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<SEC-DOCUMENT>0000891092-07-004653.txt : 20071030
<SEC-HEADER>0000891092-07-004653.hdr.sgml : 20071030
<ACCEPTANCE-DATETIME>20071030145311
ACCESSION NUMBER:		0000891092-07-004653
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20071029
FILED AS OF DATE:		20071030
DATE AS OF CHANGE:		20071030

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GROUP SIMEC SA DE CV
		CENTRAL INDEX KEY:			0000887153
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES  ROLLING MILLS (COKE OVENS) [3312]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11176
		FILM NUMBER:		071199115

	BUSINESS ADDRESS:	
		STREET 1:		CALZADA LAZARO CARDENAS 601
		CITY:			44910 GUADALAJARA JA
		STATE:			O5
		ZIP:			10022

	MAIL ADDRESS:	
		STREET 1:		CALZADA LAZARO CARDENAS
		CITY:			GUADALAJARA JALISCO
		STATE:			O5
		ZIP:			999999999
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>e28961_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>



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

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>FORM 6-K </B></FONT></P>

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

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>COMMISSION FILE
NUMBER 1-11176 </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the month of
                                                     October __, 2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Group Simec, Inc. <br>
  </FONT>
</div>
<hr noshade size="1">
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                                     (Translation of Registrant&#146;s Name Into English) <br>
  <br>
  </FONT><!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
</div>
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Av. Lazaro Cardenas
601, Colonia la Nogalera, Guadalajara, Jalisco, Mexico 44440 <br>
  </FONT>
</div>
<hr noshade size="1">
<div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                                         (Address of principal executive office) </FONT><!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
</div>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark whether the
registrant files or will file annual reports under cover of Form 20-F or Form 40-F. </FONT></P>

<table width=100%>
  <tr align="center">
    <td valign="top" width=9%><font size=2>           </font></td>
    <td align="left" colspan="2"><font size=2>Form
20-F</font></td>
    <td align="left" width=12%><font size=2>|X|</font></td>
    <td align="left" width=11%><font size=2>Form 40-F </font>&nbsp;&nbsp;</td>
    <td align="left" width=56%><font size=2>|_|&nbsp;</font></td>
  </tr>
</table>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark whether the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1) </FONT></P>


<table width=100%>
  <tr align="center">
    <td valign="top" width=9%><font size=2>           </font></td>
    <td align="left" colspan="2"><font size=2>Yes</font></td>
    <td align="left" width=12%><font face="Times New Roman, Times, Serif" size=2>|_|</font></td>
    <td align="left" width=11%><font face="Times New Roman, Times, Serif" size=2>No</font><font size=2> </font>&nbsp;&nbsp;</td>
    <td align="left" width=56%><font face="Times New Roman, Times, Serif" size=2>|X|</font><font size=2>&nbsp;</font></td>
  </tr>
</table>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark whether the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(7) </FONT></P>


<table width=100%>
  <tr align="center">
    <td valign="top" width=9%><font size=2>           </font></td>
    <td align="left" colspan="2"><font size=2>Yes</font></td>
    <td align="left" width=12%><font face="Times New Roman, Times, Serif" size=2>|_|</font></td>
    <td align="left" width=11%><font face="Times New Roman, Times, Serif" size=2>No</font><font size=2> </font>&nbsp;&nbsp;</td>
    <td align="left" width=56%><font face="Times New Roman, Times, Serif" size=2>|X|</font><font size=2>&nbsp;</font></td>
  </tr>
</table>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark  whether the
 registrant  by  furnishing  the  information  contained  in this form is also thereby
furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934. </FONT></P>



<table width=100%>
  <tr align="center">
    <td valign="top" width=9%><font size=2>           </font></td>
    <td align="left" colspan="2"><font size=2>Yes</font></td>
    <td align="left" width=12%><font face="Times New Roman, Times, Serif" size=2>|_|</font></td>
    <td align="left" width=11%><font face="Times New Roman, Times, Serif" size=2>No</font><font size=2> </font>&nbsp;&nbsp;</td>
    <td align="left" width=56%><font face="Times New Roman, Times, Serif" size=2>|X|</font><font size=2>&nbsp;</font></td>
  </tr>
</table>




<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(If &#147;Yes&#148; is marked,
indicate below the file number assigned to the registrant in connection with Rule
12g3-2(b): 82-_______________________.) </FONT></P>





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


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<!-- MARKER PAGE="sheet: 1; page: 1" -->





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


<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the Company has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></P>



<table width=100%>
  <tr align="center" valign=top>
    <td width=30%>&nbsp;</td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30% align="left"><font size=2>GRUPO
SIMEC, S.A.B. de C.V. <br>
                                                                                         </font>
      <hr noshade size="1" align="left" width="65%">
      <font size=2>   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp; (Registrant) &nbsp;</font></td>
  </tr>
  <tr align="center" valign=top>
    <td width=30%>&nbsp;</td>
    <td width=5%>&nbsp;</td>
    <td width=30%>&nbsp;</td>
    <td width=5%>&nbsp;</td>
    <td width=30%>&nbsp;</td>
  </tr>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>Date:
October 29, 2007.  </font></td>
    <td width=5%>&nbsp;</td>
    <td width=30%>&nbsp;</td>
    <td width=5% align="right"><font size=2>By: &nbsp;</font></td>
    <td width=30% align="left"><font size=2>/s/ Luis Garc&#237;a Lim&#243;n <br>
       </font>
      <hr noshade size="1" align="left" width="65%">
      <font size=2>Name:
  Luis
      Garc&#237;a
Lim&#243;n <br>
                                                                          Title:
    Chief Executive Officer
      </font></td>
  </tr>
</table>



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


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<!-- MARKER PAGE="sheet: 1; page: 1" -->


<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=40%><font face="Times New Roman, Times, Serif" size=2><b>PRESS RELEASE</b></font></td>
    <td width=20%><font face="Times New Roman, Times, Serif" size=2> Contact:
      </font></td>
    <td width=40%><font face="Times New Roman, Times, Serif" size=2>Mario Padilla Vel&#225;squez
                                                                                                               <br>
  Jos&#233;      Flores
Flores                                                                     <br>
  Grupo Simec,
S.A. de C.V.                                                                     <br>
  Calzada
Lazaro Cardenas 601
                                                                    <br>
  44440 Guadalajara,
Jalisco, Mexico
                                                                                                               <br>
  52
55 1165 1025                                                                     <br>
  52 33
3770 6734
      </font></td>
  </tr>
</table>




<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>GRUPO SIMEC
ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST NINE MONTHS OF 2007 </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GUADALAJARA, MEXICO, October 26,
2007- Grupo Simec, S.A.B. de C.V. (AMEX:SIM) (&#147;Simec&#148;) announced today its
results of operations for the nine-month period ended September 30, 2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Nine-Month Period
Ended September 30, 2007 compared to Nine-Month Period Ended September 30, 2006 </B></FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales decreased 2% to Ps. 18,035
million in the nine-month period ended September 30, 2007 compared to Ps. 18,365 million
in the same period of 2006. Shipments of finished steel products decreased 2% to 2,017
thousand tons in the nine-month period ended September 30, 2007 compared to 2,050
thousand tons in the same period of 2006. Total sales outside of Mexico in the nine-month
period ended September 30, 2007 decreased 3% to Ps. 12,594 million compared with Ps.
12,949 million  in the same period of 2006, while total Mexican sales increased 0.5% from
5,416 million in the nine-month period ended September 30, 2006 to Ps. 5,441 million in
the same period of 2007.   The decrease in sales are due to lower shipments during the
third quarter 2007, comparing with the second quarter of 2007 (44,000 ton decrease) and
comparing against the third quarter of 2006 (a decrease of 45,000 ton) The decline of
tons shipped can be explained by the two unexpected stoppages in the rolling lines of the
plants in Guadalajara and Apizaco due during the periods from July 5-8, July 10-13 and
September 10-15 as a result of the shortage in natural gas due to the explosions on the
property of Petroleos Mexicanos </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Direct cost of sales remained stable
from Ps. 14,823  million in the nine-month period ended September 30, 2006 to Ps. 14,860
million in the same period 2007. Direct cost of sales as a percentage of net sales
represented at 82% for the nine-month period ended September 30, 2007 compared to 81% in
the same period of 2006. The increase in the Direct Cost of Sales is due to two factors:
1) Increase in maintenance costs in the plants located in the United States. The increase
was due to the rescheduling of the maintenance stoppages in the second week of August
with employees from outside the company instead of during the first weekend of July with
company employees, as they are normally scheduled. The rescheduling of the maintenance
stoppages was made with the intention of having enough inventories that would permit us
to perform our obligations with our customers in view of the termination of the labor
agreement between the company and the unionized workers. A tentative agreement was
reached on August 16, which was later ratified on September 27. The contract will have a
duration of 5 years and will expire in 2012. 2) An increase in the labor costs per ton
sold, due to the three unexpected stoppages in the rolling lines of the plants in
Guadalajara and Apizaco during the periods from July 5-8, July 10-13 and September 10-15
as a result of the shortage in natural gas due to the explosions on the property of
Petroleos Mexicanos. </FONT></P>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit in the nine-month
period ended September 30, 2007 decreased 10% to Ps. 3,175 million compared to Ps. 3,542
million in the same period 2006. Gross profit as a percentage of net sales for the
nine-month period ended September 30, 2007 was 18% compared to 19% in the same period of
2006. The decline in gross profit is due to the decrease in sales and the increase in
cost of goods sold due to the reasons previously mentioned. </FONT></P>



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


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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating expenses increased 3% to
Ps. 1,057 million in the nine-month period ended September 30, 2007 compared to Ps. 1,022
 million in the same period 2006 (depreciation and amortization increased Ps. 48 million
in the nine-month period compared to the same period of 2006) but remained stable at 6%
of net sales. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating profit decreased 16% from
Ps. 2,520 million in the nine-month period ended September 30, 2006 to Ps. 2,118 million
in the same period 2007. Operating profit as a percentage of net sales was 12% for the
nine-month period ended September 30, 2007compared to 14% in the same period of 2006. The
decline in operating profit is due to the decrease in sales and the increase in cost of
goods sold due to the reasons previously mentioned. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Integral financial cost in the
nine-month period ended September 30, 2007 represented a gain of Ps. 205 million compared
with a expense of Ps. 9 million for the same period in 2006. Interest income was Ps. 234
 million in the nine-month period ended September 30, 2007, compared with Ps. 39 million
in the same period 2006 due to larger cash balances during this year partly reflecting
our recent capital increase in February 2007. At the same time we registered an exchange
loss of Ps. 2 million in the nine-month period ended September 30, 2007 compared with an
exchange loss of Ps. 17 million in the same period of 2006, reflecting a 0.4% increase in
the value of the peso versus the dollar in the nine-month period ended September 30, 2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Other Expenses
(Income) net </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company recorded other income
net of Ps. 45  million in the nine-month period ended September 30, 2007 compared to
other income, net for Ps. 28 million for the same period of 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Taxes and Profit
Sharing </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxes and profit sharing in the
nine-month period ended September 30, 2007 increased to Ps. 730 million compared to Ps.
356 million for the same period of 2006 due to an increase in deferred taxes during the
nine-month period ended September 30, 2007. In the nine-month period ended September 30,
2006, we amortized Ps. 350 million of our deferred credit which is non-taxable income.
This does not affect the cash flow. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a result of the foregoing, net
profit decreased by 25% to Ps. 1,638 million in the nine-month period ended September 30,
2007 from Ps. 2,183 million in the same period of 2006. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At September 30, 2007 Simec&#146;s
total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (&#147;MTN&#146;s&#148;)
due 1998 (accrued interest at September 30, 2006 was U.S. $357,201 dollars.  At December
31, 2006, Simec&#146;s total consolidated debt consisted of U.S. $302,000 of 8 7/8%
medium-term notes (&#147;MTN&#146;s&#148;) due 1998 (accrued interest at December 31,
2006 was U.S. $336,525 dollars). </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net resources provided by operations
were Ps. 2,004 million in the nine-month period ended September 30, 2007 versus Ps. 1,411
million of net resources provided by operations in the same period of 2006. Net resources
provided by financing activities were Ps. 2,343 million in the nine-month period ended
September 30, 2007 (which amount includes the capital increase of Ps. 2,387 million in
February 2007) versus Ps. 118 million of net resources used by financing activities in
the same period of 2006. Net resources used in investing activities (to acquire property,
plant and equipment, other non-current assets and liabilities) were Ps. 515 million in
the nine-month period ended September 30, 2007 versus net resources provided by investing
activities (to acquire property, plant and equipment, other non-current assets and
liabilities and proceeds for insurance claim) of Ps. 197 million in the same period of
2006. </FONT></P>





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


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<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Comparative third
quarter 2007 vs second quarter 2007 </B></FONT></P>


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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales decreased 9% due to a
 decrease of 2% in prices and a 7% decrease in sales volume making net sales go from Ps.
6,228 million for the second quarter 2007 to Ps. 5,659 million for the third quarter
2007. Sales in tons of finished steel products decreased 7% to 635 thousand tons in the
third quarter 2007 compared with 679 thousand tons in the second quarter 2007. The total
sales outside of Mexico for the third quarter 2007 decreased to Ps. 3,983 million
compared with Ps. 4,312 million for the second quarter 2007. Total Mexican sales
decreased from Ps. 1,916 million in the second quarter 2007 to Ps.1,676 millions in the
third quarter 2007. The decrease in sales can be explained due to lower shipments during
the third quarter 2007, comparing with the second quarter of 2007 (44,000 ton decrease)
and comparing against the third quarter of 2006 (a decrease of 45,000 tons) The decline
of tons shipped can be explained by the two unexpected stoppages in the rolling lines of
the plants in Guadalajara and Apizaco due during the periods from July 5-8, July 10-13
and September 10-15 as a result of the shortage in natural gas due to the explosions on
the property of Petroleos Mexicanos. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Direct cost of sales decreased 4%
from Ps. 5,066 million in the second quarter 2007 to Ps. 4,870 million for the third
quarter 2007. In the third quarter 2007, the direct cost of sales represented 86% of net
sales compared to 81% for the second quarter 2007. The increase in the average cost of
raw materials to produce steel products is due to two factors: 1) Increase in maintenance
costs in the plants located in the United States. The increase was due to the
rescheduling of the maintenance stoppages to the second week of August with employees
from outside the company instead of doing them during the first weekend of July with
company employees, as they are normally scheduled. The reprogramming of the maintenance
stoppages was made with the intention of having enough inventories that would permit us
to perform our obligations to our customers in view of the termination of the labor
agreement between the company and the unionized workers. A tentative agreement was
reached on August 16, which was later ratified on September 27. The contract will have
duration of 5 years and will expire in 2012, 2) An increase in the labor costs per ton
sold, due to the three unexpected stoppages in the rolling lines of the plants in
Guadalajara and Apizaco during the periods from July 5-8, July 10-13 and September 10-15
as a result of the shortage in natural gas due to the explosions on the property of
Petroleos Mexicanos. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit for the third quarter
2007 decreased 32% to Ps. 789  million compared to Ps. 1,162  million in the second
quarter 2007. Gross profit as a percentage of net sales for the third quarter 2007 was
14% compared with 19% for the second quarter 2007. The decline in gross profit is due to
the decrease in sales and the increase in the average cost of raw materials to produce
steel products due to the reasons previously mentioned. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating expenses were Ps. 349
 million in the third quarter 2007 compared to Ps. 349  million for the second quarter
2007. As a percentage of sales, operating expense represented 6% during the third quarter
of 2007 compared to 6% in the second quarter of 2007. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating profit decreased 46% from
Ps. 813 million in the second quarter 2007 to Ps. 440 million for the third quarter 2007.
Operating profit as a percentage of net sales decreased to 8% in the third quarter 2007
from 13 % in the second quarter 2007. This was due to a decrease of 7% in sales volume
and an increase of 3% in the average cost of raw materials. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Integral financial cost for the
second quarter 2007 represented an income of Ps. 38 million compared with an income of
Ps. 90 million for the third quarter 2007. Net interest income was Ps. 98 million in the
third quarter 2007 compared with Ps. 88 million in the second quarter 2007, due to larger
cash balances during this year partly reflecting our recent capital increase in February
2007. </FONT></P>






