulting
      gridlock, has impeded the progress of structural reforms in Mexico.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      July
      2, 2006, Mexico held Presidential and Federal Congressional elections and Felipe
      Calder&#243;n Hinojosa, the PAN candidate, has emerged as the winner by a very narrow
      margin. However, the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Partido
      de la Revoluci&#243;n Democr&#225;tica</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
      Revolutionary Democratic Party) or PRD, the leading opposition party, may
      contest the results of the election and</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">generate
      uncertainty which may have an adverse effect on economic developments in Mexico,
      including a possible adverse effect on our financial condition, results of
      operations and prospects. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>High
      levels of inflation and high interest rates in Mexico could adversely impact
      our
      financial condition and results of operation</em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      past, Mexico has experienced high levels of inflation and high domestic interest
      rates. Increases in interest rates and high levels of inflation could adversely
      impact the Mexican economy. These events could adversely affect the business,
      financial condition, results of operations and prospects of the
      Company.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Restrictive
      exchange control policy</em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Mexican economy has in the past experienced balance of payment deficits and
      shortages in foreign exchange reserves. While the Mexican government does not
      currently restrict the ability of Mexican or foreign persons or entities to
      convert pesos to foreign currencies generally, and to U.S. dollars in
      particular, it has done so in the past and no assurance can be given that the
      Mexican government will not institute a restrictive exchange control policy
      in
      the future. The effect of any exchange control measures adopted by the Mexican
      government on the Mexican economy cannot be predicted.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Simec&#8217;s
      financial statements are prepared in accordance with Mexican GAAP, and therefore
      may not be directly comparable to financial statements of other companies
      prepared under U.S. GAAP or other accounting
      principles.</em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      Mexican companies must prepare their financial statements in accordance with
      Mexican GAAP, which differs in certain significant respects from U.S. GAAP.
      Among other differences, Mexican companies are required to incorporate the
      effects of inflation directly in their accounting records and in their published
      financial statements. Accordingly, Mexican financial statements and reported
      earnings may differ from those of companies in other countries in this and
      other
      respects. See Note 19 to the Consolidated Financial Statements for a description
      of the principal differences between Mexican GAAP and U.S. GAAP as they relate
      to the Company.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Tariffs,
      anti-dumping and countervailing duty claims imposed in the future could harm
      Simec&#8217;s ability to export its products.</em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      recent
      years, the U.S. government has imposed anti-dumping and countervailing duties
      against Mexican and other foreign steel producers, but has not imposed any
      such
      penalties against the Company or the Company&#8217;s products. In the first quarter of
      2002 the U.S. government imposed tariffs of 15% on rebar and 30% on hot rolled
      bar and cold finish bar against imports of steel from all the countries with
      the
      exception of Mexico, Canada, Argentina, Thailand and Turkey; in the first
      quarter of 2003 the tariffs were reduced to 12% on rebar and 24% on hot rolled
      bar and cold finish bar and these tariffs were eliminated in late 2003, prior
      to
      their originally scheduled termination date. There can be no assurance that
      anti-dumping or countervailing duties suits will not be initiated against the
      Company or that the U.S. government will not impose tariffs on steel imports
      from Mexico or that existing tariffs on U.S. steel imports from other countries,
      will not be lifted in the future. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      September 2001, the Mexican government imposed tariffs of 25% against imports
      for all products that Simec produces from all countries with the exception
      of
      those which have a free trade agreement with Mexico, which includes the United
      States. In April 2002, the Mexican government increased these tariffs to 35%.
      These tariffs have subsequently been reduced over time and are currently
      9%.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
      can
      be no assurances that these tariffs will not be further reduced or that
      countries seeking to export steel products to Mexico will not impose similar
      tariffs on Mexican exports to those countries. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I4">Item
      4.</a>&#160;&#160;&#160;&#160;&#160; &#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Information
      on the Company</strong></font>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>History
      and Development of the Company</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>General</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      is
      a mini-mill steel producer based in Mexico that manufactures a broad range
      of
      small and medium-sized structural steel products. Simec&#8217;s products are used
      primarily in the residential, commercial and industrial construction markets.
      Simec believes that most of its products are used by the small and mid-market
      end-users that represent a substantial portion of the Mexican non-flat steel
      market. Simec currently owns and operates (i) Mexico&#8217;s largest non-flat
      structural steel mini-mill, located in Guadalajara, Jalisco, (ii) a mini-mill
      in
      Mexicali, Baja California Norte, (iii) a mini-mill in Apizaco, Tlaxcala, (iv)
      a
      melt shop in Cholula, Puebla, all of these facilities are owned through Simec&#8217;s
      indirect wholly-owned subsidiary, Simec International, S.A. de C.V. (&#8220;SI&#8221;) and
      (v) steelmaking centers in Canton and Lorain, Ohio, and value-added rolling
      and
      finishing facilities in Canton, Lorain and Massillon, Ohio; Lackawanna, New
      York; Gary, Indiana; and Hamilton, Ontario, all of which are owned through
      Simec&#8217;s majority-owned subsidiary, Republic. Simec is domiciled in the city of
      Guadalajara, Jalisco and its principal administrative office is located at
      Calzada L&#225;zaro C&#225;rdenas 601, Guadalajara, Jalisco, Mexico 44440. Its telephone
      number is 52-33-1057-5757.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      steel operations commenced in 1969 when a group of families from Guadalajara,
      Jalisco, formed Compa&#241;&#237;a Sider&#250;rgica de Guadalajara, S.A. de C.V. (&#8220;CSG&#8221;), a
      mini-mill steel company. In 1980, Grupo Sidek, S.A. de C.V. (&#8220;Sidek&#8221;), the
      former parent of Simec, was incorporated and became the holding company of
      CSG.
      In 1990, Sidek consolidated its steel and aluminum operations into a separate
      subsidiary &#8212; Grupo Simec, S.A. de C.V., a Mexican corporation with limited
      liability.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      March
      2001, Sidek consummated the sale of its entire approximate 62% controlling
      interest in Simec to Industrias CH. In June 2001, Industrias CH acquired
      additional common shares held by certain of Simec&#8217;s bank creditors that, in
      connection with the transaction, converted approximately $95.4 million of bank
      debt ($90.2 million of principal and $5.2 million of interest) into common
      shares of Simec increasing its interest in Simec to approximately 82.5%.
      Industrias CH has subsequently increased its equity position through various
      conversions of debt to equity and capital contributions and at May 31, 2005,
      held an 85% interest in Simec.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2004,
      Simec completed the acquisition of the property, plant and equipment and the
      inventories, and assumed liabilities associated with the seniority premiums
      of
      employees of the Mexican steel-making facilities of Industri&#225;s Ferricas del
      Norte, S.A. (Corporaci&#243;n Sidenor of Spain) located in Apizaco, Tlaxcala and
      Cholula, Puebla. Simec&#8217;s total net investment in this transaction was
      approximately U.S. $122 million (which amount excludes value added tax of
      approximately $16 million which was paid in 2004 and recouped from the Mexican
      government in 2005), funded with internally generated resources of Simec and
      capital contributions from Industrias CH of U.S. $19 million for capital stock
      issued in the second quarter of 2005. Simec began to operate the plants in
      Apizaco, Tlaxcala and Cholula, Puebla on August 1, 2004, and, as a result,
      the
      operations of both plants are reflected in Simec&#8217;s financial results as of such
      date. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2005,
      Simec and its parent company, Industrias CH, acquired 100% of the stock of
      Republic, a producer of SBQ steel in the United States. Simec, Industrias CH&#8217;s
      largest subsidiary, acquired 50.2% of Republic&#8217;s stock through its majority
      owned subsidiary,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      SimRep,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and
      Industrias CH purchased the remaining 49.8% through SimRep. Simec financed
      its
      portion of the U.S. $229 million purchase price principally from a loan it
      received through Industrias CH that has since been repaid in full. Republic
      operates six production plants located in Ohio, Indiana and New York; and one
      facility in Ontario, Canada. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Principal
      Capital Expenditures and Divestitures</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      seeks to improve its operating efficiency and increase sales of its products
      through capital investments in new equipment and technological improvements.
      In
      2005, Simec spent $46.4 in capital investments. Projects at the Guadalajara
      facilities in 2005 included the addition of a railroad weighing-machine and
      improvements to the warehouse. Projects at the Mexicali facility in 2005
      included the addition of a cold bed for the rolling mill, special site for
      dust
      and a co-jet system for the melt shop in order to increase productivity and
      reduce energy consumption. Projects at the Apizaco facility included the
      addition of a Straightengeen Line for the rolling mill and an inspection system
      for the rolling mill. During the period from July 22, 2005 to December 31,
      2005,
      Republic&#8217;s, Simec&#8217;s majority-owned subsidiary, capital investments were $34.4
      million. This includes $17.8 million for the new five strand combined
      billet/bloom caster located at Republic&#8217;s Canton, Ohio facility. The remainder
      is associated with the Canton melt shop, maintenance capital and infrastructure
      improvements and modernization. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2004,
      Simec spent $109.7 in capital investments ($107.5 million of which was allocable
      to the property, plant and equipment of the Apizaco and Cholula facilities).
      Projects at the Guadalajara facilities in 2004 included the addition of a
      reheating furnace and a new stand for the rolling mill. Projects at the Mexicali
      facility in 2004 included the addition of a special site for dust.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2003,
      Simec spent $5.4&#160;million in capital investments. Projects at the
      Guadalajara facility included the addition of a slitting system in order to
      increase production at the rolling mill. Projects at the Mexicali facility
      in
      2003 included the addition of a digital regulation system to the electric arc
      furnace in order to reduce energy consumption at the melt shop. In 2002, Simec
      spent $0.7 million in capital investments. Projects at the Guadalajara facility
      included the addition of a digital regulation system to the electric arc furnace
      in order to reduce energy consumption at the melt shop. Projects at the Mexicali
      facility include improvements to the warehouse. Simec expects to invest $9.4
      million in capital improvements at its facilities in Mexico in 2006, including
      $7.7 million at the Apizaco facility, $1.4 million at the Mexicali facility
      and
      $0.3 million at the Guadalajara facility. Anticipated Republic capital
      investments are $34.1 million at its facilities in 2006, including $23.4 million
      at the Canton, Ohio facility, $9.2 million at the Lorain, Ohio facility, $0.5
      million at the Lackawanna, New York facility, $0.4 million at the Massillon,
      Ohio facility, $0.1 million at the Hamilton, Ontario, Canada facility, $0.2
      at
      the Gary, Indiana facility and $0.3 million at their corporate location in
      Fairlawn, Ohio.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Business
      Overview</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      primary strategic objective is to be Mexico&#8217;s leading producer of a broad range
      of small- and medium-sized structural steel profiles and steel bars. Simec&#8217;s
      operating strategy is to maximize the flexibility of its manufacturing
      facilities, expand capacity, minimize production costs and continuously improve
      product and process quality as well as customer service. Its marketing and
      distribution strategy focuses on distributors serving the small and mid-market
      end-users who represent a substantial portion of the Mexican non-flat steel
      market. Simec believes that its ability to produce a wide range of products
      in
      competitively-priced small order volumes is an important means by which Simec
      differentiates itself from its major domestic and international competitors.
      Simec consummated the acquisition of the new facilities at Apizaco and Cholula
      to expand Simec&#8217;s geographic presence in Mexico and, as the products
      manufactured by those facilities and the markets they serve are similar to
      those
      of Simec&#8217;s existing operations, to improve Simec&#8217;s market position and increase
      its sales volumes and profitability. Simec consummated the acquisition of
      Republic to expand its presence in the United States&#8217; SBQ steel market.
      Republic&#8217;s SBQ products are used across a broad range of highly engineered
      end-user applications, including axles, wheel hubs and crankshafts for cars
      and
      light trucks; and critical components for heavy trucks, capital equipment and
      the energy market.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      steel production facilities are designed to permit the rapid changeover from
      one
      product to another. This flexibility permits Simec to efficiently produce small
      volume orders that meet the specialized needs of its customers. Production
      runs,
      or campaigns, of Simec&#8217;s products occur on a regular cycle of four to eight
      weeks, minimizing customer waiting time for both standard and specialized
      products. In addition, because a substantial portion of each campaign has
      historically been devoted to firm orders or to the production of products which
      Simec has been able to sell in a short period after production, both Simec
      and
      its customers have been able to minimize inventory financing costs. Simec cannot
      assure that significant levels of firm orders or its ability to forecast which
      products can be sold in short periods after production will continue in the
      future.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      operates the Guadalajara mini-mill through its indirect wholly-owned subsidiary,
      SI. At December 31, 2005 the Guadalajara facility&#8217;s annual installed capacity of
      steel billet was 350,000 tons, and its annual installed capacity of finished
      product was 480,000 tons. Simec operated the Guadalajara mini-mill at 87%
      capacity for billet production and 82% capacity for finished product production
      in 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      conducts the operations of the Mexicali mini-mill through its indirect
      wholly-owned subsidiary, SI. The Mexicali mini-mill commenced operations in
      1993
      and at December 31, 2005 had an annual installed capacity of 430,000 tons of
      steel billet and its annual installed capacity of finished product was 250,000
      tons. Simec operated the Mexicali mini-mill at 90% capacity for billet
      production and 81% capacity for finished product production in 2005. Simec
      originally invested approximately $140 million to build the Mexicali mini-mill
      and has invested additional amounts in capital improvements. Simec invested
      an
      additional $4.9&#160;million, $0.1 million and $3.6 million in capital
      improvements at the Mexicali facility in 2003, 2004 and 2005, respectively.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      operates the Apizaco facility through its </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">indirect</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      wholly-owned subsidiary, SI. At December 31, 2005, the Apizaco facility&#8217;s annual
      installed capacity was 380,000 tons of steel billet and 300,000 tons of finished
      product. Simec operated the Apizaco facility at 99% capacity of steel billet
      and
      90% for finished product production in 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      operates the Cholula facility through its indirect wholly-owned subsidiary,
      SI.
      At December 31, 2005, the Cholula facility&#8217;s annual installed capacity was
      180,000 tons of finished product. Simec operated the Cholula facility at 85%
      capacity for finished product production in 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      operates the Lorain, Ohio facility through its majority-owned subsidiary,
      Republic</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      At
      December 31, 2005, the Lorain facility&#8217;s annual installed capacity was 1,169,380
      tons of steel billet and 838,253 tons of finished product. During the period
      of
      July 22 to December 31, 2005, the Lorain facility, was operated at 82.5%
      capacity of steel billet and for finished product, 64.6% for 9-10&#8221; rolling mill
      and 75.7% for 20&#8221; mill finishing and shipping production.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      operates the Canton, Ohio facility through its majority-owned subsidiary,
      Republic. At December 31, 2005, the Canton facility&#8217;s annual installed capacity
      was 786,542 tons of steel billet. During the period of July 22 to December
      31,
      2005, the Canton facility was operated at 94.2% capacity of steel
      billet.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      operates the Lackawanna, New York facility through its majority-owned
      subsidiary, Republic. At December 31, 2005, the Lackawanna facility&#8217;s annual
      installed capacity was 544,320 tons of finished product. During the period
      of
      July 22 to December 31, 2005, the Lackawanna facility was operated at 91.9%
      capacity of finished product.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      operates the Massillon, Ohio facility through its majority-owned subsidiary,
      Republic. At December 31, 2005, the Massillon facility&#8217;s annual installed
      capacity was 125,194 tons of finished product. During the period of July 22
      to
      December 31, 2005, the Massillon facility was operated at 74.9% capacity of
      finished product.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      operates the Gary Dunes, Indiana facility through its majority-owned subsidiary,
      Republic. At December 31, 2005, the Gary Dunes facility&#8217;s annual installed
      capacity was 70,762 tons of finished product. During the period of July 22
      to
      December 31, 2005, the Gary Dunes facility was operated at 61.7% capacity of
      finished product.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      operates the Hamilton, Ontario, Canada facility through its majority-owned
      subsidiary, Republic. At December 31, 2005, the Hamilton facility&#8217;s annual
      installed capacity was 58,968 tons of finished product. During the period of
      July 22 to December 31, 2005, the Hamilton facility was operated at 57.4%
      capacity of finished product.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Products
      and Markets</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      rolling mills at the Guadalajara mini-mill use billet to produce I-beams,
      channels, angles, steel bars (round and square rods), flat bar, rebar and
      special products. Simec&#8217;s rolling mills at the Mexicali mini-mill use billet to
      produce rebar, steel bars (round and square), commercial angles (angles of
      less
      than three inches in width) and flat bar. Simec&#8217;s rolling mills at the Apizaco
      and Cholula mini-mill use billet to produce steel bars (round and square rods)
      flat bar, rebar and specialty products primarily for the automotive industry.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      also manufactures cold drawn rods. These rods are used to manufacture industrial
      products requiring steel with special properties, such as tensile strength
      and
      flexibility. Products of this type include automobile axles, screws and bolts.
      Rebar is used primarily for strengthening concrete in highways, buildings and
      other construction applications. In 2001, the Company began production at the
      Guadalajara facility of additional widths of hexagonal bars, lighter channels
      of
      a width of 5 inches and wider ranges of widths of spring flat bars. In 2002,
      the
      Company began production at the Guadalajara facility of additional widths of
      spring flat bars and round bars-SBQ. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec,
      through its majority-owned subsidiary, Republic, manufactures hot rolled bars,
      cold finished bars, semi-finished seamless tube rounds and other semi-finished
      trade products. Republic operates steelmaking centers in Canton and Lorain,
      Ohio, and value-added rolling and finishing facilities in Canton, Lorain and
      Massillon, Ohio; Lackawanna, New York; Gary, Indiana; and Hamilton, Ontario,
      Canada. I-beams, channels, structural angles (angles greater than three inches
      width) and rebar are generally sold to construction contractors, fabricators,
      steel service centers and manufacturers who cut, bend, shape and fabricate
      the
      steel to meet engineering or end product specifications. The construction
      industry uses these products primarily in the manufacture of commercial
      buildings and residential housing, as well as in the manufacture of a wide
      variety of industrial products. Round and square rods and flat bar are used
      to
      manufacture a wide variety of products, including gratings, steel floors and
      roof joists, safety walkways, ornamental furniture, stair railings and farm
      equipment. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth, for the years indicated, Simec&#8217;s sales volume for
      basic steel products. These figures reflect the sales of products manufactured
      at the Apizaco and Cholula facilities from August 1, 2004 through December
      31,
      2005 and the sales of products manufactured at the Republic facilities from
      July
      22 to December 31, 2005. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total
      Basic Steel Sales Volume</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup><strong>(1)</strong></sup></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="80%">