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


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<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Other Expenses
(Income) net </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company recorded other income,
net of Ps. 27  million for the third quarter 2007 compared with other expenses net of Ps.
9 million for the second quarter 2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Taxes and Profit
Sharing </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxes and profit sharing for the
third quarter 2007 were Ps. 196 million compared to Ps. 301 million for the second
quarter 2007, due to an increase in deferred taxes which increased from Ps. 102 million
registered in the second quarter 2007 compared to Ps. 241 million registered in the third
quarter 2007. This does not affect the cash flow. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a result of the foregoing, net
profit decreased by 33% to Ps. 361 million in the third quarter 2007 from Ps. 541 million
in the second quarter 2007. </FONT></P>


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Comparative third
quarter 2007 vs. third quarter 2006 </B></FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales decreased 2% from Ps.
5,774 million for the third quarter 2006 compared with Ps. 5,659 million for the same
period 2007. Sales in tons of finished steel decreased 7% to 635 thousand tons in the
third quarter 2007 compared with 680 thousand tons in the same period 2006. The total
sales outside of Mexico for the third quarter 2007 increased 7% to Ps. 3,983 million
 compared with Ps. 3,724 million for the same period 2006. The total of national sales
decreased 18% to  1,676 million in the third quarter of 2007 from Ps. 2,050 millions in
the same period 2006.  The decrease in sales can be explained due to lower shipments
douring the third quarter 2007, comparing with the second quarter of 2007 (44,000 tons
decrease) and comparing against the third quarter of 2006 (a decrease of 45,000 tons) The
decline of tons shipped can be explained by the three unexpected stoppages in the rolling
lines of the plants in Guadalajara and Apizaco during the periods from July 5-8, July
10-13 and September 10-15 as a result from the shortage in natural gas due to the
explosions on the property of Petroleos Mexicanos. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Direct cost of sales increased 6%
from Ps. 4,589  million in the third quarter 2006 to Ps. 4,870 million for the same
period 2007. With respect to sales, in the third quarter 2007, the direct cost of sales
represents 86% compared to 79% for the same period 2006. The increase in the Direct Cost
of Sales is due to two factors: 1) Increase in maintenance costs in the plants located in
the United States. The increase was due to the rescheduling of the maintenance stoppages
to the second week of August with employees from outside the company instead of during
the first weekend of July with company employees, as they are normally scheduled. The
rescheduling of the maintenance stoppages was made with the intention of having enough
inventories that would permit us to perform our obligations to our customers in view of
the termination of the labor agreement between the company and the unionized workers. A
tentative agreement was reached on August 16, which was later ratified on September 27.
The contract will have duration of 5 years and will expire in 2012. 2) An increase in the
labor costs per ton sold, due to the three unexpected stoppages in the rolling lines of
the plants in Guadalajara and Apizaco during the periods from July 5-8, July 10-13 and
September 10-15 as a result of the shortage in natural gas due to the explosions on the
property of Petroleos Mexicanos. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit for the third quarter
2007 decreased 33% to Ps. 789 million compared to Ps 1,185 million in the same period
2006. The gross profit as a percentage of net sales for the third quarter 2007 was 14%
compared with 21% for the same period of 2006.  The decline in gross profit is due to the
decrease in sales and the increase in cost of goods sold due to the reasons previously
mentioned. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating expenses increased 9% to
Ps. 349 million in the third quarter 2007 compared to Ps. 321 million for the same period
2006, the depreciation and amortization in the third quarter 2007 was Ps. 123 million
compared to Ps. 113 million in the same period of 2006. Operating expenses as a
percentage of net sales represented 6% during the third quarter 2007 compared to 6% of
the same period 2006. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating profit decreased 49% from
Ps. 864 million in the third quarter 2006 to Ps. 440 million for the same period 2007.
The operating profit as a percentage of net sales in the third quarter 2007 was 8%
compared to 15% in the same period  </FONT></P>





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


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<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2006. The decline in operating
profit is due to the decrease in sales and the increase in cost of goods sold due to the
reasons previously mentioned. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Integral financial cost for the
third quarter 2007 represented a gain of Ps. 90 million compared with the gain of Ps. 57
million for the same period 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Other Expenses
(Income) net </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company recorded other income
net for Ps. 27 million for the third quarter 2007 compared with other expenses net for
Ps. 7 million for the same period 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Taxes and Profit
Sharing </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxes and profit sharing for the
third quarter 2007 decreased to Ps. 196 million compared to Ps. 245 million for the same
period 2006. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a result of the foregoing, net
profit decreased by 35% to Ps. 361 million in the third quarter 2007 from Ps. 555 million
in the third quarter 2006. </FONT></P>




<table cellpadding=0 cellspacing=0 border=0 width=600 align="center">
  <tr valign=Bottom>
    <td colspan=8 align="left">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td colspan=2 align="left"><font face="Times New Roman" size=2>Millions of pesos</font></td>
    <th colspan=2><font face="Times New Roman" size=2>Nine months <br>
ended September <br>
30, 2007 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Nine months <br>
ended September <br>
30, 2006 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>2007 <br>
vs <br>
2006 </font></th>
  </tr>
  <tr>

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

    <td align=LEFT width=252><font face="Times New Roman" size=2>Sales</font></td>
    <td align=LEFT width=6><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=94><font face="Times New Roman" size=2>18,035</font></td>
    <td align=LEFT width=41><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=97><font face="Times New Roman" size=2>18,365</font></td>
    <td align=LEFT width=38><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=37><font face="Times New Roman" size=2>-2</font></td>
    <td align=LEFT width=35><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="252"><font face="Times New Roman" size=2>Cost of Sales</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="94"><font face="Times New Roman" size=2>14,860</font></td>
    <td align=LEFT width="41"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="97"><font face="Times New Roman" size=2>14,823</font></td>
    <td align=LEFT width="38"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="37"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="252"><font face="Times New Roman" size=2>Gross Profit</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="94"><font face="Times New Roman" size=2>3,175</font></td>
    <td align=LEFT width="41"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="97"><font face="Times New Roman" size=2>3,542</font></td>
    <td align=LEFT width="38"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="37"><font face="Times New Roman" size=2>-10</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="252"><font face="Times New Roman" size=2>Operating Expenses</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="94"><font face="Times New Roman" size=2>1,057</font></td>
    <td align=LEFT width="41"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="97"><font face="Times New Roman" size=2>1,022</font></td>
    <td align=LEFT width="38"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="37"><font face="Times New Roman" size=2>3</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="252"><font face="Times New Roman" size=2>Operating Profit</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="94"><font face="Times New Roman" size=2>2,118</font></td>
    <td align=LEFT width="41"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="97"><font face="Times New Roman" size=2>2,520</font></td>
    <td align=LEFT width="38"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="37"><font face="Times New Roman" size=2>-16</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="252"><font face="Times New Roman" size=2>EBITDA</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="94"><font face="Times New Roman" size=2>2,492</font></td>
    <td align=LEFT width="41"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="97"><font face="Times New Roman" size=2>2,846</font></td>
    <td align=LEFT width="38"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="37"><font face="Times New Roman" size=2>-12</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="252"><font face="Times New Roman" size=2>Net Profit</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="94"><font face="Times New Roman" size=2>1,638</font></td>
    <td align=LEFT width="41"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="97"><font face="Times New Roman" size=2>2,183</font></td>
    <td align=LEFT width="38"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="37"><font face="Times New Roman" size=2>-25</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="252"><font face="Times New Roman" size=2>Sales outside Mexico</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="94"><font face="Times New Roman" size=2>12,594</font></td>
    <td align=LEFT width="41"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="97"><font face="Times New Roman" size=2>12,949</font></td>
    <td align=LEFT width="38"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="37"><font face="Times New Roman" size=2>-3</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="252"><font face="Times New Roman" size=2>Sales in M&#233;xico</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="94"><font face="Times New Roman" size=2>5,441</font></td>
    <td align=LEFT width="41"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="97"><font face="Times New Roman" size=2>5,416</font></td>
    <td align=LEFT width="38"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="37"><font face="Times New Roman" size=2>0.5</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="252"><font face="Times New Roman" size=2>Total sales (tons)</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="94"><font face="Times New Roman" size=2>2,017</font></td>
    <td align=LEFT width="41"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="97"><font face="Times New Roman" size=2>2,050</font></td>
    <td align=LEFT width="38"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="37"><font face="Times New Roman" size=2>-2</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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









<br>
<table cellpadding=0 cellspacing=0 border=0 width=600 align="center">
  <tr valign=Bottom>
    <th colspan=12>
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font face="Times New Roman" size="1">(Millions of pesos)</font></th>
    <th colspan=2><font face="Times New Roman" size="1">3Q &#145;07</font></th>
    <th colspan=2><font face="Times New Roman" size="1">2Q &#145;07</font></th>
    <th colspan=2><font face="Times New Roman" size="1">3Q &#145;06</font></th>
    <th colspan=2><font face="Times New Roman" size="1">3Q&#180;07vs <br>
2Q&#180;07 </font></th>
    <th colspan=2><font face="Times New Roman" size="1">3Q&#180;07  vs <br>
3Q&#146;06 </font></th>
  </tr>
  <tr>

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

    <td align=LEFT width=231><font face="Times New Roman" size=2>Sales</font></td>
    <td align=LEFT width=6><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=49><font face="Times New Roman" size=2>5,659</font></td>
    <td align=LEFT width=12><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=48><font face="Times New Roman" size=2>6,228</font></td>
    <td align=LEFT width=13><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=51><font face="Times New Roman" size=2>5,774</font></td>
    <td align=LEFT width=10><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=53><font face="Times New Roman" size=2>-9</font></td>
    <td align=LEFT width=47><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width=47><font face="Times New Roman" size=2>-2</font></td>
    <td align=LEFT width=33><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="231"><font face="Times New Roman" size=2>Cost of Sales</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="49"><font face="Times New Roman" size=2>4,870</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>5,066</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>4,589</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>-4</font></td>
    <td align=LEFT width="47"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>6</font></td>
    <td align=LEFT width="33"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="231"><font face="Times New Roman" size=2>Gross Profit</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="49"><font face="Times New Roman" size=2>789</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>1,162</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>1,185</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>-32</font></td>
    <td align=LEFT width="47"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>-33</font></td>
    <td align=LEFT width="33"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="231"><font face="Times New Roman" size=2>Operating Expenses</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="49"><font face="Times New Roman" size=2>349</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>349</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>321</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="47"><font face="Times New Roman" size=2>%</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>9</font></td>
    <td align=LEFT width="33"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="231"><font face="Times New Roman" size=2>Operating Profit</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="49"><font face="Times New Roman" size=2>440</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>813</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>864</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>-46</font></td>
    <td align=LEFT width="47"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>-49</font></td>
    <td align=LEFT width="33"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="231"><font face="Times New Roman" size=2>EBITDA</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="49"><font face="Times New Roman" size=2>563</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>940</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>977</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>-40</font></td>
    <td align=LEFT width="47"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>-42</font></td>
    <td align=LEFT width="33"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="231"><font face="Times New Roman" size=2>Net Profit</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="49"><font face="Times New Roman" size=2>361</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>543</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>555</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>-34</font></td>
    <td align=LEFT width="47"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>-35</font></td>
    <td align=LEFT width="33"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="231"><font face="Times New Roman" size=2>Sales outside Mexico</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="49"><font face="Times New Roman" size=2>3,983</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>4,312</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>3,724</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>-8</font></td>
    <td align=LEFT width="47"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>7</font></td>
    <td align=LEFT width="33"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="231"><font face="Times New Roman" size=2>Sales in M&#233;xico</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="49"><font face="Times New Roman" size=2>1,676</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>1,916</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>2,050</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>-13</font></td>
    <td align=LEFT width="47"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>-18</font></td>
    <td align=LEFT width="33"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="231"><font face="Times New Roman" size=2>Total sales (tons)</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="49"><font face="Times New Roman" size=2>635</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>679</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>680</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>-6</font></td>
    <td align=LEFT width="47"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>-7%</font></td>
    <td align=LEFT width="33"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

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





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


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<table cellpadding=0 cellspacing=0 border=0 width=650 align="center">
  <tr valign=Bottom>
    <th colspan=14 align="left">
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>

    <th colspan=2 align="left"><font face="Times New Roman" size=1>Product</font></th>
    <th colspan=2><font face="Times New Roman" size=1>Thousands of <br>
tons nine   <br>
months ended <br>
September <br>
30,2007 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Millions of <br>
pesos nine <br>
months ended <br>
September 30, <br>
2007 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Average price <br>
per ton nine <br>
months ended <br>
September 30, <br>
2007 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Thousands of <br>
tons nine <br>
months ended <br>
September <br>
30,2006 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Millions of <br>
pesos nine <br>
months ended <br>
September 30, <br>
2006 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Average price <br>
per ton nine <br>
months ended <br>
September 30, <br>
2006 </font></th>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width=152><font face="Times New Roman" size=2>SBQ</font></td>
    <td align=LEFT width=5><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=64><font face="Times New Roman" size=2>1,449</font></td>
    <td align=LEFT width=20><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=58><font face="Times New Roman" size=2>13,707</font></td>
    <td align=LEFT width=22><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=67><font face="Times New Roman" size=2>9,460</font></td>
    <td align=LEFT width=13><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=59><font face="Times New Roman" size=2>1,482</font></td>
    <td align=LEFT width=25><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=65><font face="Times New Roman" size=2>14,171</font></td>
    <td align=LEFT width=15><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=66><font face="Times New Roman" size=2>9,562</font></td>
    <td align=LEFT width=19><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="152"><font face="Times New Roman" size=2>Light Structural</font></td>
    <td align=LEFT width="5"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="64"><font face="Times New Roman" size=2>217</font></td>
    <td align=LEFT width="20"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="58"><font face="Times New Roman" size=2>1,682</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="67"><font face="Times New Roman" size=2>7,751</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="59"><font face="Times New Roman" size=2>215</font></td>
    <td align=LEFT width="25"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="65"><font face="Times New Roman" size=2>1,503</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="66"><font face="Times New Roman" size=2>6,991</font></td>
    <td align=LEFT width="19"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="152"><font face="Times New Roman" size=2>Structural</font></td>
    <td align=LEFT width="5"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="64"><font face="Times New Roman" size=2>171</font></td>
    <td align=LEFT width="20"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="58"><font face="Times New Roman" size=2>1,377</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="67"><font face="Times New Roman" size=2>8,053</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="59"><font face="Times New Roman" size=2>152</font></td>
    <td align=LEFT width="25"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="65"><font face="Times New Roman" size=2>1,182</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="66"><font face="Times New Roman" size=2>7,776</font></td>
    <td align=LEFT width="19"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="152"><font face="Times New Roman" size=2>Rebar</font></td>
    <td align=LEFT width="5"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="64"><font face="Times New Roman" size=2>180</font></td>
    <td align=LEFT width="20"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="58"><font face="Times New Roman" size=2>1,230</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="67"><font face="Times New Roman" size=2>6,833</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="59"><font face="Times New Roman" size=2>200</font></td>
    <td align=LEFT width="25"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="65"><font face="Times New Roman" size=2>1,493</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="66"><font face="Times New Roman" size=2>7,465</font></td>
    <td align=LEFT width="19"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="152"><font face="Times New Roman" size=2>Others</font></td>
    <td align=LEFT width="5"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="64"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="20"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="58"><font face="Times New Roman" size=2>39</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="67"><font face="Times New Roman" size=2>&#151;</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="59"><font face="Times New Roman" size=2>1</font></td>
    <td align=LEFT width="25"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="65"><font face="Times New Roman" size=2>16</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="66"><font face="Times New Roman" size=2>&#151;</font></td>
    <td align=LEFT width="19"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="152"><font face="Times New Roman" size=2>Total</font></td>
    <td align=LEFT width="5"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="64"><font face="Times New Roman" size=2>2,017</font></td>
    <td align=LEFT width="20"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="58"><font face="Times New Roman" size=2>18,035</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="67"><font face="Times New Roman" size=2>8,941</font></td>
    <td align=LEFT width="13"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="59"><font face="Times New Roman" size=2>2,050</font></td>
    <td align=LEFT width="25"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="65"><font face="Times New Roman" size=2>18,365</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="66"><font face="Times New Roman" size=2>8,959</font></td>
    <td align=LEFT width="19"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>