          <tr>
            <td align="left" valign="bottom" width="37%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="8" valign="bottom" width="40%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Years
                ended December 31,</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="37%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="8" valign="bottom" width="40%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Thousands
                of tons)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="37%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="37%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                Steel Products</font></div>
            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="37%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I-Beams</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">83.8</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">76.1</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">82.2</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="37%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Channels</font></div>
            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">50.7</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">58.9</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">59.7</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="37%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Angles</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">108.5</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">135.7</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">222.6</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="37%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steel
                Bars (round, square and hex rods)</font></div>
            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">174.6</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">189.0</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">196.0</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="37%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Hot-rolled
                bars</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.0</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.0</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">404.0</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="37%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cold
                Drawn</font></div>
            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17.1</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">15.7</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">105.6</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="37%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rebar</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">139.0</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">191.9</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">239.1</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="37%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Flat
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            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">45.7</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">91.7</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">188.5</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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          <tr bgcolor="white">
            <td align="left" valign="bottom" width="37%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Semi-finished
                seamless tube rounds</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">165.2</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="37%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                semi-finished trade products</font></div>
            </td>
            <td width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">43.3</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="37%" style="border-bottom: white solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
            </td>
            <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8.8</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14.3</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.9</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="bottom" width="37%" style="border-bottom: #deeced solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                Steel Sales</font></div>
            </td>
            <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">628.2</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">773.3</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,708.1</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_________________</font></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                both domestic and export sales.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Angles
                include structural angles and commercial
                angles.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth, for the years indicated, Simec&#8217;s proportionate
      domestic and export steel sales. These figures reflect the sales of products
      manufactured at the Apizaco and Cholula facilities from August 1, 2004 through
      December 31, 2005 and the sales of products manufactured at the Republic
      facilities from July 22 to December 31, 2005. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Steel
      Sales By Region </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="39%">&#160;</td>
            <td colspan="3" valign="top" width="20%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Sales
                Within Mexico</strong></font></div>
            </td>
            <td colspan="3" valign="top" width="20%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Sales
                Outside of Mexico</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="39%">&#160;</td>
            <td colspan="6" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Years
                ended December 31,</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="39%">&#160;</td>
            <td align="right" valign="top" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
            </td>
            <td align="right" valign="top" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
            </td>
            <td align="right" valign="top" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
            <td align="right" valign="top" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
            </td>
            <td align="right" valign="top" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
            </td>
            <td align="right" valign="top" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I-Beams</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Channels</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">81%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">80%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">81%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19%</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Angles</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">89%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">95%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">94%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steel
                Bars (round, square and hex rods)</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">96%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">91%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">71%</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Hot-rolled
                bars</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cold
                Drawn</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">96%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">95%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60%</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rebar</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">67%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">71%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">66%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Flat
                Bar</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">89%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">95%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">98%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2%</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Semi-finished
                seamless tube rounds</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                semi-finished trade products</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
            </td>
            <td align="right" valign="top" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td align="right" valign="top" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td align="right" valign="top" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td align="right" valign="top" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
            <td align="right" valign="top" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                (weighted average)</font></div>
            </td>
            <td align="right" valign="top" width="7%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">87%</font></div>
            </td>
            <td align="right" valign="top" width="7%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">87%</font></div>
            </td>
            <td align="right" valign="top" width="6%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">53%</font></div>
            </td>
            <td align="right" valign="top" width="7%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13%</font></div>
            </td>
            <td align="right" valign="top" width="6%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13%</font></div>
            </td>
            <td align="right" valign="top" width="7%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47%</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_________________</font></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Angles
                include structural angles and commercial
                angles.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                sales principally to the United States and
                Canada.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following tables set forth, for the years indicated, selected operating data
      for
      Simec&#8217;s steel production facilities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Guadalajara
      Mini-Mill</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="50%">&#160;</td>
            <td colspan="3" valign="top" width="28%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Years
                ended December 31,</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="50%">&#160;</td>
            <td valign="top" width="9%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
            </td>
            <td valign="top" width="9%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steel
                Sales (000&#8217;s tons)</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">430.3</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">463.4</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">407.1</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                finished product price per ton</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                4,620</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                7,327</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                6,513</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                scrap cost per ton</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,702.1</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,756.2</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,327.4</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                manufacturing conversion cost per ton of finished product</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,357.3</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,377.5</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,634.5</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                manufacturing conversion cost per ton of billet</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">842.4</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">954.5</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,043.3</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="50%">&#160;</td>
            <td align="right" valign="top" width="9%">&#160;</td>
            <td align="right" valign="top" width="9%">&#160;</td>
            <td align="right" valign="top" width="10%">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Mexicali
      Mini-Mill</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="50%">&#160;</td>
            <td colspan="3" valign="top" width="28%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Years
                ended December 31,</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="50%">&#160;</td>
            <td valign="top" width="9%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
            </td>
            <td valign="top" width="9%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steel
                Sales (000&#8217;s tons)</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">197.9</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">181.3</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">210.1</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                finished product price per ton</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                4,282</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                6,986</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                5,644 </font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                scrap cost per ton</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,364.5</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,032.4</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,020.7</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                manufacturing conversion cost per ton of finished product</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,285.8</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,416.4</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,505.9</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                manufacturing conversion cost per ton of billet</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">811.3</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">851.3</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">901.8</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Apizaco
      Mini-Mill and Cholula Facility</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="50%">&#160;</td>
            <td colspan="2" valign="top" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Years
                ended December 31, </strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="50%">&#160;</td>
            <td valign="top" width="15%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
            </td>
            <td valign="top" width="15%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steel
                Sales (000&#8217;s tons)</font></div>
            </td>
            <td align="right" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 28.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">155.6</font></div>
            </td>
            <td align="right" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 28.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">416.0</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                finished product price per ton</font></div>
            </td>
            <td align="right" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 28.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                7,772</font></div>
            </td>
            <td align="right" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 28.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                6,589 </font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                scrap cost per ton</font></div>
            </td>
            <td align="right" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 28.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,092</font></div>
            </td>
            <td align="right" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 28.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,727.7</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                manufacturing conversion cost per ton of finished product</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="right" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 28.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,120.7</font></div>
            </td>
            <td align="right" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 28.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,077.8</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                manufacturing conversion cost per ton of billet</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="right" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 28.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,418.8</font></div>
            </td>
            <td align="right" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 28.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,406.4</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Republic</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="50%">&#160;</td>
            <td valign="top" width="22%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>July
                22 - December 31</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="50%">&#160;</td>
            <td valign="top" width="22%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(3)</sup></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steel
                Sales (000&#8217;s tons)</font></div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 50.25pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">674.9</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                finished product price per ton</font></div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 50.25pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                8,245</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                scrap cost per ton</font></div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 50.25pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                1,799.9</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                iron ore pellet cost per ton</font></div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 50.25pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">646.7</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                manufacturing conversion cost per ton of finished product</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 50.25pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,033.2</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                manufacturing conversion cost per ton of billet</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 50.25pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,729.1</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_____________</font></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Manufacturing
                conversion cost is defined as all production costs excluding the
                cost of
                scrap and related yield loss.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflects
                sales of products from August 1, 2004, the acquisition date, through
                December 31, 2004.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflects
                sales of products from July 22, 2005, the acquisition date, though
                December 31, 2005.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Production
      Process and Facilities</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      mini-mill uses an electric arc furnace to melt ferrous scrap, which is then
      cast
      into long, square bars called billet in a continuous casting process, all of
      which occurs in a melt shop. The billet is thereafter transferred to a rolling
      mill, reheated and rolled into finished product. In contrast, an integrated
      steel mill heats iron pellets and other primary materials in a blast furnace
      to
      first produce pig iron, that must be refined in a basic oxygen furnace to liquid
      steel, and then cast to billet and finished product. Compared to integrated
      steel mills, a mini-mill typically produces certain steel products more
      efficiently because of the lower energy requirements resulting from its smaller
      size and because of its use of refined ferrous scrap. In addition, mini-mills
      are designed to provide shorter production runs with relatively fast product
      changeover times, allowing for greater responsiveness to customers&#8217;
requirements. Therefore, a mini-mill can generally produce a wide range of
      specialty, non-commodity steel products in shorter runs and at lower cost than
      an integrated steel mill.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      steel production process, Simec uses ferrous scrap to produce its finished
      steel
      products. Simec melts ferrous scrap in an electric arc furnace to produce molten
      steel, to which alloying elements and carbon are added, and which then is
      transported to continuous casters for solidification. The continuous casters
      produce long, square strands of steel that are cut into billet and transferred
      to the rolling mills for further processing or, in some cases, sold to other
      steel producers. In the rolling mills, the billet is reheated in a walking
      beam
      furnace with preheating burners, passed through a rolling mill for size
      reduction, and conformed into final sections and sizes. The shapes are then
      cut
      into a variety of lengths. In addition to producing billets, the Canton, Ohio
      facility, operated by Simec&#8217;s majority-owned subsidiary, Republic, also produces
      blooms.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      Guadalajara facilities and equipment include one improved DEMAG electric arc
      furnace utilizing water-cooled sidewalls and roof, one DEMAG four-strand
      continuous caster, five reheating furnaces and three rolling mills. The
      Guadalajara mini-mill has an annual installed capacity of 350,000 tons of billet
      and an annual installed capacity of finished product of 480,000 tons. In 2005,
      the Guadalajara mini-mill produced 304,295 tons of steel billet and 393,958
      tons
      of finished product.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      1993,
      Simec began operations at its mini-mill located in Mexicali, Baja California.
      The mini-mill is located approximately 22 miles south of the California border
      and approximately 220 miles from Los Angeles. Simec&#8217;s Mexicali facilities and
      equipment include one EBT DEMAG electric arc furnace utilizing water-cooled
      sidewalls and roof, one DEMAG four-strand continuous banana caster, one walking
      beam reheating furnace, one SACK rolling mill, a Linde oxygen plant and a water
      treatment plant. This facility has an annual installed capacity of 430,000
      tons
      of steel billet and an annual installed capacity of finished product of 250,000
      tons. Excess billet produced at the Mexicali mini-mill is used primarily by
      the
      Guadalajara mini-mill. In 2005, the Mexicali mini-mill produced approximately
      385,873 tons of billet, of which 104,415 tons were used by the Guadalajara
      mini-mill, 60,124 tons were used by the Apizaco mini-mill and 12,870 tons were
      sold to third parties. In 2005, the Mexicali mini-mill produced 201,607 tons
      of
      finished product. The decision to locate the new mini-mill in Mexicali was
      based
      upon a number of factors, including proximity to new domestic and foreign
      markets, work force quality and proximity to stable sources of scrap,
      electricity and other raw materials. The Mexicali mini-mill also is situated
      near major highways and a railroad linking the Mexicali and Guadalajara
      mini-mills, allowing for coordinated production at the two
      facilities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reducing
      freight expenses was one of Simec&#8217;s main objectives in constructing the Mexicali
      mini-mill. Simec&#8217;s most significant freight costs are those associated with
      acquiring steel scrap or billet and shipping finished product to customers.
      The
      Mexicali facility is one of the closest mini-mills to the Southern California
      market and has competitive freight costs for shipments of scrap to the mini-mill
      and shipments of finished product from the mill to customers in northern Mexico
      and the southwestern United States. In accordance with the North American Free
      Trade Agreement (&#8220;NAFTA&#8221;), the total tonnage of products that can be transported
      through Mexico on a single truck, is limited to 30 tons.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2003,
      63% of the products produced at the Mexicali mini-mill were rebar, 15% were
      angles, 14% were steel bars (round, square and hex rods) and the remaining
      8%
      were other products, principally merchant bar and channels. In 2004, 71% of
      the
      products produced at the Mexicali mini-mill were rebar, 11% were angles, 10%
      were steel bars (round, square and hex rods) and the remaining 8% were other
      products, principally merchant bar and channels. In 2005, 66% of the products
      produced at the Mexicali mini-mill were rebar, 15% were angles, 9% were steel
      bars (round, square and hex rods) and the remaining 10% were other products,
      principally merchant bar and channels</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      has
      operated the Apizaco facility since August 1, 2004. The mini-mill is located
      in
      central Mexico in </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Apizaco,
      Tlaxcala</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Simec&#8217;s
      Apizaco facilities and equipment include one EBT Danieli electric arc furnace
      utilizing water-cooled sidewalls and roof, two ladle stations (one Danieli
      and
      the other Daido), one Daido degasification station, one Danieli four-strand
      continuous banana caster, two walking beam reheating furnaces and two rolling
      mills (one Danieli and the other Pomini). This facility has an annual installed
      capacity of 380,000 tons of steel billet and an annual installed capacity of
      finished product of 300,000 tons. From August 1, 2004 to December 31, 2004,
      the
      Apizaco mini-mill produced 156,742 tons of steel billet and 115,740 tons of
      finished product. In 2005, the Apizaco mini-mill produced 377,832 tons of steel
      billet of which 3,685 tons were used by the Guadalajara mini-mill and 271,328
      tons of finished products. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      has
      operated the Cholula facility since August 1, 2004. Simec&#8217;s Cholula facilities
      and equipment include stands for a cold rolling mill and a turning machine
      for
      paling bars. This facility has an annual installed capacity of finished product
      of 180,000 tons. From August 1, 2004 to December 31, 2004, the Cholula facility
      produced 51,682 tons of finished product. In 2005, the Cholula facility produced
      153,847 tons of finished product. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the August 1 through December 31, 2004 period, 23% of the products produced
      at
      the Apizaco and Cholula facilities were rebar, 23% were angles, 26% were steel
      bars (round, square and hex rods) and the remaining 28% were other products,
      principally merchant bar. In 2005, 17% of the products produced at the Apizaco
      and Cholula facilities were rebar, 23% were angles, 17% were steel bars (round,
      square and hex rods) and the remaining 43% were other products, principally
      merchant bar and cold drawn.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Lorain, Ohio facility, operated by Simec&#8217;s majority-owned subsidiary, Republic,
      operates an integrated steel mill which produces iron in a blast furnace, and
      then converts a mixture of liquid iron and steel scrap into steel in a BOP
      (basic oxygen process) furnace. The primary raw materials used in our Lorain
      blast furnace are (i) iron ore pellets, which are a concentrated form of iron
      ore, (ii) coke, which is a product produced by baking specific types of coal
      at
      high temperature, and (iii) limestone or other cleansing materials, which are
      necessary to remove impurities in the material. In addition, scrap material
      is
      often used to supplement iron ore. We operate one blast furnace, in which iron
      ore, carbon material (coke) and the cleansing or &#8220;flux&#8221; material are heated to
      temperatures in excess of 2,500 degrees Fahrenheit. The high temperature causes
      a chemical reaction between the iron and carbon creating pig iron or hot metal.
      The flux material combines with impurities to create a by-product called slag.
      Special rail vehicles then transfer the hot metal in liquid form to the Lorain
      melt shop, which operates two 220-ton basic oxygen furnaces. Sulfur is removed
      from the hot metal and the hot metal is mixed with high quality scrap. This
      mixture is injected with oxygen that causes another chemical reaction that
      converts the pig iron or hot metal into molten steel, which is then poured
      into
      ladles. The ladles are transported to a ladle metallurgy facility where alloying
      agents and other refining materials may be added and blended into the steel.
      In
      addition, for some applications, the molten steel may be processed in a vacuum
      degasser to reduce oxygen, hydrogen and nitrogen. The molten steel is then
      poured into either a five-strand continuous bloom caster or six-strand billet
      caster through which the steel flows and cools. The cooled blooms or billets
      solidify, then are cut to length before further processing. The casters produce
      round blooms and billets that are feedstock for hot-rolled seamless tube
      products or rectangular blooms or square billets that are transported to one
      of
      three bar mills that convert the blooms or billets into finished cut-length
      or
      coiled bars for the marketplace. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      has
      operated the Republic facilities since July 22, 2005. Simec&#8217;s Republic
      facilities have an annual installed capacity of 1,955,923 tons of billet and
      1,637,496 tons of finished product. From July 22, 2005 to December 31, 2005,
      the
      Republic facilities (Lorain, Ohio and Canton, Ohio) produced 680,219 tons of
      steel billet, of which 165,201 tons were sold as tube rounds and 43,273 were
      sold as semi-finished product. The remainder went to the Lorain, Ohio and
      Lackawanna, New York facilities for further processing. For the same period,
      the
      Republic facilities produced 453,509 tons of hot-rolled bar, of which 49,624
      tons were used by the cold finish facilities. The Republic facilities produced
      69,764 tons of cold finish bars.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the period from July 22, 2005 to December 31, 2005, 60% of the products produced
      at the Republic facilities were hot-rolled bars, 9% were cold-finished bars,
      25%
      were semi-finished seamless tube rounds and 6% were other semi-finished trade
      products.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      production levels and capacity utilization rates for Simec&#8217;s melt shops and
      rolling mills for the years indicated are presented below. These figures reflect
      the sales of products manufactured at the Apizaco and Cholula facilities from
      August 1, 2004 through December 31, 2004. These figures reflect the sales of
      the
      products manufactured at the Republic facilities from July 22, 2005 through
      December 31, 2005.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Production
      Volume and Capacity Utilization</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" colspan="2" valign="top" width="47%">&#160;</td>
            <td colspan="3" valign="top" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Years
                ended December 31,</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" colspan="2" valign="top" width="47%">&#160;</td>
            <td colspan="3" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Tons
                in thousands)</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" colspan="2" valign="top" width="47%">&#160;</td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
            </td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
            </td>
            <td valign="top" width="9%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="5" valign="top" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Melt
                shops</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="44%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steel
                billet production</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">705.9</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">877.5</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,748.2</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="44%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Annual
                installed capacity</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">780.0</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,160.0</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,115.9</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="44%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
                capacity utilization</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">90.5%</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">93.5%</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">89.6%</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="5" valign="top" width="76%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Rolling
                mills</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="44%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                production</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">598.1</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">766.0</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,544.0</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="44%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Annual
                installed capacity</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">730.0</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,210.0</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,847.5</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="44%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
                capacity utilization</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">81.9%</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">82.4%</font></div>
            </td>
            <td align="right" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">80.6%</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_________________</font></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Annual
                installed capacity is determined based on the assumption that billet
                of
                various specified diameters, width and length is produced at the
                melt
                shops or that a specified mix of rolled products are produced in
                the
                rolling mills on a continuous basis throughout the year except for
                periods
                during which operations are discontinued for routine maintenance,
                repairs
                and improvements. Amounts presented represent annual installed capacity
                as
                at December 31 for each year. The percentage of effective capacity
                utilization for 2004 is determined in the case of Apizaco and Cholula
                facilities based on utilization over the period from August 1 to
                December
                31, 2004. The percentage of effective capacity utilization for 2005
                is
                determined in the case of Republic facilities based on utilization
                over
                the period from July 22 to December 31,
                2005.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      production for the years ended 2005, 2004 and 2003 represented an estimated
      16%,
      12% and 10%, respectively, of Mexican non-flat steel production, based upon
      production figures compiled by Mexico&#8217;s National Steel and Iron Industry Chamber
      (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Camara
      Nacional de la Industria del Hierro y del Acero</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      &#8220;Canacero&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ISO
      is a
      worldwide federation of national standards bodies which have united to develop
      internationally accepted standards so that customers and manufacturers have
      a
      system in place to provide a product of known quality and standards. The
      standards set by ISO cover every facet of quality from management responsibility
      to service and delivery. Management believes that adhering to the stringent
      ISO
      procedures not only creates efficiency in manufacturing operations, but also
      positions Simec to meet the exacting standards required by its customers. Simec
      is engaged in a total quality program designed to improve customer service,
      overall personnel qualifications and team work.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The new
      facilities at Apizaco and Cholula have received ISO 9001:2000 certification
      from
      International Quality Certifications covering the period January 16, 2004 to
      January 15, 2007.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Republic,
      Simec&#8217;s majority-owned subsidiary, is currently QS-9000 certified. QS-9000 sets
      forth a standard set of quality requirements for components and materials
      suppliers to the automotive industry. Certification requirements vary in scope
      and generally take between three and twelve months to achieve. Frequently,
      the
      qualification process requires a producer to supply one or more trial heats
      of
      SBQ products for customer evaluation, although some customers have longer
      pre-qualification requirements. The QS-9000 standard will no longer be a
      certification standard as of December 15, 2006. Suppliers currently certified
      under QS-9000 will need to update their certifications to comply with the ISO/TS
      16949 standard. Republic is currently actively working toward transitioning
      to
      this standard. The ISO/TS 16949 standard, developed by the International
      Automotive Task Force, is the result of the harmonization of the supplier
      quality requirements of vehicle manufacturers worldwide and provides for a
      single quality management system of continuous improvement, defect prevention
      and reduction of variation and waste in the supply chain. It places greater
      emphasis on management&#8217;s commitment to quality and customer focus. All of our
      facilities are actively pursuing this certification.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Republic
      is also currently ISO 14001 certified. This certification is a voluntary
      international standard that defines the organizational structure,
      responsibilities, procedures, processes and resources for implementing
      environmental management systems (EMS). It requires the development of an
      environmental policy statement which includes commitments to prevention of
      pollution, continual improvement of the EMS leading to improvements in overall
      environmental performance and compliance with applicable statutory and
      regulatory compliance. Most of Republic&#8217;s automotive customers require that we
      have this certification. All of Republic&#8217;s facilities are currently ISO 14001
      certified. The certification is effective until November 2007. Republic&#8217;s ISO
      14001 certified environmental management system helps reduce the risk of future
      environmental liabilities by assuring that current environmental practices
      are
      proper. It assures management&#8217;s commitment to compliance, a structure and
      discipline in the way in which it evaluates Republic&#8217;s business&#8217; potential
      environmental impacts, and provides a focus for compliance improvement
      throughout the company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Sales
      and Distribution</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      distributes its steel products throughout Mexico and exports its steel products
      primarily to the United States. Simec also exports steel products in Central
      and
      South America, Canada and Europe. Simec believes that more than half of its
      steel products are sold to the construction sector, with the remaining amounts
      being sold to the manufacturing, electrical, mining and automotive industries.
      Republic&#8217;s SBQ steel products are sold primarily in the United States, Canada
      and Mexico to domestic and Japanese transplant automotive manufacturers, their
      first and second tier suppliers and to customers in the forging, seamless pipe,
      and steel distribution markets.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      basic domestic steel sales are made through a group of approximately 100
      independent distributors, who also carry other steel companies&#8217; product lines,
      and through Simec&#8217;s wholly owned distribution center in Guadalajara. Simec
      believes its distribution center is an important source of information
      concerning customer needs and market developments. By working through its
      distributors, Simec believes that it has established and can maintain market
      leadership with small and mid-market end-users throughout Mexico. Simec believes
      that its domestic customers are highly service-conscious. Simec has built upon
      this strategy in marketing products from the Mexicali mini-mill. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2004
      and 2005, no single customer accounted for 10% or more of Simec&#8217;s total steel
      sales.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Simec&#8217;s
      management believes that it is not dependent on any single customer and that
      it
      could replace lost sales attributable to any customer given similar market
      conditions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      distributes its exports from Mexico primarily through independent distributors
      who also carry other steel companies&#8217; product lines. Simec employs three
      full-time employees who are dedicated exclusively to exports. Republic markets
      its SBQ products through a staff of professional sales representatives and
      sales
      technicians located in the major manufacturing centers of the Midwest, Great
      Lakes and Southeast regions of the U.S. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      2004 and 2005, orders for Simec&#8217;s products were received on average
      approximately two weeks before those products were produced. Accordingly, Simec
      does not believe that backlog is a significant factor in its business. A
      substantial portion of Simec&#8217;s production is ordered by its customers prior to
      production. There can be no assurance that significant levels of pre-production
      sales orders will continue. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Orders
      for Republic&#8217;s SBQ steel products are generally filled within one to 12 weeks of
      the order depending on the product, customer needs and other production
      requirements. Customer orders are generally cancelable without penalty prior
      to
      finish size rolling and depend on customers&#8217; changing production
      schedules.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Republic&#8217;s
      facilities are strategically located to serve the majority of consumers of
      SBQ
      products in the U.S. Republic ships products between its mills and finished
      products to customers by rail and truck. Customer needs and location dictate
      the
      type of transportation used for deliveries. The proximity of Republic&#8217;s rolling
      mills and cold finishing plants to its customers allows it to provide
      competitive rail and truck freight rates and flexible deliveries in order to
      satisfy just-in-time and other customer manufacturing requirements. We believe
      that the ability to meet the product delivery requirements of our customers
      in a
      timely and flexible fashion is a key to attracting and retaining customers
      as
      more and more SBQ product consumers reduce their in-plant raw material
      inventory. We optimize freight costs by using our significantly greater scale
      of
      operations to maintain favorable transportation arrangements, continuing to
      combine orders in shipments whenever possible and utilizing &#8220;backhauling&#8221; of
      scrap and other raw materials.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Competition</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      markets in which Simec competes are highly competitive and recent weakness
      in
      the steel industry globally has heightened competition. Some of Simec&#8217;s
      competitors maintain larger stocks of inventory and are able to provide their
      products to customers faster than Simec and may be better positioned to
      withstand weak market conditions and to respond more rapidly to strengthening
      market conditions. Simec believes that it competes in the Mexican domestic
      market and in its export markets for non-flat steel products primarily on the
      basis of price and product quality. In addition, it competes in the domestic
      market based upon its responsiveness to customer delivery requirements. Simec
      believes that it is one of the lowest cost producers of non-flat steel products
      in Mexico and is also one of the lowest cost producers of non-flat steel
      products in the export markets in which it competes. Simec endeavors to enhance
      its competitive position in Mexico by working closely with its distributors
      and
      adjusting its production schedule to meet customer requirements. Through its
      flexible production facilities, Simec is able to respond quickly to the demand
      for its products. Simec also believes that the geographic locations of its
      various facilities throughout Mexico and large variety of products help it
      to
      maintain its competitive market position in Mexico and in the states bordering
      Mexico. Simec believes that its Mexicali mini-mill, one of the closest
      mini-mills to the southern California market, provides a production and
      transportation cost advantage in northwestern Mexico and southern California.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
      on
      information compiled by Canacero, Simec believes that it is the sole Mexican
      producer of 5-inch, 6-inch and 200 mm I-beams and that there is one other small
      producer of 4-inch I-beams. These products accounted for approximately 75,894
      tons, or 10%, and approximately 82,223 tons, or 5%, of Simec&#8217;s total finished
      product sales in 2004 and 2005, respectively.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2005,
      Simec sold 198,872 tons of I-beams, channels and angles at least 3 inches in
      width (including the 82,223 tons of I-beams described above) which represented
      approximately 12% of Simec&#8217;s total finished product sales for the year. In 2004,
      Simec sold 181,890 tons of I-beams, channels and angles at least 3 inches in
      width (including the 75,894 tons of I-beams described above) which represented
      approximately 24% of Simec&#8217;s total finished product sales for the year. Simec
      believes that the domestic competitors in the market for these structural
      profiles are Altos Hornos de Mexico, S.A. de C.V. (&#8220;Ahmsa&#8221;), Sider&#250;rgica del
      Golfo, S.A. de C.V., Aceros Corsa, S.A. de C.V. (&#8220;Corsa&#8221;) and Gerdao, S.A. Based
      on information compiled by Canacero, Simec estimates that its share of domestic
      production of structural profiles was 71% in 2005 and 64% in 2004. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2005,
      Simec sold 703,974 tons of steel bar (including specialty steel bars), compared
      to 200,460 tons in 2004. Based on information compiled by Canacero, Simec
      believes that its share of domestic production of steel bar was 41% in 2005
      and
      37% in 2004. Simec&#8217;s other major product lines are rebar and commercial profiles
      (angles less than 3 inches in width and flat bar), for which Simec&#8217;s share of
      domestic production in 2005 was 7% and 88%, respectively, compared to 6% and
      40%, respectively, in 2004. Rebar and merchant bars together accounted for
      approximately 596,820 tons, or 35%, of Simec&#8217;s total production of finished
      steel products in 2005, compared to approximately 390,947 tons, or 46%, in
      2004.
      Simec competes in the domestic market with a number of producers of these
      products, including Ahmsa, Hylsamex, S.A. de C.V., Sicartsa, S.A. de C.V.,
      Corsa, Aceros Tultitl&#225;n, S.A. de C.V., Commercial Metals Inc., Belco Mineira
      Aceralia Perfiles Bergara, S.A., Chaparral Steel Company, Aceros San Luis,
      S.A.
      de C.V., Deacero, S.A. de C.V., Talleres y Acero, Nucor Corporation and Bayou
      Steel Corporation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      has
      been able to maintain its domestic market share and profitable pricing levels
      in
      Mexico in part because the central Mexico sites of the Guadalajara, Apizaco
      and
      Cholula facilities affords Simec substantial cost advantages relative to U.S.
      producers when shipping to customers in central and southern Mexico and its
      flexible production facility gives Simec the ability to ship specialty products
      in relatively small quantities with short lead times. The Mexicali mini-mill
      has
      helped to increase sales in northwestern Mexico and the southwestern United
      States because its relatively close proximity to these areas reduces Simec&#8217;s
      freight costs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      markets in which Republic, Simec&#8217;s majority-owned subsidiary, competes are
      highly competitive. It competes primarily with both domestic and import SBQ
      producers including mini-mills. Our U.S. domestic competition for hot-rolled
      engineered bar products is both large U.S. domestic steelmakers and specialized
      mini-mills. Foreign competition may impact segments of the SBQ market,
      particularly where certifications are not required, and during periods when
      the
      U.S. dollar is strong as compared with foreign currencies. The principal areas
      of competition in our markets are product quality and range, delivery
      reliability, service and price. Special chemistry and precise processing
      requirements characterize SBQ products. Maintaining high standards of product
      quality, while keeping production costs competitive is essential to our ability
      to compete in our markets. We believe that we have the widest selection of
      product grades and sizes in our industry and in many cases provide &#8220;niche&#8221;
products to our customer base that our U.S. domestic competitors cannot provide.
      The ability of a manufacturer to respond quickly to customer orders currently
      is, and is expected to remain, important as customers continue to reduce their
      in-plant raw material inventory.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Exports</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NAFTA
      has
      increased competition from U.S. steel producers by eliminating tariffs on steel
      products imported from the United States. Prior to the passage of NAFTA, a
      10%
      tariff was imposed by Mexico on imports of steel products similar to those
      produced by Simec. Under NAFTA, this tariff was reduced by 1% per year over
      10
      years commencing in 1994 and, as of December 31, 2003, the tariff has been
      completely eliminated. Conversely, the tariffs imposed by the United States
      on
      imports of steel bar (round and square rods), structural profiles, flat bar
      and
      rebar applicable to Mexican producers of steel products were phased out over
      a
      similar period and, as of December 31, 2003, these tariffs were completely
      eliminated.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      believes its principal competitors in the United States market, depending on
      the
      product, include Nucor Corporation, Niagara LaSalle, Mac Steel, Mittal Steel,
      Charter Steel, Steel Dynamics, Inc. and Timken. Simec believes that these
      companies, as a result of their location within the United States and their
      maintenance of large levels of inventory, are able to provide their products
      to
      their customers faster than Simec.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
      in the exchange rate between the peso and the dollar that do not fully reflect
      the difference in inflation rates between Mexico and the United States could
      adversely affect Simec&#8217;s production cost. Following a significant devaluation of
      the peso in 1995, and a large decrease in domestic demand for steel products,
      Simec commenced an aggressive export program in order to take advantage of
      relatively higher prices (in peso terms) of steel products and to offset the
      decline in domestic consumption. As a result, in 1995, Simec&#8217;s export sales were
      226,825 tons, representing 37% of total basic steel sales in tons. In subsequent
      years, as domestic demand increased in Mexico and the relative difference (in
      peso terms) in steel prices between the U.S. and Mexican markets decreased,
      and
      Simec&#8217;s relative margins on exports versus domestic sales consequently
      decreased, Simec refocused its efforts on the domestic market. Exports declined
      significantly in years subsequent to 1995, although in 2003, exports were 80,744
      tons, or 13% of total basic steel sales in tons sold versus 80,182 tons, or
      13%
      of total basic steel sales in tons sold in 2002, in each case higher than in
      the
      immediately preceding years. Exports of basic steel products increased to 97,126
      tons in 2004 (including 12,394 tons produced by the newly acquired plants in
      Apizaco and Cholula) versus 80,744 tons in 2003. Exports (including sales by
      U.S. subsidiaries) of basic steel products increased 733% to 809,083 metric
      tons
      in 2005 (including 19,261 tons relating to the newly acquired plants in Apizaco
      and Cholula and 674,957 metric tons generated by the newly acquired plants
      of
      Republic) versus 97,126 metric tons in the same period of 2004 (including 12,394
      metric tons relating to the newly acquired plants in Apizaco and Cholula).
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Raw
      Materials</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ferrous
      scrap, electricity, ferroalloys and refractory products are the principal
      materials used in the manufacture of Simec&#8217;s steel products. Among these,
      ferrous scrap is the most important for the production of steel and accounted
      for approximately 56% and 59% of Simec&#8217;s direct cost of sales in 2005 and 2004,
      respectively in the Mexico facilities and 17.5% of direct costs of sales from
      July 22, 2005 to December 31, 2005 in the Republic facilities. During the period
      from July 22, 2005 to December 31, 2005, Republic utilized iron ore pellets
      and
      coke in their Lorain, Ohio facility. The iron ore pellets and coke made up
      9.3%
      and 10.7%, respectively, of their direct costs. In 2005, in the Mexico
      facilities no tons of billet were acquired from third parties and 741 tons
      of
      hot-rolled bars were acquired by Republic from third parties for the period
      from
      July 22, 2005 to December 31, 2005. In 2004, 18,158 tons of billet were acquired
      from third parties. Ferrous scrap is principally generated from automobile,
      industrial, naval and railroad scrap. The market for ferrous scrap is influenced
      by availability, freight costs, speculation by scrap brokers and other
      conditions largely beyond the control of Simec. Fluctuations in scrap costs
      directly influence the cost of sales of finished goods.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      purchases raw scrap from peddlers and scrap dealers in Mexico and the San Diego
      area, and processes the raw scrap into refined ferrous scrap at its Guadalajara,
      Mexicali and Apizaco facilities. Simec meets its refined ferrous scrap
      requirements through three sources: (i) Simec&#8217;s wholly owned scrap processing
      facilities, which in the aggregate provided Simec with approximately 5% and
      6%
      of its refined scrap tonnage in 2005 and 2004, respectively, and (ii) purchases
      from third party scrap processors in Mexico and the southwestern United States
      which in the aggregate provided Simec with approximately 84% and 11% in 2005,
      respectively, and approximately 64% and 30% in 2004, respectively, of its
      refined ferrous scrap requirements. Simec is a dominant scrap collector in
      the
      Mexicali, Tijuana and Hermosillo regions and, by primarily dealing directly
      with
      small Mexican scrap collectors, Simec believes it has been able to acquire
      scrap
      at prices lower than those in the international and domestic markets. Republic
      purchases scrap on the open market through a number of brokers or directly
      from
      scrap dealers. Republic is not dependent on any single scrap supplier to meet
      its scrap requirements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Republic
      purchases iron ore pellets and coke. These are the principle raw materials
      used
      in its blast furnaces. Iron ore pellets and coke accounted for approximately
      20.0% of its direct costs for the period from July 22, 2005 to December 31,
      2005. Republic purchases 100% of its iron ore pellet and a portion of its coke
      requirement from U.S. Steel Corporation. The remainder of its coke requirement
      is purchased in the open market.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ferroalloys,
      electrodes and refractory products collectively accounted for approximately
      13%
      of Simec&#8217;s direct cost of sales in 2005 and 11% in 2004 in the Mexico facilities
      and 22.3% of direct costs of sales from July 22, 2005 to December 31, 2005
      in
      the Republic facilities. Ferroalloys are essential for the production of steel
      and are added to the steel during manufacturing process to reduce undesirable
      elements and to enhance its hardness, durability and resistance to friction
      and
      abrasion. Simec buys most of its manganese ferroalloys from Compa&#241;&#237;a Minera
      Autl&#225;n, S.A., with the remainder purchased from Electrometal&#250;rgica de Veracruz,
      S.A. de C.V., Manuchar Internacional, S.A. de C.V. and Industria Nacional de
      la
      Fundici&#243;n, S.A. de C.V. Simec obtains electrodes used to melt raw materials from
      Ucar Carbon Mexicana, S.A. de C.V., and Graphite Electrode Sales. Refractory
      products include firebricks, which line and insulate furnaces, ladles and other
      transfer vessels. Simec purchases its refractory products from</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">RHI
      Refmex, S.A. de C.V., LWB de M&#233;xico, S.A. de C.V., Fedmet Resources Corp.,
      Vesivius de M&#233;xico, S.A. de C.V., Mayerton Refractories and Tecnolog&#237;as
      Minerales de M&#233;xico, S.A. de C.V. Republic purchases most of its ferroalloys
      from International Nickel, Climax Molybdenum Co., Considar Inc., Minerais U.S.
      LLC and Glencore LTD. Republic purchases its electrodes from SGL Carbon,
      LLC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Electricity
      accounted for approximately 10% of Simec&#8217;s direct cost of sales in 2005 and 9%
      of direct cost of sales in 2004 and is supplied by the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Comisi&#243;n
      Federal de Electricidad</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;CFE&#8221;)
      in the Mexico facilities, and 3.6% of direct costs of sales from July 22, 2005
      to December 31,2005 in the Republic facilities and is supplied by American
      Electric Power (AEP) and Ohio Edison. Simec, like all other high volume users
      of
      electricity, pays special rates to CFE for electricity. Energy prices in Mexico
      have historically been very volatile and subject to dramatic price increases
      in
      short periods of time. In the late 1990s, the CFE began to charge for
      electricity usage based on the time of use during the day and the season (summer
      or winter). As a result, Simec has modified its production schedule in order
      to
      reduce electricity costs by limiting production during periods when peak rates
      are in effect. There can be no assurance that any future cost increases will
      not
      have a material adverse effect on the business of Simec. From May through
      October 2005 and August through October 2004, the Mexicali facility acquired
      electricity from Sempra Energy Solutions (&#8220;Sempra&#8221;). The </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Comisi&#243;n
      Reguladora de Energ&#237;a</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      of the
      Mexican Secretary of Energy authorized this agreement for peak hours in the
      period; the rates were less expensive than the rates of CFE in the same period.
      In 2006, the Mexicali facility entered into a new contract with Sempra for
      the
      period May through October 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Natural
      gas consisted of approximately 1.2% of the direct costs of Simec&#8217;s facilities in
      Mexico. Simec uses natural gas cash-flow exchange contracts or swaps where
      it
      receives a floating price however it pays a fixed price for hedging risks from
      fluctuations in natural gas prices, which are based on demand and supply at
      the
      principal international markets. Fluctuations in natural gas prices from volume
      consumed are recognized as part of the Company&#8217;s operating costs. 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&#8217;s-end. As indicated in Note 6 to the Consolidated
      Financial Statements, the Company opted for the early adoption of Bulletin
      C-10
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#8220;Derivative
      Financial Instruments and Hedging&#8221;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">;
      therefore, at December 31, 2005 and 2004 the fair value of the natural gas
      swap
      designated for hedging exposure of future gas consumption for the remaining
      period of January 2004 to December 2006 in terms of fluctuations in natural
      gas
      prices, were recognized within the comprehensive income account in stockholders&#8217;
equity.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Natural
      gas consisted of approximately 9.0% of Republic&#8217;s direct costs for the period
      from July&#160;22, 2005 through December 31, 2005. Republic has a hedging policy
      to manage its exposure to natural gas price fluctuations when practical. During
      2005, the Company began using cash flow hedges with respect to natural gas.
      The
      Company&#8217;s policy includes establishing a risk management philosophy and
      objectives designed to cap the Company&#8217;s exposure to the extreme price
      volatility of natural gas and thereby limiting the unfavorable effect of price
      increases on the Company&#8217;s operating costs. The Company does not enter into
      contracts for the purpose of speculation. The Company accounts for these
      derivative instruments in accordance with Statement of Financial Accounting
      Standards (SFAS) No.&#160;133, &#8220;Accounting for Derivative Instruments and
      Hedging Activities&#8221; and with Mexican GAAP relating to Bulletin C-10 </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#8220;Derivative
      Financial Instruments and Hedging.&#8221;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      At
      December 31, 2005, the Company held cash flow hedges for natural gas with the
      effective portion of such instruments reflected in accumulated other
      comprehensive loss.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>North
      American Free Trade Agreement</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      January 1, 1994, NAFTA became effective. NAFTA established a free trade zone
      among Mexico, Canada and the United States and has removed over time customs
      duties imposed on goods traded among the three countries, removed or relaxed
      many investment restrictions, liberalized trade in services, provided a
      specialized means for settlement of, and remedies for, trade disputes arising
      under NAFTA, promoted trilateral regional and multilateral cooperation, and
      has
      resulted in new laws and regulations to further these goals. Certain provisions
      of NAFTA were phased in over a number of years. NAFTA is further intended to
      provide Mexican exports with permanent access to U.S. and Canadian markets.
      NAFTA is intended to increase foreign investment in Mexico by its elimination
      of
      certain restrictions on foreign ownership. As a result of these two factors,
      NAFTA is anticipated over the long term to have a favorable effect on
      employment, wages and economic growth in Mexico. On the other hand, Mexican
      producers and service providers are subject to increased foreign competition
      as
      tariffs on certain imported goods and protection of certain industries from
      foreign competition have been reduced or eliminated.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      believes NAFTA has increased competition in finished products of the type
      produced by it in certain areas of Mexico, particularly the northeast, as
      Mexican tariffs on steel products exported to Mexico from the United States
      have
      been phased out. In addition, however, Simec believes that NAFTA </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">has</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">decreased
      the cost of certain of its important raw materials, such as electrodes,
      refractory products and ferroalloys, and spare parts.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Environmental
      Matters</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Mexican operations of various of Simec&#8217;s subsidiaries are subject to Mexican
      federal, state and municipal laws and regulations relating to the protection
      of
      the environment and require numerous permits, licenses and authorizations at
      municipal, state and federal levels. The fundamental environmental law in the
      Mexican federal system is the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Ley
      General del Equilibrio Ecol&#243;gico y Protecci&#243;n al Ambiente</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
      General Law of Ecological Equilibrium and Environmental Protection or the
&#8220;Ecological Law&#8221;). Under the Ecological Law, rules have been promulgated
      concerning water pollution, air pollution, noise pollution, solid wastes and
      hazardous substances. In addition, the Mexican federal government has enacted
      regulations concerning the import and export of hazardous materials and
      hazardous wastes. The Mexican federal agency in charge of overseeing and
      enforcing compliance with the federal environmental laws is the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Secretar&#237;a
      del Medio Ambiente y Recursos Naturales</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
      Ministry of the Environment and Natural Resources or &#8220;SEMARNAT&#8221;). As part of its
      enforcement powers, the SEMARNAT, through the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Procuradur&#237;a
      Federal de Protecci&#243;n al Ambiente</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
      Federal Bureau of Environmental Protection or &#8220;Profepa&#8221;) can bring civil and
      criminal proceedings against companies that violate environmental laws and
      can
      close non-complying facilities. Simec has made significant capital investments
      in connection with the building of its production facilities in order to comply
      with requirements of municipal, state and federal authorities and to remain
      in
      compliance with its permits, licenses and authorizations. Although Simec
      believes that it is currently in substantial compliance with the applicable
      Mexican federal and state and municipal environmental laws and regulations,
      it
      is possible that changes in Mexican federal, state or municipal environmental
      laws or regulations, or their interpretation or enforcement, could cause Simec
      to have to invest additional capital to remain in compliance with future
      federal, state and municipal requirements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      has
      obtained necessary general operating licenses from the environmental authorities
      and the sanitation authorities, including a Soil Usage License, a Waste Water
      Discharge Registration and a Statement for Hazardous Waste. Simec is required
      to
      provide an environmental impact report for each project that contains the
      architectural designs, the environmental impact of the project and proposed
      measures to minimize such impact. The SEMARNAT and state environmental
      authorities have the right to make periodic inspections. In addition, Simec
      is
      required to provide the SEMARNAT with periodic reports regarding its compliance
      with the Ecological Law and the regulations thereunder. These reports require,
      among other things, information with respect to environmental protection
      controls and the disposition of industrial waste. The Apizaco and Cholula
      facilities had received a certification of clean industry from SEMARNAT, and
      are
      in the process of renewing this certification which has since expired. Both
      facilities have a grace period, which ends at the end of October 2006, to
      address comments received from SEMARNAT. The Company anticipates that it will
      be
      able to address all of SEMARNAT&#8217;s comments within this period. Failure to meet
      the deadline would subject the facilities to greater monitoring by
      SEMARNAT.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      operations of Republic are subject to a broad range of environmental laws and
      regulations, including those governing the following: discharges to the air,
      water and soil; the handling and disposal of solid and hazardous wastes; the
      release of petroleum products, hazardous substances, hazardous wastes, or toxic
      substances to the environment; and the investigation and remediation of
      contaminated soil and groundwater. Republic monitors compliance with these
      laws
      and regulations through its environmental management system, and believe that
      we
      currently are in substantial compliance with them. However, it is possible
      that
      changes in these laws and regulations could change or their interpretation
      or
      enforcement could cause Republic to have to invest in additional capital to
      remain in compliance with future requirements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Organizational
      Structure</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      is
      a subsidiary of Industrias CH, which holds an approximate 85% controlling
      interest in Simec. The following table shows Simec&#8217;s corporate structure as of
      May 31, 2006. The table also shows, for each company, its jurisdiction of
      incorporation, and the approximate percentage equity ownership interest of
      its
      direct parent company shown on the table.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="54%">&#160;</td>
            <td valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Percentage
                of </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Equity
                Owned</strong></font></div>
            </td>
            <td valign="bottom" width="15%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Jurisdiction
                of </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Incorporation</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Compa&#241;&#237;a Sider&#250;rgica de Guadalajara, S.A. de C.V.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.99%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Arrendadora Simec, S.A. de C.V.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Simec International, S.A. de C.V.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Controladora Simec, S.A. de C.V.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                SimRep Corporation</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50.22%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                PAV Republic, Inc.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50.22%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Republic Engineered Products, Inc. </font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50.22%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Republic Machine, LLC </font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50.22%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Republic N&amp;T Railroad, Inc.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50.22%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Republic Canadian Drawn, Inc.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50.22%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Canada</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Undershaft Investments, N.V.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Netherlands
                Antilles</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Pacific Steel, Inc.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">California</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Compa&#241;&#237;a Sider&#250;rgica del Pac&#237;fico, S.A. de C.V.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.99%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Coordinadora de Servicios Sider&#250;rgicos de Calidad, S.A. de
                C.V.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Administradora de Servicios de la Industria Sider&#250;rgica ICH, S.A. de C.V.
                </font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.99%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Industrias del Acero y del Alambre, S.A. de C.V.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.99%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Procesadora Mexicali, S.A. de C.V.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.99%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Servicios Simec, S.A. de C.V.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Sistemas de Transporte de Baja California, S.A. de C.V.</font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Operadora de Metales, S.A. de C.V. </font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Operadora de Servicios Sider&#250;rgicos de Tlaxcala, S.A. de C.V.
                </font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Administradora de Servicios Sider&#250;rgicos de Tlaxcala, S.A. de C.V.
                </font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Operadora de Servicios de la Industria Sider&#250;rgica ICH, S.A. de C.V.
                </font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Administradora de Cartera de Occidente, S.A. de C.V. </font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.99%</font></div>
            </td>
            <td valign="bottom" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Property,
      Plants and Equipment</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      principal facilities consist of a steel mini-mill in Guadalajara, Jalisco,
      a
      steel mini-mill in Mexicali, Baja California Norte, a steel mini-mill in
      Apizaco, Tlaxcala, a rolling mill in Cholula, Puebla, a melt shop facility
      in
      Canton, Ohio, U.S.A., a melt shop and hot-rolling facility in Lorain, Ohio,
      U.S.A., a hot-rolling facility in Lackawanna, New York, U.S.A., a cold finishing
      facilities in Massillon, Ohio, U.S.A., Gary Dunes, Indiana U.S.A. and Hamilton,
      Ontario, Canada. Simec owns these facilities. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company&#8217;s corporate offices are located next to the steel mini-mill in
      Guadalajara, Mexico. Simec also has various sales and distribution facilities
      throughout Mexico and scrap collection facilities in Tijuana and San Diego,
      California.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      a
      more complete description of Simec&#8217;s principal facilities and production
      equipment, see &#8220;&#8212;Production Process and Facilities&#8221; above.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I5">Item
      5.</a>&#160;&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Operating
      and Financial Review and Prospects</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>The
      following discussion should be read in conjunction with the Consolidated
      Financial Statements included elsewhere in this Annual Report. The Consolidated
      Financial Statements have been prepared in accordance with Mexican GAAP, which
      differ significantly from U.S. GAAP. Note 19 to the Consolidated Financial
      Statements provides a description of the principal differences between Mexican
      GAAP and U.S. GAAP, as they relate to the Company, and a reconciliation to
      U.S.
      GAAP of net earnings and total shareholders&#8217; equity. Under Bulletin B-10,
      financial data for all periods in the Consolidated Financial Statements and
      throughout the Annual Report have been restated in constant pesos as of December
      31, 2005. For the years ended December 31, 2003, 2004 and 2005, the National
      Consumer Price Index increased approximately 4%, 5% and 3%,
      respectively.</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Critical
      Accounting Policies and Estimates</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      discussion in this section is based upon Simec&#8217;s financial statements, which
      have been prepared in accordance with Mexican GAAP. The preparation of these
      financial statements requires management to make estimates and assumptions
      that
      affect the reported amounts of assets and liabilities, the disclosure of
      contingent assets and liabilities at year-end, and the reported amount of
      revenues and expenses during the year. Management regularly evaluates these
      estimates, including those related to the carrying value of property, plant
      and
      equipment and other non-current assets, inventories and direct cost of sales,
      income taxes and employee profit sharing, foreign currency transactions and
      exchange differences, valuation allowances for receivables, inventories and
      deferred income tax assets, liabilities for deferred income taxes, valuation
      of
      financial instruments, obligations relating to employee benefits, potential
      tax
      deficiencies, environmental obligations, and potential litigation claims and
      settlements. Management estimates are based on historical experience and various
      other assumptions that are believed to be reasonable under the circumstances,
      the results of which form the basis for making judgments about the carrying
      values of assets and liabilities that are not readily apparent from other
      sources. Accordingly, actual results may differ materially from current
      expectations under different assumptions or conditions. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
      believes that the critical accounting policy which requires the most significant
      judgments and estimates used in the preparation of the financial statements
      relates to the impairment of property, plant and equipment and valuation
      allowance on accounts receivable. The Company evaluates periodically the
      adjusted values of its property, plant and equipment, to determine whether
      there
      is an indication of potential impairment. Impairment exists when the carrying
      amount of an asset exceeds future revenues or net cash flow expected to be
      generated by the asset. If such assets are considered to be impaired, the
      impairment to be recognized is measured by the amount by which the carrying
      amount of the asset exceeds the expected revenues or fair value. Assets to
      be
      disposed of are reported at the lower of the carrying amount or realizable
      value. Significant judgment is involved in estimating future revenues and cash
      flows or realizable value, as applicable, of the Company&#8217;s property, plant and
      equipment due to the characteristics of those assets. The class of the Company&#8217;s
      assets which most require complex determinations based upon assumptions and
      estimates relates to idle machinery.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">With
      respect to valuation allowance on accounts receivable, on a periodic basis
      management analyzes the recoverability of accounts receivable in order to
      determine if, due to credit risk or other factors, some receivables may not
      be
      collected. If management determines that such a situation exists, the book
      value
      of the non-recoverable assets is adjusted and charged to the income statement
      through an increase in the doubtful accounts allowance. This determination
      requires substantial judgment by management. As a result, final losses from
      doubtful accounts could differ significantly from estimated
      allowances.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>General
      Overview</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      steel products are generally commodities and, accordingly, its net sales and
      profitability are highly dependent on market conditions in the steel industry
      which is greatly influenced by general economic conditions in Mexico and
      elsewhere. As a result of the significant competition in the steel industry
      and
      the commodity-like nature of Simec&#8217;s products, Simec has limited pricing power
      as finished product prices for the Company&#8217;s steel products are generally
      determined by Mexican and global steel markets, although a portion of Simec&#8217;s
      products are specialty products for which competition is limited as compared
      with Simec&#8217;s more basic products, and these specialty products generate somewhat
      higher margins. Simec adjusts the mix of its product output toward higher margin
      products to the extent it is able to do so and also adjusts its overall product
      levels based on the product demand and marginal profitability of doing
      so.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      margins in commodity businesses are generally low, Simec focuses very closely
      on
      controlling its direct cost of sales as well as its indirect manufacturing,
      selling, general and administrative expenses. Simec&#8217;s direct cost of sales
      largely consist of the costs of acquiring the raw materials necessary to
      manufacture steel, primarily scrap. Scrap prices are generally determined by
      market supply and demand and as a result, Simec has limited ability to influence
      its scrap costs, as well as the costs of other raw materials, including energy
      costs. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
      is
      a correlation between the prices of scrap and finished product prices, although
      the degree and timing of this correlation varies from time to time and Simec
      may
      not always be able to fully pass along scrap and other raw material price
      increases to its customers. Simec&#8217;s ability to decrease its direct cost of sales
      as a percentage of net sales is largely dependent on its increasing
      productivity. Simec&#8217;s ability to control indirect manufacturing, selling,
      general and administrative expenses, which do not correlate to net sales as
      closely as direct costs of sales do, is a key element of Simec&#8217;s
      profitability.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      exports a portion of its products, primarily to the United States. As a result
      of higher costs associated with exports, Simec adjusts export levels based
      on
      product demand and the relative profitability of doing so versus selling its
      products in the domestic market. During periods of relative weakness of the
      peso
      versus the dollar, exports generate higher margins as revenues are generated
      in
      dollars which translate into higher peso amounts, while a portion of Simec&#8217;s
      costs are peso-denominated.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Republic&#8217;s
      direct cost of sales largely consist of costs associated with production.
      Production costs in the Unites States are higher than in Mexico principally
      due
      to the higher cost of labor and the higher cost of ferroalloys used in the
      manufacture of SBQ steel.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Comparison
      of Years Ended December 31, 2005, 2004 and 2003</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Net
      Sales</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      net sales were Ps. 12,883 million in 2005 (including the net sales generated
      by
      the newly acquired plants in Apizaco and Cholula of Ps. 2,732 million and the
      newly acquired plants of Republic of Ps. 6,220 million), Ps. 5,872 million
      in
      2004 (including the net sales generated since August 1, 2004 by the newly
      acquired plants in Apizaco and Cholula of Ps. 1,233 million), and Ps. 3,028
      million in 2003. This represented increases of 119% in 2005 compared to 2004
      and
      94% in 2004 compared to 2003. The increase in 2005 net sales versus 2004
      resulted from the inclusion for the full year 2005 of net sales generated by
      the
      plants in Apizaco and Cholula acquired in August 2004, of Ps. 2,732 million
      as
      well as Ps. 6,220 million generated by the newly acquired plants of Republic
      in
      July 2005. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      increase in 2004 net sales versus 2003 net sales resulted from substantially
      higher prices for Simec&#8217;s basic steel products, reflecting global steel price
      increases, primarily in the second quarter of the year and from significantly
      higher production levels, largely resulting from the inclusion of production
      by
      the newly acquired Apizaco and Cholula facilities. Sales in tons of basic steel
      products increased 121% in 2005 to 1,708,140 tons (including 413,925 metric
      tons
      generated by the newly acquired plants in Apizaco and Cholula and 674,957 metric
      tons generated by the newly acquired plants of Republic) from 773,297 tons
      in
      2004, which in turn had increased 23% in 2004 (including 155,614 tons produced
      by the newly acquired plants in Apizaco and Cholula) from 628,243 tons in 2003.
      These year to year increases reflect Simec&#8217;s determination to produce at higher
      levels given existing demand and pricing for its products.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exports
      (including sales by U.S. subsidiaries) of basic steel products increased 733%
      to
      809,083 metric tons in 2005 (including 19,261 tons relating to the newly
      acquired plants in Apizaco and Cholula and 674,957 metric tons generated by
      the
      newly acquired plants of Republic) versus 97,126 metric tons in the same period
      of 2004 (including 12,394 metric tons relating to the newly acquired plants
      in
      Apizaco and Cholula) Exports of basic steel products in 2004 increased 20%
      versus 2003 to 97,126 tons (including 12,394 tons produced by the newly acquired
      plants in Apizaco and Cholula). Simec sold 14,487 tons of billet in 2005, 41,832
      tons of billet in 2004 and 63,616 tons of billet in 2003. Billet sales do not
      contribute materially to Simec&#8217;s net sales or otherwise to its operating
      results.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      average price of steel products (excluding the sales of Republic) decreased
      14%
      in real terms in 2005 versus 2004. The average price of steel products increased
      63% in real terms in 2004 versus 2003, reflecting the significant global rise
      in
      overall demand and of finished product prices in 2004. The average price of
      steel products increased 18% in real terms in 2003, reflecting the global
      increase in finished product prices in 2003.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Direct
      Cost of Sales</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      direct cost of sales was Ps. 10,304 million in 2005 (including Ps. 2,015 million
      relating to the newly acquired plants in Apizaco and Cholula and Ps. 5,863
      million relating to the newly acquired plants of Republic), Ps. &#160;3,413
      million in 2004 (including Ps.&#160;862 million relating to the newly acquired
      plants in Apizaco and Cholula) and Ps. 1,989 million in 2003. This represented
      increases of 202% in 2005 compared to 2004 and of 72% in 2004 compared to 2003.
      Direct cost of sales as a percentage of net sales increased to 80% in 2005
      from
      58% in 2004 and 66% in 2003. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      higher direct cost of sales in 2005 compared to 2004 was primarily attributable
      to the cost of sales relating to the newly acquired plants of
      Republic</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      which
      represent 94.3% as a percentage of net sales</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Simec&#8217;s
      higher direct cost of sales in 2004 compared to 2003 was primarily attributable
      to the increased cost of raw materials and somewhat higher production levels.
      The average cost of raw materials used to produce steel products (excluding
      the
      production of Republic) increased 1% in real terms in 2005 versus 2004,
      primarily as a result of increases in the price of scrap and certain other
      raw
      materials. The average cost of raw materials used to produce steel products
      in
      2004 increased 45% from 2003, primarily as a result of increases in the price
      of
      scrap, electricity and gas.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Marginal
      Profit</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      marginal profit was Ps. 2,579 million in 2005 (including Ps. 717 million
      relating to the newly acquired plants in Apizaco and Cholula and Ps. 357 million
      relating to the newly acquired plants of Republic), Ps.&#160;2,459 million in
      2004 (including Ps.&#160;371 million relating to the newly acquired plants in
      Apizaco and Cholula) and Ps.&#160;1,039 million in 2003. This represented
      increases of 5% in 2005 compared to 2004 and 37% in 2004 compared to 2003.
      As a
      percentage of net sales, marginal profit was 20% in 2005 compared to 42% in
      2004
      and 34% in 2003.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Indirect
      Manufacturing, Selling, General and Administrative Expenses</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indirect
      manufacturing, selling, general and administrative expenses, which include
      depreciation and amortization, was Ps. 1,012 million in 2005 (including Ps.
      247
      million relating to the newly acquired plants in Apizaco and Cholula and Ps.
      269
      million relating to the newly acquired plants of Republic), Ps.&#160;589 million
      in 2004 (including Ps.&#160;75 million relating to the newly acquired plants in
      Apizaco and Cholula) and Ps.&#160;504 million in 2003, reflecting an increase of
      72% in 2005 compared to 2004 and an increase of 17% in 2004 compared to 2003.
      The increase in these expenses in 2005 versus 2004 is primarily attributable
      to
      the newly acquired plants of Republic. The increase in these expenses in 2004
      versus 2003 is primarily attributable to the newly acquired plants in Apizaco
      and Cholula. Depreciation and amortization was Ps. 324 million in 2005
      (including Ps. 60 million relating to the newly acquired plants in Apizaco
      and
      Cholula and Ps. 69 million relating to the newly acquired plants of Republic),
      Ps.&#160;221 million in 2004 (including Ps.&#160;25 million relating to the
      newly acquired plants in Apizaco and Cholula) and Ps.&#160;198 million in 2003.
      This reflected an increase of 47% in 2005 compared to 2004 and an increase
      of
      11% in 2004 compared to 2003. The increase in 2005 compared to 2004 was due
      to
      the inclusion for the full year 2005 of the depreciation generated by the plants
      in Apizaco and Cholula acquired in August 2004 and the depreciation relating
      to
      the newly acquired plants of Republic. The increase in 2004 compared to 2003
      was
      due to the depreciation relating to the newly acquired plants in Apizaco and
      Cholula. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Operating
      Income</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      operating income decreased to Ps. 1,567 million in 2005 from Ps.&#160;1,870
      million in 2004. Simec&#8217;s operating income increased 250% in 2004 from
      Ps.&#160;535 million in 2003. Operating income represented 12%, 32%, and 18% of
      net sales in 2005, 2004 and 2003, respectively.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Financial
      Income (Expense)</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      recorded financial expense in 2005 of Ps. 143 million compared to financial
      expense of Ps.&#160;37 million in 2004 and financial expense of Ps.&#160;27
      million in 2003. Financial income or expense reflects the sum of three
      components: exchange gain or loss, net interest income or expense and gain
      or
      loss from monetary position. Simec recorded an exchange loss of approximately
      Ps.&#160;75 million in 2005 compared to an exchange gain of Ps.&#160;4 million
      in 2004 and an exchange loss of Ps.&#160;3 million in 2003. These exchange
      results reflect the 4.3% increase in the value of the peso versus the dollar
      in
      2005 compared to a decrease of 0.3% in the value of the peso versus the dollar
      in 2004. The exchange gain in 2004 also reflected lower debt levels than in
      the
      prior year and the 2003 financial expense also reflected lower debt levels
      than
      in 2002 as Simec made various prepayments on its bank debt and converted loans
      from its parent company to equity during 2003 and 2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
      interest expense was Ps.&#160;15 million in 2005 compared to Ps.&#160;6 million
      of net interest income in 2004 and Ps.&#160;14 million of net interest expense
      during 2003. This reflected a higher amount of debt outstanding during 2005
      compared to 2004 and in 2004 a lower amount of debt outstanding compared to
      2003.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      recorded a loss from monetary position of Ps. 53 million in 2005 compared to
      a
      loss from monetary position of Ps.&#160;47 million in 2004 and a loss from
      monetary position of Ps.&#160;10 million in 2003. This reflected the domestic
      inflation rate of 3.3% in 2005 as compared to 5.2% in 2004 and 4% in 2003 as
      well as higher debt levels during 2005 compared to 2004 and in 2004 lower debt
      levels as compared to 2003.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Other
      Income (Expense), Net</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      recorded other income, net, of Ps. 55 million in 2005. This amount
      reflected:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">income
                from the amortization of the deferred credit of Ps. 67
                million;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">expense
                for the cancellation of the technical assistance of Ps. 38
                million;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">income
                from the recovery of a commission from Banco Nacional de Comercio
                Exterior
                for Ps. 8 million; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">other
                income, net, related to other financial operations of Ps. 18
                million.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      recorded other expense, net, of Ps.&#160;38 million in 2004. This amount
      reflected:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">income
                from the recovery of an account recorded as a doubtful account of
                Ps.&#160;14 million;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                reserve of Ps.&#160;6 million relating to the clean-up of contaminated
                land at the Pacific Steel
                facilities;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                reserve of Ps.&#160;13 million relating to the realizable value of idle
                machinery and equipment;</font></div>
            </td>
          </tr>

      </table>
    </div>
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    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
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            <td>
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                reserve for doubtful accounts of Ps.&#160;10 million;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
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                expense related to other financial operations of Ps.&#160;23
                million.</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      recorded other expense, net, of Ps.&#160;32 million in 2003. This amount
      reflected:</font></div>
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    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                reserve of Ps.&#160;12 million relating to the clean-up of contaminated
                land at the Pacific Steel
                facilities;</font></div>
            </td>
          </tr>

      </table>
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    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                reserve of Ps.&#160;19 million relating to the realizable value of idle
                machinery and equipment; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">other
                expense, net, related to other financial operations of Ps.&#160;1
                million.</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Income
      Tax and Employee Profit Sharing</em></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      December 31, 2005, 2004 and 2003 we recorded an income tax provision of Ps.
      190
      million, Ps. 342 million and Ps. 158 million, respectively. These amounts
      included a provision for deferred income taxes of Ps. 111 million in 2005,
      Ps.
      318 million in 2004 and Ps. 139 million in 2003.</font></div>
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      effective income tax rate for the fiscal years ending December 31, 2005, 2004
      and 2003 were 12.8%, 19.02% and 31.98% respectively. The effective income tax
      rate in 2005 was less than the statutory rate of 30%, mainly because of the
      following:</font></div>
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    <div>
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          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
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                2004, the Company had a valuation allowance that covered almost the
                total
                amount of the recoverable asset tax and tax loss carryforwards due
                to the
                uncertainty of their recovery. However, in 2005 the Company recovered
                Ps.
                83.5 million of assets tax. As a result of this recovery and future
                estimations, the Company reduced its valuation allowance on its deferred
                tax asset as of December 31, 2005. The net change in the valuation
                allowance for the years ended December 31, 2005 was a decrease of
                Ps.
                131.5 million. </font></div>
            </td>
          </tr>

      </table>
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    <div>
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                accordance with tax laws in force through December 31, 2004, inventory
                purchases were tax deductible in the year in which they were made,
                regardless of the time of sale of finished goods. As of 2005, inventories
                will be tax deductible only when sold, although the law provides
                transition provisions to tax the ending inventory balance at December
                31,
                2004 over periods that vary depending on the circumstances of each
                entity.
                During 2005 the Company obtained a tax benefit of Ps. 417.8 million,
                because of the non-accumulation, in the coming years, of its inventory
                balance at December 31, 2004 due to a corporate restructure (spin-off
                of
                its Subsidiary COSICA) of the Company. Also, we recorded an additional
                deferred tax liability for the amount of Ps. 301.5 million, to account
                for
                the difference of the net income of the 2005 period for which the
                Company
                did not pay taxes. See Note 13(c) to the Consolidated Financial
                Statements.</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">These
      changes resulted in favorable tax differences that had a one time impact in
      our
      effective income tax rate for the year ended December 31, 2005. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      new
      income tax law in Mexico was enacted on December 1, 2004, which established
      an
      income tax rate of</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30%
      for
      2005, 29% for 2006, and 28% for 2007 and subsequent years. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      a
      result of these changes, for the year ended December 31, 2004, the Company
      recognized a decrease in the net deferred tax liability of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
      286.6
      million&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">which
      was
      credited to results of operations.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Net
      Income Before Minority Interest</em></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      recorded net income before minority interest of Ps. 1,289 million,
      Ps.&#160;1,453 million and Ps.&#160;318 million in 2005, 2004 and 2003,
      respectively.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Minority
      Interest</em></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      recorded minority interest of Ps. 17 million in 2005 reflecting Industrias
      CH's
      49.8% interest in Republic acquired in July 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Net
      Income </em></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      recorded net income of Ps. 1,272 million, Ps.&#160;1,453 million and
      Ps.&#160;318 million in 2005, 2004 and 2003, respectively.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Recent
      Pronouncements Applicable to Mexican GAAP</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following accounting bulletins issued by the Mexican Institute of Public
      Accountants are obligatory as of January 1, 2005. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Business
      acquisitions</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      most
      significant issues in Bulletin B-7 are as follows: (a) use of the purchase
      method as the only alternative for valuing businesses acquired and investments
      in associated companies, thus eliminating the supplementary application of
      former International Accounting Standard 22, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Business
      Combinations,</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (b)
      change in the accounting for goodwill, eliminating amortization and requiring
      that goodwill be evaluated for impairment, and also requiring that negative
      goodwill not fully amortized at the date of adoption of Bulletin B-7 be carried
      to the results of operations, as a change in accounting principle; (c)
      establishment of specific rules to account for the acquisition of minority
      interest and for transfers of assets or exchange of shares among entities under
      common control, and (d) accounting for intangible assets acquired in a business
      combination, under Bulletin C-8, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Intangible
      Assets</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company opted for the early adoption of this Bulletin (see Note 14 to the
      Consolidated Financial Statements).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Labor
      obligations</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      new
      accounting Bulletin D-3, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Labor
      Obligations</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      was
      issued in January 2004. The revised Bulletin replaces and nullifies the previous
      Bulletin D-3, issued in January 1993 and revised in 1998. The observance of
      Bulletin D-3 is compulsory for fiscal years beginning on or after January 1,
      2004, except for termination payments, which were in force as of January 1,
      2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      revised Bulletin incorporates the matter of remunerations for other
      post-retirement benefits, thus nullifying the provisions of Circular 50,
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Interest
      rates to be used in the valuation of labor obligations and supplementary
      application of accounting principles related to labor
      obligations</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Bulletin D-3 also eliminates the subject related to unexpected payments and,
      instead includes the subject related to termination payments, defining such
      payments as those granted to workers at the end of their employment before
      reaching the age of retirement, which include two types: (i) due to corporate
      restructuring, for which the guidelines of Mexican accounting Bulletin C-9,
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Liabilities,
      Provisions, Contingent Assets and Liabilities and Commitments,</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      must be
      followed, and (ii) due to reasons other than restructuring, for which the
      Company must apply the valuation and disclosure rules required for retirement
      pensions and seniority premiums payments, thus allowing at the time that this
      Bulletin is adopted, to immediately recognize the transition asset or liability
      in results of operations, or its amortization, in conformity with the remaining
      working life of the workers.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company believes that the adoption of this Bulletin did not have a material
      effect on its financial position or on its results of operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Liquidity
      and Capital Resources</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      a
      result of the economic crisis in Mexico arising from the devaluation of the
      peso
      versus the U.S. dollar in 1994, including the liquidity crisis which affected
      the Mexican banking system, the insolvency of Simec&#8217;s former parent, Sidek, and
      Simec&#8217;s high levels of short-term indebtedness, Simec became unable to generate
      or borrow funds to refinance its debt or to support its operations and capital
      improvements. As of December 15, 1997, and immediately prior to the consummation
      of the Restructuring (as defined below), Simec had total outstanding
      indebtedness of approximately $322 million; over half of Simec&#8217;s debt had
      matured and was unpaid and substantially all of the balance was subject to
      acceleration.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      December 1997, the Company consummated a corporate reorganization and
      restructuring of its liabilities (collectively, the &#8220;Restructuring&#8221;). As part of
      the Restructuring, Simec&#8217;s wholly-owned subsidiary, CSG, incurred new bank debt
      and issued new debt securities and paid limited amounts of accrued interest
      on
      certain outstanding debt in exchange for and in an aggregate amount
      approximately equal to the aggregate outstanding consolidated debt of the
      Company at the date of consummation of the Restructuring. In exchange, CSG
      received equity in all of Simec&#8217;s subsidiaries and the elimination of
      intercompany debt owed by CSG to Simec.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Restructuring did not result in a reduction in the overall amount of Simec&#8217;s
      consolidated outstanding debt and, accordingly, following the Restructuring,
      Simec, through CSG, continued be highly leveraged. In 2001, subsequent to the
      acquisition by Industrias CH of a controlling interest in the Company, CSG
      redeemed or repurchased all of the outstanding debt securities it had issued
      in
      connection with the Restructuring (which was financed principally with
      borrowings from Industrias CH). In 2001, approximately $90 million of bank
      debt
      was converted to equity which was acquired by Industrias CH. In 2001, 2002,
      2003
      and 2004, CSG continued to pay down its outstanding bank debt, making scheduled
      amortization payments as well as additional principal payments which were
      financed primarily by capital contributions from Industrias CH or borrowings
      from Industrias CH which were later converted to equity. In March 2004, Simec
      prepaid U.S. $1.7 million of the remainder of its outstanding bank debt.
      At</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
      31, 2005, Simec&#8217;s total consolidated debt consisted of U.S. $38 million (Ps. 410
      million), of which U.S. $33.4 million is debt held by GE Capital, U.S. $4.3
      million held by the Ohio Department of Development Loan, and U.S. $302,000
      of 8
      7/8% medium-term notes (&#8220;MTNs&#8221;) due 1998 (accrued interest at December 31, 2005
      was U.S. $309,311). The Company conducted exchange offers with respect to the
      MTNs in October 1997 and August of 1998. The U.S. $309,311 due reflects sums
      that were not paid to holders that could not be identified at the time of the
      exchange offers.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company is heavily dependent on cash generated from operations as its principal
      source of liquidity. Other sources of liquidity have included financing made
      available to Simec by its parent Industrias CH (primarily in the form of equity,
      or debt substantially all of which was subsequently converted to equity), most
      significantly for the purpose of repaying third party indebtedness, and limited
      amounts of vendor financing. The Company has had very limited access to and
      has
      not borrowed any material amounts from unaffiliated third parties since
      consummation of the Restructuring. We believe that our existing cash, cash
      equivalents and cash generated from operations will be sufficient to satisfy
      our
      currently anticipated cash requirements through the next 12 months, including
      its currently anticipated capital expenditures.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 10, 2004, Simec completed the acquisition of the property, plant
      and
      equipment and the inventories, and assumed liabilities associated with seniority
      premiums of employees, of the Mexican steel-making facilities of Industr&#237;as
      Ferricas del Norte, S.A. (Corporaci&#243;n Sidenor of Spain) located in Apizaco,
      Tlaxcala and Cholula, Puebla. Simec&#8217;s total net investment in this transaction
      was approximately U.S. $122 million (which amount excludes value added tax
      of
      $16 million which was paid in 2004 and recouped from the Mexican government
      in
      2005), funded with internally generated resources of Simec and capital
      contributions from Industrias CH of U.S. $19 million for capital stock to be
      issued in the second quarter of 2005. Approximately $107.5 million of Simec&#8217;s
      investment related to the acquisition of property, plant and equipment,
      approximately $7 million related to a technical assistance contract with the
      seller (which amount, other than $1.7 million relating to services to be
      performed in 2005 and 2006, has been paid) and the balance relates to
      inventories acquired.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      July
      22, 2005, Simec and its parent company Industrias CH acquired 100% of the stock
      of Republic. Simec, Industrias CH&#8217;s largest subsidiary, acquired 50.2% (U.S.
      $115 million) of Republic&#8217;s stock through its majority owned
      subsidiary,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      SimRep,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and
      Industrias CH purchased the remaining 49.8% (U.S. $114 million) through SimRep.
      Simec financed its portion of the U.S. $229 million purchase price principally
      from a loan it received through Industrias CH that has since been repaid in
      full. At December 31, 2005, the total amount of Republic&#8217;s debt was U.S. $37.7
      million (Ps. 407 million), which debt has since been repaid in full.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company&#8217;s principal use of cash has generally been to fund its operating
      activities, for debt repayments and, to a significantly lesser degree, capital
      expenditure programs. The following is a summary of cash flows for the three
      years ended December 31, 2005:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Principal
      Cash Flows</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="45%">&#160;</td>
            <td colspan="3" valign="top" width="35%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Years
                ended December 31,</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="45%">&#160;</td>
            <td colspan="3" valign="top" width="35%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Millions
                of Constant Pesos)</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="45%">&#160;</td>
            <td valign="top" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
            </td>
            <td valign="top" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
            </td>
            <td valign="top" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="45%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                flow generated by (used in) operating activities</font></div>
            </td>
            <td align="left" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">433</font></div>
            </td>
            <td align="left" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                909</font></div>
            </td>
            <td align="left" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,637</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="45%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                flow generated by (used in) financing</font></div>
            </td>
            <td align="left" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                31</font></div>
            </td>
            <td align="left" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                401</font></div>
            </td>
            <td align="left" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                (757)</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="45%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                flow generated by (used) in investment activities</font></div>
            </td>
            <td align="left" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(26)</font></div>
            </td>
            <td align="left" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,349)</font></div>
            </td>
            <td align="left" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,196)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
      resources provided by operating activities was Ps. 1,637 million in 2005 and
      reflected the net income of the year. Net resources provided by operating
      activities was Ps.&#160;909 million in 2004 and reflected significant net income
      offset by increases in inventories and receivables attributable to the
      acquisition of the Apizaco and Cholula facilities. Net resources provided by
      operating activities was Ps.&#160;433 million in 2003 and reflected the
      conversion of loans of Industrias CH into common shares of Simec for
      Ps.&#160;200 million. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
      resources used by financing activities was Ps. 757 million in 2005. This amount
      reflects the prepayment of Ps. 1,045 million of bank debt of Republic and the
      loan from Industrias CH for Ps. 429 million. Net resources provided by financing
      activities was Ps.&#160;401 million in 2004. This amount reflects prepayment of
      bank debt of U.S. $20 million, the increase in capital stock issued to minority
      shareholders of Ps. 25 million and a capital contribution from Industrias CH
      to
      Simec in the amount of Ps.&#160;229 ($19 million) for capital stock to be issued
      in the second quarter of 2005.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
      resources provided by financing activities was Ps.&#160;31 million in 2003. This
      amount reflects the semi-annual amortization installments on the Company&#8217;s bank
      debt of Ps.&#160;16 million (U.S. $1.4 million), the prepayment of Ps.&#160;350
      million ($30 million) of bank debt, the conversion into shares by Industrias
      CH
      of Ps.&#160;200 million of loans plus accrued interest thereon, the increase of
      the capital stock by the minority shareholders for Ps.&#160;21 million and the
      conversion into common shares of the capital contribution from Industrias CH
      to
      Simec in the amount of Ps.&#160;168 million (U.S. $14.5 million) in 2003.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
      resources used in investing activities is attributable primarily to the
      acquisition of property, plant and equipment and other non-current assets and
      reflects changes in long-term inventories. Net resources used in investing
      activities (to acquire property, plant and equipment and other non-current
      assets) were Ps. 500 million in 2005 and the net resources used to acquire
      Republic were Ps. 1,218 million. Net resources used in investing activities
      were
      Ps.&#160;1,348 million in 2004 (which amount reflects the acquisition of the
      Apizaco and Cholula facilities) and Ps.&#160;26 million in 2003.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      December 31, 2005, Simec&#8217;s total consolidated debt consisted of approximately
      $38 million of U.S. dollar denominated debt. At December 31, 2004, Simec had
      outstanding approximately $13.9 million of U.S. dollar-denominated debt.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      December 2003, Simec acquired Administradora de Cartera de Occidente, S.A.
      de
      C.V. (&#8220;Acosa&#8221;) from Industrias CH for nominal consideration. Acosa&#8217;s sole asset
      is a portfolio of defaulted receivables it acquired in June 2003 from various
      Mexican banks which are in the process of liquidation. The purchase price of
      the
      portfolio is payable by Acosa solely from recoveries, if any, net of expenses
      of
      collection, with respect to the defaulted receivables. Upon payment of the
      purchase price from recoveries on the portfolio, Acosa and the Mexican banks
      will share in any additional recoveries, net of expenses of collection, on
      a 50%
      / 50% basis. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      December 31, 2005, Simec did not have any recoveries with respect to the
      defaulted receivables.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      May
      2004, certain minority shareholders of Simec exercised their pre-emptive rights
      arising as a result of this conversion by Industrias CH to purchase capital
      stock for Ps.&#160;24.5 million at the price per share of Ps.&#160;14.588 (the
      equivalent of U.S. $1.25 per American Depositary Share).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company does not have in place any interest rate or currency hedging
      instruments. The Company is not a party to any non-exchange traded contracts
      accounted for at fair value other than, as described in Note 6 to the
      Consolidated Financial Statements, certain futures contracts it entered into
      in
      late 2003 to fix the price of its natural gas purchases from 2004 to
      2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Off-Balance
      Sheet Arrangements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company does not have any off-balance sheet arrangements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Contractual
      Obligations</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      table
      below sets forth our significant long-term contractual obligations as of
      December 31, 2005:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="34%">&#160;</td>
            <td colspan="5" valign="top" width="46%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Maturity</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="34%">&#160;</td>
            <td colspan="5" valign="top" width="46%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Millions
                of Constant Pesos)</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="34%">&#160;</td>
            <td valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Less
                than </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1
                year</strong></font></div>
            </td>
            <td valign="bottom" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1
                - 3 years</strong></font></div>
            </td>
            <td valign="bottom" width="8%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4
                - 5 years</strong></font></div>
            </td>
            <td valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>In
                excess of 5 years</strong></font></div>
            </td>
            <td valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="34%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                debt obligations </font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18</font></div>
            </td>
            <td align="left" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29</font></div>
            </td>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">360</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">407</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="34%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                debt obligations (MTNs)</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                3</font></div>
            </td>
            <td align="left" valign="top" width="7%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="10%">&#160;</td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                &#160; 3</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="34%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                contractual obligations</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                0</font></div>
            </td>
            <td align="left" valign="top" width="7%">&#160;</td>
            <td align="left" valign="top" width="8%">&#160;</td>
            <td align="left" valign="top" width="10%">&#160;</td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                &#160; 0</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="34%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21</font></div>
            </td>
            <td align="left" valign="top" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29</font></div>
            </td>
            <td align="left" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">360</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">410</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      December 31, 2005, Republic had U.S. $0.1 million included in property, plant
      and equipment for various equipment and computer capital leases. Republic&#8217;s
      capital leases require future minimum payments of U.S. $0.3 million for 2006
      and
      will be repaid in full in 2006. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I6">Item
              6.</a>&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Directors,
                Senior Management and
                Employees</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Directors
      and Senior Management</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth the names, other positions held with the Company
      and
      the year of their initial appointment to their position, of the members of
      Simec&#8217;s Board of Directors and their alternates as well as the Statutory
      Examiner. The Statutory Examiner is not a member of the Board of Directors,
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
      &#8220;&#8212;Board Practices&#8212;Statutory Examiner,&#8221; below.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="center">
      <table cellpadding="0" cellspacing="0" width="72%">

          <tr>
            <td align="justify" valign="bottom" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font></div>
            </td>
            <td valign="bottom" width="30%">&#160;</td>
            <td valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Director</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Since</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="3" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Directors:</em></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rufino
                Vigil Gonz&#225;lez</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ra&#250;l
                Arturo P&#233;rez Trejo</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Eduardo
                Vigil Gonz&#225;lez</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ra&#250;l
                Vigil Gonz&#225;lez</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jos&#233;
                Luis Rico Maciel</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rodolfo
                Garc&#237;a G&#243;mez de Parada</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gerardo
                Arturo Avenda&#241;o Guzm&#225;n</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="30%">&#160;</td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" colspan="3" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Alternate
                Directors:</em></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Manuel
                Rivero Figueroa</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jos&#233;
                Luis Romero Su&#225;rez</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sergio
                Vigil Gonz&#225;lez</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Juan
                M&#233;ndez Mart&#237;nez</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Luis
                Garc&#237;a Lim&#243;n</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jaime
                Vigil S&#225;nchez Conde</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sergio
                Villag&#243;mez Mart&#237;nez</font></div>
            </td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">&#160;</td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 99pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Luis
      Garc&#237;a Lim&#243;n is also the Chief Executive Officer of the Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="center">
      <table cellpadding="0" cellspacing="0" width="72%">

          <tr>
            <td align="justify" valign="bottom" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font></div>
            </td>
            <td valign="bottom" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Position
                With Simec</strong></font></div>
            </td>
            <td valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Position
                Held</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Since</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="3" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Statutory
                Examiner:</em></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Humberto
                Vald&#233;s Mier</font></div>
            </td>
            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statutory
                Examiner</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">&#160;</td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 99pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with new Mexican Securities Market Law (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Ley
      del Mercado de Valores</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">),
      on
      April 28, 2006, the Company terminated the position of Alternate Statutory
      Examiner that was, at the time, occupied by Enrique M&#250;jica Rodr&#237;guez. See
&#8220;&#8212;Memorandum and Articles of Association,&#8221; below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth the names of the executive officers of the Company,
      their current position and the year of their initial appointment to that
      position.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="center">
      <table cellpadding="0" cellspacing="0" width="72%">

          <tr>
            <td align="justify" valign="bottom" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font></div>
            </td>
            <td valign="bottom" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Position
                in Simec</strong></font></div>
            </td>
            <td valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Position
                Held</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Since</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Luis
                Garc&#237;a Lim&#243;n</font></div>
            </td>
            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Executive Officer</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1984*</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jos&#233;
                Flores Flores</font></div>
            </td>
            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Financial Officer</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Juan
                Jos&#233; Acosta Mac&#237;as</font></div>
            </td>
            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Operating Officer</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marcos
                Maga&#241;a Rodarte</font></div>
            </td>
            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Sales Officer</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2001</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="30%">&#160;</td>
            <td valign="top" width="30%">&#160;</td>
            <td valign="top" width="12%">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*Represents
      the date as of which Mr. Garc&#237;a Lim&#243;n first held this office with the Company&#8217;s
      predecessor, CSG.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Biographical
      Information</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Juan
      Jos&#233; Acosta Mac&#237;as</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Mr.
      Acosta was born in 1960. He is currently Simec&#8217;s Chief Operating Officer. From
      1998 to 2004 he was Production Manager of CSG, he has been working with Simec
      since 1983. Prior to working with Simec, Mr. Acosta worked for Mexicana de
      Cobre
      as a supervisor in 1982.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Gerardo
      Arturo Avenda&#241;o Guzm&#225;n</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      Avenda&#241;o was born in 1955. He is an independent director for purposes of Mexican
      law and has been a member of Simec&#8217;s Board of Directors and the Audit Committee
      since 2001. Mr. Avenda&#241;o is an independent lawyer specializing in civil,
      mercantile and fiscal litigation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Jos&#233;
      Flores Flores</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      Flores was born in 1950. He is currently Simec&#8217;s Chief Financial Officer. From
      2001 to 2004 he was Simec&#8217;s Chief Corporate Financial Planning Officer. From
      1990 to 2001 he was Simec&#8217;s Manager of Financial Analysis and Stock Market
      Disclosure. Before that, Mr. Flores was the Auditor Manager of a food company
      from 1988 to 1990, the Controller Manager of Grupo Situr, Holding Company of
      Hotels, a subsidiary of Grupo Sidek from 1986 to 1988, and Auditor Manager
      of
      Simec from 1983 to 1986.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Rodolfo
      Garc&#237;a G&#243;mez de Parada</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      Garc&#237;a was born in 1953. He has been a member of Simec&#8217;s Board of Directors
      since April 2, 2001 and is an independent director for purposes of Mexican
      law.
      He has also been General Tax Adviser to the Company since 1978 and is a member
      of the board of directors of a group of self-service stores and restaurants
      since 1990.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Luis
      Garc&#237;a Lim&#243;n</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      Garc&#237;a was born in 1944. He is currently Simec&#8217;s Chief Executive Officer. From
      1982 to 1990 he was General Director of CSG, from 1978 to 1982 he was Operation
      Director of CSG, from 1974 to 1978 he was General Manager of Moly Cop and Pyesa,
      and from 1969-1974 he was Engineering Manager of CSG. In addition, from 1967
      to
      1969 Mr. Garc&#237;a was the Director of Electrical Installation of a construction
      company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Marcos
      Maga&#241;a Rodarte</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      Maga&#241;a was born in 1965. He is currently Simec&#8217;s Marketing and Sales Director.
      Before holding this position, Mr. Maga&#241;a was Domestic Sales Manager of CSG from
      1997 to 2001, Sales Manager for the western region of CSG from 1994 to 1996,
      Sales Manager of Met&#225;lica las Torres, a subsidiary of Simec from 1992 to 1994
      and Salesman of CSG, from 1990 to 1992. Before working with Simec, Mr. Maga&#241;a
      worked for a bank as Executive Promoter of Sales.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Ra&#250;l
      Arturo P&#233;rez Trejo</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      P&#233;rez was born in 1959. He has been a member of Simec&#8217;s Board of Directors and
      Audit Committee since April 2003, and is an independent director for purposes
      of
      Mexican law. Mr. P&#233;rez has also served since 1992 as the Chief Financial Officer
      of a group that produces and sells structural steel racks for warehousing and
      other industrial storage.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Jos&#233;
      Luis Rico Maciel</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      Rico was born in 1926. He has been a member of Simec&#8217;s Board of Directors since
      April 2, 2001 and is an independent director for purposes of Mexican law. He
      also serves as Corporate Legal and Tax Director to the Company and is a member
      of the board of directors of a group of self-service stores and restaurants
      since 1957.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Humberto
      Vald&#233;s Mier</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      Vald&#233;s was born in 1949. Mr. Vald&#233;s is a public accountant and is currently
      Simec&#8217;s statutory examiner and a partner of Mancera, S.C. Ernst &amp; Young&#8217;s
      Guadalajara office. He is currently member of several domestic boards of
      directors. Mr. Vald&#233;s has key experience with multinational companies, such as
      Grupo Sidek, Grupo Arancia, Productos de Trigo, Borg Warner de M&#233;xico, Grupo
      Almer&#237;a, Industrias Salver, and Grupo Holiday Inn Occidente.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Eduardo
      Vigil Gonz&#225;lez</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      Vigil was born in 1957. He is currently a member of Simec&#8217;s Board of Directors.
      Mr. Vigil has been a member of the Board of Directors since April 2, 2001.
      Since
      1976, Mr. Vigil has been chief executive officer of a welded pipe corporation.
      Mr. Vigil is a brother of Rufino Vigil Gonz&#225;lez and Ra&#250;l Vigil
      Gonz&#225;lez.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Ra&#250;l
      Vigil Gonz&#225;lez</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      Vigil was born in 1961. He has been a member of the Board of Directors since
      April 2, 2001. Since 1992 he has been chief executive officer of a steel
      company. In addition, he has also been general manager of a steel distribution
      company. Mr. Vigil is a brother of Rufino Vigil Gonz&#225;lez and Eduardo Vigil
      Gonz&#225;lez.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Rufino
      Vigil Gonz&#225;lez</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      Vigil was born in 1948. He is currently the Chairman of Simec&#8217;s Board of
      Directors. Mr. Vigil has been a member of the Board of Directors since April
      2,
      2001. Since 1973, Mr. Vigil has been chief executive officer of a steel related
      products corporation. From 1988 to 1993, Mr. Vigil was a member of the board
      of
      directors of a Mexican investment bank and from 1971 to 1973 he was a
      construction corporation manager. Mr. Vigil is a brother of Eduardo Vigil
      Gonz&#225;lez and Ra&#250;l Vigil Gonz&#225;lez.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Compensation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      remuneration paid by the Company during 2005 to all Directors, Alternate
      Directors, the Statutory Examiner, the Alternate Statutory Examiner and
      Executive Officers, including the Secretary and the Assistant Secretary of
      the
      Board of Directors, was approximately Ps.&#160;17 million. In 2005, no fees were
      paid to Directors, Alternate Directors, the Statutory Examiner, the Alternate
      Statutory Examiner, the Secretary or the Assistant Secretary for attendance
      at
      Board meetings.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Board
      Practices</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      by-laws provide that the Board of Directors will consist of a maximum of nine
      but not less than six members. Directors are elected to one-year terms and
      remain in their position until newly elected members replace them. All of the
      current Directors were elected at the annual general shareholders meeting on
      April 28, 2006 and will serve in such position until the next annual general
      shareholders meeting. According to Mexican law the participation of foreigners
      on the board of directors of a Mexican company may not exceed the percentage
      of
      participation of foreign investment in the capital stock of such
      company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
      holders of series L common shares, if any, representing at least 10% of Simec&#8217;s
      capital stock, have the right to appoint a minority Director and its alternate
      under the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Ley
      del Mercado de Valores</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
&#8220;Mexican Securities Market Law&#8221;). However, if no minority Director is appointed,
      the holders of series L common shares, if any, would have the right to appoint
      two Directors and two alternates. Directors are entitled to indemnification
      for
      certain liabilities under the Mexican Securities Market Law.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      Directors are classified as:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Independent
                Directors</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                At least 25% of the Company&#8217;s Directors must be independent, as defined
                under Simec&#8217;s by-laws. Independent Directors are those directors who are
                elected solely upon the basis of merit and professional experience
                and who
                are not included in any of the following
                categories:</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executives
                and employees of the Company during the year in which they are to
                serve as
                a Director or in the year immediately prior
                thereto;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Controlling
                shareholders of the Company;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">c)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consultants
                or advisors of the Company, or their employees, whose revenues derived
                from the Company represented more than 10% of their total
                revenues.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">d)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Directors,
                executives, management or employees of Simec&#8217;s customers and suppliers
                whose revenues derived from Simec constitute more than 10% of their
                aggregate purchases or sales, respectively, with the Simec group
                companies.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">e)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Directors,
                executives, management and employees of Simec&#8217;s debtors or creditors if
                the aggregate amount owed to or from Simec represents more than 15%
                of the
                total assets as shown on the financial statements of such debtor
                or
                creditor.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">f)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Directors
                and employees of any institutions which receive donations from Simec
                if
                such donation represents more than 15% of the total donations received
                by
                such institution.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">g)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executives
                and management of any company the directors of which include persons
                who
                are also executives and managers of
                Simec.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 72pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">h)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Relatives
                of the persons included in (a) through (g)
                above.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Controlling
                Directors</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                Controlling Directors are those who are material shareholders of
                the
                Company. The combined number of controlling and independent directors
                must
                represent at least 40% of the total number of Directors;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Related
                Directors</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                Related Directors are those who are neither independent nor material
                shareholders.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Board
      of Directors adopted a code of ethics in December 2002. For more information
      regarding our code of ethics, see Item 16B of this Annual Report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Audit
      Committee</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      by-laws provide that an audit committee will assist the Company&#8217;s Board of
      Directors on certain matters determined by the general shareholders&#8217; meeting.
      The by-laws also provide that the audit committee will have the number of
      members determined by the general shareholders&#8217; meeting, which may not be less
      than three, all of whom shall be elected from among the Company&#8217;s independent
      directors, as defined above. The current audit committee members are Raul Arturo
      P&#233;rez Trejo, Gerardo Arturo Avenda&#241;o Guzm&#225;n and Rodolfo Garc&#237;a G&#243;mez de
      Parada.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      more
      information about our Audit Committee members, see Items 16A in this Annual
      Report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Statutory
      Examiner</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      Mexican law, the statutory examiners report to the shareholders at the annual
      ordinary general meeting regarding the accuracy of the financial information
      presented to shareholders by the Board of Directors and generally review the
      affairs of the Company. The statutory examiners are also authorized
      to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">call
                ordinary general meetings or extraordinary general meetings of
                shareholders;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">place
                items on the agenda for general meetings of shareholders and meetings
                of
                the Board of Directors; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">attend
                general meetings of shareholders and meetings of the Board of Directors
                (without the right to vote).</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      accordance with Simec&#8217;s by-laws, as currently in effect, the number of statutory
      examiners is fixed at one proprietary and one alternate examiner, which shall
      be
      appointed by the vote of Simec shares representing a majority of shareholders
      present at a general ordinary shareholders&#8217; meeting. Once elected, statutory
      examiners remain in their position until newly elected statutory examiners
      replace them. The statutory examiner must be a different person than the person
      who executes the auditors report on the Company&#8217;s financial
      statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Employees</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      December 31, 2005, Simec had 4,360 employees (of whom 712 were employed at
      the
      Apizaco and Cholula facilities and 2,455 were employed at the Republic
      facilities), compared to 2,018 employees at December 31, 2004 (of whom 781
      were
      employed at the Apizaco and Cholula facilities) and 1,288 employees at December
      31, 2003. Approximately 72% of the labor force of all subsidiaries of Simec,
      direct or indirect, are unionized. Wages and benefits for non-unionized
      employees are fixed by a compensation system that incorporates both performance
      and market rates. Salaries and benefits of Simec&#8217;s operating subsidiaries&#8217;
unionized employees are fixed annually by union contracts. Simec&#8217;s management
      believes that its relations with employees are satisfactory within all of its
      divisions, and there has been no strike or work stoppage since the commencement
      of its operations in late 1969. Simec considers employee training a priority
      and, as a result, has implemented programs in the professional and technical
      areas of each division.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Share
      Ownership</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      June 30,&#160;2006, based on information available to Simec, it believes the
      officers and Directors of Simec own no shares of series B common stock.
      Accordingly, on an individual basis, and as a group, our Directors and executive
      officers beneficially owned less than one percent of any class of our shares.
      None of the members of our Board of Directors or our executive officers holds
      any options to purchase common shares or preferred shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I7">Item
      7.</a>&#160;&#160;</strong></font>&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Major
      Shareholders and Related Party Transactions</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Major
      Shareholders</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      December 31, 2005, Simec had 137,929,599 shares of series B common stock
      outstanding.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      March
      29, 2001, Sidek consummated the sale of its entire approximate 62% controlling
      interest in Simec to Industrias CH, In addition, Industrias CH acquired
      additional common shares from certain of Simec&#8217;s bank creditors. In August 2001,
      Industrias CH converted approximately $69.5 million of loans to Simec plus
      accrued interest thereon into common shares of Simec at a conversion price
      equivalent to U.S.&#160;$1.60 per ADS. In June 2002, Industrias CH converted
      approximately $24.6 million of loans to Simec into common shares of Simec at
      a
      conversion price equivalent to U.S.&#160;$1.51 per ADS. In March 2003,
      Industrias CH converted approximately $16.1&#160;million of loans to Simec plus
      accrued interest thereon into common shares of Simec at a conversion price
      equivalent to U.S.&#160;$1.35 per ADS. In November 2003, Industrias CH converted
      into common shares of Simec the $14.5 million capital contribution to Simec
      made
      in May 2003 at a conversion price equivalent to U.S. $1.41 (Ps.&#160;15.074) per
      ADS. In April 2005, Industrias CH converted into common shares of Simec the
      Ps.
      67 million capital contribution made in 2004 at a conversion price per share
      of
      Ps. 14.59 and an additional paid-in capital of Ps. 162 million at a conversion
      price per share of Ps 34.81. As a result, Industrias CH currently holds an
      approximate 85% interest in Simec.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      current members of the Board of Directors of the Company were nominated and
      elected to such position at the 2006 General Ordinary Shareholders&#8217; Meeting as
      proposed by Industrias CH. It is expected that Industrias CH will be in a
      position to continue to elect the majority of the Directors of the Company
      and
      to exercise substantial influence and control over the business and policies
      of
      the Company and to influence the Company to enter into transactions with
      Industrias CH and affiliated companies. However, the by-laws of the Company
      provide that at least two of its Directors must be independent of the Company
      and its affiliates and the Board of Directors of the Company has passed a
      resolution requiring the approval of two independent Directors for certain
      transactions between the Company and its affiliates which are not subsidiaries
      of the Company. Furthermore, under the laws of Mexico, any shareholder or group
      of shareholders is entitled to elect one member of the Board of Directors for
      each full 10% of the capital stock of the Company that it owns. In addition,
      under the laws of Mexico, a majority shareholder has no fiduciary duty to
      minority shareholders but may not act contrary to the interests of the
      corporation for the majority shareholder&#8217;s benefit. Such a majority shareholder
      is required to abstain from voting on any matter in which it directly or
      indirectly has a conflict of interest and can be liable for actual and
      consequential damages if such matter passes as a result of its vote in favor
      thereof. In addition, the directors of a Mexican corporation owe a duty to
      act
      in a manner which, in their independent judgment, is in the best interests
      of
      the corporation and all its shareholders.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Related
      Party Transactions</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      1992,
      the Company sold Ferrometal de Baja California, S.A. de C.V. (&#8220;Ferrometal&#8221;),
      which operates steel distribution centers in northwestern Mexico, to two
      individuals, Sergio Luis Gonz&#225;lez Melo (a former director of the Company) and an
      executive officer of Ferrometal. The purchase price of U.S. $2.9 million was
      determined based upon arms-length negotiations. The amounts payable from such
      individuals were initially denominated in dollars bearing interest at 15% per
      annum. In 1995, Simec entered into an agreement with the purchasers pursuant
      to
      which the interest accrued as of December 31, 1994 was capitalized, the debt
      was
      converted into pesos with no interest accruing from January 1995 and the entire
      principal amount was to be paid no later than December 31, 1996. The executive
      officer of Ferrometal timely paid his obligations. Mr. Gonz&#225;lez owed
      approximately Ps.&#160;10 million in historic pesos at December 31, 2002. Simec
      obtained favorable judgments against him in February 2002, June 2002 and
      February 2003. This proceeding is not completed, however, and Simec is not
      yet
      entitled to execute on its judgment. The Company has established a reserve
      equal
      to 100% of the amount owed by Mr. Gonz&#225;lez. In January 2004 Simec and Mr.
      Gonz&#225;lez&#8217; successors entered into an agreement to pay $1.3 million to Simec. In
      2004, the successors of Mr. Gonz&#225;lez paid Simec a total of $1.3 million.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      has
      borrowed various amounts from Industrias CH, primarily to finance debt
      redemptions and bank loan amortization and interest payments, a substantial
      portion of which borrowings were converted to equity, and has also received
      various capital contributions from Industrias CH. See Item 5 and &#8220;&#8212;Major
      Shareholders&#8221;. Simec from time to time sells steel products, primarily billet,
      to Industrias CH and its affiliates. In 2004, these sales totaled Ps.&#160;129
      million and in 2005 these sales totaled Ps. 25 million. In addition, in 2004
      Simec purchased Ps.&#160;11 million of steel products from Industrias CH and its
      affiliates and in 2005 Simec purchased Ps. 2 million of steel products from
      Industrias CH and its affiliates. Prices were negotiated on an arms-length
      basis. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      July
      22, 2005, Simec and its parent company Industrias CH acquired 100% of the stock
      of Republic through SimRep</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Simec,
      Industrias CH&#8217;s largest subsidiary, acquired 50.2% (U.S. $115 million) of
      Republic&#8217;s stock through its majority owned subsidiary,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      SimRep,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and
      Industrias CH purchased the remaining 49.8% (U.S. $114 million) through
      SimRep.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      financed its portion of the U.S. $229 million purchase price principally from
      a
      loan it received through Industrias CH that has </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">since
      been repaid in ful</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">l.
      At
      December 31, 2005, the total amount of Republic&#8217;s debt liabilities was of U.S.
      $37.7 million (Ps. 407 million). Republic&#8217;s debt has since been repaid in
      full.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      1993,
      the Company&#8217;s Board of Directors adopted a resolution requiring that any
      extension or provision of credit or financing or the like to or for the benefit
      of any affiliate of the Company be on an arms-length basis on commercially
      reasonable terms and be approved by two of the Company&#8217;s independent Directors
      and may not be amended, modified or rescinded without the approval of two
      independent Directors. This resolution may be enforced by any holder of the
      Company&#8217;s common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I8">Item
      8.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Information</strong></font>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Consolidated
      Statements and Other Financial Information</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
      Item
      18 - &#8220;Financial Statements&#8221; and &#8220;Index to Financial Statements.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Dividends</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
      the
      consummation of the initial public offering of series B common stock in 1993,
      the Company has not declared any dividends.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Significant
      Changes</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
      Item
      5.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Legal
      Proceedings</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
      are
      currently no material legal or administrative proceedings pending in Mexico
      against Simec or any of its subsidiaries which are expected to have a material
      adverse effect on Simec&#8217;s financial condition or results of operations, or are
      expected to result in material capital expenditures or materially adversely
      affect Simec&#8217;s competitive position.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
      subsidiaries of Simec that conduct operations in the United States are subject
      to U.S. federal, state and local regulation, particularly environmental
      regulations. In 1989 Pacific Steel, Inc. (&#8220;Pacific Steel&#8221;), a subsidiary based
      in San Diego, California, was required by the California Regional Water Control
      Board, San Diego Region (the &#8220;Regional Board&#8221;) to sample the soil beneath the
      former storage site of the automobile shredder waste generated by Pacific
      Steel&#8217;s prior scrap processing operations and submit the results to the Regional
      Board, which it did. In 1990, in response to another directive issued by the
      Regional Board, Pacific Steel submitted a range of remedial alternatives to
      clean up the contaminated soil. The Regional Board has not responded to Pacific
      Steel&#8217;s clean up alternatives. Based upon the advice of environmental
      engineering consultants retained by Simec, consultation with other parties
      and
      the fact that Pacific Steel has discontinued scrap processing operations, Simec
      believes its liability will be between U.S. $0.8 million and $1.7 million with
      respect to the remediation of this site based upon present volume assumptions,
      exclusive of any contribution from third parties or insurance coverage with
      respect to all or a portion of its remedial costs to which it may be entitled.
      Simec maintains a reserve of approximately U.S. $1.4 million (Ps.&#160;14,982
      million) with respect to this matter. There can be no assurance that the
      Regional Board or any other interested third party will not object to the
      recommended remediation alternative. Pacific Steel has discontinued processing
      scrap in San Diego, but continues to collect raw scrap in San Diego for
      transportation to Mexicali for processing. Notes 2(q) and 16 (a) Contingent
      liabilities to the Consolidated Financial Statements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      September 2002, the California Department of Toxic Substances Control (the
      &#8220;California TSC&#8221;) issued an Imminent and Substantial Endangerment Determination
      and Schedule for Compliance alleging that certain soil management and metal
      recovery operations at one of Pacific Steel&#8217;s sites may cause imminent and
      substantial endangerment to human health and the environment and in 2004 issued
      a Complaint Investigation Report. In 2004, Pacific Steel and the California
      TSC
      entered into a Final Judgment and Injunction Pursuant to Stipulation requiring
      Pacific Steel to make an aggregate payment of U.S. $235,000 and to undertake
      certain corrective action. Pacific Steel has to date paid all of the amounts
      agreed to, as required, retained consultants and work has commenced on the
      corrective action. Additionally, the Community Development Commission of
      National City, California (the&#160;&#8220;CDC&#8221;) announced that it intends to
      purchase, at market value less the cost of remediation and costs incurred,
      3.86&#160;acres of the site for redevelopment. The CDC, in accordance with the
      State of California law, has the power to expropriate in exchange for payment
      at
      market value and, in the event that there is no other land available to relocate
      the business, it would also have to pay Pacific Steel the land&#8217;s book value.
      Consequently, Pacific Steel recorded its land at realizable value based on
      an
      independent appraisal, resulting in a Ps.&#160;22.4 million decrease in the
      value of the land and a charge to income in the same amount. In April 2006,
      the
      expropriation process was temporarily suspended through an agreement entered
      into by both parties. This agreement allows Pacific Steel to explore the
      possibility of finishing the remediation process of the land and to propose
      an
      alternative to CDC which would allow the Company to remain in the
      area.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
      are
      currently no other material legal or administrative proceedings pending against
      Simec or any of its subsidiaries with respect to any environmental matter in
      Mexico, and management does not believe that continued compliance with the
      Ecological Law or existing Mexican state or municipal environmental laws will
      have a material adverse effect on Simec&#8217;s financial condition or results of
      operations, result in material capital expenditures or have a material adverse
      effect on Simec&#8217;s competitive position. Simec is a party to certain legal
      proceedings involving local taxing authorities. See Note 16 to the Consolidated
      Financial Statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      normal course of business operations, Simec and its subsidiaries have been
      named
      as defendants in a variety of legal actions. Simec believes that such actions
      or
      proceedings are covered by insurance or are not material to the financial
      condition, business and affairs of Simec and its subsidiaries, taken as a
      whole.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I9">Item
      9.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Offer
      and Listing Details</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Share
      Price Information</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth for the periods indicated the high and low sales
      prices expressed in historical pesos of the series B common stock on the Mexican
      Stock Exchange, and the high and low sales price expressed in dollars of the
      ADSs on the American Stock Exchange.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" colspan="2" valign="top" width="41%">&#160;</td>
            <td colspan="2" valign="top" width="19%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Mexican</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stock</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exchange</strong></font></div>
            </td>
            <td colspan="2" valign="top" width="18%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>American</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stock</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exchange</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" colspan="2" valign="top" width="41%">&#160;</td>
            <td valign="top" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>High</strong></font></div>
            </td>
            <td valign="top" width="9%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Low</strong></font></div>
            </td>
            <td valign="top" width="9%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>High</strong></font></div>
            </td>
            <td valign="top" width="9%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Low</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="2" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2001</strong></font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                1.25</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                0.52</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.50</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.81</font></div>
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          </tr>
          <tr bgcolor="white">
            <td align="justify" colspan="2" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2002</strong></font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                0.89</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                0.50</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.75</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.80</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="2" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37.50</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.20</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.34</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.85</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" colspan="2" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">95.99</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22.40</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.75</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.10</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="2" valign="top" width="41%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">95.00</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40.75</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.70</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.63</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" colspan="6" valign="top" width="78%">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="6" valign="top" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">First
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.00</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.20</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.60</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.85</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12.50</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12.40</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.40</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.25</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Third
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15.39</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.30</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.60</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.01</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fourth
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37.50</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14.00</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.34</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.10</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" colspan="6" valign="top" width="78%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="6" valign="top" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">First
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">39.99</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22.40</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.60</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.10</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40.00</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28.50</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.94</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.20</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Third
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">45.00</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33.50</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.06</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.76</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fourth
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">95.99</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40.00</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.75</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.36</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" colspan="6" valign="top" width="78%">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="6" valign="top" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">First
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">95.00</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">49.99</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.70</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.24</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Second
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">54.00</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40.75</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.80</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.63</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Third
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">56.60</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42.30</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.45</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.91</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fourth
                Quarter</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">49.00</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42.50</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.80</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.77</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" colspan="6" valign="top" width="78%">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="6" valign="top" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">First
                Quarter</font></div>
            </td>
            <td valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">80.00</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">43.28</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.48</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.96</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td colspan="6" valign="top" width="78%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" colspan="6" valign="top" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="3%">
              <div>&#160;</div>
            </td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December</font></div>
            </td>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48.8</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">43.60</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.80</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.94</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" colspan="6" valign="top" width="78%">&#160;</td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" colspan="6" valign="top" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">January</font></div>
            </td>
            <td valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">58.19</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">43.28</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.60</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.96</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">February</font></div>
            </td>
            <td valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">55.00</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50.00</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.50</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.75</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March</font></div>
            </td>
            <td valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">80.00</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">54.50</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.48</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.10</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April</font></div>
            </td>
            <td valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">84.00</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">75.50</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.83</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.30</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May</font></div>
            </td>
            <td valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33.47</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22.67</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9.49</font></div>
            </td>
            <td valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.85</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June</font></div>
            </td>
            <td align="justify" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29.00</font></div>
            </td>
            <td align="justify" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22.00</font></div>
            </td>
            <td align="justify" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.10</font></div>
            </td>
            <td align="justify" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.55</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="3%">&#160;</td>
            <td align="justify" valign="top" width="38%">&#160;</td>
            <td align="justify" valign="top" width="10%">&#160;</td>
            <td align="justify" valign="top" width="9%">&#160;</td>
            <td align="justify" valign="top" width="9%">&#160;</td>
            <td align="justify" valign="top" width="9%">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      February 20, 2003, the Company effected a 1 for 20 reverse stock split. On
      May
      30, 2006, the Company effected a 3 for 1 stock split. To maintain trading prices
      in the U.S., the ADS to share ratio was simultaneously adjusted from one ADS
      representing one share to one ADS representing three shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Markets</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      series B common stock is listed on the Mexican Stock Exchange and the ADSs
      are
      listed on the American Stock Exchange. On May 30, 2006, the Company effected
      a 3
      for 1 stock split. Before that stock split was completed, each ADS represented
      one share of series B common stock. The ADSs are evidenced by American
      depositary receipts (&#8220;ADRs&#8221;) issued by the Bank of New York (&#8220;Depositary&#8221;), as
      depositary under a Deposit Agreement, dated as of July 8, 1993, as amended,
      among Simec, the Depositary and the holders from time to time of
      ADRs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I10">Item
      10.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Additional
      Information</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Memorandum
      and Articles of Association</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      December 30, 2005, the new Mexican Securities Market Law (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Ley
      del Mercado de Valores</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)
      (the
&#8220;New LMV&#8221;) was published, becoming effective on June 28, 2006. The New LMV seeks
      to improve the corporate governance practices of listed companies and enhance
      minority shareholder rights. In addition, the New LMV imposes further duties
      and
      liabilities on the members of the Board of Directors as well as on the relevant
      officers such as a duty of loyalty and a duty of care. In response to the New
      LMV, we are required to adopt certain amendments to our by-laws within 180
      days
      of the effective date of the new law. We currently expect that the most
      significant of these amendments will to relate to: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">revising
                our corporate name to reflect that we have adopted a new corporate
                form
                called a Publicly Held Company (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Sociedad
                An&#243;nima Burs&#225;til</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">);
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">entrusting
                the management of the Company to the Board of Directors and the Chief
                Executive Officer (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Director
                General</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)
                of the Company;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">eliminating
                the role and responsibilities of the statutory examiner (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Comisario</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">),
                whose responsibilities will be assumed by the Board of Directors
                through
                the Audit and Corporate Practices Committee (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Comit&#233;
                de Practicas Societarias y de Auditoria</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)
                and by our external auditor; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">granting
                holders of series L shares the right to vote in any shareholders&#8217; meeting
                held to resolve any issue involving 20% or more of the Company&#8217;s
                consolidated assets; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">eliminating
                certain restrictions on transfer of shares; and
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">providing
                that shareholders representing not less than 5% of the outstanding
                shares
                may directly exercise action against the
                directors.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Set
      forth
      below is a brief summary of certain current significant provisions of Simec&#8217;s
      by-laws and Mexican law. This description does not give effect to the
      anticipated amendments discussed above. Furthermore, this description does
      not
      purport to be complete and is qualified by reference to Simec&#8217;s by-laws, which
      have been filed as an exhibit to this Annual Report. For a description of the
      provisions of Simec&#8217;s by-laws relating to the Board of Directors, audit
      committee and statutory auditors, see Item 6. &#8220;Directors, Senior Management and
      Employees&#8221;.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Organization,
      Register and Purpose</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      is
      a </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>sociedad
      an&#243;nima de capital variable</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      organized in Mexico under the Mexican Companies Law (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Ley
      General de Sociedades Mercantiles</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">),
      and is
      registered with the Public Registry of Commerce of Guadalajara,
      Jalisco.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      main purpose, as described in section 1 of its by-laws (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>estatutos
      sociales</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">),
      is to
      promote, organize and manage any type of commercial or non-profit corporations.
      Simec is domiciled in the city of Guadalajara, Jalisco and its principal
      administrative office is located at Calzada L&#225;zaro C&#225;rdenas 601, Guadalajara,
      Jalisco, Mexico 44440.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Share
      Capital</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      capital stock is divided into series B and series L common stock. Prior to
      June
      2002, the Company&#8217;s capital stock also included series&#160;A shares. On June 5,
      2002, all shares of series&#160;A common stock were converted to shares of
      series&#160;B common stock on a one-for-one basis.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Series
      L
      common stock may never represent more than 25% of Simec&#8217;s outstanding capital
      stock. At December 31, 2005, series B common stock represented 100% of Simec&#8217;s
      capital stock, and no series L common stock has been issued. At December 31,
      2005, the Company&#8217;s total share capital was Ps. 3,454 million, represented by a
      fixed portion of Ps. 1,074 million, and a variable portion of Ps. 2,380 million.
      On February 20, 2003, the Company effected a 1 for 20 reverse stock split.
      On
      May 30, 2006, the Company effected a 3 for 1 stock split.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      variable portion of the capital stock may never exceed ten times the amount
      represented by the fixed portion. The fixed portion of Simec&#8217;s capital stock may
      be increased or decreased by a resolution passed at a general extraordinary
      shareholders&#8217; meeting. The variable portion of the Company&#8217;s capital stock may
      be increased or decreased by a resolution passed at a general ordinary
      shareholders&#8217; meeting. Any increases or decreases in the Company&#8217;s capital stock
      must be recorded in the Company&#8217;s registry of capital variations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Voting
      Rights</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      series B common share entitles its holder to one vote at any meeting of Simec&#8217;s
      shareholders. Each series L common share entitles its holder to one vote at
      any
      meeting at which holders of series L common shares are entitled to vote. Holders
      of series L common shares are entitled to vote only to elect one member of
      Simec&#8217;s Board of Directors and the corresponding alternate director and on the
      following matters:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">transformation
                of Simec from one type of company to
                another;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">extension
                of Simec&#8217;s corporate existence;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                merger or corporate split in which Simec is not the surviving
                entity;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">dissolution
                or liquidation of Simec;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">cancellation
                of the registration of Simec&#8217;s shares with the National Registry of
                Securities and Intermediaries; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                action that would prejudice the rights of holders of series L common
                shares and not prejudice the other classes of shares similarly. A
                resolution on any such action requires the affirmative vote of both
                a
                majority of all outstanding series L common shares and a majority
                of the
                series B common shares voting
                together.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholders
      may vote by proxy duly appointed in writing. Under Mexican law, holders of
      shares of any series are also entitled to vote as a class on any action that
      would prejudice the rights of holders of shares of such series but not rights
      of
      holders of shares of other series, and a holder of shares of such series would
      be entitled to judicial relief against any such action taken without such a
      vote. The determination of whether an action requires a class vote on these
      grounds would initially be made by Simec&#8217;s Board of Directors or other party
      calling for shareholder action. A negative determination would be subject to
      judicial challenge by an affected shareholder, and the necessity for a class
      vote would ultimately be determined by a court. There are no other procedures
      for determining whether a proposed shareholder action requires a class vote,
      and
      Mexican law does not provide extensive guidance on the criteria to be applied
      in
      making such a determination.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      holders of common stock of any series have equal pecuniary rights and
      obligations, including appraisal rights. See &#8220;&#8212;Other Provisions.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Shareholders&#8217;
      Meetings</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
      shareholders&#8217; meetings can be ordinary or extraordinary. Shareholders&#8217; meetings
      may be called by:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
                Board of Directors or the statutory
                auditors;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shareholders
                representing at least 10% of the then outstanding shares of Simec&#8217;s
                capital stock by requesting the Company&#8217;s Board of Directors or the
                statutory auditors to call a
                meeting;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                shareholder if no meeting has been held for two consecutive years
                or when
                the matters referred to in Article 181 of the Mexican corporation
                law have
                not been dealt with; or</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                Mexican court in the event that Simec&#8217;s Board of Directors or the
                statutory auditors do not comply with the valid request of the
                shareholders indicated above.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notice
      of
      shareholders&#8217; meetings must be published in the official gazette for the state
      of Jalisco, Mexico or any major newspaper located in the City of Guadalajara,
      Jalisco, Mexico. The notice must be published at least 15 days prior to the
      date
      of any shareholders&#8217; meeting, unless the meeting is qualified as urgent by
      Simec&#8217;s Board of Directors, in which case the notice may be published at least
      five days in advance. Meetings called to approve the Company&#8217;s annual report or
      financial statements may not be qualified as urgent. Publication of a notice
      is
      not required if shareholders representing 100% of Simec&#8217;s capital stock attend a
      meeting.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
      annual
      general ordinary shareholders&#8217; meeting must be held during the first four months
      after the end of each of Simec&#8217;s fiscal years to consider:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                annual report of Simec&#8217;s Board of Directors, including the Company&#8217;s
                financial statements for the preceding fiscal
                year;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                annual report of the audit
                committee.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                annual report of the statutory
                examiners.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                election of Simec&#8217;s Directors, members of the audit committee and
                statutory examiners and set their compensation;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">determine
                the allocation of Simec&#8217;s profits, if any, of the preceding year,
                including the payment of dividends.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, general ordinary shareholders&#8217; meetings must approve the following
      matters:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                sale of shares of one of Simec&#8217;s subsidiaries, if the sale value exceeds,
                in the aggregate, 20% of the Company&#8217;s stockholders&#8217; equity as set forth
                in its most recent balance sheet;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                purchase of shares of a company, if the purchase value exceeds, in
                the
                aggregate, 20% of Simec&#8217;s stockholders equity as set forth in its most
                recent balance sheet; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                exercise of withdrawal rights regarding stock of a subsidiary, if
                the
                exercise value, in the aggregate, exceeds 20% of Simec&#8217;s stockholders&#8217;
                equity as set forth in its most recent balance
                sheet.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      the
      annual general shareholders&#8217; meeting, any shareholder or group of shareholders
      representing 10% or more of Simec&#8217;s outstanding voting stock has the right to
      appoint one regular and one alternate director in addition to the directors
      elected by the majority. The alternate director appointed by the minority
      holders may only substitute for the director appointed by that
      minority.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Extraordinary
      shareholders&#8217; meetings may be called at any time to deal with any of the matters
      specified by Article 182 of the Mexican corporation law, which include, among
      other things:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">extending
                Simec&#8217;s corporate existence;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
                early dissolution;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">increasing
                or reducing Simec&#8217;s fixed capital
                stock;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">changing
                Simec&#8217;s corporate purpose;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">changing
                Simec&#8217;s country of incorporation;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">changing
                Simec&#8217;s capital structure;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                proposed merger;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">issuing
                preferred shares;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                redemption by the Company of its own shares and the issuance of preferred
                shares;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                other amendment to Simec&#8217;s articles of association (including amendments
                to the rights of Simec&#8217;s shareholders);
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                other matter for which a special quorum is required by law or by
                Simec&#8217;s
                articles of association.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      order
      to vote at a meeting of shareholders, shareholders must deposit prior to that
      meeting the certificates representing their shares with the secretary of Simec&#8217;s
      Board of Directors, a Mexican credit institution or S.D.&#160;Indeval, S.A. de
      C.V. (&#8220;Indeval&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      quorum for an ordinary general meeting of shareholders is 50%, and action may
      be
      taken by a majority of the series B shares present. If a quorum is not
      available, a second meeting may be called at which action may be taken by a
      majority of series B shares present, regardless of the number of such shares.
      Special meetings of holders of series L shares are governed by the same rules
      applicable to extraordinary general meetings of holders of series B shares.
      The
      quorum for an extraordinary general meeting at which holders of series L shares
      may not vote is 75% of the series B shares, and the quorum for an extraordinary
      general meeting at which holders of L shares are entitled to vote is 75% of
      the
      outstanding capital stock. If a quorum is not available in either case, a second
      meeting may be called and action may be taken, provided a majority of the shares
      entitled to vote is present. Whether on first or second call, actions at an
      extraordinary general meeting may generally be taken by a majority vote of
      the
      series B shares outstanding and, on matters which holders of series L shares
      are
      entitled to vote, a majority vote of all the capital stock. Certain actions
      at
      an extraordinary general meeting require the vote of at least 75% of the series
      B shares and, on matters which holders of series L shares are entitled to vote,
      a majority of the series L shares. These matters include amendments to certain
      by-law provisions relating to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">quorum
                and voting requirements for extraordinary general meetings of
                shareholders;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">calling
                requirements for general meetings of
                shareholders;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                composition of the Simec&#8217;s Board of
                Directors;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                transformation of Simec from one type of company to
                another;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                merger or corporate split in which Simec is not the surviving
                entity;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                capital structure of the Company, excluding capital increases and
                decreases in the variable portion of the Company&#8217;s capital
                stock;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                rights of series L shares; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                cancellation of the registration of Simec&#8217;s shares with the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Registro
                Nacional de Valores e Intermediarios</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      Mexican law, holders of at least 33% of Simec&#8217;s outstanding capital stock
      entitled to vote on a particular matter may seek to have any shareholder action
      with respect to that matter suspended, by filing a complaint with a court of
      law
      within 15 days after the close of the meeting at which that action was taken
      and
      showing that the challenged action violates Mexican law or Simec&#8217;s articles of
      association. Relief under these provisions is only available to holders who
      were
      entitled to vote on, or whose rights as shareholders were adversely affected
      by,
      the challenged shareholder action and whose shares were not represented when
      the
      action was taken or, if represented, voted against it.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      Mexican law, an action for civil liabilities against directors may be initiated
      by a resolution of the general ordinary shareholders&#8217; meeting. In the event
      shareholders decide to bring an action of this type, the persons against whom
      that action is brought will immediately cease to be directors. Additionally,
      series B shareholders representing not less than 15% of the outstanding shares
      may directly exercise action against the directors; provided that:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">those
                shareholders shall not have voted against exercising such action
                at the
                relevant shareholders&#8217; meeting; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                claim covers all of the damage alleged to have been caused to Simec
                and
                not merely the damage suffered by the
                plaintiffs.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
      recovery of damage with respect to these actions will be for the benefit of
      Simec and not that of the shareholders bringing the action.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Preemptive
      Rights</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      event of an increase in the capital stock of the Company, its shareholders
      will
      have preemptive rights to subscribe a sufficient number of new shares to
      maintain the shareholder&#8217;s existing proportionate holdings, except in the case
      of shares issued (i) in connection with mergers, (ii) for the conversion of
      convertible debentures or (iii) for the resale of shares maintained in the
      Company&#8217;s treasury as a result of repurchase of shares conducted on the Mexican
      Stock Exchange. In accordance with the Mexican Securities Market Law,
      shareholders who do not attend the general extraordinary shareholders meeting
      at
      which a resolution is passed waiving preemptive rights in connection with the
      issuance of new shares for placement in a public offering are bound by such
      waiver.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      Mexican Law, preemptive rights must be exercised within 15 days following the
      publication of notice of the capital increase in the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Peri&#243;dico
      Oficial del Estado de Jalisco</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
&#8220;Official Gazette&#8221;). Preemptive rights cannot be waived in advance and cannot be
      traded separately from the corresponding shares that give rise to such right.
      Holders of ADSs may exercise preemptive rights in limited circumstances. See
      Item 12 &#8220;Description of Securities Other than Equity Securities&#8212;Description of
      American Depositary Receipts&#8212;Dividends, Other Distributions and Rights.&#8221; If a
      holder of series B common stock or ADSs were unable or unwilling to exercise
      its
      preemptive rights in connection with such a capital increase, such holder&#8217;s
      proportionate share of dividends and other distributions and voting rights
      would
      decline. In addition, depending on the series of common stock increased and
      the
      pattern in which preemptive rights were exercised, such a capital increase
      might
      increase or reduce the portion of the Company&#8217;s capital stock represented by
      series B common stock and ADSs or increase or reduce the proportionate voting
      rights of such holder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Redemption</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
      holder of shares is entitled to have those shares redeemed at that holder&#8217;s
      option, but solely to the extent that redemption does not reduce Simec&#8217;s
      aggregate capital below the amount of the minimum fixed capital, for a price
      equal to the lower of:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">95%
                of the average market value of those shares on the Mexican Stock
                Exchange
                obtained for a period of 30 trading days preceding the date on which
                the
                exercise of the redemption option is effective;
                or</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                book value of those shares at the end of the fiscal year that includes
                the
                date that shareholder exercises its option to have its shares redeemed
                as
                set forth in Simec&#8217;s annual financial statements approved at the ordinary
                meeting of the shareholders.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      a
      shareholder exercises its redemption option during the first three quarters
      of a
      fiscal year, that exercise is effective at the end of that fiscal year, but
      if a
      shareholder exercises its redemption option during the fourth quarter, that
      exercise is effective at the end of the next succeeding fiscal year. The
      redemption price is payable as of the day following the annual ordinary meeting
      of shareholders at which the relevant annual financial statements were approved.
      In the event Simec receives redemption notices simultaneously which, in the
      aggregate, would reduce Simec&#8217;s capital to below the amount of the minimum fixed
      capital, then those redemptions will be effected on a pro rata
      basis.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Purchase
      of Common Stock by the Company</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">According
      to the by-laws, Simec may repurchase its shares on the Mexican Stock Exchange
      at
      any time at the then prevailing market price. Any such repurchase must be
      approved by the Board of Directors, and the amount of shares to be repurchased
      must be approved by the general ordinary shareholders meeting. In the event
      of
      any such repurchase, Simec&#8217;s capital stock will be reduced automatically in an
      amount equal to the assumed par value of each repurchased share (determined
      by
      dividing the Company&#8217;s outstanding capital stock by the number of shares
      outstanding immediately prior to such repurchase). If the purchase price of
      such
      shares exceeds the assumed par value, the difference will be charged against
      amounts allocated from net earnings to a special reserve created for the
      repurchase of shares. Repurchased shares will be held as treasury stock, pending
      future sales of such shares on the Mexican Stock Exchange or cancellation.
      Simec&#8217;s capital stock is automatically increased upon the resale of such shares
      in an amount equal to their assumed par value; any excess amount is allocated
      to
      the special reserve referred to above. The economic and voting rights
      corresponding to repurchased shares may not be exercised during the period
      in
      which Simec owns such shares, and such shares are not deemed to be outstanding
      for purposes of calculating any quorum or vote at any shareholders&#8217; meeting
      during such period.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unless
      the repurchase is conducted through a tender offer, Directors, executive
      officers, Statutory Examiners and the Secretary of the Board of Directors,
      and
      holders of 10% or more of the outstanding common stock may not sell common
      stock
      to, or purchase repurchased common stock from the Company. Regulations under
      the
      Mexican Securities Market Law require that, if the Company decides to repurchase
      common stock representing 3% or more of its share capital, such repurchase
      must
      be conducted by means of a public tender offer.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Companies
      or other entities controlled by Simec may not purchase shares of Simec&#8217;s capital
      stock or of the capital stock of companies or entities which are Simec&#8217;s
      shareholders.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Registration
      and Transfer</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec&#8217;s
      common stock is evidenced by share certificates in registered form with
      registered dividend coupons attached. Simec&#8217;s shareholders may hold their shares
      in the form of physical certificates or through institutions that have
      certificates deposited with Indeval. Accounts may be maintained at Indeval
      by
      brokers, banks and other entities approved by the Mexican securities authority.
      The Company maintains a stock registry, and, in accordance with Mexican law,
      only those holders listed in the stock registry and those holding certificates
      issued by Indeval indicating ownership are recognized as Simec shareholders.
      ADR
      holders, as such, will not be holders of record of the series B common stock.
      For a discussion of the availability of registered shares to ADR holders, see
      Item 12 &#8220;Description of Securities Other than Equity Securities&#8212;Description of
      American Depositary Receipts&#8212;Deposits and Withdrawals of Shares of Series B
      Common Stock.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Dividends</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      the
      annual general ordinary shareholders&#8217; meeting, the Board of Directors submits
      Simec&#8217;s financial statements for the previous fiscal year, together with a
      report on them by the Company&#8217;s Board of Directors, to the holders of series B
      common stock for approval. Under Simec&#8217;s by-laws and Mexican law, Simec&#8217;s annual
      net income, based upon the Company&#8217;s audited financial statements prepared in
      accordance with Mexican GAAP, is applied by Simec&#8217;s shareholders as follows: (i)
      five percent of the Company&#8217;s net earnings must be allocated to a legal reserve
      fund, until such fund reaches an amount equal to a least 20% of Simec&#8217;s then
      current capital stock (which level, as of December 31, 2005, was approximately
      Ps.&#160;3,454 million), (ii) thereafter, a certain percentage of net earnings
      may be allocated to any general or specific reserve fund, and (iii) the
      remainder of any net earnings is allocated as determined by the majority of
      Simec&#8217;s shareholders and may be distributed as dividends. All shares of common
      stock that are fully paid and outstanding at the time a dividend or other
      distribution is declared are entitled to share equally in that dividend or
      other
      distribution. Cash dividends on common stock held through Indeval will be
      distributed by the Company through Indeval. Any cash dividends on common stock
      evidenced by physical certificates will be paid by surrendering to us the
      relevant dividend coupon registered in the name of its holder.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
      the
      extent that the Company declares and pays dividends on its common stock, owners
      of ADSs at the time a dividend or other distribution is declared will be
      entitled to receive any dividends payable in respect of the series B common
      stock underlying their ADSs, subject to the terms of the Deposit Agreement.
      Cash
      dividends will be paid to the Depositary in pesos, and, except as otherwise
      described under Item 12 &#8220;Description of Securities Other than Equity
      Securities&#8212;Description of ADSs&#8212;Dividends, Other Distribution and Rights,&#8221; will
      be converted by the Depositary into dollars and paid to the owners net of
      currency expenses and applicable fees.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      shareholder&#8217;s entitlement to uncollected dividends lapses within five years
      following the stated payment date, in favor of the Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Liquidation</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      event the Company is liquidated, the surplus assets remaining after payment
      of
      all Simec&#8217;s creditors will be divided among the Company&#8217;s shareholders in
      proportion to the respective shares held by them. Shares that are only partially
      paid will participate in the distribution in the proportion that they were
      paid.
      The general extraordinary shareholders&#8217; meeting at which the liquidation
      resolution is made, will appoint one or more liquidators to wind up the
      Company&#8217;s affairs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Foreign
      Investment</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ownership
      by non-Mexicans of shares of Mexican enterprises in certain economic sectors
      is
      regulated by the 1993 Foreign Investment Law and the 1998 Regulations
      thereunder. The Ministry of the Economy and the National Commission on Foreign
      Investment are responsible for the administration of the Foreign Investment
      Law
      and Regulations.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Foreign Investment Law and Regulations, foreign investors may acquire
      up
      to 100% of the capital stock of Mexican companies or entities in the steel
      industry. In accordance with Simec&#8217;s by-laws, shares of all series of the
      Company&#8217;s common stock can be acquired and held by Mexican and non-Mexican
      nationals. Simec has registered any foreign owner of its shares, and the
      depositary with respect to the ADSs representing Simec&#8217;s shares, with the
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Registro
      Nacional de Inversi&#243;n Extranjera</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
      National Registry of Foreign Investment).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Directors&#8217;
      and Shareholders&#8217; Conflict of Interest</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      Mexican law, any shareholder that has a conflict of interest with respect to
      any
      transaction must abstain from voting on that transaction at the relevant
      shareholders&#8217; meeting. A shareholder who votes on a transaction in which its
      interest conflicts with the Company&#8217;s interests may be liable for damages in the
      event the relevant transaction would not have been approved without that
      shareholder&#8217;s vote.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      Mexican law, any director who has a conflict of interest with Simec in any
      transaction must disclose that fact to the other directors and abstain from
      voting. Any director who violates those provisions will be liable for damages.
      Additionally, Simec&#8217;s directors and statutory auditors may not represent
      shareholders in the shareholders&#8217; meetings.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Other
      Provisions</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Appraisal
      Rights.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Whenever
      the shareholders approve a change of corporate purposes, change of nationality
      of the corporation or transformation from one form of corporate organization
      to
      another, the Mexican corporation law provides that any shareholder entitled
      to
      vote on that change that has voted against it may withdraw from the Company
      and
      receive the book value (as set forth in the latest balance sheet approved at
      a
      general ordinary shareholders&#8217; meeting) attributable to its shares, provided
      that it exercises that right within 15 days following the adjournment of the
      meeting at which the change was approved.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Forfeiture
      of Shares.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      As
      required by Mexican law, Simec&#8217;s by-laws provide that &#8220;any alien who at the time
      of incorporation or at any time thereafter acquires an interest or participation
      in the capital of the corporation shall be considered, by virtue thereof, as
      Mexican in respect thereof and shall be deemed to have agreed not to invoke
      the
      protection of his own government, under penalty, in case of breach of such
      agreement, of forfeiture to the nation of such interest or participation.&#8221; Under
      this provision a non-Mexican shareholder is deemed to have agreed not to invoke
      the protection of his own government by asking such government to interpose
      a
      diplomatic claim against the Mexican government with respect to the
      shareholder&#8217;s rights as a shareholder, but is not deemed to have waived any
      other rights it may have, including any rights under the U.S. securities laws,
      with respect to its investment in Simec. If the shareholder invokes such
      governmental protection in violation of this agreement, its shares could be
      forfeited to the Mexican government. Mexican law requires that such a provision
      be included in the by-laws of all Mexican corporations unless such by-laws
      prohibit ownership of shares by non-Mexican persons or entities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Duration.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Simec&#8217;s
      existence under the by-laws is 99 years from the date of registration with
      the
      Public Registry of Commerce, extending through 2089.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Tender
      Offer in the Event of Delisting.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Simec&#8217;s
      by-laws provide that in the event the Company decides to cancel the registration
      of the series B common stock with the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Registro
      Nacional de Valores e Intermediarios</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">RNVI</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      or if
      the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Comisi&#243;n
      Nacional Bancaria y de Valores</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;CNBV</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      requires such cancellation, the controlling shareholders must make a tender
      offer to purchase the series B common stock at the higher of (i) the average
      of
      the price at which transactions have been conducted in the series B common
      stock
      on the Mexican Stock Exchange during the 30 days prior to the date on which
      the
      tender offer is made or (ii) the book value of the series B common stock
      determined pursuant to the latest quarterly financial information of the Company
      filed with the CNBV and the Mexican Stock Exchange. However, a different basis
      may be used to determine the purchase price, if approved by shareholders
      representing at least 95% of the Company&#8217;s capital stock, with the prior consent
      of the CNBV.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      controlling shareholders will not be obligated to make the tender offer in
      the
      event that all the shareholders consent to the cancellation of the registration
      of the series B common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exchange
      Controls</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ownership
      by non-Mexicans of shares of Mexican companies is regulated by the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Ley
      de Inversi&#243;n Extranjera</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
&#8220;Foreign Investment Law&#8221;) and the regulations set forth in the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Reglamento
      de la Ley para Promover la Inversi&#243;n Mexicana y Regular la Inversi&#243;n
      Extranjera</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
&#8220;Foreign Investment Regulations&#8221;). The </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Secretar&#237;a
      de Econom&#237;a</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
&#8220;Ministry of the Economy&#8221;) and the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Comisi&#243;n
      Nacional de Inversi&#243;n Extranjera</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (the
&#8220;National Foreign Investment Commission&#8221;) are responsible for the administration
      of the Foreign Investment Law and the Foreign Investment Regulations. In
      accordance with recent changes to the Foreign Investment Regulations, up to
      100%
      of the capital stock of Mexican companies in the steel industry may be acquired
      and held by non-Mexicans.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      required by Mexican law, the corporate charter of the Company provides that
      &#8220;current or future foreign shareholders formally bind themselves with the
      Ministry of Foreign Relations to consider themselves as Mexican with respect
      to
      the shares of the Company which they acquire or hold, as well as to the
      property, rights, concessions, participations or interests which the Company
      may
      hold, or to the rights and obligations which derive from the contracts to which
      the Company is a party with Mexican authorities and not to invoke therefore
      the
      protection of their governments under penalty of forfeiting the corporate
      participation that they have acquired to the benefit of the Nation if they
      invoke such protection.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      series B common stock and the ADRs do not have any limitation on the right
      of
      non-Mexicans to own or vote such securities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Taxation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Mexican
      Tax Considerations</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      January 1, 2005, dividends, either in cash or in any other form, paid with
      respect to the series B common stock represented by ADSs to holders will not
      be
      subject to Mexican withholding tax. Simec is required to pay a 30% tax on 1.4285
      times the amount of any dividend if the dividend is not paid from earnings
      that
      have been already subject to income tax.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      sale
      or other disposition of ADSs by holders who are not residents of Mexico (as
      defined below) will not be subject to Mexican tax. Deposits of series B common
      stock in exchange for ADSs will not give rise to Mexican tax or transfer
      duties.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      sale
      or other disposition of shares of series B common stock by nonresidents of
      Mexico will not be subject to any Mexican tax if the sale is carried out by
      an
      individual through the Mexican Stock Exchange. Sales or other dispositions
      of
      shares of series B common stock made in other circumstances would be subject
      to
      Mexican income tax. Under the Tax Treaty (as defined below), gains attributable
      to permanent establishment that a United States enterprise (as defined in the
      Tax Treaty) has or had in Mexico, or which are attributable to a fixed base
      which is or was available to a United States resident (as defined in the Tax
      Treaty) in Mexico for the purpose of performing independent personal services
      are taxable in Mexico. Also under the Tax Treaty gains derived by a United
      States resident (as defined in the Tax Treaty) may be taxed in Mexico if such
      resident during the 12-month period preceding the sale or disposition giving
      rise to the gain had a participation, directly or indirectly, of at least 25%
      of
      the Company&#8217;s capital. The Tax Treaty further provides that such gains shall be
      deemed to be Mexican sourced to the extent necessary to avoid double
      taxation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      purposes of Mexican taxation, a natural person is a resident of Mexico if he
      or
      she has established his or her home in Mexico, unless he or she has resided
      in
      another country for more than 183 calendar days during a year and can
      demonstrate that he or she had become a resident of that country for tax
      purposes and a legal entity is a resident of Mexico if its principal
      administrative office is located in Mexico. A Mexican citizen or a legal entity
      with its corporate domicile in Mexico and established under Mexican law is
      presumed to be a resident of Mexico, unless the citizen or entity can
      demonstrate otherwise. If a legal entity has a permanent establishment or fixed
      base in Mexico, its permanent establishment or fixed base is required to pay
      taxes in Mexico with respect to income attributable to such permanent
      establishment or fixed base in accordance with relevant tax
      provisions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Tax
      Treaties and Information Exchange</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      United States and Mexico are parties to an income tax treaty to avoid double
      taxation and a protocol thereto (the &#8220;Tax Treaty&#8221;) which became effective on
      January 1, 1994. In general, the Tax Treaty does not adversely affect the tax
      treatment of U.S. holders of ADSs or series B common stock. The United States
      and Mexico have also entered into an agreement that covers the exchange of
      information with respect to tax matters. Mexico has also executed treaties
      to
      avoid double taxation with other countries, some of which are in force. The
      foregoing summary does not take into account the effects of any such
      treaties.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Other
      Mexican Taxes</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
      than income tax, there are no other inheritance taxes applicable to the
      ownership, transfer or disposition of ADSs or shares of series B common stock.
      There are no Mexican stamp, issuer, registration or similar taxes or duties
      payable by holders of ADSs or the shares of series B common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reimbursement
      of capital pursuant to a redemption of shares will not be subject to tax if
      the
      corresponding amount is not more than the adjusted contributed capital
      corresponding to the redeemed shares. Any excess of that amount will be
      considered as a dividend for tax purposes and will be taxed as described
      above.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>United
      States Tax Considerations</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following is a description of the material U.S. federal income tax consequences
      of an investment in the ADSs or series B common shares. This discussion is
      based
      upon the U.S. Internal Revenue Code of 1986, as amended, or the Code, U.S.
      Treasury regulations, judicial decisions and published positions of the U.S.
      Internal Revenue Service, all as in effect on the date hereof and all of which
      may be changed, possibly with a retroactive effect. The discussion is not a
      full
      description of all tax considerations that may be relevant to a holder of ADSs
      or series B common shares. Except as otherwise specifically discussed herein,
      this discussion is directed only to U.S. holders that will hold ADSs or series
      B
      common shares as capital assets and that have the U.S. dollar as their
      functional currency, and it does not consider the tax treatment of U.S. holders
      that are subject to special tax rules, such as banks, securities dealers,
      insurance companies, tax-exempt entities, persons that hold ADSs or series
      B
      common shares as a hedge or as part of a straddle, conversion transaction or
      other risk reduction transaction for tax purposes and holders of 10% or more
      of
      the voting shares of the Company. Furthermore, the discussion below is based
      upon the provisions of the Code and regulations, rulings and judicial decisions
      thereunder as of the date hereof, and such authorities may be repealed, revoked
      or modified, possibly with retroactive effects, so as to result in U.S. federal
      income tax consequences different from those discussed below. If a partnership
      holds ADSs or series B common shares, the tax treatment of a partner generally
      will depend upon the status of the partner and the activities of the
      partnership. Partners in a partnership holding ADSs or series B common shares
      should consult their tax advisors about the federal, state, local and foreign
      tax consequences to them of the purchase, ownership and disposition of ADSs
      or
      series B common shares. This summary does not discuss any state, local or
      foreign tax consequences to the purchase and ownership of the ADSs or series
      B
      common shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      used
      herein, &#8220;U.S. holder&#8221; means a beneficial owner of ADSs or shares of common stock
      that is:</font></div>
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    <div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                United States citizen or resident;</font></div>
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    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