<br>
<table cellpadding=0 cellspacing=0 border=0 width=720 align="center">
  <tr valign=Bottom>
    <th colspan=20 align="left">
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>

    <th colspan=2 align="left"><font face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product</font></th>
    <th colspan=2><font face="Times New Roman" size=1>Thousands <br>
of tons <br>
3Q &#145;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Millions <br>
of pesos <br>
3Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Average <br>
price per <br>
ton 3Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Thousands <br>
of tons <br>
2Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Millions <br>
of pesos <br>
2Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Average <br>
price per <br>
ton 2Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Thousands <br>
of tons <br>
3Q&#146;06 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Millions <br>
of pesos <br>
3Q&#146;06 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Average <br>
price per <br>
ton 3Q&#146;06 </font></th>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width=147><b><font face="Times New Roman" size=2>SBQ</font></b></td>
    <td align=LEFT width=4><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=53><font face="Times New Roman" size=2>467</font></td>
    <td align=LEFT width=21><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=43><font face="Times New Roman" size=2>4,378</font></td>
    <td align=LEFT width=14><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=44><font face="Times New Roman" size=2>9,375</font></td>
    <td align=LEFT width=11><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=55><font face="Times New Roman" size=2>466</font></td>
    <td align=LEFT width=19><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=46><font face="Times New Roman" size=2>4,566</font></td>
    <td align=LEFT width=11><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=46><font face="Times New Roman" size=2>9,798</font></td>
    <td align=LEFT width=9><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=56><font face="Times New Roman" size=2>512</font></td>
    <td align=LEFT width=18><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=42><font face="Times New Roman" size=2>4,416</font></td>
    <td align=LEFT width=15><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=52><font face="Times New Roman" size=2>8,625</font></td>
    <td align=LEFT width=14><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="147"><b><font face="Times New Roman" size=2>Light Structural</font></b></td>
    <td align=LEFT width="4"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>60</font></td>
    <td align=LEFT width="21"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="43"><font face="Times New Roman" size=2>482</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="44"><font face="Times New Roman" size=2>8,033</font></td>
    <td align=LEFT width="11"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="55"><font face="Times New Roman" size=2>95</font></td>
    <td align=LEFT width="19"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="46"><font face="Times New Roman" size=2>752</font></td>
    <td align=LEFT width="11"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="46"><font face="Times New Roman" size=2>7,916</font></td>
    <td align=LEFT width="9"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="56"><font face="Times New Roman" size=2>58</font></td>
    <td align=LEFT width="18"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="42"><font face="Times New Roman" size=2>430</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="52"><font face="Times New Roman" size=2>7,414</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="147"><b><font face="Times New Roman" size=2>Structural</font></b></td>
    <td align=LEFT width="4"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>50</font></td>
    <td align=LEFT width="21"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="43"><font face="Times New Roman" size=2>395</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="44"><font face="Times New Roman" size=2>7,900</font></td>
    <td align=LEFT width="11"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="55"><font face="Times New Roman" size=2>60</font></td>
    <td align=LEFT width="19"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="46"><font face="Times New Roman" size=2>494</font></td>
    <td align=LEFT width="11"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="46"><font face="Times New Roman" size=2>8,233</font></td>
    <td align=LEFT width="9"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="56"><font face="Times New Roman" size=2>46</font></td>
    <td align=LEFT width="18"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="42"><font face="Times New Roman" size=2>404</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="52"><font face="Times New Roman" size=2>8,783</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="147"><b><font face="Times New Roman" size=2>Rebar</font></b></td>
    <td align=LEFT width="4"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>58</font></td>
    <td align=LEFT width="21"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="43"><font face="Times New Roman" size=2>383</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="44"><font face="Times New Roman" size=2>6,603</font></td>
    <td align=LEFT width="11"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="55"><font face="Times New Roman" size=2>57</font></td>
    <td align=LEFT width="19"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="46"><font face="Times New Roman" size=2>403</font></td>
    <td align=LEFT width="11"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="46"><font face="Times New Roman" size=2>7,070</font></td>
    <td align=LEFT width="9"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="56"><font face="Times New Roman" size=2>64</font></td>
    <td align=LEFT width="18"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="42"><font face="Times New Roman" size=2>517</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="52"><font face="Times New Roman" size=2>8,078</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="147"><b><font face="Times New Roman" size=2>Others</font></b></td>
    <td align=LEFT width="4"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="21"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="43"><font face="Times New Roman" size=2>21</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="44"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="11"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="55"><font face="Times New Roman" size=2>1</font></td>
    <td align=LEFT width="19"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="46"><font face="Times New Roman" size=2>13</font></td>
    <td align=LEFT width="11"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="46"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="9"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="56"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="18"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="42"><font face="Times New Roman" size=2>7</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="52"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="147"><b><font face="Times New Roman" size=2>Total</font></b></td>
    <td align=LEFT width="4"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="53"><font face="Times New Roman" size=2>635</font></td>
    <td align=LEFT width="21"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="43"><font face="Times New Roman" size=2>5,659</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="44"><font face="Times New Roman" size=2>8,912</font></td>
    <td align=LEFT width="11"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="55"><font face="Times New Roman" size=2>679</font></td>
    <td align=LEFT width="19"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="46"><font face="Times New Roman" size=2>6,228</font></td>
    <td align=LEFT width="11"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="46"><font face="Times New Roman" size=2>9,172</font></td>
    <td align=LEFT width="9"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="56"><font face="Times New Roman" size=2>680</font></td>
    <td align=LEFT width="18"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="42"><font face="Times New Roman" size=2>5,774</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="52"><font face="Times New Roman" size=2>8,491</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>







<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Any forward-looking information
contained herein is inherently subject to various risks, uncertainties and assumptions
which, if incorrect, may cause actual results to vary materially from those anticipated,
expected or estimated. The company assumes no obligation to update any forward-looking
information contained herein.</I> </FONT> </P>





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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->







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



<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>

</table>




<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED FINANCIAL
STATEMENT </B><BR> AT SEPTEMBER 30 OF 2007 AND 2006 <BR>
(thousands of Mexican pesos) </FONT> </P>



<table border=0 cellspacing=0 cellpadding=0 align="center" width="700">
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="2">
        <p align=center><font size="1" face="Times New Roman">REF <br>
          S</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">CONCEPTS</font></p>
      </td>
      <td colspan=4>
        <p align=center><font size="1" face="Times New Roman">CURRENT YEAR</font></p>
      </td>
      <td colspan=4>
        <p align=center><font size="1" face="Times New Roman">PREVIOUS YEAR</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td colspan="2">
        <p align=center><font size="1" face="Times New Roman">AMOUNT</font></p>
      </td>
      <td colspan="2">
        <p align=center><font size="1" face="Times New Roman">%</font></p>
      </td>
      <td colspan="2">
        <p align=center><font size="1" face="Times New Roman">AMOUNT</font></p>
      </td>
      <td colspan="2">
        <p align=center><font size="1" face="Times New Roman">%</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s01</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>TOTAL ASSETS</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>22,594,435</b></font></p>
      </td>
      <td><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>100</b></font></p>
      </td>
      <td><font size="1">&nbsp;&nbsp;</font></td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>17,658,522</b></font></p>
      </td>
      <td><font size="1">&nbsp;&nbsp;</font></td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>100</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>


    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s02</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>CURRENT ASSETS</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>14,293,830</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>63</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>9,488,048</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>54</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s03</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CASH AND SHORT-TERM INVESTMENTS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6,006,214</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">27</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,711,951</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">10</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s04</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">ACCOUNTS AND NOTES RECEIVABLE (NET)</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,619,080</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">12</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,518,863</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">14</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s05</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER ACCOUNTS AND NOTES RECEIVABLE</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">287,272</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">257,221</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s06</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">INVENTORIES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">5,287,395</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">23</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">4,830,628</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">27</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s07</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER CURRENT ASSETS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">93,869</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">169,385</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s08</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>LONG-TERM</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s09</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">ACCOUNTS AND NOTES RECEIVABLE (NET)</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s10</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <font size="1" face="Times New Roman">INVESTMENT IN SHARES OF NON-CONSOLIDATED  <br>
           &nbsp;&nbsp;&nbsp;&nbsp;SUBSIDIARIES AND ASSOCIATES</font></td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s11</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER INVESTMENTS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s12</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>PROPERTY, PLANT AND EQUIPMENT (NET)</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>7,804,564</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>35</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>7,568,912</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>43</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s13 </font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">LAND AND BULIDINGS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,569,128</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">11</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,566,653</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">15</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s14</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">MACHINERY AND INDUSTRIAL EQUIPMENT</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">8,615,942</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">38</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">7,735,901</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">44</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s15</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER EQUIPMENT</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">107,342</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">116,381</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s16</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">ACCUMULATED DEPRECIATION</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,695,504</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">16</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,028,012</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">17</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s17</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CONSTRUCTION IN PROGRESS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">207,656</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">177,989</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s18</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>OTHER INTANGIBLE ASSETS AND
  DEFERRED ASSETS (NET)</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>404,428</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>2</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>516,206</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>3</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s19</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>OTHER ASSETS</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>91,613</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>85,356</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s20 </b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>TOTAL LIABILITIES</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>5,667,042</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>100</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>4,947,663</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>100</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s21</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>CURRENT LIABILITIES</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>3,119,306</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>55</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>2,997,179</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>61</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s22</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">SUPPLIERS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,270,733</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">40</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,774,107</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">36</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s23</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">BANK LOANS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s24</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">STOCK MARKET LOANS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,299</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,454</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s103</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER LOANS WITH COST</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s25</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">TAXES PAYABLE</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">29,183</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">283,202</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s26</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER CURRENT LIABILITIES WITHOUT COST</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">816,091</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">14</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">936,416</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">19</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s27</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>LONG-TERM LIABILITIES</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s28</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">BANK LOANS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s29</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">STOCK MARKET LOANS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s30</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER LOANS WITH COST</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s31</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>DEFERRED LIABILITIES</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>0</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s32</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>OTHER NON-CURRENT LIABILITIES
  WITHOUT COST</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>2,547,736</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>45</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>1,950,484</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>39</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s33</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>CONSOLIDATED STOCKHOLDERS&#146; EQUITY</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>16,927,393</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>100</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>12,710,859</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>100</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>

    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s34</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>MINORITY INTEREST</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>2,426,421</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>14</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>2,321,705</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>18</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s35</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>MAJORITY INTEREST</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>14,500,972</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>86</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>10,389,154</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>82</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s36</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>CONTRIBUTED CAPITAL</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>7,084,545</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>42</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>4,697,090</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>37</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">S79</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CAPITAL STOCK</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,976,420</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">23</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,712,868</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">29</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s39</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">PREMIUM ON ISSUANCE OF SHARES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,108,125</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">18</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">984,222</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">8</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s40</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>s41</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="1"><b>EARNED CAPITAL</b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>7,416,427</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>44</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>5,692,064</b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="1"><b>45</b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s42</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">RETAINED EARNINGS AND CAPITAL RESERVES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">8,331,676</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">49</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6,696,794</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">53</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s44</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER ACCUMULATED COMPREHENSIVE RESULT</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(915,249)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(5)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(1,004,730)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(8)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s80</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">SHARES REPURCHASED</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1" noshade>
      </td>
      <td>&nbsp;</td>
    </tr>
  </table>






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


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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED FINANCIAL
STATEMENT </B><BR> BREAKDOWN OF MAIN CONCEPTS <BR>
(thousands of Mexican pesos) </FONT> </P>





<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">S </font></b></font></p>
        </td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CONCEPTS</font></b></font></p>
      </td>
      <td colspan=4>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT
  YEAR</font></b></font></p>
      </td>
      <td colspan=4>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">PREVIOUS
  YEAR</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s03</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">CASH AND SHORT-TERM INVESTMENTS</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">6,006,214</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,711,951</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s46</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CASH</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">322,893</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">5</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">344,150</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">20</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s47</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">SHORT-TERM INVESTMENTS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">5,683,321</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">95</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,367,801</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">80</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s07</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER CURRENT ASSETS</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">93,869</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">169,385</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s81</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DERIVATIVE FINANCIAL INSTRUMENTS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">21,629</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">13</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s82</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DISCONTINUED OPERATIONS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s83</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">93,869</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">100</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">147,756</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">87</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s18</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER INTANGIBLE ASSETS AND DEFERRED
  ASSETS (NET)</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">404,428</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">516,206</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s48</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DEFERRED EXPENSES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">308,347</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">76</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">405,435</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">79</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s49</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">GOODWILL</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">39,530</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">10</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">36,795</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">7</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s50</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DEFERRED TAXES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s51</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">56,551</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">14</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">73,976</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">14</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s19</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER ASSETS</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">91,613</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">85,356</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s84</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">INTANGIBLE ASSET FROM LABOR OBLIGATIONS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">5,578</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6,085</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">7</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s85</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DERIVATIVE FINANCIAL INSTRUMENTS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s50</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DEFERRED TAXES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s86</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DISCONTINUED OPERATIONS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s87</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">86,035</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">94</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">79,271</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">93</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s21</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">CURRENT LIABILITIES</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">3,119,306</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,997,179</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s52</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">FOREIGN CURRENCY LIABILITIES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,300,568</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">74</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,118,275</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">71</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s53</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">MEXICAN PESOS LIABILITIES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">818,738</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">26</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">878,904</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">29</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s26</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER CURRENT LIABILITIES WITHOUT
  COST</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">816,091</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">936,416</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s88</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DERIVATIVE FINANCIAL INSTRUMENTS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s89</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">INTEREST LIABILITIES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,902</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,774</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s68</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">PROVISIONS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">243,542</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">30</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">374,962</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">40</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s90</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DISCONTINUED OPERATIONS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s58</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER CURRENT LIABILITIES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">568,647</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">70</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">557,680</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">60</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s27</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">LONG-TERM LIABILITIES</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s59</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">FOREIGN CURRENCY LIABILITIES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s60</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">MEXICAN PESOS LIABILITIES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s31</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">DEFERRED LIABILITIES</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s65</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NEGATIVE GOODWILL</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s67</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s32</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER NON CURRENT LIABILITIES
  WITHOUT COST</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,547,736</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,950,484</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s66</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DEFERRED TAXES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,499,867</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">98</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,841,279</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">94</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s91</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER LIABILITIES IN RESPECT OF SOCIAL INSURANCE</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">16,903</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">17,618</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s92</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DISCONTINUED OPERATIONS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s69</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER LIABILITIES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">30,966</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">91,587</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">5</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>


    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s79</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">CAPITAL STOCK</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">3,976,420</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">3,712,868</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s37</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CAPITAL STOCK (NOMINAL)</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,308,106</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">58</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,048,257</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">55</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">s69</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">RESTATEMENT OF CAPITAL STOCK</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,668,314</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">42</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,664,611</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">45</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
  </table>





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


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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED FINANCIAL
STATEMENT </B><BR> BREAKDOWN OF MAIN CONCEPTS <BR>
(thousands of Mexican pesos) </FONT> </P>



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

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">S </font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CONCEPTS</font></b></font></p>
    </td>
    <td colspan=4>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT
  YEAR</font></b></font></p>
    </td>
    <td colspan=4>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">PREVIOUS
  YEAR</font></b></font></p>
    </td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
    </td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">s42</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p><font face="Times New Roman" size="2"><b><font size="1">RETAINED EARNINGS AND CAPITAL
  RESERVES</font></b></font></p>
    </td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">8,331,676</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">6,696,794</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s93</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">LEGAL RESERVE</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s43</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">RESERVE FOR REPURCHASE OF SHARES</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">197,902</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