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            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                United States corporation or
                partnership;</font></div>
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      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
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            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                trust (x) if a court within the United States is able to exercise
                primary
                supervision over the administration of the trust and one or more
                U.S.
                fiduciaries have authority to control all substantial decisions of
                the
                trust or (y) that has an election in effect under applicable U.S.
                Treasury
                regulations to be treated as a U.S. person;
                or</font></div>
            </td>
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      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">an
                estate, the income of which is subject to United States federal income
                taxation regardless of our source.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      the
      obligations contemplated by the Deposit Agreement are performed in accordance
      with our terms, U.S. holders of ADSs, or ADRs evidencing ADSs, generally will
      be
      treated for United States federal income tax purposes as the owners of the
      series B common shares represented by those ADSs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Cash
      Dividends and Other Distributions</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subject
      to the passive foreign investment company rules discussed below, the gross
      amount of any dividends paid with respect to the series B common shares
      represented by ADSs or the series B common shares generally will be included
      in
      the gross income of a U.S. holder as ordinary income on the day on which the
      dividends are received by the U.S. holder, in the case of the series B common
      shares, or by the Depositary, in the case of the series B common shares
      represented by ADSs, and will not be eligible for the dividends received
      deduction allowed to corporations under the Code. To the extent that a
      distribution exceeds our current and accumulated earnings and profits, it will
      be treated first as a return of capital to the extent of a U.S.
      holder</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8217;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">s
      adjusted federal income tax basis in our ADSs or series B common shares, and
      thereafter as gain from the sale of a capital asset. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dividends
      paid in Mexican pesos will be includible in the income of a U.S. holder in
      a
      U.S. dollar amount calculated, in general, by reference to the exchange rate
      in
      effect on the date that they are received by the U.S. holder, in the case of
      the
      series B common shares, or by the Depositary, in the case of the series B common
      shares represented by the ADSs (regardless of whether such Mexican pesos are
      in
      fact converted into U.S. dollars on such date). If such dividends are converted
      into U.S. dollars on the date of receipt, a U.S. holder generally should not
      be
      required to recognize foreign currency gain or loss in respect of the dividends.
      U.S. holders should consult their tax advisors regarding the treatment of the
      foreign currency gain or loss, if any, on any Mexican pesos received that are
      converted into U.S. dollars on a date subsequent to the date of receipt.
      Dividends generally will constitute foreign source &#8220;passive income&#8221; for U.S.
      foreign tax credit purposes. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subject
      to certain exceptions for short-term and hedged positions and the passive
      foreign investment company rules discussed below, the U.S. dollar amount of
      dividends received by an individual U.S. holder in respect of series B common
      shares or ADSs before January 1, 2011 is subject to taxation at a maximum rate
      of 15% if the dividends constitute &#8220;qualified dividend income.&#8221; Dividends paid
      on ADSs will be treated as qualified dividend income if, among other
      requirements, (1) the shares of the issuer are readily tradable on an
      established securities market in the U.S. or (2) the foreign corporation is
      eligible for the benefits of a comprehensive income tax treaty with the U.S.
      that the IRS has approved for the purposes of the qualified dividend income
      rules and that contains an exchange of information program. ARDs backed by
      the
      series B common shares are readily tradable on the American Stock Exchange.
      In
      addition, the income tax treaty between Mexico and the United States has been
      approved for the purposes of the qualified dividend income rules. Accordingly,
      we believe that dividends paid by us with respect to our series B common shares
      or ADSs should constitute &#8220;qualified dividend income&#8221; for U.S. federal income
      tax purposes, provided that the holding period requirements are satisfied and
      none of the other special exceptions apply.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Distributions
      of additional series B common shares to U.S. holders with respect to the ADSs
      held by such holders that are made as part of a pro rata distribution to all
      shareholders of the Company generally will not be subject to United States
      federal income tax. The basis of the shares received generally will be
      determined by allocating the U.S. holder</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8217;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">s
      adjusted basis in the ADSs between the ADSs and the new shares received, based
      on their relative fair market values.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      holder
      of series B common shares or ADSs that is, with respect to the United States,
      a
      non-U.S. holder generally will not be subject to U.S. federal income or
      withholding tax on dividends received on series B common shares or ADSs unless
      such income is effectively connected with the conduct by the non-U.S. holder
      of
      a trade or business in the United States. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Capital
      Gains</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subject
      to the passive foreign investment company rules discussed below, a gain or
      loss
      realized by a U.S. holder on the sale or other disposition of ADSs or series
      B
      common shares will be subject to U.S. federal income taxation as capital gain
      or
      loss in an amount equal to the difference between the amount realized on the
      disposition and such U.S. holder&#8217;s tax basis in the ADSs or the series B common
      shares. Any such gain or loss will be a long-term capital gain or loss if the
      ADSs or series B common shares were held for more than one year on the date
      of
      such sale. Long-term capital gain recognized by a U.S. holder that is an
      individual generally is subject to lower rates of federal income taxation than
      ordinary income or short-term capital gain. The deduction of capital loss is
      subject to limitations for U.S. federal income tax purposes. Deposits and
      withdrawals of series B common shares by U.S. holders in exchange for ADSs
      will
      not result in the realization of gain or loss for U.S. federal income tax
      purposes. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gain,
      if
      any, realized by a U.S. holder on the sale or other disposition of series B
      common shares or ADSs will be treated as U.S. source income for U.S. foreign
      tax
      credit purposes. Consequently, if a Mexican withholding tax is imposed on the
      sale or disposition of series B common shares, a U.S. holder that does not
      receive significant foreign source income from other sources may not be able
      to
      derive effective U.S. foreign tax credit benefits in respect of these Mexican
      taxes. U.S. holders should consult their own tax advisors regarding the
      application of the foreign tax credit rules to their investment in, and
      disposition of, series B common shares. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      non-U.S. holder of series B common shares or ADSs will not be subject to U.S.
      federal income or withholding tax on any gain realized on the sale of series
      B
      common shares or ADSs, unless (1) such gain is effectively connected with the
      conduct by the non-U.S. holder of a trade or business in the United States,
      or
      (2) in the case of gain realized by an individual non-U.S. holder, the non-U.S.
      holder is present in the United States for 183 days or more in the taxable
      year
      of the sale and certain other conditions are met. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Passive
      Foreign Investment Company Rules</em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company believes that the series B common shares represented by ADSs or the
      series B common shares should not be treated as stock of a passive foreign
      investment company for United States federal income tax purposes, but this
      conclusion is a factual determination made annually and thus may be subject to
      change. In general, the Company will be a passive foreign investment company
      with respect to a U.S. holder if, for any taxable year in which the U.S. holder
      held the series B common shares or ADSs, either (i) at least 75% of the gross
      income of the Company for the taxable year is passive income or (ii) at least
      50% of the value, determined on the basis of a quarterly average, of the
      Company&#8217;s assets, including cash, is attributable to assets that produce or are
      held for the production of passive income. If the Company were treated as a
      passive foreign investment company, dividend distributions with respect to
      the
      series B common shares represented by ADSs or the series B common shares would
      not constitute qualified dividend income subject to the special maximum U.S.
      federal income tax rate of 15% discussed above and unless a U.S. holder makes
      certain elections that may be available to the U.S. holder, including a
      mark-to-market election or a qualified electing fund election, excess
      distributions by us to a U.S. holder would be taxed in a special
      way.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Excess
      distributions are amounts received by a U.S. holder concerning our series B
      common shares in any taxable year that exceed 125% of the average distributions
      received by the U.S. holder from us in the shorter of either the three previous
      years or the U.S. holder&#8217;s holding period for series B common shares before the
      current taxable year. Excess distributions must be allocated ratably to each
      day
      that a U.S. holder has held our series B common shares. A U.S. holder must
      include amounts allocated to the current taxable year and to pre-passive foreign
      investment company years in its gross income as ordinary income for the current
      taxable year. A U.S. holder must pay tax on amounts allocated to each prior
      taxable year for which we were a passive foreign investment company at the
      highest rate in effect for that year on ordinary income and the tax is subject
      to an interest charge at the rate applicable to deficiencies for income tax.
      In
      addition, the entire amount of gain that is recognized by a United States holder
      upon the sale or other disposition of series B common shares will also be
      considered an excess distribution and will be subject to tax as described
      above.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      States holders are urged to consult their tax advisors about the passive foreign
      investment company rules, including the specific rules and requirements
      applicable to making qualified electing fund and other elections.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>United
      States Information Reporting and Backup Withholding</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dividend
      payments with respect to our series B common shares or ADSs and proceeds from
      the sale, exchange, redemption, or other disposition of our series B common
      shares or ADSs may be subject to information reporting to the IRS and possible
      U.S. backup withholding. Certain exempt recipients (such as corporations) are
      not subject to these information reporting requirements. Backup withholding
      will
      also not apply to a holder who furnishes a correct taxpayer identification
      number or certificate of foreign status and makes any other required
      certification. U.S. persons who are required to establish their exempt status
      generally must provide IRS Form W-9 (Request for Taxpayer Identification Number
      and Certification). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Backup
      withholding is not an additional tax. Amounts withheld as backup withholding
      may
      be credited against a holder&#8217;s U.S. federal income tax liability, and a holder
      may obtain a refund of any excess amounts withheld by filing the appropriate
      claim for refund with the IRS and furnishing any required information.
</font></div>
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      on Display</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
      contained in this Annual Report regarding the contents of any contract or other
      document are not necessarily complete, and, where the contract or other document
      is an exhibit to the Annual Report, each of these statements is qualified in
      all
      respects by the provisions of the actual contract or other
      documents.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      is
      subject to the information requirements of the Securities Exchange Act of 1934
      applicable to a foreign private issuers, and accordingly Simec files or
      furnishes reports, information statements and other information with the U.S.
      Securities and Exchange Commission. These reports and other information filed
      by
      Simec can be inspected at, and subject to the payment of any required fees,
      copies may be obtained from, the public reference section of the U.S. Securities
      and Exchange Commission, 100 F. Street, N.E., Washington, D.C. 20549. These
      reports and other information may also be inspected and copied at the offices
      of
      the American Stock Exchange, 86 Trinity Place, New York, New York 10006. As
      a
      foreign private issuer, however, Simec is exempt from the proxy requirements
      of
      Section 14 of the Exchange Act and from the short-swing profit recovery rules
      of
      Section 16 of the Exchange Act.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I11">Item
      11.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Quantitative
      and Qualitative Disclosures About Market Risk</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company is exposed to market risk, which is the potential risk of loss in fair
      values, cash flows or earnings due to changes in interest rates and foreign
      currency rates (primarily the peso/dollar exchange rate), as a result of its
      holdings of financial instrument positions. The Company&#8217;s financial instruments
      include cash and cash equivalents, trade and other accounts receivable, accounts
      payable, long-term debt securities and related party debt. The Company does
      not
      maintain a trading portfolio. The Company&#8217;s borrowings are entirely denominated
      in dollars. The Company does not utilize derivative financial instruments to
      manage its market risks with respect to its financial instruments. Historically,
      based on the last ten years of data, inflation in Mexico has been
      327%</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">higher
      than the Mexican peso&#8217;s devaluation relative to the dollar. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      late
      2003, the Company entered into futures contracts to limit its exposure to
      commodity price risk by fixing the price of its natural gas consumption from
      2004 through 2006. These futures contracts are not entered into for trading
      purposes but, subject to market prices of natural gas, are expected to be
      settled by delivery of natural gas at the contract price. As described in Note
      6
      to the Consolidated Financial Statements, at December 31, 2005, the Company
      recorded an asset of Ps.&#160;57.1 million with respect to these contracts. The
      Company does not believe its market risk with respect to these natural gas
      futures contracts is material.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Market
      Risk Measurement</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company measures its market risk related to its financial instruments based
      on
      changes in interest rates and foreign currency rates utilizing a sensitivity
      analysis. The sensitivity analysis measures the potential loss in fair values,
      cash flows and earnings based on a hypothetical increase in interest rates
      and a
      decline in the peso/dollar exchange rate. The Company used market rates as
      of
      December 31, 2005 on its financial instruments to perform the sensitivity
      analysis. The Company believes that these potential changes in market rates
      are
      reasonably possible in the near-term (one year or less). Based upon the
      Company&#8217;s analysis of the impact of a 100 basis point increase in interest rates
      and a 10% decline in the peso/dollar exchange rate, the Company has determined
      that such increase in interest rates and such decline in the peso/dollar
      exchange rate would have a material adverse effect on the Company&#8217;s earnings.
      Because there is no active trading market for the Company&#8217;s debt instruments,
      the Company is not able to determine the impact of these changes on the fair
      value of those debt instruments. The sections below describe the Company&#8217;s
      exposure to interest rates and currency rates including the impact of changes
      in
      these rates on the Company&#8217;s earnings.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Interest
      Rate Exposure</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company&#8217;s primary interest rate exposure relates to its long-term debt. On the
      asset side, the Company is exposed to changes in short-term interest rates
      as it
      invests in short-term dollar-denominated interest bearing investments. On the
      liability side, the Company utilizes a combination of floating rate debt and
      fixed rate debt. The floating rate debt is exposed to changes in interest
      expense and cash flows from changes in LIBOR, while the fixed rate debt is
      mostly exposed to changes in fair value from changes in medium term interest
      rates. Based on an immediate 100 basis point rise in interest rates, the Company
      estimates that its earnings before taxes over a one-year time horizon would
      decrease by Ps.&#160;4&#160;million ($380 thousand).</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Currency
      Rate Exposure</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company&#8217;s primary foreign currency exchange rate exposure relates to its debt
      securities as well as its dollar-denominated trade receivables and trade
      payables. The Company&#8217;s principal currency exposure is to changes in the
      peso/dollar exchange rate. The Company estimates that a 10% decline in the
      peso/dollar exchange rate would result in a decrease in the Company&#8217;s earnings
      before taxes of Ps. 41 million ($3.8 million).</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      sensitivity analysis is an estimate and should not be viewed as predictive
      of
      the Company&#8217;s future financial performance. Additionally, the Company cannot
      assure that the Company&#8217;s actual losses in any particular year will not exceed
      the amounts indicated above. However, the Company does believe that these
      amounts are reasonable based on the financial instrument portfolio at December
      31, 2005 and assuming that the hypothetical market rate changes selected by
      the
      Company in its market risk analysis occur during 2006. The sensitivity analysis
      does not give effect to the impact of inflation on its exposure to increases
      in
      interest rates or the decline in the peso/dollar exchange rate.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      12.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description
      of Securities Other than Equity Securities</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      a response to this item is not required in an Annual Report on Form 20-F, solely
      for convenience of the reader a summary of the rights and restrictions of the
      ADSs representing Simec&#8217;s series B common stock is provided below.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description
      of American Depositary Receipts</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>American
      depositary receipts</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ADRs
      evidencing a specified number of ADSs are issuable by the Depositary pursuant
      to
      the Deposit Agreement. Each ADS represents three shares of series B common
      stock
      (or evidence of rights to receive series B common stock) deposited with the
      Custodian. Only persons in whose names ADRs are registered on the books of
      the
      Depositary will be treated by the company and the Depositary as owners and
      holders of ADRs. On May 30, 2006, the Company effected a 3 for 1 stock split.
      Before that stock split was completed, each ADS represented one share of series
      B common stock. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Deposit
      and Withdrawal of Shares of Series B Common Stock</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      shares of series B common stock that are represented by the ADSs are deposited
      with the Custodian or with Indeval and registered in the name of the Custodian,
      who is the holder of record of all such shares of series B common stock. Subject
      to the terms and conditions of the Deposit Agreement, upon transfer of such
      shares of series B common stock to the Custodian or the account of the Custodian
      at Indeval, the Depositary will execute and deliver the ADRs. Ownership of
      the
      beneficial interest in the shares of series B common stock so transferred will
      be shown on, and all transfers of the ownership of such beneficial interests
      will be effected through, records maintained by, Indeval or Indeval
      Participants, as applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subject
      to the terms and conditions of the Deposit Agreement, the Depositary has agreed
      that, upon deposit (i) by delivery of certificates evidencing shares of series
      B
      common stock to the Custodian, accompanied by any appropriate instrument or
      instruments of transfer or endorsement, in form satisfactory to the Custodian;
      (ii) through electronic transfer of shares of series B common stock to the
      account maintained by the Custodian at Indeval for such purpose; or (iii) by
      delivery to the Custodian of evidence satisfactory to the Custodian that
      irrevocable instructions have been given to cause such series B common stock
      to
      be transferred to such account, in each case accompanied by an appropriate
      instrument or instruments of transfer or endorsement in form satisfactory to
      the
      Custodian and any certifications as may be required by the Depositary or the
      Custodian, the Depositary will execute and deliver at its Corporate Trust
      Office, upon payment of the fees, charges and taxes provided in the Deposit
      Agreement, to or upon the written order of the person or persons entitled
      thereto, an ADR registered in the name of such person or persons for the number
      of ADSs issuable in respect of such deposit.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Every
      person depositing series B common stock under the Deposit Agreement shall be
      deemed to represent and warrant that such series B common stock and each
      certificate therefor are validly issued and outstanding, fully paid, non-
      assessable and free of preemptive rights, such person is duly authorized to
      make
      such deposit, and the deposit of such series B common stock or sale of the
      ADRs
      evidencing ADSs by that person is not restricted under the Securities
      Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      surrender of the ADR at the Corporate Trust Office of the Depositary, and upon
      payment of the fees provided in the Deposit Agreement and subject to the terms
      and conditions of the Deposit Agreement, the corporate charter of the Company
      and the series B common stock, ADR Holders are entitled to physical delivery
      or
      electronic delivery through Indeval or Indeval Participants (if electronic
      delivery is available) of certificates representing the series B common stock
      and any other securities, property or cash that the surrendered ADRs evidence
      the right to receive. Delivery to the Corporate Trust Office of the Depositary
      shall be made at the risk and expense of the ADR Holder surrendering ADRs.
      At
      the request, risk and expense of ADR Holders surrendering ADRs, the Depositary
      shall direct the Custodian to forward any cash, rights or other property
      comprising, and to forward a Certificate or Certificates and other proper
      documents of title for series B common stock to such ADR Holder at the Corporate
      Trust Office of the Depositary.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Depositary has agreed not to lend ADRs or deposited series B common stock.
      However, the Depositary may issue ADRs prior to the receipt of series B common
      stock and deliver series B common stock prior to the receipt and cancellation
      of
      ADRs if each such transaction is (i) accompanied by a written representation
      from the person to whom such ADRs or series B common stock are to be delivered
      that such person or its customer beneficially owns the ADRs or series B common
      stock to be remitted, (ii) at all times fully collateralized with cash or other
      collateral deemed appropriate by the Depositary, (iii) terminable by the
      Depositary on not more than five business days&#8217; notice, and (iv) subject to such
      further indemnities and credit regulations as are deemed appropriate by the
      Depositary. The Depositary will impose such limitations as it deems appropriate
      on the number of ADRs and shares of series B common stock involved in such
      transactions, with any one person and with all persons in the aggregate
      (normally not to exceed 30% of the ADRs then outstanding, without giving effect
      to ADRs issue but for which shares of series B common stock have not been
      received). The Depositary may retain for its own account any compensation
      received by it in connection with the foregoing transactions.</font></div>
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      Other Distributions and Rights</em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Depositary is required to convert or cause to be converted into dollars, to
      the
      extent that in its judgment it can do so on a reasonable basis and can transfer
      the resulting dollars to the United States, all cash dividends and other cash
      distributions denominated in pesos (or any other currency other than dollars)
      that it receives in respect of the deposited series B common stock, and to
      distribute the amount received net of any reasonable and customary expenses
      incurred by the Depositary in connection with conversion and a fee of not in
      excess of $.02 per ADS (or portion thereof) for such cash distribution, subject
      to the terms of the Deposit Agreement, to the ADR Holders in proportion to
      the
      number of ADSs that are evidenced by such ADRs. The amount distributed will
      be
      reduced by any amounts to be withheld by the Company or the Depositary for
      applicable taxes, and net of expenses of conversion into dollars. If the
      Depositary determines that in its reasonable judgment any foreign currency
      received by it cannot be so converted on a reasonable basis and transferred,
      or
      if any required approval or license of any government authority or agency
      thereof is denied or not obtained within a reasonable period of time as
      determined by the Depositary or is not obtainable in the reasonable opinion
      of
      the Depositary, the Depositary may distribute such foreign currency (or an
      appropriate document evidencing the right to receive such foreign currency)
      received by it or, in its reasonable discretion, hold such foreign currency
      for
      the respective accounts of the ADR Holders entitled to receive the same. If
      any
      such conversion of foreign currency, in whole or in part, cannot be effected
      for
      distribution to some of the ADR Holders entitled thereto, the Depositary may
      in
      its discretion make such conversion and distribution in dollars to the extent
      permissible to the ADR Holders entitled thereto and may distribute the balance
      of such foreign currency received by the Depositary to, or hold such balance
      for
      the respective accounts of, the ADR Holders entitled thereto.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      the
      Company declares a dividend or free distribution, of additional shares of series
      B common stock, the Depositary may, with the Company&#8217;s approval, and shall, if
      the Company so requests, deposit, or cause such stock to be deposited with
      the
      Custodian or with Indeval for the account of the Custodian, and distribute
      to
      the ADR Holders entitled thereto, in proportion to the number of ADSs that
      are
      evidenced by such ADRs held by such Holders, additional ADRs evidencing an
      aggregate number of ADSs that represent the number of shares of series B common
      stock received as such dividend or free distribution, after deduction or upon
      payment of the applicable fees and expenses of the Depositary and subject to
      the
      terms of the Deposit Agreement. In lieu of delivering ADRs for fractional ADSs
      in the event of any such distribution, the Depositary will sell the amount
      of
      series B common stock represented by the aggregate of such fractions and will
      distribute the net proceeds to ADR Holders in accordance with the Deposit
      Agreement. If additional ADRs are not so distributed, each ADS shall thereafter
      also represent the additional shares of series B common stock distributed
      together with the shares of series B common stock represented by such ADS prior
      to such distribution. If for any reason the Depositary deems a distribution
      of
      additional ADRs not to be feasible, the Depositary may adopt such method as
      it
      may deem equitable or practical for the purpose of effecting such distributions,
      including the sale (public or private) of the additional shares of series B
      common stock received. The Depositary may, and will if the Company so requests,
      withhold any distribution of ADRs subject to its satisfaction that such
      distribution does not require registration under the Securities Act or is exempt
      from registration under the provisions of the Securities Act.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      event that the Custodian or the Depositary receives any distribution upon any
      deposited series B common stock in property (other than cash, series B common
      stock or rights), the Depositary is obliged under the Deposit Agreement to
      distribute such property to the ADR Holders entitled thereto, after deduction
      or
      upon payment of the fees and expenses of the Depositary, in proportion to their
      holdings, in any manner that the Depositary reasonably deems equitable and
      practicable. If in the opinion of the Depositary, however, the distribution
      of
      such property cannot be made proportionately among such ADR Holders, or if
      for
      any other reason (including any requirement that the Company, the Depositary
      or
      the Custodian withhold an amount on account of taxes or other governmental
      charges or that such securities must be registered under the Securities Act
      in
      order to be distributed to the ADR Holders or beneficial owners) the Depositary
      reasonably deems such distribution not feasible, the Depositary may adopt such
      method as it may reasonably deem equitable and practicable in order to effect
      such distribution, including the sale (public or private) of all or any part
      of
      such property and the distribution to ADR Holders of the net proceeds of any
      such sale.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      the
      Company offers or causes to be offered to the holders of series B common stock
      any rights to subscribe for additional shares of series B common stock or any
      rights of any other nature, the Depositary shall have discretion as to the
      procedure to be followed in making such rights available to ADR Holders or
      in
      disposing of such rights for the benefit of such ADR Holders and making the
      net
      proceeds available to such ADR Holders or, if the Depositary may neither make
      such rights available nor dispose of such rights and make the net proceeds
      available, allow the rights to lapse; provided, however, if at the time of
      the
      offering any rights the Depositary determines in its discretion that it is
      lawful and feasible to make such rights available to all ADR Holders or to
      certain ADR Holders but not to other ADR Holders, the Depositary may distribute
      to any ADR Holder to whom it determines the distribution to be lawful and
      feasible in proportion to the number of ADSs held by such ADR Holder, warrants
      or other instruments therefor in such forms it deems appropriate. If the
      Depositary determines in its discretion that it is not lawful and feasible
      to
      make such rights available to certain ADR Holders or if the rights represented
      by such warrants or other instruments are not exercised and appear to be about
      to lapse, the Depositary may, subject to any applicable laws, sell the rights,
      warrants or other instruments in proportion to the number of ADSs held by the
      ADR Holder to whom it has determined it may not lawfully or feasibly make such
      rights available, and allocate the net proceeds of such sales (net of the fees
      of the Depositary and all taxes and governmental charges and subject to the
      terms of the Deposit Agreement) for the account of such ADR Holders upon an
      averaged or other practical basis (without regard to any distinctions among
      such
      ADR Holders because of exchange restrictions or the date of delivery of any
      ADR
      or otherwise). The Depositary will not be responsible for any failure to
      determine that it may be lawful and feasible to make such rights available
      to
      ADR Holders in general or any ADR Holder in particular.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      an ADR
      Holder requests the distribution of warrants or other instruments in order
      to
      exercise the rights allocable to the ADSs of such ADR Holder, the Depositary
      will make such rights available to such ADR Holder upon written notice from
      the
      Company to the Depositary that (i) the Company has elected in its sole
      discretion to permit such rights to be exercised and (ii) such ADR Holder has
      executed such documents as the Company has determined in its sole discretion
      are
      reasonably required under applicable law. Upon instruction pursuant to such
      warrants or other instruments to the Depositary from such ADR Holder to exercise
      such rights, upon payment by such ADR Holder to the Depositary for the account
      of such ADR Holder of an amount equal to the purchase price of the shares of
      series B common stock or other property to be received upon the exercise of
      the
      rights, and upon payment of the fees of the Depositary as set forth in such
      warrants or other instruments, the Depositary shall, on behalf of such ADR
      Holder, exercise the rights and purchase the shares of series B common stock
      or
      other property and the Company shall cause the shares of series B common stock
      or other property so purchased to be delivered to the Depositary on behalf
      of
      such ADR Holder. As agent for such ADR Holder, the Depositary will cause the
      shares of series B common stock so purchased to be deposited under the Deposit
      Agreement, and shall issue and deliver to such ADR Holder the appropriate ADRs,
      with any applicable legends and restrictions on transfer.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      registration under the Securities Act or other applicable law of the securities
      to which any rights to subscribe for additional shares of series B common stock
      or any rights of any other nature relate is required in order for the Company
      to
      offer such rights to an ADR Holder and/or sell the securities issuable upon
      the
      exercise of such rights to an ADR Holder, the Depositary will not offer such
      rights or other rights to the ADR Holder unless and until such a registration
      statement is in effect. The Company may, in its sole discretion, decide not
      to
      register under the Securities Act or other applicable law securities to which
      any subscription or other rights relate where registration under the Securities
      Act or other applicable law may be required in connection with the offer or
      sale
      of such securities. In such case, ADR Holders in the United States and certain
      other jurisdictions would not be permitted to purchase such securities or
      otherwise exercise such rights. Under Mexican law, preemptive rights cannot
      be
      represented by an instrument that is negotiable separately from the
      corresponding share certificate. Because the Depositary would, therefore, be
      prohibited from disposing of such rights the ADR Holders would not receive
      the
      value of such rights. Additionally, such ADR Holders&#8217; share of dividends and
      other distributions and voting rights expressed as a percentage of all the
      Company&#8217;s capital stock may be reduced under such circumstances. See
&#8220;Description of Capital Stock &#8212; Changes in Capital Stock, Preemptive Rights and
      Redemption.&#8221;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      the
      Depositary determines that any distribution of property in respect of the series
      B common stock (including shares of series B common stock or rights to subscribe
      therefor) is subject to any tax or other governmental charge that the Depositary
      is obligated to withhold, the Depositary may, by public or private sale, dispose
      of all or a portion of such property, including shares of series B common stock
      and rights to subscribe therefor, in such amounts and in such manner as the
      Depositary deems necessary and practicable to pay any such taxes or charges.
      The
      Depositary will distribute the net proceeds of any such sale after deduction
      of
      any taxes or charges to the ADR Holders entitled thereto.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subject
      to the terms of the Deposit Agreement, upon any change in par value, split-up,
      consolidation or any other reclassification of the series B common stock, or
      upon any recapitalization, reorganization, merger or consolidation or sale
      of
      assets affecting the Company or to which it is a party, any securities that
      shall be received by the Depositary or the Custodian in exchange for or in
      conversion of or in respect of shares of series B common stock shall be treated
      as deposited series B common stock under the Deposit Agreement, and ADRs shall
      thenceforth represent the right to receive the new securities so received in
      respect of series B common stock, unless additional ADRs are delivered or the
      Depositary calls for the surrender of outstanding ADRs to be exchanged for
      new
      ADRs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Record
      Dates</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Whenever
      any cash dividend or other cash distribution shall become payable, any
      distribution other than cash shall be made or rights shall be made or rights
      shall be issued with respect to the series B common stock, or whenever for
      any
      reason the Depositary shall cause a change in the number of shares of series
      B
      common stock that are represented by each ADS, or whenever the Depositary shall
      receive notice of any meeting, or matter requiring the vote of, holders of
      series B common stock or ADR Holders, the Depositary will fix a record date,
      which date shall to the extent practicable, be the same date as the record
      date
      fixed by the Company, (i) for the determination of the ADR Holders who shall
      be
      entitled (a) to receive such dividend, distribution or rights or the net
      proceeds of the sale thereof, or (b) to give instructions for the exercise
      of
      voting rights at any such meeting or (ii) on or after which each ADS will
      represent the changed number of shares of series B common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Reports
      and Other Communications</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company will furnish to the Depositary and the Custodian all notices of
      shareholders&#8217; meetings (including any proxy soliciting material) and other
      reports and communications that are made generally available to the holders
      of
      series B common stock. The Depositary will make such notices, reports and
      communications available for inspection by ADR Holders at its Corporate Trust
      Office when furnished by the Company pursuant to the Deposit Agreement and,
      upon
      request by the Company, will mail such notices, reports and communications
      to
      ADR Holders.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Voting
      of the Underlying series B common stock</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      receipt of notice of any meeting, or solicitation of consents or proxies, of
      holders of series B common stock, the Depositary will, as soon as practicable
      thereafter, mail to all ADR Holders a notice containing the information included
      in such notice of meeting or solicitation, a statement as to the manner in
      which
      each such ADR Holder may instruct the Depositary to exercise any right to vote
      held by such ADR Holder and a brief statement discussing the consequences of
      the
      failure to give voting instructions. Each ADR Holder at the close of business
      on
      a specified record date is entitled under the Deposit Agreement, subject to
      any
      applicable provisions of Mexican law, of the series B common stock and of the
      corporate charter of the Company, to instruct the Depositary as to the exercise
      of the voting rights, if any, pertaining to the number of shares of series
      B
      common stock represented by the ADSs that are evidenced by the ADRs held by
      such
      ADR Holder. Upon the written request of an ADR Holder on such record date
      received on or before the date established by the Depositary for such purpose,
      the Depositary will endeavor to vote or cause to be voted the shares of series
      B
      common stock represented by the ADSs held by such ADR Holder in accordance
      with
      such instructions. If the Depositary does not receive instructions from any
      one
      or more ADR Holders then, subject to the then-applicable rules and regulations
      of the exchange on which the ADSs are listed, the Depositary will vote the
      shares of series B common stock represented by the ADRs for which no
      instructions are received in the same manner as the majority of instructions
      which the Depositary has received with respect to such meeting, or if no such
      instructions have been received or if there is no such majority, in the same
      manner as the Depositary is informed by the Company that the majority of shares
      of series B common stock is voted at such meeting. Holders of the ADRs have
      no
      right to attend Shareholders&#8217; Meetings or to vote any shares of series B common
      stock directly. For a discussion of the availability of registered shares to
      ADR
      Holders, See &#8220; &#8212; Deposits and Withdrawals of Shares of Series B Common
      Stock.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Amendment
      and Termination of the Deposit Agreement</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      form
      of the ADRs and the terms of the Deposit Agreement may at any time be amended
      by
      agreement between the Company and the Depositary in any respect they deem
      necessary or desirable. Any amendment that imposes or increases any fees or
      charges (other than taxes or other governmental charges), or that otherwise
      prejudices any substantial existing right of ADR Holders, will not take effect
      as to outstanding ADRs until the expiration of three months after notice of
      such
      amendment has been given to the ADR Holders. Every ADR Holder and beneficial
      owner at the time such amendment becomes effective will be conclusively
      presumed, by continuing to hold such ADRs, to consent and agree to such
      amendment and to be bound by the Deposit Agreement as amended thereby. In no
      event will any amendment impair the right of any ADR Holder to surrender the
      ADRs held by such Holder and receive therefor the underlying shares of series
      B
      common stock and any other property represented thereby, except in order to
      comply with mandatory provisions of applicable law.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Whenever
      so directed by the Company, the Depositary has agreed to terminate the Deposit
      Agreement by mailing notice of such termination to the ADR Holders then
      outstanding at least 30 days prior to the date fixed in such notice for such
      termination. The Depositary may similarly terminate the Deposit Agreement by
      mailing notice of such termination. The Depositary may similarly terminate
      the
      Deposit Agreement by mailing notice of such termination to the Company and
      ADR
      Holders then outstanding if at any time 90 days after the Depositary shall
      have
      delivered to the Company a written notice of its election to resign and a
      successor depositary shall not have been appointed an accepted its appointment.
      On and after the date of termination, an ADR Holder, upon surrender of such
      ADR
      at the Corporate Trust Office of the Depositary, upon payment of the fees of
      the
      Depositary, and upon payment of any applicable tax or governmental charges,
      will
      be entitled to transfer to an account in the name of such ADR Holder or such
      name as designated by such ADR Holder of the number of shares of series B common
      stock and other property represented by such ADR. If any ADRs remain outstanding
      after the date of termination, the Depositary thereafter will discontinue the
      registration of transfer of ADRs, will suspend the distribution of dividends
      to
      the Holders thereof and will not give any further notices or perform any further
      acts under the Deposit Agreement, except (i) the collection of dividends and
      other distributions, (ii) the sale of rights and other property, and (iii)
      the
      delivery of shares of series B common stock, together with any dividends or
      other distributions received with respect thereof and the net proceeds of the
      sale of any rights or other property, in exchange for surrendered ADRs, subject
      to the terms of the Deposit Agreement. At any time after the expiration of
      one
      year from the date of termination, the Depositary may sell the series B common
      stock and any other property and hold uninvested the net proceeds, together
      with
      any cash then held by it under the Deposit Agreement, unsegregated and without
      liability for interest, for the pro rata benefit of the ADR Holders that have
      not theretofore surrendered their ADRs and such ADR Holders shall become general
      creditors of the Depositary with respect to such net proceeds. After making
      such
      sale, the Depositary shall be discharged from all obligations under the Deposit
      Agreement, except to account for net proceeds and other cash (after deducting
      certain fees of the Depositary) and except for certain obligations for
      indemnification set forth in the Deposit Agreement. Upon the termination of
      the
      Deposit Agreement, the Company will also be discharged from all obligations
      thereunder, except for certain obligations to the Depositary.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Charges
      of Depositary</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company will pay the fees, reasonable expenses and out-of-pocket charges of
      the
      Depositary and those of any registrar only in accordance with agreements in
      writing entered into between the Depositary and the Company from time to time.
      The following charges shall be incurred by any party depositing or withdrawing
      shares of series B common stock or by any party surrendering ADRs or to whom
      ADRs are issued (including, without limitation, issuance pursuant to a stock
      dividend or stock split declared by the Company or an exchange of stock
      regarding the ADRs or deposited series B common stock or a distribution of
      ADRs
      pursuant to the terms of the Deposit Agreement): (i) any applicable taxes and
      other governmental charges, (ii) any applicable transfer or registration fees,
      (iii) certain cable, telex and facsimile transmission charges as provided in
      the
      Deposit Agreement, (iv) any expenses incurred in the conversion of foreign
      currency, (v) a fee of $5.00 or less per 100 ADSs (or portion thereof) for
      the
      delivery of ADRs in connection with the deposit of shares of series B common
      stock or distributions on series B common stock or the surrender of ADRs and
      (vi) a fee not in excess of $0.02 per ADS (or portion thereof) for any cash
      distribution made pursuant to the Deposit Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Depositary, subject to the Deposit Agreement, may own and deal in any class
      of
      securities of the Company and its affiliates and in ADRs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Liability
      of Holders for Taxes, Duties and Other Charges</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
      tax
      or other governmental charge with respect to ADRs or any deposited shares of
      series B common stock represented by any ADR shall be payable by the ADR Holder
      to the Depositary. The Depositary may and upon instructions from the Company
      shall refuse to effect transfer or any split-up or combination of such ADR
      or
      any withdrawal of the deposited shares of series B common stock represented
      by
      such ADR until such payment is made, and may withhold any dividends or other
      distributions in respect thereof or may sell for the account of the ADR Holder
      thereof any part or all of the deposited shares of series B common stock
      represented by such ADR and may apply such dividends or distributions or the
      proceeds of any such sale in payment of any such tax or other governmental
      charge and the ADR Holder shall remain liable for any deficiency.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Transfer
      of American depositary receipts</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      ADRs
      are transferable on the books of the Depositary, provided that the delivery
      of
      ADRs against deposits of shares of series B common stock generally or against
      deposits of particular shares of series B common stock may be suspended, or
      the
      deposit of share of series B common stock may be refused, or the registration
      of
      transfer of outstanding ADRs generally may be suspended, during any period
      when
      the books of the Depositary or the Company are closed, or if any such action
      is
      deemed necessary or advisable by the Depositary or the Company at any time
      or
      from time to time subject to the terms of the Deposit Agreement. The surrender
      of outstanding ADRs and withdrawal of deposited shares of series B common stock
      may not be suspended subject only to (i) temporary delays caused by closing
      the
      books of the Depositary or the Company for the deposit of shares of series
      B
      common stock in connection with voting at a shareholders&#8217; meeting or the payment
      of dividends, (ii) the payment of fees, taxes and similar charges, and (iii)
      compliance with any United States or foreign laws or governmental regulations
      relating to the ADRs or to the withdrawal of the deposited shares of series
      B
      common stock. Without limitation of the foregoing, the Depositary shall not
      knowingly accept for deposit under the Deposit Agreement any shares of series
      B
      common stock required to be registered under the provisions of the Securities
      Act, unless a registration statement is in effect as to such shares. As a
      condition precedent to the execution and delivery, registration of transfer,
      split-up, combination or surrender of any ADR or withdrawal of shares of series
      B common stock, the Depositary or the Custodian may require payment from the
      person presenting the ADR or the Depositor of the series B common stock of
      a sum
      sufficient to reimburse it for any tax or other governmental charge and any
      stock transfer or registration fee with respect thereto, payment of any
      applicable fees of the Depositary payable by the ADR Holders and the production
      of proof satisfactory to the Depositary as to the identity and genuineness
      of
      any signature and may also require compliance with any reasonable regulations
      the Depositary may establish consistent with the provisions of the Deposit
      Agreement and applicable law. The Depositary may, and at the reasonable request
      of the Company shall, withhold the delivery or registration of transfer of
      any
      ADR or the distribution or sale of any dividend or other distribution or rights
      or the proceeds thereof or the delivery of any shares of series B common stock
      until it or the Custodian has received proof of citizenship or residence,
      exchange control approval or other information as it may deem necessary or
      proper. ADR Holders may inspect the transfer books of the Depositary for the
      registration and transfer of ADRs at any reasonable time, provided that such
      inspection shall not be for the purpose of communicating with ADR Holders in
      the
      interest of a business or object other than the business of the Company or
      a
      matter related to the Deposit Agreement, the ADRs, the series B common stock
      or
      the by-laws of the Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>General</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Neither
      the Depositary nor the Company nor any of their directors, officers, employees,
      agents or affiliates will be liable to the ADR Holder or any owners of
      beneficial interests of ADRs if by reason of any present or future law or
      regulation of the United States or any other country or of any governmental
      or
      regulatory authority or any stock exchange by reason of, any provision, present
      or future, of the by-laws of the Company or of the series B common stock or
      any
      circumstance beyond its control, the Depositary or the Company or any of their
      respective directors, officers, employees, agents or affiliates is prevented
      or
      delayed in performing its obligations or exercising its discretion under the
      Deposit Agreement or is subject to any civil or criminal penalty on account
      of
      performing its obligations under the Deposit Agreement. Where, by the terms
      of a
      distribution or/and offering subject to the Deposit Agreement, or for any other
      reason, the distribution or offering on or in respect of the series B common
      stock made not be made available to one or more ADR Holders, and the Depositary
      may not dispose of such distribution or offering on behalf of such ADR Holders
      and make the net proceeds available to such ADR Holders, then the Depositary
      shall not make such distribution or offering to such ADR Holders, and shall
      allow any rights, in respect thereof held by such ADR Holders, if applicable,
      to
      lapse. The obligations of the Company and the Depositary under the Deposit
      Agreement are expressly limited to using their best judgment and diligence
      and
      acting in good faith in the performance of their respective duties specified
      therein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">So
      long
      as any ADRs or ADSs evidenced thereby are listed on one or more stock exchanges
      in the United States, the Depositary will act as registrar or appoint a
      registrar or one or more co-registrars, for registration of such ADRs in
      accordance with any requirement of such exchanges.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="P2">PART
      II.</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I13">Item
      13.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Defaults,
      Dividends Arrearages and Delinquencies</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Simec
      is
      in default on the payment of U.S. $302,000 principal amount of 8 7/8% MTNs
      due
      1998 which were issued in 1993 as part of a U.S. $68 million exchange offer.
      Accrued interest on the MTNs at December 31, 2005 was U.S. $309,311. The U.S.
      $309,311 due reflects sums that were not paid to holders that could not be
      identified at the time of the exchange offer.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I14">Item
      14.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Material
      Modifications to the Rights of Security Holders and Use of
      Proceeds</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I15">Item
      15.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Controls
      and Procedures</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company maintains a set of disclosure controls and procedures designed to ensure
      that information required to be disclosed by the Company in reports that it
      files or submits under the Securities Exchange Act of 1934 is recorded,
      processed, summarized and reported within the time periods specified in
      Securities and Exchange Commission rules and forms. As of the end of the period
      covered by this Annual Report, an evaluation of the effectiveness of the
      Company&#8217;s disclosure controls and procedures was carried out under the
      supervision and with the participation of the Company&#8217;s management, including
      the Chief Executive Officer and the Chief Financial Officer. Based on that
      evaluation, the Chief Executive Officer and the Chief Financial Officer have
      concluded that the Company&#8217;s disclosure controls and procedures are effective as
      of the end of the period covered by this Annual Report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subsequent
      to the date of their evaluation, there have been no changes in the Company&#8217;s
      internal control over financial reporting that have materially affected, or
      are
      reasonably likely to materially affect, the Company&#8217;s internal control over
      financial reporting.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I16">Item
      16.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>[Reserved</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>]</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I16A">Item
      16A.</a>&#160;&#160;&#160; </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Audit
      Committee Financial Expert</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Board
      of Directors of the Company has determined that it has at least one &#8220;audit
      committee financial expert,&#8221; as defined in Item 16A of Form 20-F, serving on the
      Audit Committee. Arturo P&#233;rez Trejo is the director whom the Board of Directors
      has determined to be an audit committee financial expert. Holders of ADSs should
      understand that this designation is a disclosure requirement of the SEC related
      to Mr.&#160;P&#233;rez&#8217;s experience and understanding with respect to certain
      accounting and auditing matters. The designation does not impose on
      Mr.&#160;P&#233;rez any duties, obligations or liability that are greater than those
      which are generally imposed on him as a member of the Audit Committee and Board
      of Directors, and his designation as an audit committee financial expert
      pursuant to this SEC requirement does not affect the duties, obligations or
      liability of any other member of the Audit Committee or Board of Directors.
      Mr.
      P&#233;rez is &#8220;independent&#8221; as such term is defined in the listing standards of the
      American Stock Exchange.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I16B">Item
      16B.</a>&#160;&#160;&#160; </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Code
      of Ethics</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2002,
      the Company adopted a code of ethics that applies to all of its employees and
      directors, including its principal executive officer, principal financial
      officer and principal accounting officer. In 2005, the Company did not amend
      its
      code of ethics in any manner, nor did it grant any waiver from any provision
      of
      the code of ethics to any person. The Company will provide to any person without
      charge, upon written or oral request, a copy of such code of ethics. Requests
      should be directed to: Grupo Simec, S.A. de C.V., Attention: Jos&#233; Flores Flores,
      telephone number: 52-33-1057-5734.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I16C">Item
      16C.</a>&#160;&#160;&#160; </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Principal
      Accountant Fees and Services</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Audit
      Fees</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Fees
      paid to KPMG Cardenas Dosal, S.C. for the audit of the annual Consolidated
      Financial Statements included in the Company&#8217;s Annual Report on Form 20-F were
      Ps.&#160;2.2 million for 2004. Fees paid to Mancera, S.C. Ernst &amp; Young for
      the audit of the annual Consolidated Financial Statements included in the
      Company&#8217;s Annual Report on Form 20-F were Ps.&#160;3.6 million for 2005.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Tax
      Fees</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Fees
      paid to KPMG Cardenas Dosal, S.C. associated with tax compliance and tax
      consultation were Ps.&#160;0.7 million and Ps. 0.02 million, respectively in
      2004 and 2005. Fees paid to Mancera, S.C. Ernst &amp; Young associated with tax
      compliance and tax consultation were Ps.&#160;0.07 million in 2005.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
      fees
      in addition to those set forth above were paid to KPMG Cardenas Dosal, S.C.
      or
      Mancera, S.C. Ernst &amp; Young in 2004 or 2005. All of the services described
      as &#8220;Audit Fees&#8221; incurred in 2004 and 2005 and &#8220;Tax Fees&#8221; were approved by the
      Audit Committee in accordance with the Company&#8217;s formal policy on auditor
      independence.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Audit
      Committee has adopted a formal policy on auditor independence requiring the
      approval by the Audit Committee of all professional services rendered by the
      Company&#8217;s independent auditor prior to the commencement of the specified
      services. The Audit Committee will consider annually and, if appropriate,
      approve the provision of audit services by Company&#8217;s independent auditor and
      consider and, if appropriate, pre-approve the provision of certain defined
      audit
      and non-audit services. The Audit Committee will also consider on a case-by-case
      basis and, if appropriate, approve specific engagements that are not otherwise
      pre-approved.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
      proposed engagement that does not fit within the definition of a pre-approved
      service may be presented to the Audit Committee for consideration at its next
      regular meeting or, if earlier consideration is required, to the Audit Committee
      for action by written consent.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I16D">Item
      16D.</a>&#160;&#160;&#160; </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exemptions
      from the Listing Standards for Audit Committees</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I16E">Item
      16E.</a>&#160;&#160;&#160; </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Purchases
      of Equity Securities by the Issuer and Affiliated
      Purchasers.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      applicable. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="P3">PART
      III.</a></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I17">Item
      17.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Statements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company has responded to Item 18 in lieu of responding to this
      item.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I18">Item
      18.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Statements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reference
      is made to the Consolidated Financial Statements included herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="I19">Item
      19.</a>&#160;&#160;</strong></font>&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibits</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Consolidated Financial Statements, together with the report of the Company&#8217;s
      independent registered public accounting firm, are filed as part of this Annual
      Report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
          OF CONTENTS</a></font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="center">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">List
                of Exhibits:</font></div>
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                pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002.</font></div>
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          <tr>
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                by reference to the exhibits included in Simec&#8217;s Annual Report on Form
                20-F for the year ended December 31, 1997 (File No. 1-11176) filed
                with
                the Securities and Exchange
                Commission.</font></div>
            </td>
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        <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
          OF CONTENTS</a></font></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      registrant hereby certifies that it meets all of the requirements for filing
      on
      Form 20-F and that it has duly caused and authorized the undersigned to sign
      this Annual Report on its behalf.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="left">
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          <tr>
            <td align="justify" rowspan="6" valign="top" width="55%">&#160;</td>
            <td align="left" valign="top" width="45%">
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                SIMEC, S.A. DE C.V.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="55%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;/s/
                Luis Garc&#237;a Lim&#243;n</font></div>
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          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;
                &#160;&#160;&#160;Luis Garc&#237;a Lim&#243;n</font></div>
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          </tr>
          <tr>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;&#160;&#160;&#160;&#160;
                &#160;&#160;Chief Executive
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          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" rowspan="4" valign="top" width="55%">&#160;</td>
            <td align="justify" valign="top" width="45%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="55%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
                &#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                Jos&#233; Flores Flores</font></div>
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          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">
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          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">
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                Officer</em></font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
      14,
      2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
          OF CONTENTS</a></font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="center">
        </div>
      </div>
    </div><br><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX
      TO FINANCIAL STATEMENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Constant
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Grupo
                Simec, S.A. de C.V.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="80%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Report
                of Mancera, S.C. Ernst &amp; Young</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="80%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Report
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            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="80%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="80%">
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            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="80%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="80%">
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                Balance Sheets as of December 31, 2005 and 2004</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="80%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="80%">
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          </tr>
          <tr>
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          </tr>
          <tr>
            <td align="left" valign="top" width="80%">
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                Statements of Changes in Stockholders&#8217; Equity </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">for
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          </tr>
          <tr>
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          <tr>
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                years ended December 31, 2005, 2004 and 2003</font></div>
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          <tr>
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          <tr>
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          <tr>
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            <td align="left" valign="top" width="69%">&#160;</td>
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          </tr>
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            <td align="left" valign="top" width="69%">&#160;</td>
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                the years ended December 31, 2005, 2004 and 2003</font></div>
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            <td align="left" valign="top" width="69%">&#160;</td>
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                2003</font></div>
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            <td align="left" valign="top" width="69%">&#160;</td>
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            <td align="left" valign="top" width="11%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Schedule
                I-</font></div>
            </td>
            <td align="left" valign="top" width="69%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Note
                to Parent Company Financial Statements for the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">years
                ended December 31, 2005, 2004 and
                2003</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
          OF CONTENTS</a></font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
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      <div id="HDR">
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        </div>
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    </div><br>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Report
        of Independent Registered Public Accounting Firm</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Stockholders of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Grupo
        Simec, S.A. de C.V. and Subsidiaries</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.5pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        audited the accompanying consolidated balance sheet of Grupo Simec, S.A.
        de C.V.
        and subsidiaries (the &#8220;Company&#8221;) as of December 31, 2005, and the related
        consolidated statements of income, changes in stockholders&#8217; equity, and changes
        in financial position for the year then ended. These consolidated financial
        statements are the responsibility of the Company&#8217;s management. Our
        responsibility is to express an opinion on these consolidated financial
        statements based on our audit. We did not audit the financial statements
        of
        Simrep Corporation and subsidiaries, a majority owned subsidiary, which
        statements reflect total assets of Ps. 5,984,488 (thousand) , as of December
        31,
        2005,and total revenues of Ps. 6,220,242 (thousand), for the period then
        ended.
        Those statements were audited by other auditors whose report has been furnished
        to us, and our opinion, insofar as it relates to the amounts included for
        Simrep
        Corporation and subsidiaries, is based solely on the report of the other
        auditors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        conducted our audit in accordance with auditing standards generally accepted
        in
        Mexico and in accordance with the Standards of the Public Company Accounting
        Oversight Board (United States of America). Those standards require that
        we plan
        and perform the audit to obtain reasonable assurance about whether the financial
        statements are free of material misstatement. We were not engaged to perform
        an
        audit of the Company&#8217;s internal control over financial reporting. Our audit
        included consideration of internal control over financial reporting as a
        basis
        for designing audit procedures that are appropriate in the circumstances,
        but
        not for the purpose of expressing an opinion on the effectiveness of the
        Company&#8217;s internal control over financial reporting. Accordingly, we express no
        such opinion. An audit includes examining, on a test basis, evidence supporting
        the amounts and disclosures in the financial statements, assessing the
        accounting principles used and significant estimates made by management,
        and
        evaluating the overall financial statement presentation. We believe that
        our
        audit and the report of other independent auditors provide a reasonable basis
        for our opinion.</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.5pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.5pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        our
        opinion, based on our audit and the report of the other independent auditors,
        the above-mentioned consolidated financial statements present fairly, in
        all
        material respects, the consolidated financial position of Grupo Simec, S.A.
        de
        C.V and subsidiaries at December 31, 2005, and the consolidated results of
        their
        operations and changes in their financial position for the year then ended,
        in
        conformity with accounting principles generally accepted in Mexico, which
        differ
        in certain respects from those followed in the United States of America.
        (See
        Note 19).</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="top" width="39%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mancera,
                  S.C.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                  Member Practice of</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ernst
                  &amp; Young Global</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/
                  Jos&#233; Maria Tabares&#160;&#160;&#160;&#160;&#160; </u></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">C.P.C
                  Jos&#233; Maria Tabares</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Guadalajara,
        Jalisco M&#233;xico</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
        28,
        2006</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(except
        for Note 19 as to which the date is June 28, 2006)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
            OF CONTENTS</a></font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
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          </div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Report
        of Independent Registered Public Accounting Firm</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Board
        of Directors and Stockholders of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Grupo
        Simec, S. A. de C. V.:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        audited the accompanying consolidated balance sheet of Grupo Simec, S.A.
        de C.V.
        and subsidiaries (the Company) as of December 31, 2004 and the related
        consolidated statements of income, stockholders&#8217; equity and changes in financial
        position for each of the years in the two-year period ended December 31,
        2004.
        These consolidated financial statements are the responsibility of the Company&#8217;s
        management. Our responsibility is to express an opinion on these consolidated
        financial statements based on our audits. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        conducted our audits in accordance with the Standards of the Public Company
        Accounting Oversight Board (United States). Those standards require that
        we plan
        and perform the audit to obtain reasonable assurance about whether the financial
        statements are free of material misstatement. An audit includes examining,
        on a
        test basis, evidence supporting the amounts and disclosures in the financial
        statements. An audit also includes assessing the accounting principles used
        and
        significant estimates made by management, as well as evaluating the overall
        financial statement presentation. We believe that our audits provide a
        reasonable basis for our opinion.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        mentioned in note 14 to the consolidated financial statements, on August
        9, 2004
        the Company acquired, as an industrial unit, assets and labor obligations
        accrued at such date. The assets consist of inventories and steel
        plants.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        our
        opinion, the consolidated financial statements referred to above present
        fairly,
        in all material respects, the financial position of Grupo Simec, S.A. de
        C.V.
        and subsidiaries as of December 31, 2004, and the results of their operations
        and the changes in their financial position for each of the years in the
        two-year period ended December 31, 2004, in conformity with accounting
        principles generally accepted in Mexico.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        described in note 2, the accompanying consolidated balance sheet, statements
        of
        income, stockholders&#8217; equity and changes in financial position have been
        restated to reflect their presentation in Mexican pesos of constant purchasing
        power as of December 31, 2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounting
        principles generally accepted in Mexico vary in certain significant respects
        from accounting principles generally accepted in the United States of America.
        Information relating to the nature and effect of such differences is presented
        in note 19 to the consolidated financial statements. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 234pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">KPMG
        CARDENAS DOSAL, S. C.</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/
        Jorge O. P&#233;rez Zerme&#241;o</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jorge
        O.
        P&#233;rez Zerme&#241;o</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Guadalajara,
        Mexico.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
        25,
        2005, except for the restatement to December 31, 2005 constant Mexican pesos,
        as
        to which the date is January 10, 2006.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
            OF CONTENTS</a></font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
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          </div>
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        <div id="HDR">
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          </div>
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      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Report
        of Independent Registered Public Accounting Firm</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>To
        the Board of Directors and Shareholders of</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SimRep
        Corporation</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        audited the consolidated balance sheet of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SimRep
        Corporation </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
        subsidiaries</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        as of
        December 31, 2005, and the related consolidated statements of operations,
        changes in shareholders&#8217; equity and changes in financial position for the period
        from July 22 (date of acquisition) to December 31, 2005. These financial
        statements are the responsibility of the Company&#8217;s management. Our
        responsibility is to express an opinion on these financial statements based
        on
        our audit.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        conducted our audit</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
        accordance with the standards of the Public Accounting Oversight Board (United
        States). Those standards require that we plan and perform the audit to obtain
        reasonable assurance about whether the financial statements are free of material
        misstatement. The Company is not required to have, nor were we engaged to
        perform, an audit of its internal control over financial reporting. Our audit
        included consideration of internal control over financial reporting as a
        basis
        for designing audit procedures that are appropriate in the circumstances,
        but
        not for the purpose of expressing an opinion on the effectiveness of the
        Company&#8217;s internal control over financial reporting. Accordingly, we express no
        such opinion. An audit also includes examining, on a test basis, evidence
        supporting the amounts and disclosures in the financial statements, assessing
        the accounting principles used and significant estimates made by management,
        as
        well as evaluating the overall financial statement presentation. We believe
        that
        our audit provides a reasonable basis for our opinion. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounting
        principles generally accepted in Mexico vary in certain significant respects
        from accounting principles generally accepted in the United States of
        America.&#160; Information relating to the nature and effect of such differences
        is presented in Note 22 to the financial statements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        our
        opinion, the accompanying consolidated financial statements present fairly,
        in
        all material respects, the consolidated financial position of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SimRep
        Corporation </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
        subsidiaries</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        as of
        December 31, 2005, and the consolidated results of their operations, the
        changes
        in shareholders&#8217; equity and the changes in their financial position for the
        period from July 22 (date of acquisition) to December 31, 2005, in conformity
        with accounting principles generally accepted in Mexico.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">These
        consolidated financial statements have been translated into English solely
        for
        the convenience of readers of this language.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Hern&#225;ndez,
        Marr&#243;n y C&#237;a., S.C.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>/s/
        Bernardo Soto
        Pe&#241;afiel&#160;&#160;&#160;&#160;&#160;&#160;</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bernardo
        Soto Pe&#241;afiel, CPA</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Partner</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Mexico
        City</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>April
        28, 2006</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
            OF CONTENTS</a></font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="center">
          </div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>
      <div><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GRUPO
          SIMEC, S.A. DE C.V. AND SUBSIDIARIES</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
          Balance Sheets </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
          31, 2005 and 2004 </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Thousands
          of Constant Mexican pesos as of December 31, 2005) </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div align="left">
            <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Assets</strong></font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="6%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="6%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="47%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                      assets:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      and cash equivalents </font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>208,064
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Ps.
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">523,341
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                      receivable:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Trade</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>2,301,991
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,010,259
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Related
                      parties (Note 4)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>2,440
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,464
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Recoverable
                      value added tax</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>114,956
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>215,139
                      </strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,594
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white solid;">&#160;</td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>2,634,526
                      </strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,191,588
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less:
                      allowance for doubtful accounts</font></div>
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                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>31,071
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,983
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      accounts receivable, net</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>2,603,455
                      </strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,176,605
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventories,
                      net (Note 5)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>3,636,861
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,167,486
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
                      expenses </font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>228,739
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,877
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Derivative
                      financial instruments (Note 6)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>57,106
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18,902
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      current assets</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>6,734,225
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,895,211
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-current
                      inventories (Note 2e)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>76,347
                      </strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
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                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property,
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                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,968,396
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                      assets, intangibles and deferred charges, net (Note 2h)</font></div>
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                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>614,725
                      </strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">313,407
                      </font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
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                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: black double;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Ps.</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black double;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,245,551
                      </font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Liabilities
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                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                      liabilities:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                      payable to banks (Note 9a)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>-
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Ps.</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">158,223
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                      portion of long-term debt (Note 9b)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>20,898
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,515
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                      Payable</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>1,402,696
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">608,494
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accruals
                      (Note 8)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>15,110
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,880
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                      accounts payable and accrued expenses</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>671,202
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">160,500
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Related
                      parties (Note 4)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>457,256
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">21
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      credit (Note 2</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>l</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>130,592
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      current liabilities </font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>2,697,754
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">939,633
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                      debt (Note 9b)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>389,021
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Seniority
                      premiums and termination benefits (Note 10)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>19,649
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,957
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                      long-term liabilities (Notes 2q and 16e)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>111,343
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,970
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      income tax (Note 12)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>1,503,308
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,480,919
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      credit (Note 2</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>l</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>206,770
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      long-term liabilities</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>2,230,091
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,502,846
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      liabilities</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>4,927,845
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,442,479
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stockholders'
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                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
                      stock</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>3,454,048
                      </strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,386,476
                      </font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                      paid-in-capital</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>839,561
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">677,661
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contributions
                      for future capital stock increases</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>-
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">228,822
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Retained
                      earnings</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>4,490,489
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,218,856
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cumulative
                      deferred income tax</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>(899,978</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>)</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(899,978</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity
                      adjustment for non-monetary assets</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>(153,724</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>)</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">178,151
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fair
                      value of derivative financial instruments (Note 6)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>40,093
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,764
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Majority
                      stockholders' equity</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>7,770,489
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,802,752
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                      interest</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>1,796,010
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">320
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
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                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>9,566,499
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,803,072
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
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                <tr bgcolor="#deeced">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>14,494,344
                      </strong></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: black double;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Ps.</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: black double;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,245,551
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="47%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
                      accompanying notes to consolidated financial statements.</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>

            </table>
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          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GRUPO
              SIMEC, S.A. DE C.V. AND SUBSIDIARIES</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
              Statements of Income</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Years
              ended December 31, 2005, 2004 and 2003</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Thousands
              of Constant Mexican pesos as of December 31, 2005, except earnings
              per share
              figures)</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
              <div align="left">
                <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

                    <tr>
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #ffffff solid;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="5%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    </tr>
                    <tr>
                      <td align="left" valign="bottom" width="31%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="5%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="5%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="5%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                          sales (Notes 14 and 15)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>12,882,888
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Ps.</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,872,194
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Ps.</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,027,712
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Direct
                          cost of sales (Note 14)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>10,303,964
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,412,873
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,989,058
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marginal
                          profit</font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>2,578,924
                          </strong></font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,459,321
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,038,654
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indirect
                            overhead, selling, general and administrative
                            </font>expenses</div>
                        </div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>1,011,530
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">589,445
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">503,996
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                          income</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>1,567,394
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,869,876
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">534,658
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Comprehensive
                          financing cost:</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                          (expense) income, net </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>(15,626</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>)</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,754
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(13,412</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Foreign
                          exchange (loss) gain, net</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>(74,793</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>)</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,961
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,765</font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                    </tr>
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                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Monetary
                          position loss</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>(53,316</strong></font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>)</strong></font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(47,105</font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(10,357</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Comprehensive
                          financial result, net</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>(143,735</strong></font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>)</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;
&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(37,390</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(26,534</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                          income (expenses), net:</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustment
                          to the recovery value of land, machinery and equipment
</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>-
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(14,627</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(19,373</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                      </td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                          credit amortization</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>66,742
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other,
                          net</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>(11,611</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>)</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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                      <td align="left" valign="bottom" width="31%" style="border-bottom: white solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>55,131
                          </strong></font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(37,878</font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(32,195</font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
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                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>1,478,790
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,794,608
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">475,929
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                          tax (Note 12):</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>78,368
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,987
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13,332
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>110,997
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">318,396
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138,876
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                          income tax </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>189,365
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">341,383
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">152,208
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statutory
                          employee profit sharing (Note 12)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>414
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,268
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                          consolidated income</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>1,289,011
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">&#160;&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,453,225
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">&#160;&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">318,453
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Allocation
                          of net income</u></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                          interest</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>17,378
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Majority
                          interest</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>1,271,633
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,453,225
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">318,452
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>1,289,011
                          </strong></font></div>
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                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,453,225
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">&#160;&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">318,453
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #deeced;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Earnings
                          per share:</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                          average shares outstanding</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>137,929,599
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">132,972,479
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;&#160;&#160;
</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">119,052,681
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#deeced">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: #deeced solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Earnings
                          per share (pesos)</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: #deeced thin solid;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>9.22
                          </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Ps.</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10.93
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Ps.</font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.67
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="31%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" colspan="19" valign="bottom" width="100%" style="border-bottom: white;">
                        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
                          accompanying notes to consolidated financial
                          statements.</font></div>
                      </td>
                    </tr>

                </table>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GRUPO
                  SIMEC, S.A. DE C.V. AND SUBSIDIARIES</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Changes in Stockholders' Equity</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Years
                  ended December 31, 2005, 2004 and 2003</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Thousands
                  of Constant Mexican pesos as of December 31, 2005)</font></div>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                    <div align="left">
                      <table cellpadding="0" cellspacing="0" width="100%">

                          <tr>
                            <td align="left" valign="bottom" width="50%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                            <td align="right" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                            <td valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number
                                of</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Shares</strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Additional</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>paid-in</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>capital</strong></font></div>
                            </td>
                            <td valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                            </td>
                            <td valign="bottom" width="12%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stock</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>premium</strong></font></div>
                            </td>
                            <td valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                            </td>
                            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Contributions
                                for future</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>capital
                                stock</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>increases</strong></font></div>
                            </td>
                            <td valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                            </td>
                            <td valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Retained</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>earnings</strong></font></div>
                            </td>
                            <td valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                            </td>
                            <td valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Cumulative</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>deferred</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>income
                                tax</strong></font></div>
                            </td>
                            <td align="left" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                            </td>
                            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Equity
                                adjustments for</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>non-monetary</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>assets</strong></font></div>
                            </td>
                            <td valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                            </td>
                            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Fair
                                value of derivative financial</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>instruments</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Note
                                6)</strong></font></div>
                            </td>
                            <td align="left" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                            </td>
                            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Majority</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stockholders'</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Equity</strong></font></div>
                            </td>
                            <td align="left" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                            </td>
                            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Minority</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>interest</strong></font></div>
                            </td>
                            <td valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                            </td>
                            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>stockholders'</strong></font></div>
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>equity</strong></font></div>
                            </td>
                          </tr>
                          <tr>
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="12%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                                at December 31, 2002</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">108,031,250
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="5%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,972,124
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                            </td>
                            <td align="right" valign="bottom" width="12%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">677,661
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                            </td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                            </td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,447,179
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                            </td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(899,978)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                            </td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(134,987)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                            </td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,061,999
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                            </td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">273
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                            </td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,062,272
                                </font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increases
                                in capital stock (Note 13)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23,941,772
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">389,818
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
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                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
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                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
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                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">389,818
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">389,818
                                </font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Comprehensive
                                income (Note 13)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">318,452
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">247,654
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,415
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">576,521
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">576,521
                                </font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                                at December 31, 2003</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">131,973,022
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,361,942
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">677,661
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,765,631
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(899,978)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">112,667
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,415
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,028,338
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">273
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,028,611
                                </font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increases
                                in capital stock (Note 13)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,569,962
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,534
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,534
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,534
                                </font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contributions
                                for future capital stock increases (Note 13)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">228,822
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">228,822
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">228,822
                                </font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Comprehensive
                                income (Note 13)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,453,225
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">65,484
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,349
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,521,058
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,521,105
                                </font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balances
                                at December 31, 2004</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">133,542,984
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,386,476
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">677,661
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">228,822
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,218,856
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(899,978)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">178,151
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,764
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,802,752
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">320
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,803,072
                                </font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increases
                                in capital stock (Note 13)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,386,615
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">67,572
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">161,900
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(228,822)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">650
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">650
                                </font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investment
                                in Pav Republic by ICH</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,778,312
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,778,312
                                </font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Comprehensive
                                income (Note 13)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,271,633
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(331,875)</font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27,329
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">967,087
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,378
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">984,465
                                </font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="12%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                                </font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                            <td align="right" valign="bottom" width="4%">&#160;</td>
                            <td align="right" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="#deeced">
                            <td align="left" valign="bottom" width="50%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balances
                                at December 31, 2005</font></div>
                            </td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>137,929,599
                                </strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.
                                </strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3,454,048
                                </strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.
                                </strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="12%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>839,561
                                </strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>-
                                </strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4,490,489
                                </strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(899,978)</strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(153,724)</strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>40,093
                                </strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>7,770,489
                                </strong></font></div>
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                            <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1,796,010
                                </strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                            </td>
                            <td align="right" valign="bottom" width="14%" style="border-bottom: black double;">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>9,566,499
                                </strong></font></div>
                            </td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="12%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="12%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" valign="bottom" width="50%">&#160;</td>
                            <td align="right" valign="bottom" width="2%">&#160;</td>
                            <td align="right" valign="bottom" width="13%">&#160;</td>
                            <td align="right" valign="bottom" width="5%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="12%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="13%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                            <td align="left" valign="bottom" width="4%">&#160;</td>
                            <td align="left" valign="bottom" width="14%">&#160;</td>
                          </tr>
                          <tr bgcolor="white">
                            <td align="left" colspan="23" valign="bottom" width="241%">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
                                accompanying notes to consolidated financial
                                statements.</font></div>
                            </td>
                          </tr>

                      </table>
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                  </div>
                </div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GRUPO
                  SIMEC, S.A. DE C.V. AND SUBSIDIARIES</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Changes in Financial Position</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Years
                  ended December 31, 2005, 2004 and 2003</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Thousands
                  of Constant Mexican pesos as of December 31, 2005)</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br>
                  <div align="left">
                    <table border="0" cellpadding="0" cellspacing="0" width="100%">

                        <tr>
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
                          </td>
                        </tr>
                        <tr>
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Operating
                              activities: </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                              consolidated income</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1,289,011
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                          </td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,453,225
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                          </td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">318,453
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Add
                              (deduct) items not requiring the use of resources</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation
                              and amortization</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>323,568
                              </strong></font></div>
                          </td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">220,979
                              </font></div>
                          </td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">198,016
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                              income tax</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>110,997
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">318,396
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">138,876
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Write-down
                              of idle machinery</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>-
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,627
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,373
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                              credit amortization</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(66,742)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Seniority
                              premiums and termination benefits</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>5,178
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,329
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">269
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Funds
                              provided by operations</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1,662,012
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,008,556
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">674,987
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                              changes in operating assets and liabilities:</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Trade
                              receivables, net</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(128,504)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(526,468)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(21,839)</font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                              accounts receivable and prepaid expenses</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(221,546)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(167,195)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">61,068
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventories,
                              net</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>619,557
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(853,482)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(9,846)</font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Derivative
                              financial instruments</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(10,875)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15,545)</font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Related
                              parties receivables</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3,024
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,714)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,750)</font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                              payable, other accounts payable and accrued expenses</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(274,202)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">450,474
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(65,329)</font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                              long-term liabilities</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>91,290
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Related
                              parties payable (operating)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>-
                              </strong></font></div>
                          </td>
                          <td align="left" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(825)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(187,004)</font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Funds
                              provided by operating activities</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1,740,756
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">909,346
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">432,742
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financing
                              activities:</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Related
                              parties payable (financing)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>448,392
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increases
                              in capital stock</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>650
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,534
                              </font></div>
                          </td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">389,817
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contribution
                              for future capital stock increases</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>-
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">228,822
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unpaid
                              foreign exchange gain</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>8,843
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,009
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Short-term
                              loans (repaid) obtained</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(135,628)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">158,223
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                              debt repayment</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(1,045,256)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(19,705)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(360,331)</font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Decrease
                                in debt due to restatement to constant Mexican pesos
                                as of year
                                end</font></div>
                            </div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(5,212)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,205)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,291)</font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                              long-term liabilities</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>-
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,829
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">81
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
                              of investment in Pav Republic by Industrias ICH</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>487,365
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Funds
                              (used in) provided by financing activities</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(240,846)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">401,498
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,285
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investing
                              activities:</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="left" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Increase)
                              decrease in long-term inventories</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(7,810)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(806)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">63,540
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquisition
                              of property, plant and equipment</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(500,482)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,276,672)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(63,956)</font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                              from the acquisition of Pav Republic</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(1,301,324)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Decrease
                              (increase) in other noncurrent assets</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>126,429
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(71,045)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(25,834)</font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                              from the acquisition of OAL</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(132,000)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Funds
                              used in investing activities</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(1,815,187)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,348,523)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(26,250)</font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                              (decrease) increase in cash and cash equivalents</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(315,277)</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(37,679)</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">437,777
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                              and cash equivalents:</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                              beginning of year </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>523,341
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">561,020
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">123,243
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="#deeced">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                              end of year</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>208,064
                              </strong></font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">523,341
                              </font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%" style="border-bottom: black double;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
                          </td>
                          <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">561,020
                              </font></div>
                          </td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>
                        <tr bgcolor="white">
                          <td align="left" valign="bottom" width="49%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
                              accompanying notes to consolidated financial statements.
</font></div>
                          </td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                          <td align="right" valign="bottom" width="4%">&#160;</td>
                          <td align="right" valign="bottom" width="13%">&#160;</td>
                        </tr>