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

      <p align=right><font size="1" face="Times New Roman">92,595</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">1</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s94</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">OTHER RESERVES</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s95</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">RETAINED EARNINGS</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">6,728,376</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">81</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">4,684,656</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">70</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s45</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">NET INCOME FOR THE YEAR</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">1,405,398</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">17</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">1,919,543</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">29</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td colspan="11">

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


  <tr>

    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">s44</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font face="Times New Roman" size="2"><b><font size="1">OTHER ACCUMULATED COMPREHENSIVE
  RESULT</font></b></font></p>
    </td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(915,249)</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(1,004,730)</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s70</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">ACCUMULATED MONETARY RESULT</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s71</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">RESULT FROM HOLDING NON-MONETARY ASSETS</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">100,793</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">(11)</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">(83,881)</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">8</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s96</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">CUMULATIVE RESULT FROM FOREIGN CURRENCY TRANSLATION</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">(54,194)</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

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

      <p align=right><font size="1" face="Times New Roman">21,467</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">(2)</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s97</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL
  INSTRUMENTS</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">(4,397)</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">&nbsp;</font><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">15,135</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">(2)</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s98</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">CUMULATIVE EFFECT OF DEFERRED INCOME TAXES </font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">(957,451)</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">105</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">(957,451)</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">95</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s99</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">LABOR OBLIGATION ADJUSTMENT</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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

  <tr>

    <td>

      <p align=right><font size="1" face="Times New Roman">s100</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">OTHER</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="11">

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




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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->




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

<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>BALANCE SHEETS
</B> <BR>OTHER CONCEPTS <BR>
(thousands of Mexican pesos) </FONT> </P>


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

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">S </font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CONCEPTS</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT
  YEAR</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">PREVIOUS
  YEAR</font></b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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


  <tr valign="bottom">

    <td>

      <p align=center><font size="1" face="Times New Roman">S72</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">WORKING CAPITAL</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">11,174,524</font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">6,490,869</font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font size="1" face="Times New Roman">S73</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">PENSIONS FUND AND SENIORITY PREMIUMS</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font size="1" face="Times New Roman">S74</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">EXECUTIVES (*)</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">47</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">54</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font size="1" face="Times New Roman">S75</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">EMPLOYERS (*)</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">1,178</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">1,135</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font size="1" face="Times New Roman">S76</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">WORKERS (*)</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">3,187</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">3,114</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font size="1" face="Times New Roman">S77</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">COMMON SHARES (*) </font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">474,621,611</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">421,214,706</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font size="1" face="Times New Roman">S78</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">REPURCHASED SHARES (*)</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font size="1" face="Times New Roman">S101</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">RESTRICTED CASH</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font size="1" face="Times New Roman">S102</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">NET DEBT OF NON CONSOLIDATED COMPANIES</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

</table>



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






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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->














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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>



<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>STATEMENTS OF INCOME </B><BR>
FROM JANUARY 1 TO SEPTEMBER 30 OF 2007 AND 2006 <BR>
(thousands of Mexican pesos) </FONT> </P>



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

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">R </font></b></font></p>
    </td>
    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CATEGORIES</font></b></font></p>
    </td>
    <td colspan=4>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT
  YEAR</font></b></font></p>
    </td>
    <td colspan=4>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">PREVIOUS
  YEAR</font></b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r01</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font face="Times New Roman" size="2"><b><font size="1">NET SALES</font></b></font></p>
    </td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">18,034,668</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">18,365,402</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font size="1" face="Times New Roman">r02</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">COST OF SALES</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">14,859,501</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">82</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">14,822,999</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">81</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r03</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font face="Times New Roman" size="2"><b><font size="1">GROSS PROFIT</font></b></font></p>
    </td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">3,175,167</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">18</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">3,542,403</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">19</font></b></font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font size="1" face="Times New Roman">r04</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">OPERATING EXPENSES</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">1,056,659</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

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

      <p align=right><font size="1" face="Times New Roman">1,022,345</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">6</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r05</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font face="Times New Roman" size="2"><b><font size="1">OPERATING INCOME</font></b></font></p>
    </td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,118,508</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">12</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,520,058</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">14</font></b></font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font size="1" face="Times New Roman">r08</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">OTHER INCOME AND (EXPENSE), NET</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">45,043</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">28,137</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font size="1" face="Times New Roman">r06</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">COMPREHENSIVE FINANCING RESULT</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">205,012</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">1</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">(9,698)</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font size="1" face="Times New Roman">r12</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES
  AND ASSOCIATES</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font size="1" face="Times New Roman">r48</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">NON ORDINARY ITEMS</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r09</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font face="Times New Roman" size="2"><b><font size="1">INCOME BEFORE INCOME TAXES </font></b></font></p>
    </td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,368,563</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">13</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,538,497</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">14</font></b></font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font size="1" face="Times New Roman">r10</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">INCOME TAXES</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">730,229</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

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

      <p align=right><font size="1" face="Times New Roman">356,398</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">2</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r11</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font face="Times New Roman" size="2"><b><font size="1">INCOME (LOSS) BEFORE DISCONTINUED
  OPERATIONS</font></b></font></p>
    </td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,638,334</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">9</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,182,099</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">12</font></b></font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font size="1" face="Times New Roman">r14</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">DISCONTINUED OPERATIONS</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r18</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font face="Times New Roman" size="2"><b><font size="1">NET CONSOLIDATED INCOME</font></b></font></p>
    </td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,638,334</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">9</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,182,099</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">12</font></b></font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font size="1" face="Times New Roman">r19</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">NET INCOME OF MINORITY INTEREST</font></p>
    </td>
    <td>

      <p align=right><font size="1" face="Times New Roman">232,936</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">1</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">262,556</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font size="1" face="Times New Roman">1</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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

  <tr valign="bottom">

    <td>

      <p align=right><font size="1" face="Times New Roman">r20</font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p><font size="1" face="Times New Roman">NET INCOME OF MAJORITY INTEREST</font></p>
    </td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,405,398</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">8</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,919,543</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">10</font></b></font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="11">

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




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


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



<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>STATEMENTS OF INCOME </B><BR>
BREAKDOWN OF MAIN CONCEPTS <BR>
(thousands of Mexican pesos) </FONT> </P>


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

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">R </font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CONCEPTS</font></b></font></p>
    </td>
    <td colspan=4 valign=top>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT
  YEAR</font></b></font></p>
    </td>
    <td colspan=4 valign=top>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">PREVIOUS
  YEAR</font></b></font></p>
    </td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td valign=top colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
    </td>
    <td valign=top colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
    </td>
    <td valign=top colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
    </td>
    <td valign=top colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
    </td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r01</font></b></font></p>
    </td>
    <td valign=top>&nbsp;&nbsp;</td>
    <td valign=top>

      <p><font face="Times New Roman" size="2"><b><font size="1">NET SALES</font></b></font></p>
    </td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">18,034,668</font></b></font></p>
    </td>
    <td valign=top>&nbsp;&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td valign=top>&nbsp;&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">18,365,402</font></b></font></p>
    </td>
    <td valign=top>&nbsp;&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td valign=top>&nbsp;&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r21</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">DOMESTIC</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">5,440,767</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">30</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">5,416,343</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">29</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r22</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">FOREIGN</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">12,593,901</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">70</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">12,949,059</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">71</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r23</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">TRANSLATED INTO DOLLARS (***)</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">1,143,986</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">1,117,803</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top colspan="11">

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


  <tr>

    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r08</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font face="Times New Roman" size="2"><b><font size="1">OTHER INCOME AND (EXPENSE), NET</font></b></font></p>
    </td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">45,043</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">28,137</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r49</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">OTHER INCOME AND (EXPENSE), NET</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">45,043</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">100</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">28,137</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">100</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r34</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">EMPLOYEES&#146; PROFIT SHARING EXPENSES</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r35</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">DEFERRED EMPLOYEES&#146; PROFIT SHARING</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top colspan="11">

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


  <tr>

    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r06</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font face="Times New Roman" size="2"><b><font size="1">COMPREHENSIVE FINANCING RESULT</font></b></font></p>
    </td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">205,012</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(9,698)</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r24</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">INTEREST EXPENSE</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">19,202</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">9</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">9,247</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">(95)</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r42</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">GAIN (LOSS) ON RESTATEMENT OF UDI&#146;S</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r45</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">OTHER FINANCE COSTS</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r26</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">INTEREST INCOME</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">234,102</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">114</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">38,742</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">(399)</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r46</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">OTHER FINANCIAL PRODUCTS</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">0</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r25</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">FOREIGN EXCHANGE GAIN (LOSS), NET</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">(2,381)</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">(1)</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">(16,937)</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">175</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r28</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">RESULT FROM MONETARY POSITION</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">(7,507)</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">(4)</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">(22,256)</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">229</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top colspan="11">

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


  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r10</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">INCOME TAXES </font></p>
    </td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">730,229</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">356,398</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r32</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">INCOME TAX</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">266,117</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">36</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">522,112</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">146</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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

  <tr>

    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">r33</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p><font size="1" face="Times New Roman">DEFERRED INCOME TAX</font></p>
    </td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">464,112</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">64</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">(165,714)</font></p>
    </td>
    <td valign=top>&nbsp;</td>
    <td valign=top>

      <p align=right><font size="1" face="Times New Roman">(46)</font></p>
    </td>
    <td valign=top>&nbsp;</td>
  </tr>

  <tr>

    <td valign=top colspan="11">

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





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


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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->



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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>STATEMENTS OF INCOME </B><BR>
OTHER CONCEPTS <BR>
(thousands of Mexican pesos) </FONT> </P>


<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">R </font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CONCEPTS</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT
  YEAR</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">PREVIOUS
  YEAR</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">r36</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">TOTAL SALES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">18,280,672</font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">18,952,731</font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">r37</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">TAX RESULT FOR THE YEAR</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">r38</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET SALES (**)</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">22,867,846</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">23,437,903</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">r39</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OPERATION INCOME (**)</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,589,362</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,768,687</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">r40</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET INCOME OF MAJORITY INTEREST (**)</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,635,217</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,217,158</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">r41</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET CONSOLIDATED INCOME (**)</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,822,719</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,468,741</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">r47</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OPERATIVE DEPRECIATION AND AMORTIZATION  </font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">374,249</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">326,094</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
  </table>



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



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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->





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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>QUARTERLY STATEMENTS OF
INCOME </B><BR> FROM JULY 1 TO SEPTEMBER 30 OF 2007 AND
2006 <BR> (thousands of Mexican pesos) </FONT> </P>

<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF</font></b></font></p>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">R</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CATEGORIES</font></b></font></p>
      </td>
      <td colspan=4>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT
  YEAR</font></b></font></p>
      </td>
      <td colspan=4>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">PREVIOUS
  YEAR</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt01</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">NET SALES</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">5,659,187</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">5,773,925</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt02</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">COST OF SALES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">4,869,992</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">86</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">4,589,231</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">79</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt03</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">GROSS PROFIT</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">789,195</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">14</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,184,694</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">21</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt04</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OPERATING EXPENSES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">349,290</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">320,399</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt05</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">OPERATING INCOME</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">439,905</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">8</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">864,295</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">15</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt08</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER INCOME AND (EXPENSE), NET</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">27,091</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(6,478)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt06</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">COMPREHENSIVE FINANCING RESULT</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">90,129</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(57,278)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(1)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt12</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES
  AND ASSOCIATES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt48</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NON ORDINARY ITEMS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt09</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">INCOME BEFORE INCOME TAXES </font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">557,125</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">10</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">800,539</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">14</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt10</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">INCOME TAXES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">195,842</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">245,477</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">4</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt11</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">INCOME (LOSS) BEFORE DISCONTINUED
  OPERATIONS</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">361,283</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">6</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">555,062</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">10</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt14</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DISCONTINUED OPERATIONS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt18</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">NET CONSOLIDATED INCOME</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">361,283</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">6</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">555,062</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">10</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt19</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET INCOME OF MINORITY INTEREST</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">15,911</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">58,106</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt20</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET INCOME OF MAJORITY INTEREST</font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">345,372</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">6</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">496,956</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">9</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
  </table>


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


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

<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>QUARTERLY STATEMENTS OF
INCOME </B><BR> BREAKDOWN OF MAIN CONCEPTS <BR>
(thousands of Mexican pesos) </FONT> </P>

<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">R </font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CONCEPTS</font></b></font></p>
      </td>
      <td colspan=4>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT
  YEAR</font></b></font></p>
      </td>
      <td colspan=4>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">PREVIOUS
  YEAR</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">%</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt01</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">NET SALES</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">5,659,187</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">5,773,925</font></b></font></p>
      </td>
      <td>&nbsp; </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt21</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DOMESTIC</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,676,229</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">30</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,050,039</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">36</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt22</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">FOREIGN</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,982,958</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">70</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,723,886</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">64</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt23</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">TRANSLATED INTO DOLLARS (***)</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">372,989</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">359,005</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt08</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER INCOME AND (EXPENSE), NET</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">27,091</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">(6,478)</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt49</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER INCOME AND (EXPENSE), NET</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">27,091</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">100</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(6,478)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">100</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt34</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">EMPLOYEES&#146; PROFIT SHARING EXPENSES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt35</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DEFERRED EMPLOYEES&#146; PROFIT SHARING</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt06</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font size="1">COMPREHENSIVE FINANCING RESULT</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">90,129</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">(57,278)</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt24</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">INTEREST EXPENSE</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">5,793</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,544</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(6)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt42</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">GAIN (LOSS) ON RESTATEMENT OF UDI&#146;S</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt45</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER FINANCE COSTS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt26</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">INTEREST INCOME</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">98,116</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">109</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">17,351</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(30)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt46</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OTHER FINANCIAL PRODUCTS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt25</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">FOREIGN EXCHANGE GAIN (LOSS), NET</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">28,535</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">32</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(36,595)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">64</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt28</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">RESULT FROM MONETARY POSITION</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(30,729)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(34)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(34,490)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">60</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt10</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">INCOME TAXES </font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">195,842</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">245,477</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt32</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">INCOME TAX</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(45,413)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(23)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">344,296</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">140</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=right><font size="1" face="Times New Roman">rt33</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">DEFERRED INCOME TAX</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">241,255</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">123</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(98,819)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(40)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
  </table>



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



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


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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>QUARTERLY STATEMENTS OF
INCOME </B><BR> OTHER CONCEPTS <BR>
(thousands of Mexican pesos) </FONT> </P>



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

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">RT </font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CONCEPTS</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT
  YEAR</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">PREVIOUS
  YEAR</font></b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td>&nbsp;</td>
    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt47</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p><font face="Times New Roman" size="2"><b><font size="1">OPERATIVE DEPRECIATION AND
  ACCUMULATED IMPAIRMENT LOSSES</font></b></font></p>
    </td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">123,410</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
    <td>

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">112,611</font></b></font></p>
    </td>
    <td>&nbsp;&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

</table>

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


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<!-- MARKER PAGE="sheet: 1; page: 1" -->




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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>STATEMENTS OF CHANGES
IN FINANCIAL POSITION </B><BR> FROM JANUARY 1 TO SEPTEMBER 30
OF 2007 AND 2006 <BR> (thousands of pesos) </FONT> </P>



<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">C </font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CONCEPTS</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT
  YEAR</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">PREVIOUS <br>
  YEAR </font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">c01</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="3"><b><font size="1">CONSOLIDATED NET INCOME</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,638,334</font></b></font></p>
      </td>
      <td>  &nbsp;&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,182,099</font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">c02</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">+ (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">838,361</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">161,366</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">c03</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="3"><b><font size="1">RESOURCES FROM NET INCOME FOR THE
  YEAR</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,476,695</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,343,465</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">c04</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">RESOURCES PROVIDED OR USED IN OPERATION</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(473,014)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(932,091)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">c05</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="3"><b><font size="1">RESOURCES PROVIDED BY (USED FOR)
  OPERATING ACTIVITIES</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,003,681</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,411,374</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">c06</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING
  ACTIVITIES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(44,164)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(247,345)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">c07</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING
  ACTIVITIES</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,387,455</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">129,293</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">c08</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="3"><b><font size="1">RESOURCES PROVIDED BY (USED FOR)
  INTERNAL FINANCING ACTIVITIES </font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,343,291</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">(118,052)</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">c09</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="3"><b><font size="1">RESOURCES PROVIDED BY (USED FOR)
  INVESTMENT ACTIVITIES</font></b></font></p>
      </td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">(515,003)</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">197,279</font></b></font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">c10</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET INCREASE (DECREASE) IN CASH AND SHORT-TERM
  INVESTMENTS</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,831,969</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,490,601</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">c11</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF
  PERIOD</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,174,245</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">221,350</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">c12</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CASH AND SHORT TERM INVESTMENTS AT THE END OF PERIOD</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6,006,214</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,711,951</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
  </table>



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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->




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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>STATEMENTS OF CHANGES
IN FINANCIAL POSITION </B><BR> BREAKDOWN OF MAIN
CONCEPTS <BR> (thousands of pesos) </FONT> </P>





<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">C </font></b></font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CONCEPTS</font></b></font></p>
      </td>
      <td valign=top colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT
  YEAR</font></b></font></p>
      </td>
      <td valign=top colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">PREVIOUS
  YEAR</font></b></font></p>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td valign=top colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
      <td valign=top colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">AMOUNT</font></b></font></p>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">c02</font></b></font></p>
      </td>
      <td valign=top>&nbsp;&nbsp;</td>
      <td valign=top>
        <p><font face="Times New Roman" size="3"><b><font size="1">+ (-) ITEMS ADDED TO INCOME WHICH DO
  NOT REQUIRE CASH</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">838,361</font></b></font></p>
      </td>
      <td valign=top>&nbsp;&nbsp;</td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">161,366</font></b></font></p>
      </td>
      <td valign=top>&nbsp;&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c13</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">DEPRECIATION AND AMORTIZATION FOR THE YEAR</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">374,249</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">326,094</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c41</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ (-) OTHER ITEMS </font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">464,112</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(164,728)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">c04</font></b></font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font face="Times New Roman" size="3"><b><font size="1">RESOURCES PROVIDED OR USED IN
  OPERATION</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">(473,014)</font></b></font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">(932,091)</font></b></font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c18</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(405,991)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(6,212)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c19</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ (-) DECREASE (INCREASE) IN INVENTORIES</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(303,210)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(957,329)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c20</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ (-) DECREASE (INCREASE) IN OTHER ACCOUNTS
  RECEIVABLE</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(14,956)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">95,590</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c21</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ (-) INCREASE (DECREASE) IN SUPPLIERS</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">446,850</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(44,243)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c22</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ (-) INCREASE (DECREASE) IN OTHER LIABILITIES</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(195,707)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(19,897)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>


    <tr>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">c06</font></b></font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font face="Times New Roman" size="3"><b><font size="1">RESOURCES PROVIDED BY (USED FOR)
  EXTERNAL FINANCING ACTIVITIES</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">(44,164)</font></b></font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">(247,345)</font></b></font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c23</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ BANK FINANCING</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c24</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ STOCK MARKET FINANCING</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(61)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c25</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ DIVIDEND RECEIVED</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c26</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">OTHER FINANCING</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">166,519</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c27</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">BANK FINANCING AMORTIZATION</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(413,864)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c28</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">(-) STOCK MARKET FINANCING AMORTIZATION</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c29</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">(-) OTHER FINANCING AMORTIZATION</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c42</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ (-) OTHER ITEMS</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(44,103)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">c07</font></b></font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font face="Times New Roman" size="3"><b><font size="1">RESOURCES PROVIDED BY (USED FOR)
  INTERNAL FINANCING ACTIVITIES</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,387,455</font></b></font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">129,293</font></b></font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c30</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ (-) INCREASE (DECREASE) IN CAPITAL STOCK</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">263,552</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">38,246</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c31</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">(-) DIVIDENDS PAID</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c32</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ PREMIUM ON ISSUANCE OF SHARES</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">2,123,903</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">91,047</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c33</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ CONTRIBUTION FOR FUTURE CAPITAL INCREASES</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c43</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ (-) OTHER ITEMS</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>



    <tr>
      <td valign=top><font face="Times New Roman" size="3"><b><font size="1">c09</font></b></font></td>
      <td valign=top>&nbsp;</td>
      <td valign=top><font face="Times New Roman" size="3"><b><font size="1">RESOURCES PROVIDED BY (USED FOR)
  INVESTMENT ACTIVITIES</font></b></font></td>
      <td valign=top align="right"><font face="Times New Roman" size="3"><b><font size="1">(515,003)</font></b></font></td>
      <td valign=top align="right">&nbsp;</td>
      <td valign=top align="right"><font face="Times New Roman" size="3"><b><font size="1">197,279</font></b></font></td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c34</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ (-) DECREASE (INCREASE) IN PERMANENT INVESTMENTS</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c35</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">(-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(459,966)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(229,536)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c36</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">(-) INCREASE IN CONSTRUCTION PROGRESS</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c37</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ SALE OF
  OTHER PERMANENT INVESTMENTS</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c38</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ SALE OF
  TANGIBLE FIXED ASSETS</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p align=center><font size="1" face="Times New Roman">c39</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p><font size="1" face="Times New Roman">+ (-) OTHER ITEMS</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">(55,037)</font></p>
      </td>
      <td valign=top>&nbsp;</td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">426,815</font></p>
      </td>
      <td valign=top>&nbsp;</td>
    </tr>
    <tr>
      <td valign=top colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
  </table>



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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->






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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DATE PER SHARE </B><BR>
CONSOLIDATED </FONT> </P>


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

  <tr>

    <td colspan="6" valign=bottom>

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

  <tr>

    <td valign=bottom>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">D </font></b></font></p>
    </td>
    <td valign=bottom>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CATEGORIES</font></b></font></p>
    </td>
    <td colspan="2" valign=bottom>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">QUARTER
  OF PRESENT <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">FINANCIAL
  YEAR </font></b></font></p>
    </td>
    <td colspan="2" valign=bottom>

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">QUARTER
  OF PREVIOUS <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">FINANCIAL
  YEAR </font></b></font></p>
    </td>
  </tr>

  <tr>

    <td colspan="6" valign=bottom>

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



  <tr>

    <td>

      <p align=center><font size="1" face="Times New Roman">d01</font></p>
    </td>
    <td>

      <p><font size="1" face="Times New Roman">BASIC PROFIT PER ORDINARY SHARE (**)</font></p>
    </td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$   3.60</font></p>
    </td>
    <td align="right">&nbsp;</td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$  5.29</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="6">

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

  <tr>

    <td>

      <p align=center><font size="1" face="Times New Roman">d02</font></p>
    </td>
    <td>

      <p><font size="1" face="Times New Roman">BASIC PROFIT PER PREFERRED SHARE (**)</font></p>
    </td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$   0.00</font></p>
    </td>
    <td align="right">&nbsp;</td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$   0.00</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="6">

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

  <tr>

    <td>

      <p align=center><font size="1" face="Times New Roman">d03</font></p>
    </td>
    <td>

      <p><font size="1" face="Times New Roman">DILUTED PROFIT PER ORDINARY SHARE (**)</font></p>
    </td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$   0.00</font></p>
    </td>
    <td align="right">&nbsp;</td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$   0.00</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="6">

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

  <tr>

    <td>

      <p align=center><font size="1" face="Times New Roman">d04</font></p>
    </td>
    <td>

      <p><font size="1" face="Times New Roman">EARNINGS (LOSS) BEFORE DISCONTINUED OPERATIONS PER
  COMMON SHARE (**)</font></p>
    </td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$   3.60</font></p>
    </td>
    <td align="right">&nbsp;</td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$  5.29</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="6">

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

  <tr>

    <td>

      <p align=center><font size="1" face="Times New Roman">d05</font></p>
    </td>
    <td>

      <p><font size="1" face="Times New Roman">DISCONTINUED OPERATIONS EFFECT ON EARNING (LOSS) PER
  SHARE (**)</font></p>
    </td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$   0.00</font></p>
    </td>
    <td align="right">&nbsp;</td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$   0.00</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="6">

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

  <tr>

    <td>

      <p align=center><font size="1" face="Times New Roman">d08</font></p>
    </td>
    <td>

      <p><font size="1" face="Times New Roman">CARRYING VALUE PER SHARE</font></p>
    </td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$ 30.55</font></p>
    </td>
    <td align="right">&nbsp;</td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$ 24.66</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="6">

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

  <tr>

    <td>

      <p align=center><font size="1" face="Times New Roman">d09</font></p>
    </td>
    <td>

      <p><font size="1" face="Times New Roman">CASH DIVIDEND ACCUMULATED PER SHARE</font></p>
    </td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$   0.00</font></p>
    </td>
    <td align="right">&nbsp;</td>
    <td align="right">

      <p><font size="1" face="Times New Roman">$   0.00</font></p>
    </td>
    <td>&nbsp;</td>
  </tr>

  <tr>

    <td colspan="6">

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

  <tr>

    <td>

      <p align=center><font size="1" face="Times New Roman">d10</font></p>
    </td>
    <td>

      <p><font size="1" face="Times New Roman">DIVIDEND IN SHARES PER SHARE</font></p>
    </td>
    <td align="right">

      <p><font size="1" face="Times New Roman">               0.00</font></p>
    </td>
    <td><font size="1" face="Times New Roman"> &nbsp;&nbsp;shares</font></td>
    <td align="right">

      <p><font size="1" face="Times New Roman">                0.00
  </font></p>
    </td>
    <td><font size="1" face="Times New Roman">&nbsp;&nbsp;shares</font></td>
  </tr>

  <tr>

    <td colspan="6">

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

  <tr>

    <td>

      <p align=center><font size="1" face="Times New Roman">d11</font></p>
    </td>
    <td>

      <p><font size="1" face="Times New Roman">MARKET PRICE TO CARRYING VALUE</font></p>
    </td>
    <td align="right">

      <p><font size="1" face="Times New Roman">              1.24 </font></p>
    </td>
    <td><font size="1" face="Times New Roman">&nbsp;&nbsp;times</font></td>
    <td align="right">

      <p><font size="1" face="Times New Roman">               2.18
  </font></p>
    </td>
    <td><font size="1" face="Times New Roman">&nbsp;&nbsp;times</font></td>
  </tr>

  <tr>

    <td colspan="6">

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

  <tr>

    <td>

      <p align=center><font size="1" face="Times New Roman">d12</font></p>
    </td>
    <td>

      <p><font size="1" face="Times New Roman">MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE</font></p>
    </td>
    <td align="right">

      <p><font size="1" face="Times New Roman">           10.52 </font></p>
    </td>
    <td><font size="1" face="Times New Roman">&nbsp;&nbsp;times</font></td>
    <td align="right">

      <p><font size="1" face="Times New Roman">              10.16
  </font></p>
    </td>
    <td><font size="1" face="Times New Roman">&nbsp;&nbsp;times</font></td>
  </tr>

  <tr>

    <td colspan="6">

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

  <tr>

    <td>

      <p align=center><font size="1" face="Times New Roman">d13</font></p>
    </td>
    <td>

      <p><font size="1" face="Times New Roman">MARKET PRICE TO BASIC PROFIT PER PREFERENT SHARE (**)</font></p>
    </td>
    <td align="right">

      <p><font size="1" face="Times New Roman">            0.00</font></p>
    </td>
    <td><font size="1" face="Times New Roman"> &nbsp;&nbsp;times</font></td>
    <td align="right">

      <p><font size="1" face="Times New Roman">              0.00 </font></p>
    </td>
    <td><font size="1" face="Times New Roman">&nbsp;&nbsp;times</font></td>
  </tr>

  <tr>

    <td colspan="6" valign=bottom>

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



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


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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->


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

<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>RATIOS </B><BR>
CONSOLIDATED </FONT> </P>



<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">REF <br>

          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">P </font></b></font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CATEGORIES</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">QUARTER
  OF <br>
           PRESENT <br>

          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">FINANCIAL <br>
  YEAR   </font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">QUARTER
  OF <br>
           PREVIOUS  <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font size="1">FINANCIAL   <br>
  YEAR   </font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="3"><b><font size="1">YIELD</font></b></font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p01</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET INCOME TO NET SALES</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">9.08%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">11.88%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p02</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET INCOME TO STOCKHOLDERS&#146; EQUITY (**)</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">11.27%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">21.34%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p03</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET INCOME TO TOTAL ASSETS (**)</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">8.06%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">13.98%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p04</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">0.00%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">0.00%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p05</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">INCOME DUE TO MONETARY POSITION TO NET INCOME</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">(0.45)%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">(1.01)%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="3"><b><font size="1">ACTIVITY</font></b></font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p06</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET SALES TO NET ASSETS (**)</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">1.01 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">1.32 times</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p07</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET SALES TO FIXED ASSETS (**)</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">2.93 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">3.09 times</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p08</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">INVENTORIES TURNOVER (**)</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">3.94 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">3.99 times</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p09</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">ACCOUNTS RECEIVABLE IN DAYS OF SALES</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">34.09 days</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">32.20 days</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p10</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">PAID INTEREST TO TOTAL LIABILITIES WITH COST (**)</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">15.72%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">19.60%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="3"><b><font size="1">LEVERAGE</font></b></font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p11</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">TOTAL LIABILITIES TO TOTAL ASSETS</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">25.08%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">28.01%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p12</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">TOTAL LIABILITIES TO STOCKHOLDERS&#146; EQUITY</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">0.33 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">0.38 times</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p13</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">40.59%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">42.81%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p14</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">LONG-TERM LIABILITIES TO FIXED ASSETS</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">0.00%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">0.00%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p15</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">OPERATING INCOME TO INTEREST PAID</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">110.32 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">272.52 times</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p16</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">NET SALES TO TOTAL LIABILITIES (**)</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">4.03 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">4.73 times</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="3"><b><font size="1">LIQUIDITY</font></b></font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p17</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CURRENT ASSETS TO CURRENT LIABILITIES</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">4.58 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">3.16 times</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p18</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">2.88 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">1.55 times</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p19</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">CURRENT ASSETS TO TOTAL LIABILITIES</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">2.52 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">1.91 times</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p20</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">AVAILABLE ASSETS TO CURRENT LIABILITIES</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">192.54%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">57.11%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font face="Times New Roman" size="3"><b><font size="1">CASH FLOW</font></b></font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p21</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">RESOURCES FROM NET INCOME TO NET SALES</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">13.73%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">12.76%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p22</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">RESOURCES FROM CHANGES IN WORKING CAPITAL TO NET
  SALES</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">(2.62)%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">(5.07)%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p23</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">RESOURCES GENERATED (USED) IN OPERATING TO INTEREST
  PAID</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">104.34 times</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">152.63 times</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p24</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">EXTERNAL FINANCING TO RESOURCES PROVIDED BY (USED
  FOR) FINANCING</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">(1.88)%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">209.52%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p25</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">INTERNAL FINANCING TO RESOURCES PROVIDED (USED FOR)
  FINANCING</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">101.88%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">(109.52)%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Times New Roman">p26</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p><font size="1" face="Times New Roman">RESOURCES PROVIDED BY (USED FOR) INVESTMENT
  ACTIVITIES</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman">89.31%</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=center><font size="1" face="Times New Roman">(116.35)%</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
  </table>



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




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


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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