                    </table>
                  </div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                  </div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
                      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                        <div id="FTR">
                          <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
                            OF CONTENTS</a></font></div>
                        </div>
                        <div id="PN" style="PAGE-BREAK-AFTER: always">
                          <div style="WIDTH: 100%; TEXT-ALIGN: center">
                          </div>
                          <div style="WIDTH: 100%; TEXT-ALIGN: center">
                            <hr style="COLOR: black" noshade size="2">
                          </div>
                        </div>
                        <div id="HDR">
                          <div id="GLHDR" style="WIDTH: 100%" align="center">
                          </div>
                        </div>
                      </div>
                    </div>
                  </div>
                </div>
              </div>
            </div>
          </div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GRUPO
          SIMEC, S.A. DE C.V. AND SUBSIDIARIES</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
          to
          Consolidated Financial Statements</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
          31, 2005, 2004 and 2003</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
          in thousands of Constant Mexican Pesos as of December 31, 2005, unless
          otherwise
          indicated)</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description
        of the Business and Significant Transactions</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Description
        of the Business</em></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        principal activities of Grupo Simec, S.A. de C.V. and subsidiaries (the Company)
        are the manufacture and sale of iron and steel products for the construction
        and
        automotive industries both in Mexico and abroad</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        T</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">he
        Company is a subsidiary of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Industrias
        CH, S.A. de C.V. (Industrias CH). </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Significant
        Transactions</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(a)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  mentioned in Note 14 a) of these notes, on July 22, 2005, the Company
                  and
                  Industrias CH acquired the outstanding shares of PAV Republic Inc.
                  (Republic) through its subsidiary SimRep Corporation, a U.S. company.
                  Such
                  transaction, was valued at USD 245 million where USD 229 million
                  corresponds to the purchase price and USD 16 million, to the direct
                  cost
                  of the business combination. The Company contributed US 123 million
                  to
                  acquire 50.2% of the representative shares of SimRep Corporation
                  and
                  Industrias CH, the holding company, acquired the remaining 49.8%.
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        total
        purchase price of Republic was allocated among the assets acquired and
        liabilities assumed based on their fair values at July 22, 2005. Such fair
        values were determined based on both independent appraisals and estimates
        made
        by management. The purchase price gave rise to negative goodwill that was
        allocated among all the non-current assets acquired. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(b)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                  July 20, 2005, the Company acquired all the shares of Operadora
                  de Apoyo
                  Log&#237;stico, S.A. de C.V., (&#8220;OAL&#8221;) a subsidiary of Grupo TMM, S.A. de C.V.,
                  for a purchase price of Ps. 132 million, for the purpose of converting
                  the
                  acquired company into the operator of three of the iron and steel
                  plants
                  in Mexico. OAL&#8217;s primary assets consisted of deferred tax assets resulting
                  from net operating losses carryforwards (See Note 14 b).
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(c)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                  November 2005 the Company&#8217;s Board of Directors decided to spin off its
                  subsidiary Compa&#241;&#237;a Sider&#250;rgica de California, S.A. de C.V., transferring
                  all of the subsidiary&#8217;s assets, liabilities and stockholders&#8217; equity to
                  the following two new companies: Controladora Simec, S.A. de C.V.
                  and
                  Arrendadora Simec, S.A. de C.V.; consequently, the original company
                  was
                  dissolved to separate the control over the shares of the subsidiaries
                  from
                  the assets that comprise the industrial plants in Guadalajara and
                  Mexicali. This restructure had no effect on the consolidated financial
                  statements.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(d)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  mentioned in Note 14 c) of these notes, on August 9, 2004, the
                  Company
                  acquired the majority of the assets of Atlax, S.A. de C.V. and
                  certain
                  assets of Operadora Metamex, S.A. de C.V., as well as their accumulated
                  labor obligations at such date. Such assets consisted of inventories
                  and
                  steel plants located in Apizaco, Tlaxcala and Cholula, Puebla,
                  which
                  produce specialty steel products and commercial profiles. The purchase
                  price of these assets was approximately USD 120
                  million.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(e)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                  2003, the Company&#8217;s subsidiaries Compa&#241;&#237;a Sider&#250;rgica de Guadalajara, S.A.
                  de C.V. (CSG), Compa&#241;&#237;a Sider&#250;rgica de Occidente, S.A. de C.V. (CSO) and
                  Compa&#241;&#237;a Sider&#250;rgica de California, S.A. de C.V. (CSC) repaid USD
                  1,452,887 for installments due in such year on</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                  the industrial mortgage loan agreement</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Furthermore,
                  in 2003, said companies also prepaid USD 29,930,517 on the loan.
                  </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                  March 18, 2004, the Company prepaid USD 1,697,952 plus interest,
                  thus
                  repaying the loan in full as mentioned in Note
                  9c.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(f)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                  2005, 2004 and 2003, capital increases and certain changes in stock
                  ownership were carried out, which are described in Note
                  13.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(g)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  mentioned in Note 16 f) of these notes, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pacific
                  Steel, Inc (PS) (subsidiary company located in the U.S.) has been
                  sued by
                  the Government of the State of California in the U.S., which requires
                  that
                  PS clean up and relocate part of its facilities related to the
                  generation,
                  storage, transportation and disposal of materials classified as
                  hazardous
                  waste.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                  The Company has filed an appeal against these claims; however,
                  at the date
                  of issue of the consolidated financial statements, the final results
                  of
                  such appeals remain unknown. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(h)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
                  to a public bidding process for non-performing loans without recourse,
                  in
                  2003, Industrias CH acquired through its subsidiary Administradora
                  de
                  Cartera de Occidente, S.A. de C.V. (ACOSA), the assignment of shared
                  recovery loans as well as litigation rights and certain loan-related
                  obligations. Subsequently, on December 11, 2003, with the authorization
                  of
                  the assignor banks, Industrias CH sold 99.98% of the ACOSA shares
                  to&#160;the Company. At December 31, 2003, the total investment amount
                  was
                  Ps. 10,835. When the Company reaches its break-even point it must
                  pay the
                  assignors 50% of the amounts recovered (after deducting authorized
                  expenses spent on recovering these amounts), which should be paid
                  in the
                  first five business days of the month following the recovery. At
                  December
                  31, 2004, ACOSA fully reserved the balance of this account since
                  it has
                  not recovered any amounts. At December 31, 2005, Simec did not
                  have any
                  recoveries with respect to the defaulted
                  receivables.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
        of Significant Accounting Policies</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;&#160;(a)&#160;&#160;
        </em></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: -1.35pt">&#160;&#160;&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Basis
        of preparation and disclosure</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        accompanying consolidated financial statements recognize the effects of
        inflation on financial information, as required by accounting principles
        generally accepted in Mexico (Mexican GAAP). Consequently, amounts shown
        in the
        accompanying financial statements and in these notes are expressed in thousands
        of Constant Mexican pesos as of December 31, 2005, as determined based on
        the
        National Consumer Price Index (NCPI), published by Banco de M&#233;xico.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        annual rates of inflation used to recognize the effects of inflations were
        as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><br></div>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="58%">

            <tr>
              <td valign="top" width="21%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                  31</strong></font></div>
              </td>
              <td valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NCPI</strong></font></div>
              </td>
              <td valign="top" width="6%">&#160;</td>
              <td valign="top" width="14%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Inflation</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="21%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="6%">&#160;</td>
              <td align="justify" valign="top" width="14%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td valign="top" width="21%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">116.301</font></div>
              </td>
              <td valign="top" width="6%">&#160;</td>
              <td valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.33%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="21%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.75pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                  112.550</font></div>
              </td>
              <td valign="top" width="6%">&#160;</td>
              <td valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 15.85pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                  5.19%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td valign="top" width="21%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003</font></div>
              </td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.75pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                  106.996</font></div>
              </td>
              <td valign="top" width="6%">&#160;</td>
              <td valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 15.85pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                  3.97%</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        preparation of financial statements requires management to make estimates
        and
        assumptions that affect the reported amount of assets and liabilities, the
        disclosure of contingent assets and liabilities at the date of the financial
        statements and the reported amounts of revenues and expenses during the year.
        Significant items subject to such estimates and assumptions include the carrying
        amount of property, plant and equipment, other non-current assets, the valuation
        allowance of accounts receivable, inventories and deferred tax assets, the
        valuation of financial instruments, and the liability for labor obligations.
        Actual results could differ from these estimates and assumptions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        purposes of disclosure in these notes, hereinafter the term &#8220;pesos&#8221; or
        abbreviation &#8220;Ps.&#8221; shall refer to Mexican pesos; the term dollars, or
        abbreviation USD shall be taken to mean U.S. dollars.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(b)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Basis of
                  consolidation</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        consolidated financial statements include the financial statements of Grupo
        Simec, S.A. de C.V. and those of its majority-owned and/or controlled
        subsidiaries. All significant intercompany balances and transactions have
        been
        eliminated in the consolidation. The consolidation was based on the audited
        financial statements of the issuing companies, which were prepared under
        Mexican
        GAAP.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s subsidiaries and its equity percentage are as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="67%">

            <tr>
              <td align="justify" valign="top" width="54%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Equity
                  interest %</strong></font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="54%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">&#160;</td>
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            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Compa&#241;&#237;a Sider&#250;rgica de Guadalajara, S.A. de C.V.</font></div>
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              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
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            <tr bgcolor="white">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Compa&#241;&#237;a Sider&#250;rgica de California, S.A. de C.V. (spun off in
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              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Arrendadora Simec, S.A. de C.V.</font></div>
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              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Simec International, S.A. de C.V.</font></div>
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              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Controladora Simec, S.A. de C.V.</font></div>
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              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  SimRep Corporation and Subsidiaries (1)</font></div>
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              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50.22%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Undershaft Investments, N.V.</font></div>
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              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Pacific Steel, Inc.</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Compa&#241;&#237;a Sider&#250;rgica del Pac&#237;fico, S.A. de C.V.</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.99%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Consorcio Internacional, S.A. de C.V. (liquidated in 2004)</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.79%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Coordinadora de Servicios Sider&#250;rgicos de Calidad, S.A. de
                  C.V.</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Administradora de Servicios de la Industria Sider&#250;rgica ICH, S.A. de
                  </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">C.V.
                  </font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.99%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Industrias del Acero y del Alambre, S.A. de C.V.</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.99%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Procesadora Mexicali, S.A. de C.V.</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.99%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Servicios Simec, S.A. de C.V.</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Sistemas de Transporte de Baja California, S.A. de C.V.</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Operadora de Metales, S.A. de C.V. (2)</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Operadora de Servicios Sider&#250;rgicos de Tlaxcala, S.A. de C.V.
                  (2)</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Administradora de Servicios Sider&#250;rgicos de Tlaxcala, S.A,. de C.V.
                  (2)</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Operadora de Servicios de la Industria Sider&#250;rgica ICH, S.A. de
                  </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">C.V.
                  (2)</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="54%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  Administradora de Cartera de Occidente, S.A. de C.V. (3)</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.99%</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 135pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Companies
                  that started being part of Grupo Simec during
                  2005.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 135pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Companies
                  that started being part of Grupo Simec during
                  2004</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 135pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Companies
                  that started being part of Grupo Simec during
                  2003.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(c)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Basis of translation of financial statements of foreign
                  subsidiaries</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        consolidation purposes, the financial statements of the subsidiaries abroad,
        Simrep and subsidiaries, Pacific Steel and Undershaft Investment, were
        translated into pesos in conformity with Mexican accounting Bulletin B-15,
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Transactions
        in Foreign Currency and Translation of Financial Statements of Foreign
        Operations</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        subsidiary SimRep was considered as a foreign entity for translation purposes;
        therefore the financial statements as reported by the subsidiary abroad were
        adjusted to conform with Mexican GAAP, which includes the recognition of
        the
        effects of inflation as required by Mexican accounting Bulletin B-10, applying
        inflation adjustment factors derived from the U.S. Consumer Price Index (CPI)
        published by the U.S. labor department, The financial information already
        restated to include inflationary effects, is translated to Mexican pesos
        as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">-&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
                  applying the prevailing exchange rate at the consolidated balance
                  sheet
                  date for monetary and non-monetary assets and liabilities.
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">-&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
                  applying the prevailing exchange rate for stockholders&#8217; equity accounts,
                  at the time capital contributions were made and earnings were
                  generated.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">-&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
                  applying the prevailing exchange rate at the consolidated balance
                  sheet
                  date for revenues and expenses during the reporting
                  period.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">-&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  related effect of translation is recorded in stockholders&#8217; equity under
                  the caption Equity adjustments for non monetary
                  assets.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">-&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  resulting amounts were restated applying adjustment factors derived
                  from
                  the NCPI, in conformity with Mexican accounting Bulletin
                  B-10.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        subsidiaries Pacific Steel and Undershaft Investment, were considered an
        &#8220;integral part of the operations&#8221; of the Company; and the financial statements
        of such subsidiaries were translated into Mexican pesos as follows:
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">-&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
                  applying the prevailing exchange rate at the consolidated balance
                  sheet
                  date for monetary items.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">-&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
                  applying the prevailing exchange rate at the time the non-monetary
                  assets
                  and capital are generated, and the weighted average exchange rate
                  of the
                  period for income statement items.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">-&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  related effect of translation is recorded in the statement of operations
                  as part of the caption Comprehensive financing
                  cost.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">-&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  resulting amounts were restated applying adjustment factors derived
                  from
                  the Mexican NCPI, in conformity with Mexican accounting Bulletin
                  B-10.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(d)
        </em></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;&#160;&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Cash
        equivalents</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
        equivalents consist of bank deposits, foreign currency and other highly liquid
        investments with maturities of less than 90 days. At the date of the financial
        statements, interest income and foreign exchange gains and losses are included
        in the results of operations under the caption Comprehensive financing
        cost.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(e)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Inventories and cost of sales
</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Domestic
        subsidiaries&#8217; inventories are recorded initially at average cost and then
        adjusted to the lower of replacement cost or net realizable market value
        under
        the direct costing system.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Foreign
        subsidiaries&#8217; inventories are valued on a last-in, first-out (LIFO). For
        translation effects into Mexican GAAP the inventories have been adjusted
        from
        LIFO to the lower of replacement cost or net realizable market value.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        inventory values of the Company were determined as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 54pt;">&#160;</td>
              <td style="width: 225pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                  Billet, finished goods and work in process.-</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                  the most recent direct production
                  cost</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
        Direct cost of sales represents the replacement cost of inventories at the
        time
        of sale, expressed in constant pesos as of the most recent balance sheet
        date
        reported on.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: -234pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 54pt;">&#160;</td>
              <td style="width: 225pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                  Raw materials.-</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                  the prevailing market purchase price at the consolidated balance
                  sheet
                  date</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.55pt" align="left"><br>&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 54pt;">&#160;</td>
              <td style="width: 225pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                  Materials, spare parts and rollers.-</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                  historical cost, restated using the inflation rates of the steel
                  industry</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 288pt; TEXT-INDENT: -234pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company classifies rollers and spare parts as long-term inventories, which
        in
        accordance with historical data and production trends will not be used in
        the
        short-term (one year</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.55pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        restated value of inventories at the balance sheet date is not in excess
        of
        market.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        reserve for slow-moving inventories is determined considering the reprocessing
        cost of the materials and finished products inventories with a turnover above
        one year. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(f)&#160;&#160;&#160;&#160;&#160;&#160;
        </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Derivative
        financial instruments</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        2005,
        2004 and 2003, the Company used derivative financial instruments for hedging
        risks associated with natural gas prices for which it conducted studies on
        historical consumption, future requirements and commitments acquired, thus
        diminishing its exposure to risks other than its normal operating
        risks.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        mitigate the risks associated with changes in natural gas prices occurring
        naturally as a result of the supply and demand on international markets,
        the
        Company uses natural gas cash-flow exchange contracts or natural gas swaps
        to
        offset fluctuations in the price of natural gas, whereby the Company receives
        a
        floating price and pays a fixed price. Fluctuations in natural gas prices
        from
        volumes consumed are recognized as part of the Company&#8217;s operating
        costs.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company recognizes the fair value as an asset or liability and records the
        offsetting amount in other comprehensive income/loss (OCI). The cumulative
        OCI
        is reversed in the month of settlement and the net settlement and any related
        contract costs are booked to cost of goods sold in the month of
        settlement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        fair
        value of these assets or liabilities is restated at the end of each month
        based
        on the new estimate. As mentioned in Note 6 of these notes, the Company opted
        for the early adoption of Mexican accounting Bulletin C-10, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
        for Derivative Instruments and Hedging Activities</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">;
        consequently, at December 31, 2005, 2004 and 2003, these contracts were
        recognized on the balance sheet at fair value, either as liabilities or assets.
        The Company periodically evaluates the changes in the cash flows of the
        derivative instruments to analyze if the swaps are highly effective for
        mitigating the exposure to natural gas price fluctuations. In 2005, 2004
        and
        2003 the derivatives qualified as a derivative financial hedging instrument
        of
        the cash flow type and thus the fair value and subsequent changes of the
        swaps
        are recorded under stockholders&#8217; equity as Comprehensive income net of the
        deferred tax effect.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(g)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Property plant and equipment
</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property,
        plant and equipment is recorded initially at acquisition cost, and then adjusted
        for inflation by applying NCPI factors, except for imported machinery and
        equipment, which is restated based on the inflation rate in the country of
        origin and changes in the foreign exchange rate of the country&#8217;s particular
        currency in relation to the peso. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation
        of property, plant and equipment is computed using the straight-line method
        based on the estimated remaining useful lives of the related assets as
        determined on an individual basis by independent experts and management.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        comprehensive financing cost which includes (i) the interest cost, (ii) any
        foreign currency fluctuations, and (iii) the related monetary position result
        of
        assets under construction or installation is capitalized as part of the value
        of
        such assets and is restated based on the NCPI factors from the date capitalized
        through year-end and amortized over the average depreciation period of the
        related assets.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        estimated useful lives of the Company&#8217;s property, plant and equipment are as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="56%">

            <tr>
              <td align="justify" valign="top" width="39%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Years</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="39%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="justify" valign="top" width="12%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Buildings</font></div>
              </td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15
                  to 65</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Machinery
                  and equipment</font></div>
              </td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10
                  to 40</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Transportation
                  equipment</font></div>
              </td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Furniture,
                  fixtures and computer equipment</font></div>
              </td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Maintenance
        and minor repairs are expensed as incurred.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(h)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Other assets, intangible assets and deferred
                  charges</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
        assets include mainly technical assistance, organization and pre-operating
        expenses and, except for technical assistance, are restated for inflation
        based
        on the NCPI factors. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
        is computed on restated values using the straight-line method, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">over
        periods ranging from 3 to 20 years.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        mentioned in note 1 a), as a result of the Republic acquisition, the Company
        identified and recorded intangible assets at a fair value totaling Ps. 345.6
        million. As of December 31, 2005 the Company&#8217;s intangible assets and deferred
        charges include Ps. 318.5 million net of Ps. 27.12 of accumulated depreciation
        related to the Republic trade name, customer list, and certain labor, licenses,
        and suppliers agreements. The amount recorded and the useful life were
        determined based on independent appraisals. The Republic trade name has an
        indefinite useful life and will not be amortized. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        estimated useful lives and amortization are as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify">&#160;</div>
      <div align="right">
        <table border="0" cellpadding="0" cellspacing="0" width="90%">

            <tr>
              <td align="left" colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>INTANGIBLES</em></strong></font></div>
              </td>
              <td align="left" valign="bottom" width="8%">&#160;</td>
              <td align="left" valign="bottom" width="9%">&#160;</td>
              <td align="left" valign="bottom" width="3%">&#160;</td>
              <td align="left" valign="bottom" width="9%">&#160;</td>
              <td align="left" valign="bottom" width="21%">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="22%">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="5%">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%">&#160;</td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div align="right">
        <table border="0" cellpadding="0" cellspacing="0" width="90%">

            <tr>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="left" valign="bottom" width="3%">&#160;</td>
              <td valign="bottom" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Value
                  at </font></div>
              </td>
              <td valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Useful</font></div>
              </td>
              <td valign="bottom" width="3%">&#160;</td>
              <td valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td colspan="8" valign="bottom" width="45%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
                  Future Amortization</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="left" valign="bottom" width="3%">&#160;</td>
              <td valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22-Jul-05</font></div>
              </td>
              <td valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Life</font></div>
              </td>
              <td valign="bottom" width="3%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization</font></div>
              </td>
              <td valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td colspan="2" valign="bottom" width="18%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2007</font></div>
              </td>
              <td colspan="2" valign="bottom" width="18%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2008</font></div>
              </td>
              <td colspan="2" valign="bottom" width="6%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2009</font></div>
              </td>
              <td valign="bottom" width="5%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2010</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="left" colspan="2" valign="bottom" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Republic
                  Tradename </font></div>
              </td>
              <td align="right" valign="bottom" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps</font></div>
              </td>
              <td align="left" valign="bottom" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">78,764
                  </font></div>
              </td>
              <td valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indefinite</font></div>
              </td>
              <td valign="bottom" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td colspan="2" valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td colspan="2" valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td colspan="2" valign="bottom" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td valign="bottom" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" colspan="2" valign="bottom" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Union
                  Agreements </font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">126,902
                  </font></div>
              </td>
              <td valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24.5
                  months</font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23,344</font></div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">62,156
                  </font></div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">41,402
                  </font></div>
              </td>
              <td colspan="2" valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td colspan="2" valign="bottom" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td valign="bottom" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="left" colspan="2" valign="bottom" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kobe
                  Tech </font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">91,890
                  </font></div>
              </td>
              <td valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">144
                  months</font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,878
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,690
                  </font></div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,690</font></div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,690
                  </font></div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,690
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,690
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" colspan="2" valign="bottom" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                  Relationships</font></div>
              </td>
              <td align="left" valign="bottom" width="3%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48,127
                  </font></div>
              </td>
              <td valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">240
                  months</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: black thin solid;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">905
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,407
                  </font></div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="18%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,407</font></div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="18%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,407</font></div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="6%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,407
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,407</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="left" valign="bottom" width="1%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="12%">
                <div>&#160;</div>
              </td>
              <td align="right" valign="bottom" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps</font></div>
              </td>
              <td align="left" valign="bottom" width="8%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">345,683</font></div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div>&#160;</div>
              </td>
              <td valign="bottom" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="left" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27,127
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">72,253
                  </font></div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="18%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">51,499</font></div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="18%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,097
                  </font></div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,097</font></div>
              </td>
              <td align="left" valign="bottom" width="5%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,097</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        December 31, 2005 intangible assets subject to amortization are being amortized
        over periods ranging from 2 to 20 years with a weighted average amortization
        period of approximately 9 years. Amortization expense aggregated Ps.27.1
        million
        from the date Republic was acquired through the date of the financial
        statements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;&#160;
        (i)&#160;&#160;&#160;&#160; &#160;&#160;&#160;</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Accruals</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
        on
        management estimates, the Company recognizes accruals for these present
        obligations for which the transfer of assets or the rendering of services
        exist,
        arise as a consequence of past events (such events refer primarily to salaries
        and other amounts payable to employees, and fees) or it is probable that
        the
        effects will materialize and can be reasonably quantified.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(j)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Seniority premiums and termination
                  payments</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        accumulated benefits for seniority premiums to which employees are entitled
        by
        law, are recognized in the results of operations of each year, based on
        actuarial computations of the present value of such obligation. Past service
        costs are being amortized over the estimated remaining working lifetime of
        employees. At December 31, 2005, the estimated average working lifetime of
        the
        Company&#8217;s employees entitled to pension benefits ranges from 8 to 9 years,
        approximately.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Through
        2004, other compensations to which employees were entitled, mainly termination
        payments, were charged to results of operations of the year, if and when
        the
        payments were vested.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        revised Mexican accounting Bulletin D-3, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Labor
        Obligations</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        issued
        by the Mexican Institute of Public Accountants and adopted in 2005 by the
        Company, establishes the overall rules for the valuation, presentation and
        disclosure of so-called &#8220;other post-retirement benefits and the reduction and
        early extinguishment of such benefits&#8221;, and includes rules applicable to
        employee termination pay. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(k)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Income tax, asset tax and employee profit sharing
                  </em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
        income tax is accounted for using the asset and liability method, which is
        based
        on a comparison of the book and tax values of balance sheet accounts. Deferred
        tax assets and liabilities are recognized on temporary differences between
        assets and liabilities for financial and tax reporting purposes, as well
        as the
        available tax loss carryforward and creditable asset tax paid. Deferred tax
        assets and liabilities are determined using the enacted income tax rate at
        the
        balance sheet date, or the enacted income tax rate that will be in effect
        at the
        time the temporary differences giving rise to deferred tax assets and
        liabilities are expected to be recovered or paid, respectively. The effect
        on
        deferred tax assets and liabilities due to changes in tax rates is recognized
        in
        results of operations in the period in which such changes are
        approved.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company is required to estimate income taxes in each of the jurisdictions
        in
        which it operates. This process involves the jurisdiction-by-jurisdiction
        estimation of actual current tax exposure and the assessment of temporary
        differences.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Asset
        tax
        is offset against deferred income tax, making the appropriate evaluation
        of
        recovery. Deferred tax assets are evaluated periodically, providing, if
        necessary, an estimate for those amounts of doubtful recovery.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company records a valuation allowance to reduce the deferred tax assets to
        an
        amount that it considers is more likely than not to be realized. In assessing
        the need for the valuation allowance, the Company considers future taxable
        income. In the event that estimates of projected future taxable income change,
        or amendments in current tax regulations are enacted that would impose
        restrictions on the timing or extent of our ability to utilize the tax benefits
        of the deferred income tax assets, an adjustment to the recorded amount of
        net
        deferred tax assets would be made, with a related charge to income.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Significant
        management judgment is required in determining our provisions for income
        taxes,
        deferred tax assets and liabilities. If actual results differ from these
        estimates, or we adjust these estimates in future periods, our financial
        position and results of operations may be materially affected.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
        employee profit sharing is recognized only on temporary differences determined
        in the reconciliation of current year net income and taxable income for employee
        profit sharing purposes, provided it may be reasonably estimated that a future
        liability or benefit will arise and there is no indication that the related
        liability or benefit will not be realized in the future.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(l)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Deferred credit</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company applied on a supplementary basis to Mexican GAAP, US EITF 98-11
&#8220;Accounting for Acquired Temporary Differences in Certain Purchase Transactions
        that are not Accounted for as Business Combinations&#8221; to the OAL acquisition. The
        deferred credit is obtained from the difference between the amount paid and
        the
        deferred tax asset recognized resulting from the purchase of future tax benefits
        from OAL.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        deferred credit is being amortized to results of operations in the same
        proportion to the realization of the tax benefits that gave rise to the deferred
        credit (See note 14b). </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(m)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Restatement of capital stock, other capital contributions and retained
                  earnings</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        restatement of capital stock, other capital contributions and retained earnings
        is determined by applying the NCPI from the time </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">contributions
        were made and earnings were generated through the most recent
        year-end.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        The
        resulting amount represents the amount needed to maintain the stockholders&#8217;
investment at a constant level. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(n)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Cumulative deferred income
                  tax</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        caption represents the accumulated effect of deferred taxes determined at
        the
        time the related accounting principle was first applied, restated at the
        most
        recent balance sheet date.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.55pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(o)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Equity adjustment for non-monetary
                  assets</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        caption represents the difference between the restatement of non-monetary
        assets
        using the specific-cost method and the restatement based on the NCPI, reduced
        by
        the related deferred tax effect at the time Bulletin B-10 was first
        applied.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(p)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Comprehensive financing
                  cost</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Comprehensive
        financing cost consists of interest, net exchange differences and the monetary
        effect. Transactions in foreign currency are recorded at the prevailing exchange
        rate on the day of the related transactions. Monetary assets and liabilities
        denominated in foreign currency are translated using the prevailing exchange
        rate at the balance sheet date. Exchange differences determined on foreign
        currency denominated assets or liabilities are charged or credited to results
        of
        operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        monetary effect is determined by multiplying the difference between monetary
        assets and liabilities at the beginning of each month by the rate of inflation
        through year-end. The result thereby obtained represents the net monetary
        position gain or loss on inflation and is credited or charged to results
        of
        operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(q)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Environmental costs</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">It
        is the
        Company&#8217;s policy to endeavor to comply with applicable environmental laws and
        regulations. The Company established a liability for an amount which the
        Company
        believes it is appropriate, based on information currently available, to cover
        costs of environmental remediation it deems probable and estimable.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        recorded amounts represent estimates of the environmental remediation costs
        associated with future events triggering or confirming the costs that, in
        management&#8217;s judgment, are probable. These estimates are based on currently
        available facts, existing technology and presently enacted laws and regulations,
        and take into consideration the likely effects of inflation and other societal
        and economic factors. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(r)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Revenue recognition</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
        from the sale of products are recognized at the time products are shipped
        and
        the related risks and benefits of merchandise are transferred to the customer.
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company provides for freight expenses, returns and sales discounts at the
        time
        the related revenue is recognized. These provisions are deducted from net
        sales
        in the income statement,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(s)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Business
                  and credit
                  concentration-</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company does not believe it has significant concentrations of credit risks
        in
        its accounts receivable. The Company has a large customer base and
        geographically diverse, consequently, no significant concentration in a specific
        customer or market. The Company records an allowance for doubtful accounts
        which
        covers accounts receivables with specific collection problems based on analyses
        and estimates made by management. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.55pt" align="center"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(t)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
                  Earnings per share</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        basic
        earnings per share of each period have been computed by dividing the net
        consolidated income by the weighted average number of shares outstanding
        of each
        period</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(u)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;&#160;
                  Use of estimates</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        preparation of consolidated financial statements requires management to make
        estimates and assumptions that affect the financial statements, the disclosure
        of contingent assets and liabilities at the date of the financial statements
        and
        the reported amounts of revenues and expenses during the year. Actual results
        could differ from these estimates.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company has made significant accounting estimates with respect to the valuation
        allowances of accounts receivable, inventories, long-lived assets, deferred
        tax
        assets and liabilities, environmental obligations and employee health care
        obligations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following is the rollforward of the allowance for bad debt for the year ended
        December 31, 2005 (previous years&#8217; allowance was considered not
        significant):</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="43%">

            <tr>
              <td align="left" valign="top" width="30%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" colspan="2" valign="top" width="13%" style="border-bottom: black thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="left" valign="top" width="30%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                  as of December 31, 2004</font></div>
              </td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,983</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="30%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provision
                  for the year</font></div>
              </td>
              <td valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26,229</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="left" valign="top" width="30%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Write-off
                  of uncollectible accounts</font></div>
              </td>
              <td valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,383)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="30%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Restatement
                  of the initial balance</font></div>
              </td>
              <td valign="top" width="4%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">242</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td valign="top" width="30%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Balance
                  as of December 31, 2005</strong></font></div>
              </td>
              <td align="right" valign="top" width="4%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ps.</strong></font></div>
              </td>
              <td align="right" valign="top" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>31,071</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(v)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Contingencies
                  </em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Significant
        liabilities or losses derived from contingencies are recognized when it is
        probable that such contingencies will materialize and when there are reasonable
        elements for quantifying the related liabilities. When a reasonable estimate
        cannot be made, contingencies are disclosed qualitatively in the notes to
        the
        consolidated financial statements. Contingent revenues, earnings or assets
        are
        recognized only when it is virtually certain that they will be
        realized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(w)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Impairment
                  in the value of property, machinery and equipment and other non-current
                  assets</em></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company periodically evaluates the book value of its long-lived assets,
        machinery and equipment, intangibles and other assets to determine whether
        there
        are any indications of impairment (i.e., carrying value in excess of recoverable
        amount). The recoverable amount represents the net potential income that
        may
        reasonably be expected to be obtained from the use or sale of such assets.
        If
        the book value of a given asset is determined to be excessive, the Company
        makes
        the necessary allowances to reduce the carrying value of the asset to its
        recoverable amount. Assets to be sold are presented in the financial statements
        at the lower of their carrying value or recoverable amount.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 26pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Foreign
        Currency Position</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Foreign
        currency denominated assets and liabilities at December 31, 2005 and 2004
        were
        as follows: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div align="center">
          <table border="0" cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td width="4%">&#160;</td>
                <td valign="top" width="11%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td colspan="2" valign="top" width="22%" style="border-bottom: black thin solid;">&#160;</td>
                <td colspan="2" valign="top" width="22%" style="border-bottom: black thin solid;">&#160;</td>
                <td colspan="2" valign="top" width="22%" style="border-bottom: black thin solid;">&#160;</td>
                <td colspan="2" valign="top" width="22%" style="border-bottom: black thin solid;">&#160;</td>
              </tr>
              <tr>
                <td width="4%">&#160;</td>
                <td valign="top" width="11%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td colspan="2" valign="top" width="22%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thousands
                    of U.S. dollars</font></div>
                </td>
                <td colspan="2" valign="top" width="22%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thousands
                    of euros</font></div>
                </td>
                <td colspan="2" valign="top" width="22%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thousands
                    of pounds sterling</font></div>
                </td>
                <td colspan="2" valign="top" width="22%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thousands
                    of deutsche marks</font></div>
                </td>
              </tr>
              <tr>
                <td width="4%">&#160;</td>
                <td valign="top" width="11%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
                </td>
              </tr>
              <tr bgcolor="#deeced">
                <td width="4%" bgcolor="#ffffff">&#160;</td>
                <td align="right" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                    assets</font></div>
                </td>
                <td align="right" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">USD
                    163,318</font></div>
                </td>
                <td align="right" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">USD
                    68,091</font></div>
                </td>
                <td valign="middle" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td valign="middle" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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              </tr>
              <tr bgcolor="white">
                <td width="4%">&#160;</td>
                <td align="right" valign="top" width="11%">&#160;</td>
                <td align="right" valign="top" width="11%">&#160;</td>
                <td align="right" valign="top" width="11%">&#160;</td>
                <td valign="top" width="11%">&#160;</td>
                <td valign="top" width="11%">&#160;</td>
                <td align="right" valign="top" width="11%">&#160;</td>
                <td align="right" valign="top" width="11%">&#160;</td>
                <td align="right" valign="top" width="11%">&#160;</td>
                <td align="right" valign="top" width="11%">&#160;</td>
              </tr>
              <tr bgcolor="#deeced">
                <td width="4%" bgcolor="#ffffff">&#160;</td>
                <td align="justify" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                    liabilities</font></div>
                </td>
                <td align="right" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                    (180,511)</font></div>
                </td>
                <td align="right" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                    (32,809)</font></div>
                </td>
                <td align="right" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EUR
                    (86)</font></div>
                </td>
                <td align="right" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EUR
                    (78)</font></div>
                </td>
                <td align="right" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 5.95pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GBP
                    (87)</font></div>
                </td>
                <td align="right" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 5.95pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GBP
                    (87)</font></div>
                </td>
                <td align="right" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DEM
                    (49)</font></div>
                </td>
                <td align="right" valign="top" width="11%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DEM
                    (49)</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td width="4%">&#160;</td>
                <td align="justify" valign="top" width="11%" style="border-bottom: white thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                    liabilities</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                    (36,095)</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 5.95pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 5.95pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
              </tr>
              <tr bgcolor="#deeced">
                <td width="4%" bgcolor="#ffffff">&#160;</td>
                <td align="justify" valign="top" width="11%" style="border-bottom: #deeced thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    liabilities</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                    (216,606)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                    (32,809)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                    &#160;&#160; (86)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                    (78)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;
                    (87)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                    (87)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;
                    &#160;&#160;&#160;&#160; (49)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;
                    &#160;&#160; (49)</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td width="4%">&#160;</td>
                <td align="left" valign="top" width="11%" style="border-bottom: white solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    assets (liabilities)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                    &#160;(53,288)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                    35,282</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                    (86)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                    (78)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 5.95pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;
                    (87)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 5.95pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                    (87)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 5.95pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;
                    &#160;&#160;&#160;&#160; (49)</font></div>
                </td>
                <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;
                    &#160;&#160; (49)</font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        exchange rates at April 28, 2006 and at December 31, 2005 and 2004 were as
        follows (amounts in pesos):</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="60%">

            <tr>
              <td align="justify" valign="top" width="13%">&#160;</td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>April
                  28</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                  31,</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                  31, </strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="13%">&#160;</td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="13%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="14%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="14%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="13%">&#160;</td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="13%">&#160;</td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="14%">&#160;</td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="14%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dollar</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                  11.1578</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.75pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                  10.7777</font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.75pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                  11.264</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Euro</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13.9983</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="14%">
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              <td valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="14%">
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            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="13%">
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="13%">
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              <td align="right" valign="top" width="14%">
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              <td align="right" valign="top" width="14%">
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              <td align="justify" valign="top" width="13%">
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                  mark</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="13%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.1572</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="14%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 8.75pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.4319</font></div>
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              <td valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="14%" style="border-bottom: black double;">
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        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        December 31, 2005 and 2004, the Company had the following monetary position
        from
        foreign non-monetary assets, or from assets whose replacement cost can only
        be
        determined in U.S. dollars.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="71%">

            <tr>
              <td align="justify" valign="top" width="39%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td colspan="3" valign="top" width="27%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Thousands
                  of U.S. dollars</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="39%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td valign="top" width="13%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="39%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="justify" valign="top" width="13%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="justify" valign="top" width="12%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Machinery
                  and equipment, net</font></div>
              </td>
              <td valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">341,302</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">280,909</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventories</font></div>
              </td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="13%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">287,043</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38,105</font></div>
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            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="39%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="13%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="39%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="13%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">628,345</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">319,014</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        summary of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">transactions
        carried out in U.S. dollars for the years ended December 31, 2005, 2004 and
        2003, excluding imports of machinery and equipment, is as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="71%">

            <tr>
              <td align="justify" valign="top" width="24%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td colspan="5" valign="top" width="44%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Thousands
                  of U.S. dollars</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="24%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td valign="top" width="14%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="3%">&#160;</td>
              <td valign="top" width="13%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="24%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="justify" valign="top" width="14%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="justify" valign="top" width="13%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="justify" valign="top" width="12%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales</font></div>
              </td>
              <td align="left" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">USD
                  650,508</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">USD
                  52,468</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">USD
                  28,810</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchases
                  (raw materials)</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(392,269)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(78,422)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(24,304)&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  expenses (spare parts)</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(7,522)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,898)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(462)&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  expense</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="14%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,478)&#160;
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              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="13%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(28)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,312)&#160;
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              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        exchange rate of the peso to foreign currencies used by the Company is based
        on
        the weighted average of free market rates available to settle its overall
        foreign currency transactions</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company has three foreign subsidiaries, whose combined assets, liabilities
        and
        stockholders&#8217; equity are as follows: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="70%">

            <tr>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td colspan="3" valign="top" width="23%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Thousands
                  of U.S. dollars</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="justify" valign="top" width="11%">&#160;</td>
              <td align="justify" valign="top" width="1%">&#160;</td>
              <td align="justify" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  monetary assets</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventories
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              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
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              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6,824)&#160;
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            <tr bgcolor="white">
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Working
                  capital</font></div>
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              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">266,911&#160;
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,525)&#160;
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            <tr bgcolor="white">
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property,
                  plant and equipment</font></div>
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              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">139,787</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,766</font></div>
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            <tr bgcolor="white">
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  assets and deferred charges</font></div>
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              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32,702</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
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            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                  liabilities</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(100,233)&#160;
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stockholders&#8217;
                  equity</font></div>
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              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">339,167&#160;
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              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,759)&#160;
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              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(4)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Related
        Party Transactions and Balances</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Transactions
        carried out with related parties, primarily with Industrias CH, during the
        years
        ended December 31, 2005, 2004 and 2003 were as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="71%">

            <tr>
              <td align="justify" valign="top" width="29%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td valign="top" width="13%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="29%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="justify" valign="top" width="13%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="12%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="29%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
                  (1)</font></div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,807</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">128,725</font></div>
              </td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">188,407</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="29%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchases</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,648</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,004</font></div>
              </td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,733</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="29%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  income</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,736</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="29%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Administrative
                  services expenses (2)</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,138</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,720</font></div>
              </td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,115</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;</font></td>
              <td>
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                  this transaction relates to Intercompany sales of inventory with
                  Industrias CH</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">These
                  operations relate to Intercompany payroll services primarily with
                  Administraci&#243;n de empresas CH, S.A. de
                  C.V.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balances
        due from/to, related companies at December 31, 2005 and 2004 are as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  receivable:</font></div>
              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td align="justify" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="1%">&#160;</td>
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            <tr>
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              <td valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%">&#160;</td>
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            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%">&#160;</td>
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              <td align="right" valign="top" width="12%">
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              <td align="right" valign="top" width="11%">
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              <td align="justify" valign="top" width="43%">
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              <td valign="bottom" width="12%" style="border-bottom: black thin solid;">
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              <td align="right" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td valign="bottom" width="12%">&#160;</td>
              <td align="right" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td valign="top" width="4%">
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              <td align="right" valign="bottom" width="12%" style="border-bottom: black double;">
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            </tr>