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



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


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Nine-Month Period
Ended September 30, 2007 compared to Nine-Month Period Ended September 30, 2006 </B></FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales decreased 2% to Ps. 18,035
million in the nine-month period ended September 30, 2007 compared to Ps. 18,365 million
in the same period of 2006. Shipments of finished steel products decreased 2% to 2,017
thousand tons in the nine-month period ended September 30, 2007 compared to 2,050
thousand tons in the same period of 2006. Total sales outside of Mexico in the nine-month
period ended September 30, 2007 decreased 3% to Ps. 12,594 million compared with Ps.
12,949 million  in the same period of 2006, while total Mexican sales increased 0.5% from
5,416 million in the nine-month period ended September 30, 2006 to Ps. 5,441 million in
the same period of 2007.   The decrease in sales are due to lower shipments during the
third quarter 2007, comparing with the second quarter of 2007 (44,000 ton decrease) and
comparing against the third quarter of 2006 (a decrease of 45,000 ton) The decline of
tons shipped can be explained by the two unexpected stoppages in the rolling lines of the
plants in Guadalajara and Apizaco due during the periods from July 5-8, July 10-13 and
September 10-15 as a result of the shortage in natural gas due to the explosions on the
property of Petroleos Mexicanos </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Direct cost of sales remained stable
from Ps. 14,823  million in the nine-month period ended September 30, 2006 to Ps. 14,860
million in the same period 2007. Direct cost of sales as a percentage of net sales
represented at 82% for the nine-month period ended September 30, 2007 compared to 81% in
the same period of 2006. The increase in the Direct Cost of Sales is due to two factors:
1) Increase in maintenance costs in the plants located in the United States. The increase
was due to the rescheduling of the maintenance stoppages in the second week of August
with employees from outside the company instead of during the first weekend of July with
company employees, as they are normally scheduled. The rescheduling of the maintenance
stoppages was made with the intention of having enough inventories that would permit us
to perform our obligations with our customers in view of the termination of the labor
agreement between the company and the unionized workers. A tentative agreement was
reached on August 16, which was later ratified on September 27. The contract will have a
duration of 5 years and will expire in 2012. 2) An increase in the labor costs per ton
sold, due to the three unexpected stoppages in the rolling lines of the plants in
Guadalajara and Apizaco during the periods from July 5-8, July 10-13 and September 10-15
as a result of the shortage in natural gas due to the explosions on the property of
Petroleos Mexicanos. </FONT></P>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit in the nine-month
period ended September 30, 2007 decreased 10% to Ps. 3,175 million compared to Ps. 3,542
million in the same period 2006. Gross profit as a percentage of net sales for the
nine-month period ended September 30, 2007 was 18% compared to 19% in the same period of
2006. The decline in gross profit is due to the decrease in sales and the increase in
cost of goods sold due to the reasons previously mentioned. </FONT></P>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating expenses increased 3% to
Ps. 1,057 million in the nine-month period ended September 30, 2007 compared to Ps. 1,022
 million in the same period 2006 (depreciation and amortization increased Ps. 48 million
in the nine-month period compared to the same period of 2006) but remained stable at 6%
of net sales. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating profit decreased 16% from
Ps. 2,520 million in the nine-month period ended September 30, 2006 to Ps. 2,118 million
in the same period 2007. Operating profit as a percentage of net sales was 12% for the
nine-month period ended September 30, 2007compared to 14% in the same period of 2006. The
decline in operating profit is due to the decrease in sales and the increase in cost of
goods sold due to the reasons previously mentioned. </FONT></P>







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


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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Integral financial cost in the
nine-month period ended September 30, 2007 represented a gain of Ps. 205 million compared
with a expense of Ps. 9 million for the same period in 2006. Interest income was Ps. 234
 million in the nine-month period ended September 30, 2007, compared with Ps. 39 million
in the same period 2006 due to larger cash balances during this year partly reflecting
our recent capital increase in February 2007. At the same time we registered an exchange
loss of Ps. 2 million in the nine-month period ended September 30, 2007 compared with an
exchange loss of Ps. 17 million in the same period of 2006, reflecting a 0.4% increase in
the value of the peso versus the dollar in the nine-month period ended September 30, 2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Other Expenses
(Income) net </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company recorded other income
net of Ps. 45  million in the nine-month period ended September 30, 2007 compared to
other income, net for Ps. 28 million for the same period of 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Taxes and Profit
Sharing </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxes and profit sharing in the
nine-month period ended September 30, 2007 increased to Ps. 730 million compared to Ps.
356 million for the same period of 2006 due to an increase in deferred taxes during the
nine-month period ended September 30, 2007. In the nine-month period ended September 30,
2006, we amortized Ps. 350 million of our deferred credit which is non-taxable income.
This does not affect the cash flow. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a result of the foregoing, net
profit decreased by 25% to Ps. 1,638 million in the nine-month period ended September 30,
2007 from Ps. 2,183 million in the same period of 2006. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At September 30, 2007 Simec&#146;s
total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (&#147;MTN&#146;s&#148;)
due 1998 (accrued interest at September 30, 2006 was U.S. $357,201 dollars.  At December
31, 2006, Simec&#146;s total consolidated debt consisted of U.S. $302,000 of 8 7/8%
medium-term notes (&#147;MTN&#146;s&#148;) due 1998 (accrued interest at December 31,
2006 was U.S. $336,525 dollars). </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net resources provided by operations
were Ps. 2,004 million in the nine-month period ended September 30, 2007 versus Ps. 1,411
million of net resources provided by operations in the same period of 2006. Net resources
provided by financing activities were Ps. 2,343 million in the nine-month period ended
September 30, 2007 (which amount includes the capital increase of Ps. 2,387 million in
February 2007) versus Ps. 118 million of net resources used by financing activities in
the same period of 2006. Net resources used in investing activities (to acquire property,
plant and equipment, other non-current assets and liabilities) were Ps. 515 million in
the nine-month period ended September 30, 2007 versus net resources provided by investing
activities (to acquire property, plant and equipment, other non-current assets and
liabilities and proceeds for insurance claim) of Ps. 197 million in the same period of
2006. </FONT></P>







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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Comparative third
quarter 2007 vs second quarter 2007 </B></FONT></P>


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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales decreased 9% due to a
 decrease of 2% in prices and a 7% decrease in sales volume making net sales go from Ps.
6,228 million for the second quarter 2007 to Ps. 5,659 million for the third quarter
2007. Sales in tons of finished steel products decreased 7% to 635 thousand tons in the
third quarter 2007 compared with 679 thousand tons in the second quarter 2007. The total
sales outside of Mexico for the third quarter 2007 decreased to Ps. 3,983 million
compared with Ps. 4,312 million for the second quarter 2007. Total Mexican sales
decreased from Ps. 1,916 million in the second quarter 2007 to Ps.1,676 millions in the
third quarter 2007. The decrease in sales can be explained due to lower shipments during
the </FONT></P>



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


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<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>third quarter 2007, comparing with
the second quarter of 2007 (44,000 ton decrease) and comparing against the third quarter
of 2006 (a decrease of 45,000 tons) The decline of tons shipped can be explained by the
two unexpected stoppages in the rolling lines of the plants in Guadalajara and Apizaco
due during the periods from July 5-8, July 10-13 and September 10-15 as a result of the
shortage in natural gas due to the explosions on the property of Petroleos Mexicanos. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Direct cost of sales decreased 4%
from Ps. 5,066 million in the second quarter 2007 to Ps. 4,870 million for the third
quarter 2007. In the third quarter 2007, the direct cost of sales represented 86% of net
sales compared to 81% for the second quarter 2007. The increase in the average cost of
raw materials to produce steel products is due to two factors: 1) Increase in maintenance
costs in the plants located in the United States. The increase was due to the
rescheduling of the maintenance stoppages to the second week of August with employees
from outside the company instead of doing them during the first weekend of July with
company employees, as they are normally scheduled. The reprogramming of the maintenance
stoppages was made with the intention of having enough inventories that would permit us
to perform our obligations to our customers in view of the termination of the labor
agreement between the company and the unionized workers. A tentative agreement was
reached on August 16, which was later ratified on September 27. The contract will have
duration of 5 years and will expire in 2012, 2) An increase in the labor costs per ton
sold, due to the three unexpected stoppages in the rolling lines of the plants in
Guadalajara and Apizaco during the periods from July 5-8, July 10-13 and September 10-15
as a result of the shortage in natural gas due to the explosions on the property of
Petroleos Mexicanos. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit for the third quarter
2007 decreased 32% to Ps. 789  million compared to Ps. 1,162  million in the second
quarter 2007. Gross profit as a percentage of net sales for the third quarter 2007 was
14% compared with 19% for the second quarter 2007. The decline in gross profit is due to
the decrease in sales and the increase in the average cost of raw materials to produce
steel products due to the reasons previously mentioned. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating expenses were Ps. 349
 million in the third quarter 2007 compared to Ps. 349  million for the second quarter
2007. As a percentage of sales, operating expense represented 6% during the third quarter
of 2007 compared to 6% in the second quarter of 2007. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating profit decreased 46% from
Ps. 813 million in the second quarter 2007 to Ps. 440 million for the third quarter 2007.
Operating profit as a percentage of net sales decreased to 8% in the third quarter 2007
from 13 % in the second quarter 2007. This was due to a decrease of 7% in sales volume
and an increase of 3% in the average cost of raw materials. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Integral financial cost for the
second quarter 2007 represented an income of Ps. 38 million compared with an income of
Ps. 90 million for the third quarter 2007. Net interest income was Ps. 98 million in the
third quarter 2007 compared with Ps. 88 million in the second quarter 2007, due to larger
cash balances during this year partly reflecting our recent capital increase in February
2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Other Expenses
(Income) net </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company recorded other income,
net of Ps. 27  million for the third quarter 2007 compared with other expenses net of Ps.
9 million for the second quarter 2007. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Taxes and Profit
Sharing </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxes and profit sharing for the
third quarter 2007 were Ps. 196 million compared to Ps. 301 million for the second
quarter 2007, due to an increase in deferred taxes which increased from Ps. 102 million
registered in the second quarter 2007 compared to Ps. 241 million registered in the third
quarter 2007. This does not affect the cash flow. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a result of the foregoing, net
profit decreased by 33% to Ps. 361 million in the third quarter 2007 from Ps. 541 million
in the second quarter 2007. </FONT></P>


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


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<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Comparative third
quarter 2007 vs. third quarter 2006 </B></FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales decreased 2% from Ps.
5,774 million for the third quarter 2006 compared with Ps. 5,659 million for the same
period 2007. Sales in tons of finished steel decreased 7% to 635 thousand tons in the
third quarter 2007 compared with 680 thousand tons in the same period 2006. The total
sales outside of Mexico for the third quarter 2007 increased 7% to Ps. 3,983 million
 compared with Ps. 3,724 million for the same period 2006. The total of national sales
decreased 18% to  1,676 million in the third quarter of 2007 from Ps. 2,050 millions in
the same period 2006.  The decrease in sales can be explained due to lower shipments
douring the third quarter 2007, comparing with the second quarter of 2007 (44,000 tons
decrease) and comparing against the third quarter of 2006 (a decrease of 45,000 tons) The
decline of tons shipped can be explained by the three unexpected stoppages in the rolling
lines of the plants in Guadalajara and Apizaco during the periods from July 5-8, July
10-13 and September 10-15 as a result from the shortage in natural gas due to the
explosions on the property of Petroleos Mexicanos. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Direct cost of sales increased 6%
from Ps. 4,589  million in the third quarter 2006 to Ps. 4,870 million for the same
period 2007. With respect to sales, in the third quarter 2007, the direct cost of sales
represents 86% compared to 79% for the same period 2006. The increase in the Direct Cost
of Sales is due to two factors: 1) Increase in maintenance costs in the plants located in
the United States. The increase was due to the rescheduling of the maintenance stoppages
to the second week of August with employees from outside the company instead of during
the first weekend of July with company employees, as they are normally scheduled. The
rescheduling of the maintenance stoppages was made with the intention of having enough
inventories that would permit us to perform our obligations to our customers in view of
the termination of the labor agreement between the company and the unionized workers. A
tentative agreement was reached on August 16, which was later ratified on September 27.
The contract will have duration of 5 years and will expire in 2012. 2) An increase in the
labor costs per ton sold, due to the three unexpected stoppages in the rolling lines of
the plants in Guadalajara and Apizaco during the periods from July 5-8, July 10-13 and
September 10-15 as a result of the shortage in natural gas due to the explosions on the
property of Petroleos Mexicanos. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit for the third quarter
2007 decreased 33% to Ps. 789 million compared to Ps 1,185 million in the same period
2006. The gross profit as a percentage of net sales for the third quarter 2007 was 14%
compared with 21% for the same period of 2006.  The decline in gross profit is due to the
decrease in sales and the increase in cost of goods sold due to the reasons previously
mentioned. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating expenses increased 9% to
Ps. 349 million in the third quarter 2007 compared to Ps. 321 million for the same period
2006, the depreciation and amortization in the third quarter 2007 was Ps. 123 million
compared to Ps. 113 million in the same period of 2006. Operating expenses as a
percentage of net sales represented 6% during the third quarter 2007 compared to 6% of
the same period 2006. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating profit decreased 49% from
Ps. 864 million in the third quarter 2006 to Ps. 440 million for the same period 2007.
The operating profit as a percentage of net sales in the third quarter 2007 was 8%
compared to 15% in the same period 2006. The decline in operating profit is due to the
decrease in sales and the increase in cost of goods sold due to the reasons previously
mentioned. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Integral financial cost for the
third quarter 2007 represented a gain of Ps. 90 million compared with the gain of Ps. 57
million for the same period 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Other Expenses
(Income) net </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company recorded other income
net for Ps. 27 million for the third quarter 2007 compared with other expenses net for
Ps. 7 million for the same period 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold Italic" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Taxes and Profit
Sharing </I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxes and profit sharing for the
third quarter 2007 decreased to Ps. 196 million compared to Ps. 245 million for the same
period 2006. </FONT></P>


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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a result of the foregoing, net
profit decreased by 35% to Ps. 361 million in the third quarter 2007 from Ps. 555 million
in the third quarter 2006. </FONT></P>




<table cellpadding=0 cellspacing=0 border=0 width=600 align="center">
  <tr valign=Bottom>
    <td colspan=8 align="left">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td colspan=2 align="left"><font face="Times New Roman" size=1>Millions of pesos</font></td>
    <th colspan=2><font face="Times New Roman" size=1>Nine months <br>
ended September <br>
30, 2007 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Nine months <br>
ended September <br>
30, 2006 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>2007 <br>
vs <br>
2006 </font></th>
  </tr>
  <tr>

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

    <td align=LEFT width=294><font face="Times New Roman" size=2>Sales</font></td>
    <td align=LEFT width=7><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=86><font face="Times New Roman" size=2>18,035</font></td>
    <td align=LEFT width=22><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=85><font face="Times New Roman" size=2>18,365</font></td>
    <td align=LEFT width=23><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=41><font face="Times New Roman" size=2>-2</font></td>
    <td align=LEFT width=42><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="294"><font face="Times New Roman" size=2>Cost of Sales</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="86"><font face="Times New Roman" size=2>14,860</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="85"><font face="Times New Roman" size=2>14,823</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="41"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="294"><font face="Times New Roman" size=2>Gross Profit</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="86"><font face="Times New Roman" size=2>3,175</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="85"><font face="Times New Roman" size=2>3,542</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="41"><font face="Times New Roman" size=2>-10</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="294"><font face="Times New Roman" size=2>Operating Expenses</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="86"><font face="Times New Roman" size=2>1,057</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="85"><font face="Times New Roman" size=2>1,022</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="41"><font face="Times New Roman" size=2>3</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="294"><font face="Times New Roman" size=2>Operating Profit</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="86"><font face="Times New Roman" size=2>2,118</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="85"><font face="Times New Roman" size=2>2,520</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="41"><font face="Times New Roman" size=2>-16</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="294"><font face="Times New Roman" size=2>EBITDA</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="86"><font face="Times New Roman" size=2>2,492</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="85"><font face="Times New Roman" size=2>2,846</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="41"><font face="Times New Roman" size=2>-12</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="294"><font face="Times New Roman" size=2>Net Profit</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="86"><font face="Times New Roman" size=2>1,638</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="85"><font face="Times New Roman" size=2>2,183</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="41"><font face="Times New Roman" size=2>-25</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="294"><font face="Times New Roman" size=2>Sales outside Mexico</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="86"><font face="Times New Roman" size=2>12,594</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="85"><font face="Times New Roman" size=2>12,949</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="41"><font face="Times New Roman" size=2>-3</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="294"><font face="Times New Roman" size=2>Sales in M&#233;xico</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="86"><font face="Times New Roman" size=2>5,441</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="85"><font face="Times New Roman" size=2>5,416</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="41"><font face="Times New Roman" size=2>0.5</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT width="294"><font face="Times New Roman" size=2>Total sales (tons)</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="86"><font face="Times New Roman" size=2>2,017</font></td>
    <td align=LEFT width="22"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="85"><font face="Times New Roman" size=2>2,050</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="41"><font face="Times New Roman" size=2>-2</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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