        </table>
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            <tr valign="top" style="line-height: 1.25;">
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        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
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              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
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            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="1%">&#160;</td>
              <td align="justify" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Finished
                  goods</font></div>
              </td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,896,875</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">171,866</font></div>
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            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Work
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              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,888</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,615</font></div>
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            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Billets</font></div>
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              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">123,263</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">159,163</font></div>
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            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Raw
                  materials and supplies</font></div>
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              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">274,399</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">582,514</font></div>
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            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Materials,
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              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">130,576</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">85,576</font></div>
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            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Advances
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              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">146,644</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">114,035</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%" style="border-bottom: #deeced solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goods
                  in transit</font></div>
              </td>
              <td align="right" valign="top" width="4%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60,190</font></div>
              </td>
              <td align="right" valign="top" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">56,642</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
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              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(6)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Derivative
        Financial Instruments</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company uses derivative financial instruments primarily to offset its exposure
        to financial risks related to the price of natural gas. Derivative instruments
        currently used by the Company consist of natural gas swap contracts. These
        contracts are recognized on the balance sheet at fair value. The swaps are
        considered as cash flow hedges since the cash flow exchanges under the swap
        are
        highly effective in mitigating exposure to natural gas price fluctuations.
        The
        fair value of the swaps are recorded as part of Comprehensive income in
        stockholders&#8217; equity, in conformity with Mexican accounting Bulletin C-10,
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
        for Derivative Instruments and Hedging Activities</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        which
        the Company adopted early at December 31, 2003.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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        Mexico
        the Company entered into these types of contracts with PEMEX Gas and
        Petroqu&#237;mica B&#225;sica (PGPB) under which the Company pays a fixed price and
        receives a floating price during the contract period of 2004-2006. In the
        United
        States the swap contracts entered by the Company are for terms of less than
        one
        year. </font></div>
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        December 31, 2005 and 2004, the swaps gave rise to the recognition of an
        asset
        of Ps. 57,106 and Ps. 18,902, and a deferred tax liability of Ps. 16,561
        and Ps.
        5,671, as well as a net comprehensive income item in stockholders&#8217; equity of Ps.
        40,093 and Ps. 12,764, respectively. Amounts recorded in comprehensive income
        were Ps. 10,415, Ps. 2,349 and Ps. 27,329 in the years 2005, 2004 and 2003
        respectively.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
        on
        its inventory turnover, the Company believes that the natural gas burned
        and
        incorporated in its products during a given month is reflected in the cost
        of
        sales of the subsequent month; consequently, the realized effects of this
        hedge
        are reclassified from the comprehensive income account to results of operations
        in the following month. According to the contract termination dates, the
        whole
        value of the swaps will be realized during the year 2006. In the year ended
        December 31, 2005, the Company recorded Ps. 34.9 million as a reduction in
        the
        cost of sales as a result of the transactions settled. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.85pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(7)&#160;&#160;</strong></font>&#160;&#160;&#160;&#160;&#160;&#160;
        <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Property,
        Plant and Equipment</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property,
        plant and equipment are comprised as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
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            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Buildings</font></div>
              </td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,881,924</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,762,747</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Machinery
                  and equipment</font></div>
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              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,485,640</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,089,971</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Transportation
                  equipment</font></div>
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              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48,284</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47,711</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Furniture,
                  fixtures and computer equipment</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">54,346</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">39,956</font></div>
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            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,470,194</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,940,385</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less:
                  accumulated depreciation</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,500,544</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,504,568</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,969,650</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,435,817</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Land
                  </font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">511,862</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">489,482</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Construction
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              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">556,967</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,511</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Idle
                  machinery and equipment</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30,568</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
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        in progress corresponds primarily to machinery. The completion date of these
        projects is scheduled for May 2006 and the pending investment amount is Ps.
        5,574.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
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        December 31, 2005 and 2004, the Company has capitalized the comprehensive
        financing cost of building and machinery and equipment in the net amount
        of Ps.
        7,544, and Ps. 477,603</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        respectively, as an addition to </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        acquisition cost.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        December 31, 2005 and 2004, the specific restatement rate of machinery and
        equipment was lower than the NCPI, since a significant portion of such machinery
        is imported and accordingly, the inflation factor of the country of origin
        and
        the devaluation of the peso versus the respective currency were lower than
        the
        NCPI.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(8)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Accruals</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accruals
        at December 31, 2005 and 2004 include the following:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="31%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Salaries
                  and other personnel benefits</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%">&#160;</td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">&#160;</td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="31%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                  31, 2005</strong></font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%" style="border-bottom: black thin solid;">&#160;</td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Fees</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="31%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="justify" valign="top" width="10%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="justify" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                  at December 31, 2004</font></div>
              </td>
              <td align="justify" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,302&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,578</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,880</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increases
                  charged to operations</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">254,940&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,100</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">258,040</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Payments</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(249,455)</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2,355)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(251,810)&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                  at December 31, 2005</font></div>
              </td>
              <td align="justify" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="left" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,787&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,323</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,110</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="31%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                  31, 2004</strong></font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%">&#160;</td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%">&#160;</td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">&#160;</td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="31%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="justify" valign="top" width="10%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="justify" valign="top" width="12%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="justify" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                  at December 31, 2003</font></div>
              </td>
              <td align="justify" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,096&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,523</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,619</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increases
                  charged to operations</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">51,820&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,387</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">58,207</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Payments</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(54,614&#160;)&#160;
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              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,332)&#160;
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              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(58,946)&#160;
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              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="31%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                  at December 31, 2004</font></div>
              </td>
              <td align="justify" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,302&#160;
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              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,578</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,880</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(9)&#160;&#160;&#160;
        &#160;&#160;&#160;&#160;&#160;&#160; </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Notes
        Payable, Long-term Debt and Medium-term Notes</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(a)&#160;&#160;&#160;&#160;&#160;
        </em></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: -1.35pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Notes
        payable</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        caption includes uncollateralized loans with BBVA Bancomer, S.A. that bear
        annual interest ranging from 3.24% to 3.37% and mature at March 31,
        2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(b)&#160;&#160;&#160;&#160;&#160;
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        debt</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        December 31, 2005 and 2004, the Company&#8217;s long-term debt is as
        follows</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="47%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="47%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Debt
                  with Ohio Department of Development</font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.65pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46,690</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="47%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revolving
                  loan with General Electric Capital (GE)</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.65pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">359,975</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="justify" valign="top" width="47%" style="border-bottom: #deeced solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Medium-term
                  notes </font></div>
              </td>
              <td align="right" valign="top" width="5%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,254</font></div>
              </td>
              <td align="right" valign="top" width="2%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,515</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="47%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  long-term debt</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">409,919</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,515</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="47%">&#160;</td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="justify" valign="top" width="47%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less:
                  current portion of long-term debt</font></div>
              </td>
              <td align="right" valign="top" width="5%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,898</font></div>
              </td>
              <td align="right" valign="top" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,515</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="47%">&#160;</td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="47%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                  debt excluding current portion</font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.65pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">389,021</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 5.3pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.55pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Long-term
        debt</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        company has a loan with Ohio Department of Development that was used to
        modernize the plant in Lorain, Ohio. The project concluded in 2003. The initial
        amount of the loan was USD 5 million, bearing 3% annual interest and maturing
        on
        the first day of each month, through the final maturity of July 2008. Principal
        amounts of USD 1.6 million, USD 1.7 million and USD 1 million mature during
        2006, 2007 and 2008, respectively. The loan is guaranteed by the project
        to
        modernize the 20-inch bar mill in the Lorain plant. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Revolving
        line of credit with General Electric Capital (GE) </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        July
        22, 2005, Republic one of the Company&#8217;s subsidiaries located in USA had an
        available revolving line of credit with a guarantee of Ps 2,683.2 million
        (USD
        250 million) with General Electric Capital Corporation (GE capital). Such
        loan
        matures in May 2009 but may be rolled over through May 20, 2010. As of November
        1, 2005, the available credit line of Ps 2,683 millions (USD 250 million)
        was
        reduced to Ps 1,609.9 millions (USD 150 million).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        December 31, 2005 has an outstanding balance with GE Capital of Ps 359.97
        million (USD 33.4 million) and Ps 35.4 million (USD 3.3 million) on letters
        of
        credit. The company&#8217;s available balance at December 31, 2005 aggregates Ps 1,216
        million (USD 113.3 million). The company has to pay a 0.50% annual commission
        on
        the unused credit. The available draw downs are limited to the sum of 85%
        of
        Republic&#8217;s determined accounts receivable plus 65% of its determined inventory.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        loan
        is unconditionally and irrevocably guaranteed by Republic&#8217;s subsidiaries and
        specifically with their current inventories and accounts receivable, as well
        as
        its subsequent acquisitions. As of December 31, 2005 the inventories and
        accounts receivables aggregated Ps 2,751 million and Ps 1,159 millions
        respectively.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Such
        loan
        bears interest based on one of the two following options, which the Company
        shall choose at its own discretion: 1) at an indexed rate equal to the highest
        prime rate published by the Wall Street Journal, plus the applicable margin,
        or
        the federal funds rate plus 50 base percentage points per year and the
        applicable margin; 2) the LIBOR plus the applicable margin. Margins were
        adjusted based on the available rate for the quarter on a base established
        in
        advance. The base for the applicable margin for the indexed rate was adjusted
        between 0.00% and 1.00%, and the rate for margins applicable to the LIBOR
        was
        adjusted between 1.75% and 2.75%. From November 1, 2005 through the end of
        2005,
        the rate was fixed at 0.00% for the applicable margins for the prime rate
        and
        1.00% for the applicable margin for the LIBOR. At December 31, 2005, the
        loans
        from GE Capital bear interest at an annual 7.25% rate for the loans at indexed
        rates and an annual 5.38% rate for those at the LIBOR. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        January 1, 2006, the applicable margins will be adjusted from 0.00% to 0.25%
        for
        the indexed rate, and 0.875% to 1.25% for the loans at the LIBOR, based on
        the
        average daily availability of the preceding quarter. The new agreement also
        changes the commission on the unused credit from 0.50% to 0.375%. Based on
        the
        last quarter of 2005, in accordance with the available daily rate, the initial
        margins for 2006 will be 0.00% for the indexed rate, 0.875% for the LIBOR,
        0.500% for the commission on the unused credit, and 0.875% applicable to
        the
        letters of credit.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        loan
        from GE Capital establishes a series of requirements, obligations and
        restrictive covenants, including limitations in capital investments and
        maintenance. Expenses in capital investment exclusively in Republic for any
        fiscal year are limited to Ps 1,077.8 million (USD 100 million), excluding
        expenses on capital investments financed by earnings from insurance recoveries.
        At December 31, 2005, the Company is in compliance with all such requirements,
        obligations and restrictive covenants established in the loan with GE
        Capital.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(c)&#160;&#160;
        </em></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: -1.35pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Industrial
        mortgage loan</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Advance
        payments of USD 1,697,952 were made on the industrial mortgage loan in 2004,
        plus the corresponding interest. On March 18, 2004, the Company repaid in
        full
        the loan in the amount of USD 1,697,952.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company and all of its subsidiaries that own property, plant and equipment
        took
        out an industrial mortgage as security on this loan.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        The
        Company&#8217;s management is in the process of canceling the guarantees established
        in the restructuring agreement entered into with the banks, which allows
        the
        industrial mortgage to be released.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(10)&#160;&#160;</strong></font>&#160;&#160;&#160;
        <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Seniority
        Premiums and Termination Payments</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        cost,
        obligations and other components of seniority premiums and termination payments
        mentioned in note 2j were determined based on computations made by independent
        actuaries at December 31, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005,
        2004 and 2003.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        components of the net period cost for the years ended December 31, 2005,
        2004
        and 2003 are as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="35%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  period cost</font></div>
              </td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="justify" valign="top" width="9%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="justify" valign="top" width="8%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="justify" valign="top" width="9%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Labor
                  cost</font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,841&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">589&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">307&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                  cost</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,050&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">319&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">215&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
                  of transition liability</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,121&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">402&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">257&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
                  of prior service cost and plan modifications</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">197&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">94&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">69&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                  of cancelled obligations</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(31)</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">369&#160;
                  </font></div>
              </td>
              <td valign="top" width="2%">&#160; &#160;</td>
              <td valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  period cost</font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,178&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,773&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">848&#160;
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
        analysis of the present value of benefit obligations is as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="35%">&#160;</td>
              <td valign="top" width="5%">&#160;</td>
              <td valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="35%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="justify" valign="top" width="9%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="justify" valign="top" width="8%">&#160;</td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="justify" valign="top" width="9%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Projected
                  benefit obligation</font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21,611</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,041</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,364&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="35%">&#160;</td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unamortized
                  items:</font></div>
              </td>
              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Transition
                  liability</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(9,445)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2,959)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2,492)&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
                  service cost and plan modifications</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(355)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(407)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Variances
                  in assumptions and experience adjustments</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,300&#160;&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(336)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(331)&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                  liability</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,538</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,618</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,031</font></div>
              </td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="35%">&#160;</td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  projected liability recognized in consolidated balance sheets
                  (1)</font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19,649</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,957</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,572</font></div>
              </td>
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        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)
        The
        Net projected liability as of December 31, 2005 includes Ps.6.3 million related
        to a defined retiree health care plan of PAV Republic which is one of the
        company&#8217;s subsidiaries located in US. Such plan covers approximately 14 union
        hourly employees. This plan assumed a health care cost rate for the year
        of
        10%.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        remainder of the increase as of December 31, 2005 in the net periodic cost
        and
        the net projected liability is due mainly to inclusion of the termination
        payment obligation starting January 1, 2005, as required by revised accounting
        Bulletin D-3. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        most
        significant assumptions used in determining the net period cost of the plan
        are
        as follows:</font></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="45%">&#160;</td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Actual
                  discount rate used to reflect present value of obligations</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.5%</font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.5%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Actual
                  rate of future salary increases</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  1%</font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  1%</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Actual
                  expected return rate of plan assets</font></div>
              </td>
              <td align="justify" valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.5%</font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.5%</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(11)&#160;&#160;</strong></font>&#160;&#160;&#160;&#160;
        <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
        Benefit Plans</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">From
        the
        companies of the group only Republic offers other benefit plans for its
        employees. Most of the production workers are insured by collective contracting
        with the United Steelworkers of America (USWA). The collective contracting
        expires August 15, 2007 (labor agreement). From the Mexican operations
        approximately 60% of the employees are under a collective contract. The Mexican
        collective contracts expire in periods greater than one year.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        labor
        agreement provides a defined health and retirement contribution program and
        pension benefits. Republic is required to contribute to the program for each
        work hour accrued at a rate of Ps. 40.7 (actual amount) per hour until the
        labor
        agreement expires. For the period from July 22, 2005 through December 31,
        2005,
        During 2005 there was an expense of Ps. 68.7 million. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        labor
        agreement includes an employee profit sharing program, to which Republic
        must
        contribute 15% of its quarterly earnings exceeding Ps. 134.2 million before
        taxes. For the period from July 22, 2005 through December 31, 2005, there
        was an
        expense of Ps. 7.5 million for the profit sharing program. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, Republic has a defined retirement contribution plan which covers
        virtually all of its non-union salaried employees. This plan is designed
        to
        provide retirement benefits through the Company contributions and deferred
        employee compensation. Republic contributes to this plan each payment period
        based on the age and length of service of its personnel at January of each
        year.
        The contribution amount is equal to the base salary multiplied by the
        appropriate percentage as determined based on the worker&#8217;s age and years of
        service. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        full
        contribution percentage is acquired upon completing 5 years of service.
        Furthermore, workers are allowed to make contributions to a 401(k) plan through
        wage discounts. The Company contributes to the Republic&#8217;s employees 25% on the
        first 5% of wages that the worker chooses to contribute. Workers eventually
        acquire a 100% match of 401(k) contributions from the Company. For the period
        from July 22, 2005 through December 31, 2005, there was a recorded expense
        of
        Ps. 11.9 million on retirement contribution plans and 401(k) contribution
        plans.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        accordance with the profit sharing plan for salary and non-union workers,
        excluding a select group of managers and executives, Republic contributed
        3% of
        quarterly earnings exceeding Ps. 134.2 million before taxes. For the period
        from
        July 22, 2005, through December 31, 2005, there was a recorded expense of
        Ps.
        1.1 million.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Republic
        offers, an administrative incentive plan to a select group of managers and
        executives. The incentives are based on the achievement of select corporate
        and
        individual objectives which include financial results, improvement in product
        yield, energy use, quality and safety standards and cash flow. For the period
        from July 22, 2005 through December 31, 2005, there was not any recorded
        expense
        for this plan. In regards to the acquisition of Republic on July 22, 2005,
        the
        Company assumed the accumulated liability for this plan of Ps. 9.7 million,
        which was paid in January 2006. The Company also assumed an incentive
        compensation for Republic&#8217;s C.E.O Joseph Lapinsky of Ps. 5.4 million, which was
        paid in January 2006.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Republic
        has a deferred compensation plan that covers certain key workers. The plan
        allows the worker to defer an annual amount of his/her base salary and grants
        an
        annual fixed contribution by Republic based on a percentage of salary. For
        the
        period from July 22, 2005 through December 31, 2005, there was a related
        expense
        recorded of Ps. 1.1 million.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(12)&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Income
        Tax, Asset Tax and Employee Profit Sharing and Tax Loss
        Carryforwards</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Industrias
        CH, holding company files a Consolidated Tax Return. Under Mexican Income
        Tax
        Law (MITL) Industrias CH does not have to allocate any tax to its subsidiaries
        since each of its subsidiaries has the obligation to calculate on a stand
        alone
        basis its own taxes and only pay the minority part of such taxes directly
        to the
        Mexican Income Revenue Service (IRS). The majority interest for consolidated
        tax
        purposes is paid through the holding company. The Company computes its tax
        provision on a stand alone basis.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        current tax regulations, companies must pay the greater between income tax
        and
        asset tax. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        computation of both taxes considers the effects of inflation, although
        differently from accounting principles generally accepted in
        Mexico.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statutory
        employee profit sharing is computed practically on the same basis as income
        tax,
        but excluding the effects of inflation. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Mexican Asset Tax Law establishes payment of a 1.8% tax on the value of restated
        assets net of certain liabilities.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.25pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
        analysis of income tax charged to results of operations for the years ended
        December 31, 2005, 2004 and 2003 is as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.25pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="left" valign="bottom" width="37%">&#160;</td>
              <td valign="top" width="4%" style="border-bottom: black thin solid;">&#160;</td>
              <td valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="bottom" width="2%">&#160;</td>
              <td valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td valign="bottom" width="2%">&#160;</td>
              <td valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  Income Tax Mexican Subsidiaries </font></div>
              </td>
              <td align="left" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -4.35pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">123,236
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="8%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21,001
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,922
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              <td width="4%">&#160;</td>
              <td align="left" valign="bottom" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
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              <td align="right" valign="top" width="4%">
                <div>&#160;</div>
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              <td valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(44,868)</font></div>
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              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="8%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,986
                  </font></div>
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              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">410
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              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  Income Tax Mexican Subsidiaries</font></div>
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              <td align="left" valign="top" width="4%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40,543
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              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="8%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">318,396
                  </font></div>
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              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">138,876
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              <td width="4%">&#160;</td>
              <td align="left" valign="bottom" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  Income Tax Foreign Subsidiaries</font></div>
              </td>
              <td align="left" valign="top" width="4%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">70,454
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="8%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
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              </td>
              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  tax expense</font></div>
              </td>
              <td valign="bottom" width="4%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="left" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">189,365
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="8%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">341,383
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">152,208
                  </font></div>
              </td>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        December 31, 2005 and 2004 and 2003, the tax expense attributable to income
        before income tax, employee profit sharing and minority interest differed
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        in 2004
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        interest.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
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      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="32%">&#160;</td>
              <td valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.25pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
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              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.25pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
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              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.25pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="32%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Expected
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              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.1pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">443,637</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.1pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">592,220</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.1pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">161,816</font></div>
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            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
                  (decrease) resulting from:</font></div>
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              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  effect of inflation</font></div>
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              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.1pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30,404</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.1pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34,799</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.1pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42,415</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments
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              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(286,592)</font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(34,428)</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Change
                  in valuation allowance of deferred tax assets (1)</font></div>
              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(131,471)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,526)</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(46,690)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Majority
                  asset tax</font></div>
              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.1pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,802</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.1pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,687</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.1pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,192</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                  of beginning inventory due to change in Tax laws and corporate
                  restructure(2)</font></div>
              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(417,821)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.1pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  credit amortization (3)</font></div>
              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(19,942)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.1pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                  liability (2)</font></div>
              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">301,501</font></div>
              </td>
              <td align="right" valign="top" width="1%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="32%">
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              <td valign="top" width="10%">
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              <td align="right" valign="top" width="9%">
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              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="32%">&#160;</td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
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              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  tax expense</font></div>
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              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
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              <td align="right" valign="top" width="9%" style="border-bottom: black double;">
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        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.25pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)
        The
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        Ps.
        67,888 and Ps. 199,359, respectively. In 2004, the Company had a valuation
        allowance that covered almost the total amount of the recoverable asset tax
        and
        tax loss carryforwards due to the uncertainty of their recovery. However,
        in
        2005 the Company recovered part of the recoverable asset tax and reduced
        deferred tax assets by Ps. 83,500. As a result of the asset tax recovery,
        the
        Company estimated that a higher amount of deferred tax assets is more likely
        than not to be recovered, consequently it reduced its valuation allowance
        on its
        deferred tax asset as of December 31, 2005 The net change in the valuation
        allowance for the years ended December 31, 2005 and 2004 was a decrease of
        Ps.
        131,471 and Ps. 1,526, respectively.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.25pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)
        In
        conformity with the law in force through December 31, 2004, inventory purchases
        were tax deductible in the year in which they were made, regardless of the
        time
        of sale of finished goods. As of 2005, inventories will be tax deductible
        when
        sold, although the law provides transition provisions to tax the ending
        inventory balance at December 31, 2004 over periods that vary depending on
        the
        circumstances of each entity. During 2005 the Company determined a tax benefit
        of Ps. 417,821, because of the non-accumulation, in the coming years, of
        its
        inventory balance at December 31, 2004 </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">due
        to a
        corporate restructure (spin-off of its Subsidiary COSICA) of the Company.
        </font></div>
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        the
        Company recorded an additional deferred tax liability for the amount of Ps.
        301,501, to account for the difference of the net income of the 2005 period
        for
        which the Company did not pay taxes (See Note 13 c).</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.25pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)
        Benefit in the Income Tax derived from Net Operating Losses (NOLs) obtained
        through OAL acquisition (Note 14 b).</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.25pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        effective tax rate for the fiscal years ending December 31, 2005, 2004 and
        2003
        were 12.8%, 19.02% and 31.98% respectively. The effective income tax rate
        during
        2005 had a significant improvement that was the result of a corporate
        restructure. These changes resulted in favorable tax differences that had
        a one
        time impact in our effective income tax rate for the year ended December
        31,
        2005</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.25pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        tax
        effects of temporary differences that give rise to significant portions of
        the
        deferred tax assets and liabilities at December 31, 2005 and 2004 are as
        follows</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.25pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="42%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="42%"><font size="2">Deferred
                tax
                assets:</font></td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="42%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Allowance
                  for bad debts</font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60,471</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,175</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="42%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Liability
                  provisions</font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">105,903</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,923</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="42%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Advances
                  from customers </font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22,247</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29,632</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="42%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tax
                  loss carryforward</font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">314,750</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,474</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="42%" style="border-bottom: #deeced solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Recoverable
                  asset tax</font></div>
              </td>
              <td align="left" valign="top" width="5%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">103,260</font></div>
              </td>
              <td align="right" valign="top" width="2%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">186,803</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="42%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="42%">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  gross deferred assets</font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">606,631</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">261,007</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="42%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="42%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less:
                  valuation allowance</font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">67,888</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">199,359</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="42%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="42%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  assets, net</font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">538,743</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">61,648</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="42%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
            OF CONTENTS</a></font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="center">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  tax liabilities:</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventories</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">396,465</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">323,802</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Derivative
                  financial instruments </font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16,561</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,671</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property,
                  plant and equipment</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,238,833</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,023,473</font></div>
              </td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-operating
                  expenses</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">88,664</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">75,712</font></div>
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            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                  commitment</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">107,544</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Others</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,365</font></div>
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            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                  liabilities resulting from excess of book value of stockholders&#8217; equity
                  over its tax value</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">301,501</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="45%">&#160;</td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  deferred liabilities</font></div>
              </td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,042,051</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,542,567</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="45%">&#160;</td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  tax liability, net</font></div>
              </td>
              <td valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,503,308</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,480,919</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        the
        years ended December 31, 2005 and 2004, deferred employee profit sharing
        is
        deemed immaterial.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
        analysis of partnership capital tax accounts at December 31, 2005 is as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="justify" valign="bottom" width="45%">&#160;</td>
              <td align="justify" valign="bottom" width="17%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="bottom" width="45%" bgcolor="#ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 81pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Restated
                  contributed capital account (CUCA)</font></div>
              </td>
              <td align="justify" valign="bottom" width="17%" bgcolor="#ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                  4,288,329</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="bottom" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 81pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  tax profit account (CUFIN)</font></div>
              </td>
              <td align="justify" valign="bottom" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">188</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tax
        loss
        carryforward and recoverable asset tax at December 31, 2005 expire as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="63%">

            <tr>
              <td valign="top" width="16%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" colspan="7" valign="top" width="32%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Restated
                  amount </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>at
                  December 31, 2005</strong></font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="16%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Year
                  of expiration</strong></font>&#160;</div>
              </td>
              <td width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" colspan="3" valign="top" width="20%" style="border-bottom: black thin solid;">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Tax
                loss </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Carryforward</strong></font>&#160;</td>
              <td align="right" colspan="3" valign="top" width="12%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Recoverable
                  asset tax</strong></font>&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">578</font></div>
              </td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,069</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2007</font></div>
              </td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,653</font></div>
              </td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,242</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2008</font></div>
              </td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,690</font></div>
              </td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,381</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2009</font></div>
              </td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,050</font></div>
              </td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16,738</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2010</font></div>
              </td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,352</font></div>
              </td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,550</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2011</font></div>
              </td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">396</font></div>
              </td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,297</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2012</font></div>
              </td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,717</font></div>
              </td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,213</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2013</font></div>
              </td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">149,128</font></div>
              </td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,790</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2014</font></div>
              </td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,778</font></div>
              </td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,076</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2015</font></div>
              </td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
              </td>
              <td align="right" valign="top" width="4%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,732,890</font></div>
              </td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,904</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td valign="top" width="16%">&#160;</td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="16%">&#160;</td>
              <td width="4%">&#160;</td>
              <td align="right" colspan="2" valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="4%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,959,232</font></div>
              </td>
              <td align="right" colspan="3" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">103,260</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        new
        income tax law in M&#233;xico was enacted on December 1, 2004, which established an
        income tax rate of</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30%
        for
        2005, 29% for 2006, and 28% for 2007 and subsequent years. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        a
        result of these changes, for the year ended December 31, 2004, the Company
        recognized a decrease in the net deferred tax liability of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
        286,592 </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">which
        was
        credited to results of operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)
        Includes tax loss carryforwards as described in Note 14 b.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(13)&#160;&#160;&#160;&#160;&#160;&#160;
        </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stockholders&#8217;
        Equity</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        </em></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: -1.35pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Structure
        of capital stock</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>i)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                  an Extraordinary Stockholders&#8217; Meeting held on April 29, 2005, the
                  stockholders agreed to convert 15,000,000 shares owned by Industrias
                  CH
                  consisting of variable capital stock, which have a nominal value
                  of Ps.
                  218,823, into fixed capital shares. In the same meeting, the stockholders
                  approved a 3-for-1 stock split (effective until May 30, 2006) for
                  all
                  outstanding shares to increase the number of shares, thus facilitating
                  their tradability. The Company&#8217;s Board of Directors is delegated the power
                  to approve, on the date the Board sees fit, the terms and conditions
                  under
                  which the Company shall perform the approved split and the secretary
                  of
                  the Board of Directors shall be advised as to how and when to proceed
                  with
                  the cancellation of the replaced shares received once all the Company&#8217;s
                  shares have been exchanged. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.85pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>ii)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                  a regular stockholders&#8217; meeting held on April 29, 2005, it was agreed to
                  increase the Company&#8217;s variable capital stock by Ps. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">109,591
                  (Ps. 103,785 nominal amount) by </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">issuing
                  7,114,285 common &#8220;B&#8221; series shares, 4,386,615 of which were subscribed and
                  paid in by Industrias CH through the capitalization of contributions
                  for
                  future capital increases of Ps. 67,572 (Ps. 63,992 nominal amount)
                  and a
                  stock premium of Ps. 161,900 (Ps. 152,707 nominal amount). The
                  remaining
                  2,727,670 shares are to be offered to the rest of the Company&#8217;s
                  stockholders, with prior authorization of the National Registry
                  of
                  Securities, so as to provide them the opportunity to exercise their
                  preemptive rights to subscribe and pay in the capital increase
                  in
                  proportion to their stock holding</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  It was agreed that the Ps. 34.81(actual amount) difference between
                  the
                  nominal theoretical value of the shares of Ps. 14.59 (actual amount)
                  and
                  the subscription price of the shares of the capital increase of
                  Ps. 49.40
                  (actual amount) would be recorded by the Company as a stock premium.
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.85pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>iii)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                  a Board of Directors&#8217; meeting held on December 3, 2004, it was resolved to
                  record Ps. 228,822 (Ps. 216,698 historical) as contributions for
                  future
                  capital stock increases corresponding to various contributions
                  by
                  Industrias CH, for the purpose of having the Company and CSC acquire
                  the
                  assets of the steel plants located in Tlaxcala and Puebla, as well
                  as for
                  the assignment of a technical assistance agreement derived from
                  such
                  acquisition.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.85pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 81pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>iv)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                  a Board of Directors&#8217; meeting held on May 13, 2004, the Company&#8217;s minority
                  stockholders exercised their preemptive rights to subscribe and
                  pay in the
                  increase in variable capital stock declared on November 19, 2003,
                  contributing Ps. 24,534 (Ps. 22,902 nominal amount) through the
                  subscription and payment of 1,569,962 shares. A total of 301,153
                  shares
                  that were neither subscribed nor paid in were
                  cancelled.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.4pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subsequent
        to the above-mentioned resolutions and activities, the Company&#8217;s capital stock
        aggregates </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
        3,454,048, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">represented
        by </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">137,929,599
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">common
        &#8220;B&#8221; series shares with no par value</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Such
        shares may be subscribed and paid in by both Mexican and foreign individuals
        or
        companies.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares
        outstanding for 2005, 2004 and 2003 are as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="3%">&#160;</td>
              <td align="left" valign="bottom" width="24%">&#160;</td>
              <td valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="bottom" width="2%">&#160;</td>
              <td valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td valign="bottom" width="2%">&#160;</td>
              <td valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="3%">&#160;</td>
              <td align="left" valign="bottom" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -8.8pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                  &#160;&#160; Common &#8220;B&#8221; series shares </font></div>
              </td>
              <td align="left" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">137,929,599
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">133,542,984
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">131,973,022
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
        share has the right to one vote at stockholders&#8217; meetings.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        Minimum
        fixed capital not subject to withdrawal is Ps. 441,786, nominal amount, which
        may be increased or decreased by a resolution passed at a general extraordinary
        shareholders&#8217; meeting. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>b)&#160;&#160;&#160;&#160;
        </em></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: -1.35pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Comprehensive
        income</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Comprehensive
        income reported on the statement of changes in stockholders&#8217; equity represents
        the result of all of the Company&#8217;s activities during the year and includes the
        following captions, which in conformity with accounting principles generally
        accepted in Mexico, were applied directly to stockholders&#8217; equity, except for
        net income:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="69%">

            <tr>
              <td align="justify" valign="top" width="32%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income</font></div>
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              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
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              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,453,225</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
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            <tr bgcolor="white">
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity
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              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(443,560)</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">90,846</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">389,623</font></div>
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            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  taxes applied to the equity adjustments for non-monetary
                  assets</font></div>
              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="bottom" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">111,685</font></div>
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              <td align="right" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(25,362)</font></div>
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              <td align="right" valign="bottom" width="2%">&#160;</td>
              <td align="right" valign="bottom" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(141,969)</font></div>
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            <tr bgcolor="white">
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fair
                  value of derivative financial instruments</font></div>
              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38,402</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,357</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,545</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  tax on the fair value of derivative financial instruments</font></div>
              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(11,073)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,008)</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,130)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="32%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">967,087</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,521,058</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">576,521</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="32%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="9%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                  interest (3)</font></div>
              </td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,378</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="32%">&#160;</td>
              <td align="right" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total</font></div>
              </td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">984,465</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,521,105</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">576,522</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.4pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 19.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        2005,
        includes Cumulative Translation Adjustment of SimRep for Ps.14,839.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)
        </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 19.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
        primarily equity adjustment for non-monetary due to fixed assets.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)
        </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 19.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
        interest represents the minority share holding of Industrias CH in SimRep
        Corporation.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.4pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(c)&#160;&#160;&#160;&#160;&#160;
        &#160;Restrictions on stockholders' equity</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.4pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.25pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company is required </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
        appropriate at least 5% of the net income of each year to increase the legal
        reserve. This practice must be continued until the legal reserve reaches
        20% of
        capital stock issued and outstanding</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        At
        December 31, 2005, the legal reserve aggregates Ps. 21,447.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stockholder
        contributions, which are restated for tax purposes, may be refunded tax-free,
        provided that the reimbursed amount is equal to or in excess of the Company&#8217;s
        stockholders&#8217; equity.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.4pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Earnings
        distributed on which no income tax has been paid, as well as other stockholders&#8217;
equity account distributions, are subject to payment of income tax, payable
        by
        the Company, at the rate of 29%; consequently, the stockholders may only
        receive
        71% of such dividends</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        variable portion of the capital stock may never exceed ten times the amount
        represented by the fixed portion. The fixed portion of Simec&#8217;s capital stock may
        be increased or decreased by a resolution passed at a general extraordinary
        shareholders&#8217; meeting. The variable portion of the Company&#8217;s capital stock may
        be increased or decreased by a resolution passed at a general ordinary
        shareholders&#8217; meeting. Any increase or decreases in the Company&#8217;s capital stock
        must be recorded in the Company&#8217;s registry of capital variations. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(14)&#160;
        &#160;&#160;&#160;&#160;&#160;&#160;&#160;Acquisitions</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                  July 22, 2005, the Company and Industrias CH acquired the outstanding
                  shares of PAV Republic Inc. (Republic) through their subsidiary
                  SimRep
                  Corporation, a U.S. company. Such transaction was valued at USD
                  245
                  million where USD 229 million corresponds to the purchase price
                  and USD 16
                  million, to the direct cost of the business combination. The Company
                  contributed USD 123 million to acquire 50.2% of the representative
                  shares
                  of SimRep Corporation and Industrias CH, the holding company, acquired
                  the
                  remaining 49.8%. SimRep then acquired all the shares from Republic
                  through
                  a stock purchase agreement. Under the terms of the sock purchase
                  agreement, the Company acquired the right to a portion of the
                  reimbursement from an unresolved insurance claim. Any receipts
                  will change
                  the final purchase accounting adjustment to reflect the fair value
                  of the
                  assets acquired and liabilities assumed (See Note 17 c). Republic
                  has six
                  production plants: five in the United States and one in Canada.
                  The
                  Company and Industrias CH acquired Republic to increase their presence
                  in
                  the US market.</font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        total
        Republic acquisition price was allocated to the assets acquired and the
        liabilities assumed based on their fair values as of July 22, 2005. The
        following table summarizes the fair values of the assets acquired and the
        liabilities assumed in connection with the acquisition. The fair values were
        primarily determined based on independent appraisals and estimates made by
        management. The acquisition price resulted in negative goodwill which was
        allocated proportionally to all non-current assets. The consolidated financial
        position at date of the acquisition, restated at December 31, 2005, is as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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        <table border="0" cellpadding="0" cellspacing="0" width="42%">

            <tr bgcolor="#deeced">
              <td align="left" colspan="2" valign="bottom" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  assets</font></div>
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              <td align="right" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
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              <td align="left" valign="bottom" width="12%">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property,
                  plant and equipment</font></div>
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              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="left" valign="bottom" width="12%">
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              <td align="left" colspan="3" valign="bottom" width="30%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intangibles
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              <td align="left" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">367,119
                  </font></div>
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            <tr bgcolor="white">
              <td align="left" colspan="2" valign="bottom" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  assets</font></div>
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              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="left" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60,628</font></div>
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            <tr bgcolor="#deeced">
              <td align="left" colspan="2" valign="bottom" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  assets</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="left" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,071,978
                  </font></div>
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            <tr bgcolor="white">
              <td align="left" colspan="2" valign="bottom" width="26%">&#160;</td>
              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="left" valign="bottom" width="12%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="left" colspan="2" valign="bottom" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  liabilities</font></div>
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              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="right" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,692,561
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" colspan="2" valign="bottom" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                  debt</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="right" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">690,561
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            <tr bgcolor="#deeced">
              <td align="left" colspan="2" valign="bottom" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Renewable
                  credit</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="right" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">743,713
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" colspan="2" valign="bottom" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  taxes</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="right" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">281,042
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="left" colspan="3" valign="bottom" width="30%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  long-term debt</font></div>
              </td>
              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">71,829
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" colspan="2" valign="bottom" width="26%">&#160;</td>
              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="12%">&#160;</td>
              <td align="left" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,479,706
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              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="left" colspan="2" valign="bottom" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  assets acquired</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="right" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="left" valign="bottom" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,592,272
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        a
        result of the acquisition of Republic, an analysis of information regarding
        Simec&#8217;s results of operations of 2005 and 2004, including Republic&#8217;s 6 plants,
        over a twelve-month period, as if the plants had been incorporated into the
        Company since the beginning of the year (unaudited information) is as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="48%">

            <tr>
              <td width="3%">&#160;</td>
              <td align="justify" valign="top" width="17%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td colspan="3" valign="top" width="24%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Unaudited</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="3%">&#160;</td>
              <td align="justify" valign="top" width="17%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="3%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  sales</font></div>
              </td>
              <td align="justify" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22,236,191</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21,132,702</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="3%">&#160;</td>
              <td align="justify" valign="top" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marginal
                  profit</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,799,926</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,176,612</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="3%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income </font></div>
              </td>
              <td align="justify" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,452,772</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,977,076</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="3%">&#160;</td>
              <td align="justify" valign="top" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Earnings
                  per share (pesos)</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.64</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14.9</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="3%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tons
                  sold</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,683,312</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,612,178</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  b)&#160; On July 20, 2005, the Company acquired all shares of Operadora
                  de
                  Apoyo Log&#237;stico, S.A. de C.V. (OAL), a subsidiary of Grupo TMM, S.A. de
                  C.V., for Ps. 132 million, to make it the operating company of
                  the three
                  steel plants in Mexico. This transaction resulted in a deferred
                  credit of
                  Ps. 404,104.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        consolidated financial position at date of the acquisition, restated at December
        31, 2005, is as follows:</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="34%">

            <tr bgcolor="#deeced">
              <td align="left" colspan="2" valign="bottom" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  assets</font></div>
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              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="right" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="left" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,000
                  </font></div>
              </td>
            </tr>
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              <td align="left" colspan="3" valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  tax asset</font></div>
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              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">523,351
                  </font></div>
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              <td align="left" colspan="2" valign="bottom" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  assets</font></div>
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              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">524,351
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="8%">&#160;</td>
              <td align="left" valign="bottom" width="8%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="12%" style="border-bottom: black thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="left" colspan="2" valign="bottom" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  assets acquired</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="right" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="left" valign="bottom" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">524,351</font></div>
              </td>
            </tr>

        </table>
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        had
        accumulated NOLs of Ps. 1,323,351 that could be offset against future taxable
        income. However the recorded financial effect of this tax benefit is Ps.
        523,351
        (See Note 12). Since OAL had no operations before the acquisition, no pro
        forma
        results from operations are included here.</font></div>
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      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  c)&#160;&#160;On August 9, 2004, the Company acquired the inventories,
                  land, buildings, machinery and equipment and assumed the labor
                  obligations
                  of the Apizaco, Tlaxcala and Cholula, Puebla plants that were owned
                  by
                  Atlax, S.A. de C.V. and Operadora Metamex, S.A. de C.V. (the sellers).
                  The
                  purchase amounted to approximately USD 120 million. The Company
                  began
                  operating the Tlaxcala and Puebla plants on August 1,
                  2004.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        summary
        of the estimated fair value of the assets acquired and the liabilities assumed
        at the acquisition date, restated for inflation through December 31, 2005
        is as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="51%">

            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  assets (inventories)</font></div>
              </td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">135,546</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property,
                  plant and equipment</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,251,458</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
                  technical assistance</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">85,978</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  assets acquired</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,472,982</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="37%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td valign="top" width="10%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Labor
                  obligations</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,426</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  assets acquired</font></div>
              </td>
              <td align="right" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,469,556</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        a
        result of the above-mentioned acquisition of assets, an analysis of certain
        information regarding the results of operations of the Apizaco and Cholula
        plants over a twelve-month period ended December 31, 2004, as if the plants
        had
        been incorporated into the Company since the beginning of the year (unaudited
        information) is as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="59%">

            <tr>
              <td align="justify" valign="top" width="39%">&#160;</td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td valign="top" width="13%">&#160;</td>
              <td align="left" valign="top" width="3%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  sales</font></div>
              </td>
              <td align="justify" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,158,634</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marginal
                  profit</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,770,228</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income</font></div>
              </td>
              <td align="justify" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="13%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,515,523</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income earnings per share (pesos)</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="13%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.40</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tons
                  sold</font></div>
              </td>
              <td align="justify" valign="top" width="4%">&#160;</td>
              <td align="right" valign="top" width="13%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.7pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">978,969</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company and the sellers agreed to indemnify the other party for damages
        resulting from (i) any false or inaccurate statement or warranty, or (ii)
        failure to comply with any of the obligations of the purchase agreement.
        The
        claim shall be valid over a two-year period following the closure of the
        sale
        and for up to 4 million dollars.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(15)&#160;&#160;&#160;&#160;&#160;&#160;
        &#160;Segment Information</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company segments its information by region, due to the operational and
        organizational structure of its business. The Company&#8217;s sales are made primarily
        in Mexico and the United States.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s net sales to foreign or regional customers are as follows:
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify">&#160;</div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="83%">

            <tr>
              <td valign="top" width="14%">&#160;</td>
              <td valign="top" width="5%">&#160;</td>
              <td colspan="5" valign="top" width="38%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="14%">&#160;</td>
              <td valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Sales</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total
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              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
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              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Sales</strong></font></div>
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              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Sales</strong></font></div>
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              <td align="left" valign="top" width="14%">
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              <td valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
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              <td valign="top" width="12%">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,509,856</font></div>
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              <td valign="top" width="12%">
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              <td align="left" valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Canada</font></div>
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              <td valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%">
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              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17,953</font></div>
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              <td valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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              <td align="left" valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Latin
                  America</font></div>
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              <td valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,420</font></div>
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              <td valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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              <td valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,428</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,461</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="left" valign="top" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Others</font></div>
              </td>
              <td valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">514</font></div>
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              <td valign="top" width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td valign="top" width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,100</font></div>
              </td>
              <td align="right" valign="top" width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,233</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="14%">&#160;</td>
              <td valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
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              <td valign="top" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,882,888</font></div>
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              <td valign="top" width="2%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,494,344</font></div>
              </td>
              <td valign="top" width="2%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,936,978</font></div>
              </td>
              <td align="right" valign="top" width="2%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,872,194</font></div>
              </td>
              <td align="right" valign="top" width="2%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,027,712</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)&#160;&#160;&#160;&#160;&#160;&#160;
        </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;These
        columns include Total assets and Fixed assets respectively, physically located
        at the related geographic segment. A certain percentage of the production
        from
        the Mexicali is destined for export sales to United States.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;During
        2004 and 2003 Mexico was the only segment where assets and fixed assets where
        located. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(16)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Commitments
        and Contingent Liabilities</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Commitments</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(a)&#160;&#160;</em></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        discussed in note 6 to the financial statements, at the end of 2003, the
        Company
        engaged in derivative financial instruments with PEMEX Gas y Petroqu&#237;mica
        B&#225;sica, for hedging purposes to cover natural gas price fluctuations. The
        coverage will guarantee a portion of the Company&#8217;s natural gas consumption from
        2004 to 2006 at a fixed price of USD 4.462 per MMBtu. At the end of 2005,
        the
        Company also held in one of its subsidiaries in the USA, 23 open contracts
        for
        natural gas swaps, entered to offset the potential natural gas price volatility
        for the months of January - March 2006. These swaps resulted in the marking
        to
        market of all the open contracts as of December 2005 and recording a liability
        for USD 1.2 million.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.85pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(b)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                  December 31, 2005, the Company has a number of supply contracts,
                  whereby
                  it agrees to supply certain customers with steel products during
                  the first
                  months of 2006. Should the Company fail to comply with such agreement,
                  the
                  customers have the right to reject and/or return the merchandise,
                  with no
                  liability whatsoever.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(c)&#160;&#160;</em></strong></font></td>
              <td>
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                  October 11, 2004, the installation of a new five-position machine
                  which
                  produces strips and ingots and the installation of related equipment
                  were
                  approved in Republic's facilities located in Canton, Ohio. The
                  Company
                  began to prepare the installation of the new equipment in December
                  2004.
                  The project was estimated to cost approximately Ps. 622.5 million,
                  not
                  including capitalized interest costs. It is expected to be in full
                  operation during the first quarter of 2006. At December 31, 2005,
                  the
                  Company has pending purchase agreements of Ps. 30.1 million. Furthermore,
                  the Company currently estimates that an additional Ps. 24.7 million
                  will
                  be needed to finish this project.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(d)&#160;&#160;</em></strong></font></td>
              <td>
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                  Company has certain operating lease agreements for equipment, office
                  space
                  and computer equipment, and such agreements cannot be cancelled.
                  The rent
                  will expire on different dates through 2012. In 2005, the rent
                  expense
                  related to such agreements aggregated Ps. 40.8 million. At December
                  31,
                  2005, the total minimum rental payments in accordance with such
                  agreements
                  that cannot be cancelled aggregate Ps. 40.8 million in 2006, Ps.
                  12.9
                  million in 2007, Ps. 10.7 million in 2008, Ps. 8.6 million in 2009,
                  Ps.
                  3.2 million in 2010 and 4.3 million in subsequent years.
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(e)&#160;&#160;</em></strong></font></td>
              <td>
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                  Company&#8217;s subsidiary Republic has an agreement with the USWA to manage
                  health insurance benefits for Republic workers of the USWA while
                  they
                  temporarily do not render their services, and to administer monthly
                  contribution payments to the Steelworkers' Pension Trust by local
                  union
                  officers while they work for the union. To fund this program, in
                  February
                  2004, the USWA granted an initial contribution of Ps. 26.8 million
                  in cash
                  to be used to provide health insurance benefits and Ps. 5.4 million
                  to
                  provide benefits for pensions for those who work in the steel industry.
                  At
                  December 31, 2005, the balance of this cash account aggregated
                  Ps. 30.1
                  million. The Company has agreed to continue managing these programs
                  until
                  the fund is completely exhausted. Republic will provide the USWA
                  with
                  periodic reports on the fund's status. At December 31, 2005, the
                  cash
                  account balance is included in Other assets and the related liability
                  is
                  included in Other long-term liabilities in the attached consolidated
                  balance sheets. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.85pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Contingent
        liabilities</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(f)&#160;&#160;</em></strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">C</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>alifornia
                  Regional Water Control
                  Board</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        1987,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        Pacific
        Steel, Inc. (Pacific Steel), a subsidiary of Simec based in National City
        in San
        Diego County, California, received a notice from the California Regional
        Water
        Control Board, San Diego Region (the &#8220;Regional Board&#8221;), which prohibited Pacific
        Steel from draining into the street waters from spraying borax (waste resulting
        from the process of the scrap yard).</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        This and
        other subsequent requirements obligated Pacific Steel to (i) stop operations
        in
        the scrap yard, (ii) send an enclosure of the borax which was stored in its
        yards and (iii) take samples of the soil where the borax was found. The result
        of this study was that the residual metal contents represented no significant
        threat to the quality of water.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;&#160;
        Department of Toxic Substances Control</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        September 2002, the Department of Toxic Substances Control inspected Pacific
        Steel&#8217;s facilities based on an alleged complaint from neighbors due to Pacific
        Steel&#8217;s excavating to recover scrap metal on its property and on a neighbor&#8217;s
        property which it rents from a third party. In this same month, the department
        issued an enforcement order of imminent and substantial endangerment
        determination, which alleges that certain soil piles, soil management and
        metal
        recovery operations may cause an imminent and substantial danger to human
        health
        and the environment. Consequently, the department sanctioned Pacific Steel
        for
        violating hazardous waste laws and the State of California Security Code
        and
        imposed the obligation to make necessary changes to the location. In July
        2004,
        in an effort to continue with this order, the department filed a Complaint
        for
        Civil Penalties and Injunctive Relief in San Diego Superior Court. On July
        26,
        2004, the court issued a judgment, whereby Pacific Steel is obligated to
        pay USD
        235,000 (payable in four payments of USD 58,750 over the course of one year)
        for
        fines of USD 131, 250, the department's costs of USD 45,000 and an environmental
        project of USD 58,750. At December 31, 2005, Pacific Steel has made all of
        the
        payments.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        August
        2004, Pacific Steel and the Department entered into a corrective action consent
        agreement. In September 2005, the Department approved the Corrective Measures
        Plan presented by Pacific Steel, provided it obtains permits from the
        corresponding local authorities, which are in process at date.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Due
        to
        the fact that the cleanliness levels have not yet been defined by the Department
        and since the characterization of all the property has not yet been finished,
        the allowance for the costs for the different remedy options are still subject
        to considerable uncertainty. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company estimated, based on experience in prior years and using the same
        processes, a liability of between USD 0.8 and USD 1.7 million. Due to the
        above,
        at December 31, 2002, the Company created a reserve for this contingency
        of
        approximately USD 1.7 million. At December 31, 2005, such reserve is Ps.
        14,982
        million (USD 1.4 million). </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
        Community Development Commission </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additionally,
        the Community Development Commission of National City, California (CDC) has
        expressed its intention to develop the site and is preparing a purchase offer
        for Pacific Steel&#8217;s land at market value, less the cost of remediation and less
        certain investigation costs incurred. Pacific Steel has informed the CDC
        that
        the land will not be voluntarily sold unless there is an alternate property
        where it could relocate its business. The CDC, in accordance with the State
        of
        California law, has the power to expropriate in exchange for payment at market
        value and, in the event that there is no other land available to relocate
        the
        business, it would also have to pay Pacific Steel the land&#8217;s book value. The CDC
        made an offer to purchase the land from Pacific Steel for USD 6.9 million,
        based
        on a business appraisal. The expropriation process was temporarily suspended
        through an agreement entered into by both parties in April 2006. This agreement
        allows Pacific Steel to explore the possibility of finishing the remediation
        process of the land and to propose an attractive alternative to CDC which
        would
        allow the Company to remain in the area.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Due
        to
        this situation and considering the imminent expropriation of part of the
        land on
        which Pacific Steel carries out certain operations, for the year ended December
        31, 2002, Pacific Steel recorded its land at realizable value based on an
        appraisal by independent experts. Such appraisal caused a decrease in the
        value
        of part of the land of Ps. 22,416 (19,750 historical pesos) and a charge
        to
        results of operations of 2002 for the same amount. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(g)&#160;&#160;</strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                  July 2, 2003, CSG filed a nullity suit with the Mexican </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Federal
                  Tax and Administrative Court of Justice</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                  against an official communication issued by the Central International
                  Fiscal Auditing Office of the Tax Administration Service, whereby
                  CSG is
                  deemed to have unpaid taxes of Ps. 89,389 on alleged omissions
                  of income
                  taxes it should have withheld from third parties on interest payments
                  abroad in 1998, 1999, 2000, and for the period from January 1,
                  2001
                  through June 30, 2001. CSG is currently waiting for the authorities
                  to
                  respond it the suit. According to Company management and its legal
                  advisors, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">there
                  are reasonable grounds on which to obtain a favorable resolution
                  for
                  </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CSG
                  accordingly no reserve was
                  recorded.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(h)&#160;&#160;</strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  Company is involved in a number of lawsuits and claims that have
                  arisen
                  throughout the normal course of business.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  Company and its legal advisors do not expect the final outcome
                  of these
                  matters to have any significant adverse effects on the Company&#8217;s financial
                  position and results of operations</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(i)&#160;&#160;</strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                  conformity with current tax legislation, federal, state and municipal
                  taxes are open to review by the tax authorities for a period of
                  five
                  years, prior to the last income tax return
                  filed.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(j)&#160;&#160;</strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                  accordance with the Mexican Income Tax Law, companies that do business
                  with related parties are subject to specific requirements in respect
                  to
                  agreed upon prices, since such prices must be comparable to those
                  that
                  would be charged in similar transactions between unrelated parties.
                  </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Should
                  the authorities review and reject the Company&#8217;s intercompany pricing, the
                  authorities may demand payment of the omitted taxes plus restatement
                  and
                  surcharges, as well as fines for an amount up to 100% of the restated
                  omitted taxes. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(k)&#160;&#160;</strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Republic
                  environmental liabilities</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        December 31, 2005, the Company recorded under the caption of Other Long-term
        Liabilities, a reserve of Ps. 44.0 million to cover probable environmental
        liabilities and compliance activities. The non-current portions of the
        environmental reserve are included in the caption &#8220;Other Accounts Payable and
        Accrued Expenses&#8221;, in the attached consolidated balance sheets. Republic has no
        knowledge of any additional environmental remediation liabilities or contingent
        liabilities related to environmental issues in regards to the facilities;
        consequently, it would not be appropriate to establish an additional reserve
        at
        this time. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.85pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        is the
        case for most steel producers in the United States, Republic may incur in
        material expenses related to future environmental issues, including those
        which
        arise from environmental compliance activities and the remediation of past
        administrative waste practices in Republic&#8217;s facilities. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(17)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
        </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Subsequent
        Events</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0.85pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(a)&#160;&#160;</strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                  a Board of Directors&#8217; meeting held on February 13, 2006, the minority
                  stockholders exercised their preemptive rights to subscribe and
                  pay for
                  the increase in variable capital stock declared on April 29, 2005
                  (see
                  note 12 (a) section ii), contributing Ps. 36,110 (Ps. 14.59 share
                  value)
                  and a premium for subscribing and paying shares of 86,170 historical
                  (Ps.
                  34.81 premium per share) by subscribing and paying 2,475,303 shares
                  and
                  canceling 252,367 shares that were neither subscribed nor paid
                  in.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(b)&#160;&#160;</strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                  May 30,,2006, the Company effected a 3 for 1 stock split. After
                  the split
                  the ADS now represent 3 shares of series B common stock. Before
                  that stock
                  split was completed, each ADS represented one share of series B
                  common
                  stock..The ADSs are evidenced by American depositary receipts (&#8220;ADRs&#8221;)
                  issued by the Bank of New York (&#8220;Depositary&#8221;), as depositary under a
                  Deposit Agreement, dated as of July 8, 1993, as amended, among
                  Simec, the
                  Depositary and the holders from time to time of
                  ADRs.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(c)&#160;&#160;</strong></font></td>
              <td>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                  accordance with the agreement to purchase shares of Republic mentioned
                  in
                  note 1a, the Company acquired the right to a portion of the reimbursement
                  of an unresolved loss claim at the time of purchase by the insurer.
                  A
                  Settlement Agreement and Release was reached on April 24, 2006.
                  As of
                  April 28, 2006, approximately Ps.397 million, net of payment to
                  Predecessor&#8217;s shareholders and professional fees, has been received by the
                  Company. Approximately Ps. 13 million, net of payment to Predecessor&#8217;s
                  shareholders and professional fees is estimated to be received
                  by May 15,
                  2006 (see note 1a).</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(18)&#160;
        &#160;&#160;&#160;&#160;&#160;&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
        Accounting Pronouncements</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following accounting bulletins issued by the Mexican Institute of Public
        Accountants are obligatory as of January 1, 2005. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(a)&#160;&#160;&#160;&#160;
        </em></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Business
        acquisitions</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        most
        significant issues in Bulletin B-7 are as follows:</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
        use
        of the purchase method as the only alternative for valuing businesses acquired
        and investments in associated companies, thus eliminating the supplementary
        application of former International Accounting Standard 22, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Business
        Combinations,</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        (b)
        change in the accounting for goodwill, eliminating amortization and requiring
        that goodwill be evaluated for impairment, and also requiring that negative
        goodwill not fully amortized at the date of adoption of Bulletin B-7 be carried
        to the results of operations, as a change in accounting principle; (c)
        establishment of specific rules to account for the acquisition of minority
        interest and for transfers of assets or exchange of shares among entities
        under
        common control, and (d) accounting for intangible assets acquired in a business
        combination, under Bulletin C-8, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Intangible
        Assets</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company opted for the early adoption of this Bulletin (see note
        14).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>(b)&#160;&#160;&#160;&#160;
        </em></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Labor
        obligations</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        new
        accounting Bulletin D-3, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Labor
        Obligations</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        was
        issued in January 2004. The revised Bulletin replaces and nullifies the previous
        Bulletin D-3, issued in January 1993 and revised in 1998. The observance
        of
        Bulletin D-3 is compulsory for fiscal years beginning on or after January
        1
        2004, except for termination payments, which will be in force as of January
        1,
        2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        revised Bulletin incorporates the matter of remunerations for other
        post-retirement benefits, thus nullifying the provisions of Circular 50,
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Interest
        rates to be used in the valuation of labor obligations and supplementary
        application of accounting principles related to labor
        obligations</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        Bulletin D-3 also eliminates the subject related to unexpected payments and,
        instead includes the subject related to termination payments, defining such
        payments as those granted to workers at the end of their employment before
        reaching the age of retirement, which include two types: (i) due to corporate
        restructuring, for which the guidelines of Mexican accounting Bulletin C-9,
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Liabilities,
        Provisions, Contingent Assets and Liabilities and Commitments,</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        must be
        followed, and (ii) due to reasons other than restructuring, for which the
        Company must apply the valuation and disclosure rules required for retirement
        pensions and seniority premiums payments, thus allowing at the time that
        this
        Bulletin is adopted, to immediately recognize the transition asset or liability
        in results of operations, or its amortization, in conformity with the remaining
        working life of the workers.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company considers that the adoption of this Bulletin did not have a material
        effect on its financial position or on its results of operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(19)&#160;&#160;&#160;&#160;&#160;&#160;
        </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Differences
        between Mexican and United States accounting principles:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s consolidated financial statements are prepared in accordance with
        Mexican GAAP, which differ in certain significant respects from U.S.
        GAAP.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Mexican GAAP consolidated financial statements include the effects of inflation
        as provided for under Bulletin B-10, as amended. The following reconciliation
        to
        U.S. GAAP does not include the reversal of the adjustments for the effects
        of
        inflation, since the application of Bulletin B-10 represents a comprehensive
        measure of the effects of price level changes in the inflationary Mexican
        economy and, as such, is considered a more meaningful presentation than
        historical cost-based financial reporting for both Mexican and U.S. accounting
        purposes.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
        significant differences between Mexican GAAP and U.S. GAAP and the effects
        on
        consolidated net income and consolidated stockholders&#8217; equity are presented
        below, in thousands of constant Mexican pesos as of December 31, 2005, with
        an
        explanation of the adjustments.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Reconciliation
        of net income:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><br></div>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income as reported under Mexican GAAP</font></div>
              </td>
              <td align="right" valign="bottom" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,453,225</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">318,452</font></div>
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              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventory
                  indirect costs</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="bottom" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,933)</font></div>
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              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,820</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4,499)</font></div>
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            </tr>
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              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation
                  on restatement of machinery and equipment</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="bottom" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(24,660)</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(23,918)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(25,704)</font></div>
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            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Others</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="bottom" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(631)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,467</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  income taxes</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="bottom" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,659)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(45,404)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(53,826)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  employee profit sharing</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="bottom" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">219</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-operating
                  expenses, net</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="bottom" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,855</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28,465</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28,463</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
                  of gain from monetary position and exchange loss capitalized under
                  Mexican
                  GAAP</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="bottom" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,192</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,192</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,192</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%" style="border-bottom: #deeced solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                  interest </font></div>
              </td>
              <td align="right" valign="top" width="3%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17,378)</font></div>
              </td>
              <td align="right" valign="top" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
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            <tr bgcolor="white">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="bottom" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
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              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(42,689)</font></div>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="bottom" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Approximate
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              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
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              <td align="right" valign="bottom" width="10%" style="border-bottom: black double;">
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,424,764</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">275,763</font></div>
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            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                  average outstanding basic</font></div>
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              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">137,929,599</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">132,972,749</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">119,052,681</font></div>
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            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  earnings per share (pesos)</font></div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9.21</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.71</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.32</font></div>
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            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                  average outstanding basic after split (1)</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="left" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">413,788,797</font></div>
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              <td align="left" valign="top" width="1%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">398,918,247</font></div>
              </td>
              <td align="left" valign="top" width="1%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">357,158,043</font></div>
              </td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  earnings per share (pesos) after split (1)</font></div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.07</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.57</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 6.8pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.77</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)
        As
        explained in Note 17 (b) the Company affected a 3 for 1 stock split on May
        30,
        2006. This information presents the retrospective effect on the Earnings
        per
        Share after the split in accordance with US GAAP.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        2005
        the Company recorded Ps. 38,219 under other expenses which were reclassified
        under operating expenses for U.S. GAAP purposes.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        are
        several entries recorded in other expenses in 2004 under Mexican GAAP, which
        amounts to approximately Ps. 34,358 that according to U.S. GAAP should be
        presented as operating expenses. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Reconciliation
        of stockholders&#8217; equity: </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="32%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="32%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  stockholders&#8217; equity reported under Mexican GAAP</font></div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,566,499&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,803,072&#160;
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              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,028,610</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="32%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                  interest included in stockholders&#8217; equity under Mexican
                  GAAP</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,796,010)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(320)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(273)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventory
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,487</font></div>
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              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Restatement
                  of machinery and equipment</font></div>
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              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">585,347&#160;
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">277,103&#160;
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">384,499</font></div>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                  vacation costs</font></div>
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              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(611)</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(631)&#160;
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  income taxes</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(57,419)</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36,854&#160;
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">55,881</font></div>
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            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  employee profit sharing</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">743</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">697&#160;&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">681</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-operating
                  expenses</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(211,028)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(236,883)&#160;
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              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(272,417)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gain
                  from monetary position and exchange loss capitalized, net</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(181,432)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -1.15pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(188,625)&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -1.15pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(195,821)</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="32%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  approximate U.S. GAAP adjustments</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,648,035)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(95,498)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(16,963)</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="32%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  approximate stockholders&#8217; equity under U.S. GAAP</font></div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,918,464&#160;
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              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,707,574</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,011,647</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
            OF CONTENTS</a></font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="center">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        summary
        of changes in stockholders&#8217; equity, after the approximate U.S. GAAP adjustments
        described above, is as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="16%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                  and Paid-in Capital</font></div>
              </td>
              <td valign="bottom" width="1%">&#160;</td>
              <td valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div align="center">&#160;</div>
                <div align="center">&#160;</div>
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Retained
                  </font></div>
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Earnings
                  </font></div>
              </td>
              <td valign="bottom" width="1%">&#160;</td>
              <td valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fair
                  Value of Derivative Financial Instruments</font></div>
              </td>
              <td valign="bottom" width="1%">&#160;</td>
              <td valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cumulative
                  Restatement Effect</font></div>
              </td>
              <td align="justify" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  Stockholders&#8217; Equity</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balances
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              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,502,486</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">503,246</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,415</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">995,500</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,011,647</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
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              <td align="left" valign="top" width="16%">
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              <td align="right" valign="top" width="9%">
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="9%">
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              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24,534</font></div>
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              <td align="left" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
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              <td align="left" valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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              <td align="right" valign="top" width="3%">&#160;</td>
              <td valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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              <td align="right" valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,424,764</font></div>
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              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,349</font></div>
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              <td align="right" valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">244,280</font></div>
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              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,671,393</font></div>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balances
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              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="9%">
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,928,010</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12,764</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,239,780</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,707,574</font></div>
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            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
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              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">229,472</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(228,822)</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">650</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  comprehensive income</font></div>
              </td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,270,474</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27,329</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(87,563)</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,210,240</font></div>
              </td>
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            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="16%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="16%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balances
                  as of December 31, 2005</font></div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,756,492</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,198,484</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40,093</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">923,395</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.85pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,918,464</font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        cumulative difference between the amounts included under Capital Stock and
        Paid-in Capital for U.S. GAAP and Capital Stock and Paid-in Capital for Mexican
        GAAP arise from the following items:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Issuance
        of capital stock:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
        1993 and 1994 the Company recorded Ps. 92,003 and Ps. 29,483, respectively,
        corresponding to expenses related to the issuance of shares in a simultaneous
        public offering in the United States and Mexico as a reduction of the proceeds
        from the issuance of capital stock. In 1993 and 1994, these expenses were
        deducted for tax purposes resulting in a tax benefit of Ps. 31,972 and Ps.
        10,026. These tax benefits were included in the statement of operations for
        Mexican GAAP purposes. For U.S. GAAP purposes these items were shown as a
        reduction of cost of issuance of the shares, thereby increasing the net proceeds
        from the offering. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Maritime
        operations and amortization of negative goodwill:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        1993,
        Grupo Simec disposed of its maritime operations by spinning-off the two entities
        acquired in 1992 to Grupo Sidek (former parent company of Grupo Simec) and
        transferring its remaining maritime subsidiary to Grupo Sidek for its
        approximate book value. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        operations sold had a tax loss carryforward of approximately Ps. 195,844
        which
        were related to operations prior to the date the entities were acquired by
        the
        Company. During 1994, Ps. 4,578 of these tax loss carryforwards were realized
        (resulting in a tax benefit of Ps. 1,577). </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        U.S.
        GAAP purposes, the retained tax benefit of Ps. 1,577 realized in 1994, had
        been
        reflected as an increase to the corresponding paid-in capital rather than
        in net
        earnings as done for Mexican GAAP purposes.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Gain
        on extinguishment:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        February 7, 2001, the Company&#8217;s Board of Directors approved the issuance of
        492,852,025 shares of Series &#8220;B&#8221; variable capital stock in exchange for the
        extinguishment of debt amounting to USD 110,257,012. Under Mexican GAAP,
        the
        increase in stockholders&#8217; equity resulting from the conversion or extinguishment
        of debt is equal to the carrying amount of the extinguished debt. The Company
        assigned a value of USD 110,257,012 to the Series &#8220;B&#8221; capital stock and,
        therefore, no difference existed between the equity interest granted and
        the
        carrying amount of the debt extinguished. Under U.S. GAAP, the difference
        between the fair value of equity interest granted and the carrying amount
        of
        extinguished debt is recognized as a gain or loss on extinguishment of debt
        in
        the statement of operations. For U.S. GAAP purposes, the fair value of the
        Series &#8220;B&#8221; capital stock was determined by reference to the quoted market price
        on March 29, 2001, the date the transaction was effected, and the difference
        between the fair value of the Series &#8220;B&#8221; capital stock and the carrying amount
        of the extinguished debt was recognized as a gain in the statement of
        operations. The related restated effect as of December 31, 2005 is Ps.
        580,728.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Reconciliation
        of Net Income and Stockholders&#8217; Equity:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s consolidated financial statements are prepared in accordance with
        Mexican GAAP, which differ in certain significant respects from U.S. GAAP.
        The
        explanations of the related adjustments included in the Reconciliation of
        net
        income and the</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reconciliation
        of stockholders&#8217; equity are explained below:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Restatement
        of prior year financial statements:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        accordance with Mexican GAAP, prior year financial information of a foreign
        subsidiary must be restated using the inflation rate of the country in which
        the
        foreign subsidiary is located, and then translated to pesos at the exchange
        rate
        as of year end. This procedure results in the presentation of prior year
        amounts
        representing the purchasing power of the respective currencies as of the
        end of
        the latest year presented.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        U.S. GAAP, prior year financial information of a foreign subsidiary must
        be
        restated in constant units of the reporting currency, the Mexican peso, which
        requires the restatement of such prior year amounts using the inflation rate
        of
        Mexico.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        difference will be applicable starting next year (2006), when the prior year
        integrated subsidiaries needs to be restated.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Inventory:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        permitted by Mexican GAAP, some inventories are valued under the direct cost
        system, which includes material, direct labor and other direct costs. For
        purposes of complying with U.S. GAAP, inventories have been valued under
        the
        full absorption cost method, which includes the indirect costs.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        Mexican GAAP, inventories include prepaid advances to suppliers. For U.S.
        GAAP
        purposes, the prepaid advances to suppliers are considered as prepaid expenses.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Restatement
        of property, machinery and equipment:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        explained in note 2(g), in accordance with Mexican GAAP, imported machinery
        and
        equipment has been restated during 2005, 2004 and 2003 by applying devaluation
        and inflation factors of the country of origin.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        U.S. GAAP, during 2005, 2004 and 2003 the restatement of all machinery and
        equipment, both domestic and imported, has been done in constant units of
        the
        reporting currency, the Mexican peso, using the inflation rate of
        Mexico.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accordingly,
        a reconciling item for the difference in methodologies of restating imported
        machinery and equipment is included in the reconciliation of net income and
        stockholders&#8217; equity.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Deferred
        income taxes and employee profit sharing:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        explained in Note 2(k) under Mexican GAAP, the Company accounts for deferred
        income tax following the guidelines of Mexican Bulletin D-4. The main
        differences between SFAS No. 109 and Bulletin D-4, as they relate to the
        Company, which are included as reconciling items between Mexican and U.S.
        GAAP
        are:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  income tax effect of gain from monetary position and exchange loss
                  capitalized that is recorded as an adjustment to stockholders&#8217; equity for
                  Mexican GAAP purposes,</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;">&#160;</td>
              <td>&#160;</td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  income tax effect of capitalized pre-operating expenses which for
                  U.S.
                  GAAP purposes, are expensed when
                  incurred,</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;">&#160;</td>
              <td>&#160;</td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  effect on income tax of the difference between the indexed cost
                  and the
                  restatement through use of specific indexation factors of fixed
                  assets
                  which is recorded as an adjustment to stockholders&#8217; equity for Mexican
                  GAAP, and,</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;">&#160;</td>
              <td>&#160;</td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 45pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  income tax effect of the inventory cost which for Mexican GAAP
                  some
                  inventories are valued under the direct cost system and for U.S.
                  GAAP
                  inventories have been valued under the full absorption cost
                  method.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        cumulative deferred income tax for U.S. GAAP purposes is included under Retained
        Earnings. Under Mexican GAAP such effect is included under the cumulative
        deferred income taxes caption.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, the Company is required to pay employee profit sharing in accordance
        with Mexican labor law. Deferred employee profit sharing under U.S. GAAP
        has
        been determined following the guidelines of SFAS N0. 109. Under Mexican GAAP,
        the deferred portion of employee profit sharing is determined on temporary
        non-recurring differences with a known turnaround time.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        determine operating income under U.S. GAAP, deferred employee profit sharing
        and
        employee profit sharing expense (under Mexican GAAP included under the caption
        provisions in the income statement) are considered as operating
        expenses.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        effects of temporary differences giving rise to significant portions of the
        deferred tax assets and liabilities at December 31, 2005 and 2004, under
        U.S.
        GAAP are presented below:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td colspan="3" valign="top" width="18%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td colspan="3" valign="top" width="19%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>IT</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ESPS</strong></font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>I</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>T</strong></font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ESPS</strong></font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%"><font size="2">Deferred
                tax
                assets:</font></td>
              <td valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="7%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="8%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Allowance
                  for doubtful receivables</font></div>
              </td>
              <td valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60,471</font></div>
              </td>
              <td align="left" valign="top" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="left" valign="top" width="2%">
                <div>&#160;</div>
              </td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,175</font></div>
              </td>
              <td align="left" valign="top" width="2%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                  expenses </font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">117,213</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">743</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27,799</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
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              <td align="left" valign="top" width="31%">
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          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="center">
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      <div>&#160;</div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Recoverable
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              <td align="right" valign="top" width="8%">
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%">
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              <td align="left" valign="top" width="28%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%">&#160;</td>
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            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="28%">
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              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="7%">
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">261,194</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%">&#160;</td>
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            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less
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              <td align="right" valign="top" width="8%" style="border-bottom: black thin solid;">
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              <td align="right" valign="top" width="8%" style="border-bottom: black thin solid;">
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%" style="border-bottom: black thin solid;">
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%">&#160;</td>
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            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black thin solid;">
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="7%" style="border-bottom: black thin solid;">
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              <td align="right" valign="top" width="8%" style="border-bottom: black thin solid;">
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black thin solid;">&#160;</td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%">&#160;</td>
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            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
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              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%">&#160;</td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventories,
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              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">400,054</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">328,695</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Derivative
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              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,073</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,671</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
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            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property,
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              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,351,930</font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,048,249</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Others</font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">35,091</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">123,293</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                  liabilities resulting from </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">excess
                  of book value of stockholders&#8217; </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">equity
                  over its tax value</font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">301,501</font></div>
              </td>
              <td align="right" valign="bottom" width="2%">&#160;</td>
              <td valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="bottom" width="2%">&#160;</td>
              <td align="right" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="bottom" width="2%">&#160;</td>
              <td valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="28%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  deferred liabilities</font></div>
              </td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,099,649</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,505,908</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="top" width="28%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td valign="top" width="8%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="left" valign="top" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  deferred tax liability (asset)</font></div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="8%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,560,729</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="7%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(743)</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,444,073</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="8%" style="border-bottom: black double;">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        total
        net deferred tax liability under U.S. GAAP includes a current portion as
        of
        December 31, 2005 of Ps. 92,501 with the remainder being classified as long
        term.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        deferred income taxes of Ps. 1,351,930 and Ps. 1,048,249 result from differences
        between the financial reporting and tax bases of property, plant and equipment
        at December 31, 2005 and 2004, respectively. Beginning in 1997 the restatement
        of property, plant and equipment and the effects thereof on the statement
        of
        operations are determined by using factors derived from the NCPI or, in the
        case
        of imported machinery and equipment, by applying devaluation and inflation
        factors of the country of origin. Until 1996, for financial reporting purposes,
        property, plant and equipment were stated at net replacement cost based upon
        annual independent appraisals and depreciation was provided by using the
        straight-line method over the estimated remaining useful lives of the assets.
        For income tax reporting purposes, property, plant, and equipment and
        depreciation are computed by a method which considers the NCPI.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Domestic
        operations accounted for 99% percent of the Company&#8217;s pre-tax income and IT
        expense in 2004 and 2003 and 96.5% in 2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        accordance with APB Opinion No. 23 it is the policy of the Company to accrue
        appropriate Mexican and foreign income taxes on earnings of subsidiary companies
        which are intended to be remitted to the parent company in the near future.
        Unremitted earnings of subsidiaries which have been, or are intended to be,
        permanently reinvested, exclusive of those amounts which if remitted in the
        near
        future would result in little or no such tax by operation of relevant statutes
        currently in effect, aggregated Ps.11.7 million at December 31,
        2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pre-operating
        expenses:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        Mexican GAAP purposes, the Company capitalized pre-operating expenses related
        to
        the production facilities at Mexicali, as well as costs and expenses incurred
        in
        the manufacturing and design of new products. For U.S. GAAP purposes, these
        items are expensed when incurred. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
        expense capitalized:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        Mexican GAAP, financial expense capitalized during the period required to
        bring
        property, plant and equipment into the condition required for their intended
        use, includes interest, exchange losses and gains from monetary position.
        Under
        U.S. GAAP when financing is in Mexican pesos, the monetary gain is included
        in
        this computation; when financing is denominated in U.S. dollars, only the
        interest is capitalized and exchange losses and monetary position are not
        included. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Minority
        interest:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        Mexican GAAP, the minority interest in consolidated subsidiaries is presented
        as
        a separate component within stockholders&#8217; equity on the consolidated balance
        sheet. For U.S. GAAP purposes, minority interest is not included in
        stockholders&#8217; equity. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Disclosure
        about Fair Value of Financial Instruments:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        accordance with SFAS No. 107, &#8220;Disclosures about Fair Value of Financial
        Instruments,&#8221; under U.S. GAAP it is necessary to provide information about the
        fair value of certain financial instruments for which it is practicable to
        estimate that value. The carrying amounts of cash and short-term investments,
        accounts receivable and accounts payable and accrued liabilities approximate
        fair values due to the short term maturity of these instruments.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        fair
        value of the borrowings with General Electric Capital are based on short
        term
        interest rates available to the Company, and the estimated fair values of
        these
        financial instruments approximate their recorded carrying amounts.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        fair
        values of the long term debt obligations are estimated based upon quoted
        market
        prices for the same or similar issues or on the current rates offered for
        debt
        of the same remaining maturities. As of December 31, 2005 both the carrying
        value and the fair value of total debt were of Ps. 359,975.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pension
        and other retirement benefits:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company records seniority premiums based on actuarial computations as described
        in note 2(j).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        purposes of determining seniority premium costs under U.S. GAAP, the Company
        utilized SFAS No. 87. Adjustments to U.S. GAAP for seniority premiums were
        not
        individually or in the aggregate significant for any period.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SFAS
        No.
        106, &#8220;Employers&#8217; Accounting for Post-retirement Benefits Other than Pensions&#8221;,
        requires accrual of post-retirement benefits other than pensions during the
        employment period. The Company does not provide its employees any
        post-retirement benefit subject to the provisions of SFAS No. 106.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SFAS
        No.
        112, &#8220;Employers&#8217; Accounting for Post-employment Benefits&#8221;, requires employers to
        accrue for post-employment benefits that are provided to former or inactive
        employees after employment during the employment period. For the purpose
        of
        determining Termination Benefits Obligations for U.S. GAAP, the Company utilized
        SFAS No. 112. Adjustments to U.S. GAAP benefit were not individually or in
        the
        aggregate significant for any period. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        the
        year ended December 31, 1998, the Company adopted SFAS No. 132, &#8220;Employers&#8217;
Disclosures about Pensions and Other Post-retirement Benefits&#8221;, which requires
        certain additional disclosures, without any changes in the measurement or
        recognition of pensions and other post-retirement benefit obligations. The
        additional disclosures are as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="40%">&#160;</td>
              <td valign="top" width="5%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="40%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Change
                  in projected benefit obligation-</font></div>
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              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="12%">&#160;</td>
              <td valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="40%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Projected
                  benefit obligation at beginning of year</font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,041&#160;
                  </font></div>
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,364&#160;
                  </font></div>
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            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="40%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Service
                  cost</font></div>
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              <td align="justify" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,841&#160;
                  </font></div>
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              <td align="justify" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">589&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="40%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                  cost</font></div>
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              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,050&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">319&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="40%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Actuarial
                  gain, net</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,966&#160;
                  </font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,633&#160;
                  </font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="40%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benefits
                  paid</font></div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,287)</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(864)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="40%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
              </td>
              <td align="right" valign="top" width="5%">&#160;</td>
              <td align="right" valign="top" width="12%">&#160;</td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="40%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Projected
                  benefit obligation at end of year</font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21,611</font></div>
              </td>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="12%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 1.15pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,041</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Variable
        capital common stock:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        operation of Mexican law, stockholders holding shares representing variable
        capital common stock may require the Company, with a notice of at least three
        months prior to December 31 of each year, to redeem those shares at a price
        equal to the lesser of either (i) 95% of the market price, based on an average
        of trading prices during the 30 trading days preceding the end of the fiscal
        year in which the redemption is to become effective or (ii) the book value
        of
        the Company&#8217;s shares approved at the meeting of shareholders for the latest
        fiscal year prior to the redemption date. Although the variable capital common
        stock is potentially redeemable by the terms described above, such shares
        have
        been classified as a component of stockholders&#8217; equity in the consolidated
        balance sheet under both Mexican GAAP and U.S. GAAP.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company&#8217;s
        management believes the variable capital common stock represents permanent
        capital because the timing and pricing mechanism through which a shareholder
        would exercise the option to redeem are such that a shareholder, from an
        economic standpoint, would not exercise this option. At the time a shareholder
        is required to give notice of redemption, the shareholder will not be able
        to
        know at what price the shares would be redeemed and would not expect the
        present
        value of the future redemption payment to equal or exceed the amount which
        would
        be received by the shareholder in a public sale. Such redemption also requires
        approval at a shareholders&#8217; meeting. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Statement
        of cash flows:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        Mexican GAAP, the Company presents a consolidated statement of changes in
        financial position in accordance with Bulletin B-12, which identifies the
        generation and application of resources as representing differences between
        beginning and ending financial statement balances in constant Mexican pesos.
        It
        also requires that monetary and unrealized exchange gains and losses be treated
        as cash items in the determination of resources generated by
        operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SFAS
        No.
        95, &#8220;Statement of Cash Flows&#8221;, requires presentation of a statement of cash
        flows.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following presents a reconciliation of the resources generated by (used in)
        operating, investing and financing activities under Mexican GAAP to the
        resources generated by (used in) such activities under U.S. GAAP:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income as reported under U.S. GAAP</font></div>
              </td>
              <td align="left" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.9pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,270,474</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.9pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,424,764</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.9pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">275,763</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Add
                  charges (deduct credits) to operations not requiring (providing)
                  funds:</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation
                  and amortization</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.9pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">315,181</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.9pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">209,240</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.9pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">190,825</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unrealized
                  exchange loss (gain) </font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.9pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,843</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.9pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.9pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,009</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  income taxes</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.9pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">116,656</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2.9pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">363,800</font></div>
              </td>
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              <td align="right" valign="top" width="11%">
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              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
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              <td align="right" valign="top" width="11%">&#160;</td>
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              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
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              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">
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              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
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              <td align="right" valign="top" width="10%">
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              <td align="right" valign="top" width="11%">
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            <tr bgcolor="white">
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              <td align="justify" valign="top" width="34%">
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              <td align="right" valign="top" width="3%">&#160;</td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
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              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
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              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Approximate
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              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
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              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
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      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
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              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
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              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financing
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              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
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              <td align="right" valign="top" width="10%">
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              <td valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
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              <td valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
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            <tr bgcolor="white">
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              <td align="justify" valign="top" width="34%">
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              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,212
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,205</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,291</font></div>
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              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exchange
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              <td valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.55pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(8,843)</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.55pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6,006)</font></div>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Approximate
                  net resources generated by (used in) financing activities under
                  U.S.
                  GAAP</font></div>
              </td>
              <td align="left" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.55pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(244,477)</font></div>
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              <td align="right" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.55pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">402,703</font></div>
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              <td align="right" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.55pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29,570</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="right" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  resources used in investing activities under Mexican GAAP-</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
              </td>
              <td align="left" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,815,187)</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.55pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,348,524)</font></div>
              </td>
              <td align="right" valign="top" width="1%">
                <div>&#160;</div>
              </td>
              <td align="left" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.55pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(10,493)</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Restatement
                  of non-current inventories</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2,209)</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,954</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,012)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  non-cash investing activities</font></div>
              </td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">126,429</font></div>
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              <td valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">71,046</font></div>
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              <td valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,077</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
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            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Approximate
                  net resources used in investing activities under U.S. GAAP</font></div>
              </td>
              <td align="left" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.55pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,690,967)</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="left" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.55pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,272,524)</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="left" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.55pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5,428)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
        resources used in operating activities include cash payments for interest
        and
        income taxes as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td valign="top" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td valign="top" width="1%">&#160;</td>
              <td valign="top" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
              </td>
            </tr>
            <tr>
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30,471</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,169</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,557</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="4%">&#160;</td>
              <td align="justify" valign="top" width="34%">&#160;</td>
              <td align="justify" valign="top" width="3%">&#160;</td>
              <td align="right" valign="top" width="10%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="4%" bgcolor="#ffffff">&#160;</td>
              <td align="justify" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 2pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  taxes paid</font></div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.</font></div>
              </td>
              <td align="right" valign="top" width="10%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">298,521</font></div>
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              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27,625</font></div>
              </td>
              <td align="right" valign="top" width="1%">&#160;</td>
              <td align="right" valign="top" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.4pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38,418</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        caption includes the acquisition of PAV Republic (Note 1a). The Company acquired
        the outstanding shares of PAV Republic Inc. through its subsidiary SimRep
        Corporation, a U.S. company. Such transaction, paid by the Company and ICH,
        was
        valued at USD 245 million where USD 229 million corresponds to the purchase
        price and USD 16 million to the direct cost of the business combination.
        The
        Company contributed USD 123 million to acquire 50.2% of the representative
        shares of SimRep Corporation and ICH, the holding company, acquired the
        remaining 49.8%. SimRep then acquired all the shares from PAV Republic
        Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Subsequent
        event: Foreign exchange rates</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        exchange rates at June 28, 2006 were as follows (amounts in pesos):
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="28%">

            <tr>
              <td align="justify" valign="top" width="15%">&#160;</td>
              <td valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>June
                  28</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="15%">&#160;</td>
              <td valign="top" width="13%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="15%">&#160;</td>
              <td valign="top" width="13%">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dollar</font></div>
              </td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ps.
                  11.4090</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="justify" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Euro</font></div>
              </td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14.3239</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td align="justify" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pound
                  sterling</font></div>
              </td>
              <td align="right" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20.7506</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Recent
        accounting pronouncements in the US:</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        November 2004, Statement of Financial Accounting Standards No. 151, &#8220;Inventory
        Costs-an amendment of ARB No. 43, Chapter 4&#8221; (SFAS No. 151), was issued. This
        Statement amends the guidance in Accounting Research Bulletin no. 43, Chapter
        4,
&#8220;Inventory Pricing,&#8221; to clarify the accounting of abnormal amounts of idle
        facility expense, freight, handling cost, and wasted material (spoilage).
        SFAS
        No. 151 is effective for inventory costs incurred during fiscal years beginning
        after June 15, 2005. The effect on the adoption of this bulletin was not
        significant because prior to the release of SFAS 151, since Mexican GAAP
        already
        contains similar guidance.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        March
        2005, the FASB issued Interpretation No. 47, Accounting for Conditional Asset
        Retirement Obligations (an interpretation of SFAS Statement No. 143) (FIN
        47).
        This Interpretation clarifies that the term conditional asset retirement
        obligation, as used in SFAS Statement No. 143, Accounting for Asset Retirement
        Obligations, refers to a legal obligation to perform an asset retirement
        activity in which the timing and (or) method of settlement are conditional
        on a
        future event that may or may not be within the control of the entity. The
        obligation to perform the asset retirement activity is unconditional even
        though
        uncertainty may exist about the timing and (or) method of settlement.
        Accordingly, an entity is required to recognize the fair value of a liability
        for the conditional asset retirement obligation when incurred and the
        uncertainty about the timing and (or) method of settlement should be factored
        into the measurement of the liability when sufficient information exists.
        This
        Interpretation is effective for fiscal years ending after December 15, 2005.
        The
        Company has evaluated the application of SFAS Interpretation No. 47 and
        determined it has no effect on the Company&#8217;s consolidated financial statements.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        May
        2005, the FASB issued SFAS 154, &#8220;Accounting Changes and Error Corrections&#8221; which
        addresses the accounting and reporting for changes in accounting principles.
        SFAS 154 replaces APB 20 and FIN 20. The adoption of SFAS 154 had no effect
        on
        the Company&#8217;s financial position or on its results of operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        September 2005 the FASB issued SFAS 155, &#8220;Accounting for Certain Hybrid
        Financial Instruments&#8212;an amendment of SFAS Statements No. 133 and 140&#8221;, that
        amends SFAS Statements No. 133, Accounting for Derivative Instruments and
        Hedging Activities, and No. 140, Accounting for Transfers and Servicing of
        Financial Assets and Extinguishments of Liabilities. This Statement resolves
        issues addressed in Statement 133 Implementation Issue No. D1, &#8220;Application of
        Statement 133 to Beneficial Interests in Securitized Financial Assets.&#8221; The
        adoption of SFAS 155 had no material effect on the Company&#8217;s financial position
        or on its results of operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
        pronouncements issued by the FASB or other authoritative accounting standards
        groups with future effective dates are either not applicable or not significant
        to the Company&#8217;s financial statements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
              OF CONTENTS</a></font></div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="center">
            </div>
          </div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div>&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><strong><font size="2">SCHEDULE
        I</font></strong><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GRUPO
          SIMEC, S.A. DE C.V. ( PARENT COMPANY ONLY)</font></strong></div>
        <div>&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Condensed
          Balance Sheets</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
          31, 2005 and 2004</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Thousands
          of constant Mexican pesos as of December 31, 2005)</font></div>
      </div>
      <div><br>&#160;</div>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Assets</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div>&#160;</div>
              </td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  assets:</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced solid;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  and cash equivalents </font></div>
              </td>
              <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,852</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18,464
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  receivable:</font></div>
              </td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Related
                  parties</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">430,313
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">238,786
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced solid;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">438
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">490
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
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            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">239,276
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">&#160;</td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">&#160;</td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long
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              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">875,424
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,730,938
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">&#160;</td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investment
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              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,302,286
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,661,117
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">&#160;</td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property,
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              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">176,826
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">179,919
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">&#160;</td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  Income Tax </font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,378
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18,524
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced solid;">&#160;</td>
              <td width="2%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced solid;">&#160;</td>
              <td width="2%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,797,517</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,848,238
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Liabilities
                  and stockholders' equity</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  liabilities:</font></div>
              </td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  installments of long-term debt</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">
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              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
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              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">965
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <tr bgcolor="#deeced">
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              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
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              <td width="2%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
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            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced solid;">
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              <td width="2%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">45,486
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
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            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stockholders'
                  equity:</font></div>
              </td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
                  stock</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,454,048
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,386,476
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                  paid-in-capital</font></div>
              </td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">839,561
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">677,661
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contributions
                  for future capital stock increases</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">228,822
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Retained
                  earnings</font></div>
              </td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,490,489
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,218,856
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cumulative
                  deferred income tax</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(899,978</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(899,978</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity
                  adjustment for non-monetary assets</font></div>
              </td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(153,724</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">178,151
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fair
                  value of derivative financial instruments</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">40,093
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,764
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">&#160;</td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  stockholders' equity</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,770,489
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,802,752
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr bgcolor="#deeced">
              <td width="5%" bgcolor="#ffffff">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #deeced;">&#160;</td>
              <td width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,797,517</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,848,238
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="5%">&#160;</td>
              <td align="left" colspan="8" valign="bottom" width="100%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
                  accompanying notes to consolidated financial
                  statements.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SCHEDULE
        I</font></strong><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">GRUPO
          SIMEC, S.A. DE C.V. ( PARENT COMPANY ONLY)</font></strong></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Condensed
          Statements of Income</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Years
          ended December 31, 2005, 2004 and 2003</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Thousands
          of constant Mexican pesos as of December 31, 2005)</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br>
          <div>
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td width="5%">&#160;</td>
                  <td valign="bottom" width="57%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005&#160;</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004&#160;</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong>&#160;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                </tr>
                <tr>
                  <td width="5%">&#160;</td>
                  <td valign="bottom" width="57%" style="border-bottom: medium none;">&#160;</td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity
                      in results of subsidiary companies</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,178,938</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,382,007</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">259,319</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white solid;">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                      leasing</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">20,938
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,751</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white solid;">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      of income</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,199,876
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,392,758
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">259,319
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Costs
                      and expenses:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,728
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,226</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white solid;">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Administrative
                      </font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,576
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
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                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white solid;">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white solid;">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
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                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,389,074
                      </font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">255,940
                      </font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Comprehensive
                      financing result:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                      expense </font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(319</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(385</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(714</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                      income </font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">156,715
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">169,607</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">165,606</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Foreign
                      exchange (loss) gain, net</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(166</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,576</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">420</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white solid;">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Monetary
                      position loss</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(60,219</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(130,202</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(98,937</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white solid;">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Comprehensive
                      financial result, net</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">96,011
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">43,596</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">66,375</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white solid;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(189</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,505</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,990</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                      before income tax</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,286,394
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,440,175</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">320,325</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                      tax </font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,615
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced solid;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      income tax </font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,146
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(13,050</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,872</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced solid;">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      income</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,271,633</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,453,225
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">318,453
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" colspan="11" valign="bottom" width="100%" style="border-bottom: white;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
                      accompanying notes to consolidated financial
                      statements.</font></div>
                  </td>
                </tr>

            </table>
          </div>
        </div>
      </div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font size="2"><strong>SCHEDULE
        I</strong></font></div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GRUPO
          SIMEC, S.A. DE C.V. ( PARENT COMPANY ONLY)</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Condensed
          Statement of Changes in Financial Position</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Years
          ended December 31, 2005, 2004 and 2003</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Thousands
          of constant Mexican pesos as of December 31, 2005)</font></div>
        <div><br>
          <div>
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;">
                    <div>&#160;</div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff thin solid;">
                    <div>&#160;</div>
                  </td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                    <div>&#160;</div>
                  </td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></td>
                  <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2003</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                </tr>
                <tr>
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">&#160;</td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                  <td width="5%">&#160;</td>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
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                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
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                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation</font></div>
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                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,728
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
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                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(259,319</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced solid;">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      income tax</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,146
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(13,050</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,873</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Funds
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                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">60,394</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">61,006</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      changes in operating assets and liabilities:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Short
                      term of subsidiaries companies, net</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">67,122</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">52
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(373</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(6</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                      accounts payable and accrued expenses</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(533</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
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                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced solid;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">&#160;</td>
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                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financing
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                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
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                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
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                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">228,822</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tax
                      on assets</font></div>
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                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,704</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">169
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced solid;">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long
                      term account receivables to subsidiary companies</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">855,514
                      </font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">545,376</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(493,600</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced solid;">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Funds
                      provided by financing activities</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">855,514
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">797,027</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(103,614</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investing
                      activities:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
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                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
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                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced solid;">
                    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investment
                      in subsidiary companies</font></div>
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                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(766,387</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(911,994</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,286</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced solid;">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Funds
                      used in investing activities</font></div>
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                  <td width="2%" style="border-bottom: #deeced thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(768,022</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,094,139</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,286</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      (decrease) increase in cash and equivalents</font></div>
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                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(16,612</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,482</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">20,793
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      and equivalents:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white solid;">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                      beginning of year</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18,464
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">20,946</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">153</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#deeced">
                  <td width="5%" bgcolor="#ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: #deeced;">&#160;</td>
                  <td width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #deeced;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #deeced;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white solid;">
                    <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                      end of year</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,852</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18,464</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">20,946</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" valign="bottom" width="57%" style="border-bottom: white;">&#160;</td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td width="5%">&#160;</td>
                  <td align="left" colspan="11" valign="bottom" width="100%" style="border-bottom: white;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
                      accompanying notes to consolidated financial statements.
                      </font></div>
                  </td>
                </tr>

            </table>
          </div>
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      <div>&#160;</div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><strong><font size="2">SCHEDULE
        I</font><br></strong>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>GRUPO
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          statements of changes in financial position</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Years
          ended December 31, 2005, 2004 and 2003</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Thousands
          of constant Mexican pesos as of December 31, 2005)</font><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1&#160;&#160;&#160;&#160;
          </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Organization
          of the Company and certain other information:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          accompanying condensed financial statements reflect the results of operations
          of
          the Company since </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">its
          incorporation in August 1990.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Information
          with respect to the Company's material contingencies are presented in note
          16 of
          the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">consolidated
          financial statements.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
              OF CONTENTS</a></font></div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="center">
            </div>
          </div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
  </body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-8
<SEQUENCE>2
<FILENAME>p06-1011_ex8.htm
<DESCRIPTION>LIST OF SUBSIDIARIES
<TEXT>
<html>
  <head>
    <title>
      Unassociated Document
</title><!-- Licensed to: TPW-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
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</head>
  <body bgcolor="#ffffff">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
      8</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LIST
      OF SUBSIDIARIES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 262.35pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font></div>
            </td>
            <td valign="bottom" width="17%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Jurisdiction
                of Incorporation</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Compa&#241;&#237;a Sider&#250;rgica de Guadalajara, S.A. de C.V.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Arrendadora Simec</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Simec International</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Controladora Simec, S.A. de C.V.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                SimRep Corporation</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                PAV Republic, Inc.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Republic Engineered Products, Inc. </font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Republic Machine, LLC </font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Republic N&amp;T Railroad, Inc.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Republic Canadian Drawn, Inc.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Canada</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Undershaft Investments, N.V.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Netherlands
                Antilles</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Pacific Steel, Inc.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">California</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Compa&#241;&#237;a Sider&#250;rgica del Pac&#237;fico, S.A. de C.V.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Coordinadora de Servicios Sider&#250;rgicos de Calidad, S.A. de
                C.V.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Administradora de Servicios de la Industria Sider&#250;rgica ICH, S.A. de
                C.V.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Industrias del Acero y del Alambre, S.A. de C.V.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Procesadora Mexicali, S.A. de C.V.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Servicios Simec, S.A. de C.V.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="#deeced">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Sistemas de Transporte de Baja California, S.A. de C.V.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
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                Operadora de Metales, S.A. de C.V. </font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
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            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Operadora de Servicios Sider&#250;rgicos de Tlaxcala, S.A. de C.V.
                </font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Administradora de Servicios Sider&#250;rgicos de Tlaxcala, S.A. de C.V.
                </font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
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          <tr bgcolor="#deeced">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Operadora de Servicios de la Industria Sider&#250;rgica ICH, S.A. de
                C.V.</font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                Administradora de Cartera de Occidente, S.A. de C.V. </font></div>
            </td>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mexico</font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
            OF
            CONTENTS</a></font></div>
        </div>
      </div><br></div>
  </body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.(A)
<SEQUENCE>3
<FILENAME>p06-1011_ex12a.htm
<DESCRIPTION>ANNUAL CERTIFICATIONS
<TEXT>
<html>
  <head>
    <title>
      Unassociated Document
</title><!-- Licensed to: TPW-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff"><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
      12(a)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Annual
      Certifications</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 302 of the Sarbanes-Oxley Act of 2002</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I,
      Jos&#233;
Flores Flores, certify that:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.
      I have
      reviewed this annual report on Form 20-F of Grupo Simec, S.A. de
      C.V.;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.
      Based
      on my knowledge, this annual report does not contain any untrue statement of
      a
      material fact or omit to state a material fact necessary to make the statements
      made, in light of the circumstances under which such statements were made,
      not
      misleading with respect to the period covered by this report;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.
      Based
      on my knowledge, the financial statements, and other financial information
      included in this report, fairly present in all material respects the financial
      condition, results of operations and cash flows of the company as of, and for,
      the periods presented in this report;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.
      The
      company&#8217;s other certifying officer(s) and I are responsible for establishing and
      maintaining disclosure controls and procedures (as defined in Exchange Act
      Rules
      13a-15(e) and 15d-15(e)) for the company and have:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
      Designed such disclosure controls and procedures, or caused such disclosure
      controls and procedures to be designed under our supervision, to ensure that
      material information relating to the company, including its consolidated
      subsidiaries, is made known to us by others within those entities, particularly
      during the period in which this report is being prepared; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
      Evaluated the effectiveness of the company&#8217;s disclosure controls and procedures
      and presented in this report our conclusions about the effectiveness of the
      disclosure controls and procedures, as of the end of the period covered by
      this
      report based on such evaluation; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
      Disclosed in this report any change in the company&#8217;s internal control over
      financial reporting that occurred during the period covered by the annual report
      that has materially affected, or is reasonably likely to materially affect,
      the
      company&#8217;s internal control over financial reporting; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.
      The
      company&#8217;s other certifying officer(s) and I have disclosed, based on our most
      recent evaluation of internal control over financial reporting, to the company&#8217;s
      auditors and the audit committee of the company&#8217;s board of directors (or persons
      performing the equivalent functions):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
      All
      significant deficiencies and material weakness in the design or operation of
      internal control over financial reporting which are reasonably likely to
      adversely affect the company&#8217;s ability to record, process, summarize and report
      financial information; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
      Any
      fraud, whether or not material, that involves management or other employees
      who
      have a significant role in the company&#8217;s internal control over financial
      reporting.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
      14,
      2006</font></div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" rowspan="6" valign="top" width="55%">&#160;</td>
            <td align="left" valign="top" width="45%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="55%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;/s/Jos&#233;
                Flores Flores</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                &#160;&#160;&#160; &#160;&#160;Jos&#233; Flores Flores</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;&#160;&#160;&#160;
                &#160;&#160;&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Financial Officer</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
          OF
          CONTENTS</a></font></div>
      </div>
    </div><br></body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.(B)
<SEQUENCE>4
<FILENAME>p06-1011_ex12b.htm
<DESCRIPTION>ANNUAL CERTIFICATIONS
<TEXT>
<html>
  <head>
    <title>
      Unassociated Document
</title><!-- Licensed to: TPW-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff"><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
      12(b)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Annual
      Certifications</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 302 of the Sarbanes-Oxley Act of 2002</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I,
      Luis
      Garc&#237;a Lim&#243;n, certify that:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.
      I have
      reviewed this annual report on Form 20-F of Grupo Simec, S.A. de
      C.V.;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.
      Based
      on my knowledge, this annual report does not contain any untrue statement of
      a
      material fact or omit to state a material fact necessary to make the statements
      made, in light of the circumstances under which such statements were made,
      not
      misleading with respect to the period covered by this report;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.
      Based
      on my knowledge, the financial statements, and other financial information
      included in this report, fairly present in all material respects the financial
      condition, results of operations and cash flows of the company as of, and for,
      the periods presented in this report;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.
      The
      company&#8217;s other certifying officer(s) and I are responsible for establishing and
      maintaining disclosure controls and procedures (as defined in Exchange Act
      Rules
      13a-15(e) and 15d-15(e)) for the company and have:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
      Designed such disclosure controls and procedures, or caused such disclosure
      controls and procedures to be designed under our supervision, to ensure that
      material information relating to the company, including its consolidated
      subsidiaries, is made known to us by others within those entities, particularly
      during the period in which this report is being prepared;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
      Evaluated the effectiveness of the company&#8217;s disclosure controls and procedures
      and presented in this report our conclusions about the effectiveness of the
      disclosure controls and procedures, as of the end of the period covered by
      this
      report based on such evaluation; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
      Disclosed in this report any change in the company&#8217;s internal control over
      financial reporting that occurred during the period covered by the annual report
      that has materially affected, or is reasonably likely to materially affect,
      the
      company&#8217;s internal control over financial reporting; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      The
      company&#8217;s other certifying officer(s) and I have disclosed, based on our most
      recent evaluation of internal control over financial reporting, to the company&#8217;s
      auditors and the audit committee of the company&#8217;s board of directors (or persons
      performing the equivalent functions):</font></div>
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      All
      significant deficiencies and material weakness in the design or operation of
      internal control over financial reporting which are reasonably likely to
      adversely affect the company&#8217;s ability to record, process, summarize and report
      financial information; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
      Any
      fraud, whether or not material, that involves management or other employees
      who
      have a significant role in the company&#8217;s internal control over financial
      reporting.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
      14,
      2006</font></div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" rowspan="6" valign="top" width="55%">&#160;</td>
            <td align="left" valign="top" width="45%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="55%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;/s/
                Luis Garc&#237;a Lim&#243;n</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
                &#160;&#160;Luis Garc&#237;a Lim&#243;n</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;&#160;&#160;&#160;&#160;
                &#160;&#160;Chief Executive
                Officer</em></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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        <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
          OF
          CONTENTS</a></font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-13.(A)
<SEQUENCE>5
<FILENAME>p06-1011_ex13a.htm
<DESCRIPTION>ANNUAL CERTIFICATIONS
<TEXT>
<html>
  <head>
    <title>
      Unassociated Document
</title><!-- Licensed to: TPW-->
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<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
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  <body bgcolor="#ffffff">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
      13(a)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Annual
      Certifications</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 906 of the Sarbanes-Oxley Act of 2002</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of
      Section 1350, Chapter 63 of Title 18, United States Code), each of the
      undersigned officers of Grupo Simec, S.A. de C.V. (the &#8220;Company&#8221;), does hereby
      certify, to such officer&#8217;s knowledge, that:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Annual Report on Form 20-F for the year ended December 31, 2005 of the Company
      fully complies with the requirements of Section 13(a) or 15(d) of the Securities
      Exchange Act of 1934 and the information contained in the Form 20-F fairly
      presents, in all material respects, the financial condition and results of
      operations of the Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
      July 14, 2006</font></div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" rowspan="4" valign="top" width="55%">&#160;</td>
            <td align="justify" valign="top" width="45%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="55%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                Luis Garc&#237;a Lim&#243;n</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Luis
                Garc&#237;a Lim&#243;n</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Chief
                Executive Officer</em></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">&#160;</td>
            <td align="justify" valign="top" width="45%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">&#160;</td>
            <td align="justify" valign="top" width="45%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">&#160;</td>
            <td align="justify" valign="top" width="45%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                Jos&#233; Flores Flores</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jos&#233;
                Flores Flores</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Financial Officer</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">&#160;</td>
            <td align="justify" valign="top" width="45%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="55%">&#160;</td>
            <td align="justify" valign="top" width="45%">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#TofC">TABLE
          OF
          CONTENTS</a></font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
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        <div id="GLHDR" style="WIDTH: 100%" align="center">
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    <div>&#160;</div>
    <div>&#160;</div>
  </body>
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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