<br>
<table cellpadding=0 cellspacing=0 border=0 width=600 align="center">
  <tr valign=Bottom>
    <th colspan=12 align="left">
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>

    <th colspan=2 align="left"><font face="Times New Roman" size=1>(Millions of pesos)</font></th>
    <th colspan=2><font face="Times New Roman" size=1>3Q &#145;07</font></th>
    <th colspan=2><font face="Times New Roman" size=1>2Q &#145;07</font></th>
    <th colspan=2><font face="Times New Roman" size=1>3Q &#145;06</font></th>
    <th colspan=2><font face="Times New Roman" size=1>3Q&#180;07vs   <br>
2Q&#180;07  </font></th>
    <th colspan=2><font face="Times New Roman" size=1>3Q&#180;07 vs  <br>
3Q&#146;06  </font></th>
  </tr>
  <tr>

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

    <td align=LEFT><font face="Times New Roman" size=2>Sales</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>5,659</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>6,228</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>5,774</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-9</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-2</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT><font face="Times New Roman" size=2>Cost of Sales</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>4,870</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>5,066</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>4,589</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-4</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>6</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT><font face="Times New Roman" size=2>Gross Profit</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>789</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>1,162</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>1,185</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-32</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-33</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT><font face="Times New Roman" size=2>Operating Expenses</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>349</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>349</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>321</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>9</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT><font face="Times New Roman" size=2>Operating Profit</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>440</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>813</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>864</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-46</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-49</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT><font face="Times New Roman" size=2>EBITDA</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>563</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>940</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>977</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-40</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-42</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT><font face="Times New Roman" size=2>Net Profit</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>361</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>543</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>555</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-34</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-35</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT><font face="Times New Roman" size=2>Sales outside Mexico</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>3,983</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>4,312</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>3,724</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-8</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>7</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

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

    <td align=LEFT><font face="Times New Roman" size=2>Sales in M&#233;xico</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>1,676</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>1,916</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>2,050</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-13</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-18</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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

    <td align=LEFT><font face="Times New Roman" size=2>Total sales (tons)</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>635</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>679</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>680</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-6</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>-7</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

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







<br>
<table cellpadding=0 cellspacing=0 border=0 width=700 align="center">
  <tr valign=Bottom>
    <th colspan=14 align="left">
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>

    <th colspan=2 align="left"><font face="Times New Roman" size=1>Product</font></th>
    <th colspan=2><font face="Times New Roman" size=1>Thousands of <br>
tons nine <br>
months ended <br>
September <br>
30,2007 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Millions of <br>
pesos nine <br>
months ended <br>
September 30, <br>
2007 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Average price <br>
per ton nine <br>
months ended <br>
September 30, <br>
2007 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Thousands of <br>
tons nine <br>
months ended <br>
September <br>
30,2006 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Millions of <br>
pesos nine <br>
months ended <br>
September 30, <br>
2006 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Average price <br>
per ton nine <br>
months ended <br>
September 30, <br>
2006
      </font></th>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width=164><font face="Times New Roman" size=2>SBQ</font></td>
    <td align=LEFT width=5><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=73><font face="Times New Roman" size=2>1,449</font></td>
    <td align=LEFT width=17><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=68><font face="Times New Roman" size=2>13,707</font></td>
    <td align=LEFT width=18><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=65><font face="Times New Roman" size=2>9,460</font></td>
    <td align=LEFT width=21><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=70><font face="Times New Roman" size=2>1,482</font></td>
    <td align=LEFT width=20><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=71><font face="Times New Roman" size=2>14,171</font></td>
    <td align=LEFT width=15><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=79><font face="Times New Roman" size=2>9,562</font></td>
    <td align=LEFT width=14><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="164"><font face="Times New Roman" size=2>Light Structural</font></td>
    <td align=LEFT width="5"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="73"><font face="Times New Roman" size=2>217</font></td>
    <td align=LEFT width="17"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="68"><font face="Times New Roman" size=2>1,682</font></td>
    <td align=LEFT width="18"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="65"><font face="Times New Roman" size=2>7,751</font></td>
    <td align=LEFT width="21"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>215</font></td>
    <td align=LEFT width="20"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="71"><font face="Times New Roman" size=2>1,503</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="79"><font face="Times New Roman" size=2>6,991</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="164"><font face="Times New Roman" size=2>Structural</font></td>
    <td align=LEFT width="5"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="73"><font face="Times New Roman" size=2>171</font></td>
    <td align=LEFT width="17"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="68"><font face="Times New Roman" size=2>1,377</font></td>
    <td align=LEFT width="18"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="65"><font face="Times New Roman" size=2>8,053</font></td>
    <td align=LEFT width="21"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>152</font></td>
    <td align=LEFT width="20"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="71"><font face="Times New Roman" size=2>1,182</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="79"><font face="Times New Roman" size=2>7,776</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="164"><font face="Times New Roman" size=2>Rebar</font></td>
    <td align=LEFT width="5"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="73"><font face="Times New Roman" size=2>180</font></td>
    <td align=LEFT width="17"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="68"><font face="Times New Roman" size=2>1,230</font></td>
    <td align=LEFT width="18"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="65"><font face="Times New Roman" size=2>6,833</font></td>
    <td align=LEFT width="21"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>200</font></td>
    <td align=LEFT width="20"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="71"><font face="Times New Roman" size=2>1,493</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="79"><font face="Times New Roman" size=2>7,465</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="164"><font face="Times New Roman" size=2>Others</font></td>
    <td align=LEFT width="5"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="73"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="17"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="68"><font face="Times New Roman" size=2>39</font></td>
    <td align=LEFT width="18"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="65"><font face="Times New Roman" size=2>&#151;</font></td>
    <td align=LEFT width="21"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>1</font></td>
    <td align=LEFT width="20"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="71"><font face="Times New Roman" size=2>16</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="79"><font face="Times New Roman" size=2>&#151;</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="164"><font face="Times New Roman" size=2>Total</font></td>
    <td align=LEFT width="5"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="73"><font face="Times New Roman" size=2>2,017</font></td>
    <td align=LEFT width="17"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="68"><font face="Times New Roman" size=2>18,035</font></td>
    <td align=LEFT width="18"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="65"><font face="Times New Roman" size=2>8,941</font></td>
    <td align=LEFT width="21"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>2,050</font></td>
    <td align=LEFT width="20"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="71"><font face="Times New Roman" size=2>18,365</font></td>
    <td align=LEFT width="15"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="79"><font face="Times New Roman" size=2>8,959</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=14>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>



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


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<table cellpadding=0 cellspacing=0 border=0 width=700 align="center">
  <tr valign=Bottom>
    <th colspan=20 align="left">
      <hr noshade color=#000000 size=1>
    </th>
  </tr>
  <tr valign=Bottom>

    <th colspan=2 align="left"><font face="Times New Roman" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product</font></th>
    <th colspan=2><font face="Times New Roman" size=1>Thousands <br>
of tons <br>
3Q &#145;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Millions <br>
of pesos <br>
3Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Average <br>
price per <br>
ton 3Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Thousands <br>
of tons <br>
2Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Millions <br>
of pesos <br>
2Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Average <br>
price per <br>
ton 2Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Thousands <br>
of tons <br>
3Q&#146;06 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Millions <br>
of pesos <br>
3Q&#146;06 </font></th>
    <th colspan=2><font face="Times New Roman" size=1>Average  <br>
price per <br>
ton 3Q&#146;06 </font></th>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width=132><font face="Times New Roman" size=2>SBQ</font></td>
    <td align=LEFT width=4><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=59><font face="Times New Roman" size=2>467</font></td>
    <td align=LEFT width=14><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=47><font face="Times New Roman" size=2>4,378</font></td>
    <td align=LEFT width=10><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=47><font face="Times New Roman" size=2>9,375</font></td>
    <td align=LEFT width=8><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=56><font face="Times New Roman" size=2>466</font></td>
    <td align=LEFT width=17><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=45><font face="Times New Roman" size=2>4,566</font></td>
    <td align=LEFT width=12><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=48><font face="Times New Roman" size=2>9,798</font></td>
    <td align=LEFT width=7><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=57><font face="Times New Roman" size=2>512</font></td>
    <td align=LEFT width=16><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=47><font face="Times New Roman" size=2>4,416</font></td>
    <td align=LEFT width=10><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=48><font face="Times New Roman" size=2>8,625</font></td>
    <td align=LEFT width=16><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="132"><font face="Times New Roman" size=2>Light Structural</font></td>
    <td align=LEFT width="4"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="59"><font face="Times New Roman" size=2>60</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>482</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>8,033</font></td>
    <td align=LEFT width="8"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="56"><font face="Times New Roman" size=2>95</font></td>
    <td align=LEFT width="17"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="45"><font face="Times New Roman" size=2>752</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>7,916</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="57"><font face="Times New Roman" size=2>58</font></td>
    <td align=LEFT width="16"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>430</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>7,414</font></td>
    <td align=LEFT width="16"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="132"><font face="Times New Roman" size=2>Structural</font></td>
    <td align=LEFT width="4"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="59"><font face="Times New Roman" size=2>50</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>395</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>7,900</font></td>
    <td align=LEFT width="8"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="56"><font face="Times New Roman" size=2>60</font></td>
    <td align=LEFT width="17"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="45"><font face="Times New Roman" size=2>494</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>8,233</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="57"><font face="Times New Roman" size=2>46</font></td>
    <td align=LEFT width="16"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>404</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>8,783</font></td>
    <td align=LEFT width="16"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="132"><font face="Times New Roman" size=2>Rebar</font></td>
    <td align=LEFT width="4"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="59"><font face="Times New Roman" size=2>58</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>383</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>6,603</font></td>
    <td align=LEFT width="8"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="56"><font face="Times New Roman" size=2>57</font></td>
    <td align=LEFT width="17"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="45"><font face="Times New Roman" size=2>403</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>7,070</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="57"><font face="Times New Roman" size=2>64</font></td>
    <td align=LEFT width="16"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>517</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>8,078</font></td>
    <td align=LEFT width="16"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="132"><font face="Times New Roman" size=2>Others</font></td>
    <td align=LEFT width="4"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="59"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>21</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="8"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="56"><font face="Times New Roman" size=2>1</font></td>
    <td align=LEFT width="17"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="45"><font face="Times New Roman" size=2>13</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="57"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="16"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>7</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="16"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="132"><font face="Times New Roman" size=2>Total</font></td>
    <td align=LEFT width="4"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="59"><font face="Times New Roman" size=2>635</font></td>
    <td align=LEFT width="14"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>5,659</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>8,912</font></td>
    <td align=LEFT width="8"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="56"><font face="Times New Roman" size=2>679</font></td>
    <td align=LEFT width="17"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="45"><font face="Times New Roman" size=2>6,228</font></td>
    <td align=LEFT width="12"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>9,172</font></td>
    <td align=LEFT width="7"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="57"><font face="Times New Roman" size=2>680</font></td>
    <td align=LEFT width="16"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="47"><font face="Times New Roman" size=2>5,774</font></td>
    <td align=LEFT width="10"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="48"><font face="Times New Roman" size=2>8,491</font></td>
    <td align=LEFT width="16"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=20>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>






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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Any forward-looking information
contained herein is inherently subject to various risks, uncertainties and assumptions
which, if incorrect, may cause actual results to vary materially from those anticipated,
expected or estimated. The company assumes no obligation to update any forward-looking
information contained herein.</I> </FONT> </P>


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


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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


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




<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSOLIDATED </FONT></P>

<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(1) Operations
preparation bases and summary of significant accounting policies: </B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Grupo Simec, S.A. de C.V. and its
Subsidiaries (&#147;the Company&#148;) are subsidiaries of Industrias CH, S.A. de C.V. (&#147;ICH&#148;),
and their main activities consist of the manufacturing and sale of steel products
primarily destined for the construction sector of Mexico and other countries. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>a. Financial statement presentation
</B> &#150; The consolidated financial statements have been prepared in accordance with principles
generally accepted in Mexico, which include the recognition of the effects of inflation
on the financial information and the presentation in constant Mexican pesos. </FONT> </P>

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

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#176; Compa&#241;&#237;a Sider&#250;rgica
de California, S.A. de C.V. <BR> &#176; Industrias del Acero y del Alambre, S.A. de C.V. <BR> &#176; Pacific
Steel Inc. <BR> &#176; SimRep Corporation and PAV Republic and Subsidiaries </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>c. Cash and cash equivalents</B>  &#150;  The
Company considers short-term investments with original maturities not greater than three
months to be cash equivalent. Cash equivalents include temporary investments and Mexican
Government Treasury Bonds, and are stated at market value, which approximates cost plus
earned interest. Any increase in market value is credited to operations for the period. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>d. Inventories</B>  &#150;  The inventories are
originally stated at average cost and subsequently adjusted to replacement value at the
balance sheet date. The replacement values do not exceed market and are determined as
follows: </FONT> </P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Raw materials   &#150;  According to
purchase prices prevailing in the market at the balance sheet date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Materials, supplies and rollers
&#150; At historical cost, restated by applying the steel industry inflation index. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company presents as non-current
inventories the rollers and spare parts, which according to historical data and
production trends will not be used within a one-year period. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>e.- Derivative financial
instruments</B> &#150;  The Company is using derivative financial instruments for hedging risks
associated with natural gas prices and conducted studies on historical consumption,
future requirements and commitments; thus it </FONT> </P>


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


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<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>avoided exposure to risks other than
the normal operating risks. Management of the Company examines its financial risks by
continually analyzing price, credit and liquidity risks. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company uses futures contracts
for hedging risks from fluctuations in natural gas prices, which are based on demand and
supply at the principal international markets. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As applicable, the Company
recognized the fair value of instruments either as liabilities or assets. Such fair value
and thus, the value of these assets or liabilities were restated at each month&#146;s-end.
The Company opted for the early  Instruments and Hedging&#148;; therefore, at December
31, 2003 the fair value-of natural gas in force during 2004, 2005 and of natural gas in
force during 2004, 2005 and 2006 and which effective portions will not be offset against
the asset risks until consumed, were recognized within the comprehensive income account
in stockholders&#146; equity. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>f. Property, plant and equipment  &#150;
Property, plant and equipment of domestic origin are restated by using factors derived
from The National Consumer Price Index (&#147;NCPI&#148;) from the date of their
acquisition, and imported machinery and equipment are restated by applying devaluation
and inflation factors of the country of origin. Depreciation recorded in the consolidated
statement of income (loss) is computed based upon the estimated useful life and the
restated cost of each asset. In addition, Financial expense incurred during the
construction period is capitalized as construction in progress. The capitalized amounts
are restated using a factor derived from the NCPI cumulative from the date of
capitalization through period-end and are amortized over the average depreciation period
of the corresponding assets. The estimated useful lives of assets as of September 30,
2007 are as follows: </FONT></P>



<table cellpadding=0 cellspacing=0 border=0 width=600 align="center">
  <tr valign=Bottom>

    <th colspan=2><font face="Times New Roman" size=1></font></th>
    <th colspan=2><font face="Times New Roman" size="2">Years</font></th>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width=486><font face="Times New Roman" size=2>Buildings</font></td>
    <td align=LEFT width=6><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=76><font face="Times New Roman" size=2>15 to 50</font></td>
    <td align=LEFT width=32><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="486"><font face="Times New Roman" size=2>Machinery and equipment</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="76"><font face="Times New Roman" size=2>10 to 40</font></td>
    <td align=LEFT width="32"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="486"><font face="Times New Roman" size=2>Buildings and improvements (Republic)</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="76"><font face="Times New Roman" size=2>10 to 25</font></td>
    <td align=LEFT width="32"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="486"><font face="Times New Roman" size=2>Land improvements (Republic)</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="76"><font face="Times New Roman" size=2>5 to 25</font></td>
    <td align=LEFT width="32"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="486"><font face="Times New Roman" size=2>Machinery and equipment (Republic)</font></td>
    <td align=LEFT width="6"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="76"><font face="Times New Roman" size=2>5 to 20</font></td>
    <td align=LEFT width="32"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
</table>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>g. Other assets </B> &#150;  Organization and
pre-operating expenses are capitalized and restated using a factor derived from the NCPI
cumulative from the date of generation through period-end, and their amortization is
calculated by the straight-line method over a period of 20 years. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>h. Seniority premiums and severance
payments </B>&#150; According to Federal Labor Law, employees are entitled to seniority
premiums after fifteen years or more of services. These premiums are recognized as
expenses in the years in which the services are rendered, using actuarial calculations
based on the projected unit credit method, and since 1996 by applying real interest and
salary increases. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any other payments to which
employees may be entitled in case of separation, disability or death, are charged to
operations in the period in which they become payable. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>i. Pension plan </B> &#150;  Until 1995, the
Company provided pension benefits for all personnel with a minimum of 10 years of service
and 35 years of age. The Company had established an irrevocable trust for its
contributions, which were based on actuarial calculations. In December 1995, the board of
directors of the Company, in agreement with the trade union, discontinued these benefits
and related contributions to the trust fund. This decision was made because of the new
Mexican pension fund system, Administradoras de Fondos para el Retiro, which establishes
similar benefits for the employees. The balance of the trust fund will be applied to the
retirement benefits of qualifying employees until the fund is exhausted due to the
irrevocable status of the fund. </FONT> </P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>j. Cost of sales </B> &#150;  Cost of sales
related to sales of inventory items is recorded at standard cost, which approximates the
replacement cost at the date of sale. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>k. Income tax and employee profit
sharing </B> &#150;  In 1999, the Mexican Institute of Public Accountants issued Bulletin D-4, &#147;Accounting
for Income and Asset Taxes and Employee Profit Sharing&#148;, which is effective for all
fiscal years beginning </FONT> </P>



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


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<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>January 1, 2000. Bulletin D-4
establishes financial accounting and reporting standards for the effects of asset tax,
income tax and employee profit sharing that result from enterprise activities during the
current and preceding years. </FONT></P>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>l. Foreign currency transactions and
exchange differences </B>&#150; All transactions in foreign currency are recorded at the
exchange rates prevailing on the date of their execution or liquidation. Foreign currency
denominated assets and liabilities are translated at the exchange rates prevailing at the
balance sheet date. Any exchange differences incurred with regard to assets or
liabilities denominated in foreign currency are charged to operations of the period and
are included in financial income (expense) in the accompanying consolidated statements of
income (loss). </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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,  Transactions in Foreign Currency and Translation of Financial
Statements of Foreign Operations. </FONT></P>

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By
applying the prevailing  exchange rate at the  consolidated  balance sheet date for
monetary and  non-monetary  assets and liabilities.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By
applying the prevailing exchange rate for stockholders&#146; equity accounts,  at the
time capital  contributions were made and earnings were generated.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By
applying the  prevailing  exchange rate at the  consolidated  balance sheet date for
revenues and expenses  during the reporting period.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
related effect of  translation  is recorded in  stockholders&#146;  equity under the
caption  Equity  adjustments  for non monetary assets.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
 resulting  amounts were restated  applying  adjustment  factors  derived from the NCPI,
 in conformity  with Mexican accounting Bulletin B-10.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The  subsidiaries  Pacific Steel and
Undershaft  Investment,  were  considered an &#147;integral part of the operations&#148; of
the Company; and the financial statements of such subsidiaries were translated into
Mexican pesos as follows: </FONT></P>

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

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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
related  effect of  translation  is recorded  in the  statement  of  operations  as part
of the caption  Comprehensive financing cost.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
resulting  amounts were  restated  applying  adjustment  factors  derived from the
Mexican  NCPI,  in conformity  with Mexican accounting Bulletin B-10.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>m. Geographic concentration of
credit risk </B>&#150; The Company sells its products primarily to distributors for the
construction industry with no specific geographic concentration. Additionally, no
single customer accounted for a significant amount of the Company&#146;s sales, and
there were no significant accounts receivable from a single customer or affiliate at
September 30, 2006 and at September 30, 2007, direct sales to two customers accounted
for approximately 10% and 16.6% of the Republic&#146;s sales. The Company
performs evaluations of its customers&#146; credit histories and establishes and
allowance for doubtful accounts based upon the credit risk of specific customers and
historical trends. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>n. Other income (expenses) </B> &#150;  Other
income (expenses) shown in the consolidated statements of operations primarily includes
other financial operations. </FONT> </P>






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


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>p. Restatement of capital stock and
retained earnings (losses) </B>&#150; This is determined by multiplying capital stock
contributions and retained earnings (losses) by factors derived from the NCPI, which
measure the cumulative inflation from the date when capital stock contributions were made
and earnings (losses) were generated, through the latest period-end. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>q. Effect of restatement of
stockholders&#146; equity </B>&#150; The effect resulting from restating stockholders&#146; equity
includes the accumulated effect from holding non-monetary assets, which represents the
change in the specific price level of those assets compared to the change in the NCPI. </FONT> </P>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> At September 30,
2007 Simec&#146;s total consolidated debt consisted of U.S. $302,000 of 8 7/8%
medium-term notes (&#147;MTN&#146;s&#148;) due 1998 (accrued interest at September 30,
2007 was U.S. $ 357,201 dollars.  At December 31, 2006 Simec&#146;s total consolidated
debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (&#147;MTN&#146;s&#148;) due
1998 (accrued interest at December 31, 2006 was U.S. $336,525 dollars. </FONT></P>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> a. Pacific Steel, Inc. (a wholly-owned subsidiary located in the U.S.A.) has
been named in various claims and suits relating to the generation, storage, transport,
disposal and cleanup of materials classified as hazardous waste. The Company has accrued
approximately Ps. 8,758 (U.S. $801,679) at September 30, 2007, (included in accrued
liabilities) relating to these actions; the reduction of this reserve from previous
levels reflects clean-up activities undertaken by Simec. Management believes the ultimate
liability with respect to this matter will not exceed the amounts that have been accrued. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c. Compa&#241;&#237;a Sider&#250;rgica
de Guadalajara, S.A. de C.V. has entered into a gas and liquid oxygen purchase agreement
with Praxair de M&#233;xico, S.A. de C.V., under which it is committed to acquire monthly
over a fifteen-year period beginning January 1, 1989, a certain amount of product. At
present required purchases amount to Ps. 1,700 per month. </FONT></P>

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


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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


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

<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSOLIDATED </FONT></P>



<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td align="left">
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;   &nbsp;&nbsp;&nbsp;&nbsp;   COMPANY NAME</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">MAIN ACTIVITIES</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">NUMBER OF <br>
          </font><font size="1" face="Times New Roman, Times, serif">SHARES </font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">OWNERSHIP</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">SUBSIDIARIES</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Cia siderurgica de Guadalajara</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Sub-Holding</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">99.99</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Simec International</font></p>
      </td>
      <td>
        <p align="center"><font size="1" face="Times New Roman, Times, serif">Production and sales of steel products</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">99.99</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Arrendadora Simec</font></p>
      </td>
      <td>
        <p align="center"><font size="1" face="Times New Roman, Times, serif">Production and sales of steel products</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Controladora Simec</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Sub-Holding</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Pacific Steel</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Scrap purchase</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Cia. Sider&#250;rgica del Pac&#237;fico</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Rent of land</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">99.99</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Coordinadora de Servicios Sider&#250;rgicos de Calidad</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Administrative
  services</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Administradora de Servicios de la Industria Sider&#250;rgica</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Administrative
  services</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">99.99</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Industrias del Acero y del Alambre</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Sales of steel
  products</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">99.99</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Procesadora Mexicali</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Scrap purchase</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">99.99</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Servicios Simec</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Administrative
  services</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Sistemas de Transporte de Baja California</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Freight services</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Operadora de Metales</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Administrative
  services</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Operadora de Servicios Sider&#250;rgicos de Tlaxcala</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Administrative
  services</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Administradora de Servicios Sider&#250;rgicos de Tlaxcala</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Administrative
  services</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">Operadora de Servicios de la Industria Sider&#250;rgica</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Administrative
  services</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">SimRep</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Sub-Holding</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">PAV Republic</font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">Production and
  sales of steel products</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">100.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman, Times, serif" size="1"><b>TOTAL INVESTMENT IN SUBSIDIARIES</b></font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman, Times, serif" size="1"><b>ASSOCIATEDS</b></font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman, Times, serif" size="1"><b>TOTAL INVESTMENT IN ASSOCIATEDS</b></font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman, Times, serif" size="1"><b>OTHER PERMANENT INVESTMENTS</b></font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0.00</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman, Times, serif" size="1"><b>TOTAL</b></font></p>
      </td>
      <td>
        <p align=center><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="4">
        <hr size="1" noshade>
      </td>
    </tr>
  </table>





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



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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->



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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CREDITS BREAK DOWN <BR>
                                               (THOUSANDS OF MEXICAN PESOS) </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSOLIDATED </FONT></P>



<table border=0 cellspacing=0 cellpadding=0 align="center" width="100%">
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>


    <tr valign="bottom">
      <td colspan=2><b></b></td>
      <td colspan=2>
        <div align="center"><b><font face="Times New Roman, Times, serif" size="1">Amortization</font></b></div>
      </td>
      <td>
        <div align="center"><b><font face="Times New Roman, Times, serif" size="1">Rate of</font></b></div>
      </td>
      <td colspan=7 align="center"><b><font face="Times New Roman, Times, serif" size="1">Denominated
  in Pesos <br>
         (Thousands of Pesos) </font></b></td>
      <td colspan="6" align="center"><b><font face="Times New Roman, Times, serif" size="1">Denominated
  in Foreign  <br>
        Currency (Thousands of Pesos) </font></b></td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=2><b><font face="Times New Roman, Times, serif" size="1">Credit Type / Institution</font></b></td>
      <td colspan=2>
        <div align="center"><b><font face="Times New Roman, Times, serif" size="1">Date</font></b></div>
      </td>
      <td>
        <div align="center"><b><font face="Times New Roman, Times, serif" size="1">Interest</font></b></div>
      </td>
      <td colspan=7 align="center"><b><font face="Times New Roman, Times, serif" size="1">Time
  Interval</font></b></td>
      <td colspan="6" align="center"><b><font face="Times New Roman, Times, serif" size="1">Time
  Interval</font></b></td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan=2>
        <p><b><font face="Times New Roman, Times, serif" size="1">&nbsp;</font></b></p>
      </td>
      <td colspan=2>
        <p><b><font face="Times New Roman, Times, serif" size="1">&nbsp;</font></b></p>
      </td>
      <td>
        <p><b><font face="Times New Roman, Times, serif" size="1">&nbsp;</font></b></p>
      </td>
      <td colspan=2>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Current</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Until
  1</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Until
  2</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Until
  3</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Until
  4</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Until
  5</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Current</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Until
  1</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Until
  2</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Until
  3</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Until
  4</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Until
  5</font></b></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=2>
        <p><b><font face="Times New Roman, Times, serif" size="1">&nbsp;</font></b></p>
      </td>
      <td colspan=2>
        <p><b><font face="Times New Roman, Times, serif" size="1">&nbsp;</font></b></p>
      </td>
      <td>
        <p><b><font face="Times New Roman, Times, serif" size="1">&nbsp;</font></b></p>
      </td>
      <td colspan=2>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Year</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Year</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Years</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Years</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Years</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Years
  or <br>
          More
          </font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Year</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Year</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Years</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Years</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Years</font></b></p>
      </td>
      <td>
        <p align=center><b><font face="Times New Roman, Times, serif" size="1">Years
  or <br>
          More
          </font></b></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan=2>
        <p><b><font face="Times New Roman, Times, serif" size="1">BANKS</font></b></p>
      </td>
      <td colspan=2>
        <p><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td colspan=2>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
      <td>
        <p align=center><b><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></b></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">With Warranty</font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>


    <tr valign="bottom">
      <td colspan=2>
        <p><font face="Times New Roman, Times, serif" size="1"><b>TOTAL BANKS</b></font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>




    <tr valign="bottom">
      <td colspan=2>
        <p><font face="Times New Roman, Times, serif" size="1"><b>LISTED IN THE <br>
          </b></font><font face="Times New Roman, Times, serif" size="1"><b>STOCK EXCHANGE </b></font><font face="Times New Roman, Times, serif" size="1"><b>&nbsp;</b></font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=2>
        <p><font face="Times New Roman, Times, serif" size="1"><b>UNSECURED DEBT</b></font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan=2><font size="1" face="Times New Roman, Times, serif">Medium Term Notes</font></td>
      <td colspan=2 align="center"><font size="1" face="Times New Roman, Times, serif">15/12/1998</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">9.33</font></td>
      <td colspan=2 align="right"><font size="1" face="Times New Roman, Times, serif">0</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">0</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">0</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">0</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">0</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">0</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">3,299</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">0</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">0</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">0</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">0</font></td>
      <td align="right"><font size="1" face="Times New Roman, Times, serif">0</font></td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>


    <tr valign="bottom">
      <td colspan=2>
        <p><font face="Times New Roman, Times, serif" size="1"><b>TOTAL STOCK EXCHANGE</b></font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">3,299</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>



    <tr valign="bottom">
      <td colspan=2>
        <p><font face="Times New Roman, Times, serif" size="1"><b>SUPPLIERS</b></font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">Various</font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">357,653</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">1,913,080</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan=2>
        <p><font face="Times New Roman, Times, serif" size="1"><b>TOTAL SUPPLIERS</b></font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">357,653</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">1,913,080</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan=2>
        <p><font face="Times New Roman, Times, serif" size="1"><b>OTHER LOANS WITH COST</b></font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan=2>
        <p><font face="Times New Roman, Times, serif" size="1"><b>TOTAL</b></font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan=2>
        <p><font face="Times New Roman, Times, serif" size="1"><b>OTHER CURRENT LIABILITIES WITHOUT COST</b></font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">Various</font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">431,902</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">384,189</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=2>
        <p><font face="Times New Roman, Times, serif" size="1"><b>TOTAL </b></font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">431,902</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">384,189</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan=18>
        <hr noshade size="1">
      </td>
    </tr>


    <tr valign="bottom">
      <td colspan=2>
        <p><font face="Times New Roman, Times, serif" size="1"><b>TOTAL</b></font></p>
      </td>
      <td colspan=2>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td>
        <p><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></p>
      </td>
      <td colspan=2>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">789,555</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">3,299</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">2,297,269</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
    </tr>
    <tr height=0>
      <td colspan="18">
        <hr noshade size="1">
      </td>
    </tr>
  </table>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTES: The exchange rate of the peso
to the U.S. Dollar at September 30, 2007 was Ps. 10.9243 </FONT></P>




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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->







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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>MONETARY FOREIGN
CURRENCY POSITION               <BR>                                 (Thousands of Mexican
Pesos) </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSOLIDATED </FONT></P>






<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr>
      <td valign=top colspan="6">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">&nbsp;</font></b></font></p>
      </td>
      <td colspan=2 valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">DOLLARS</font></b></font></p>
      </td>
      <td colspan=2 valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">OTHER
  CURRENCIES</font></b></font></p>
      </td>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">TOTAL</font></b></font></p>
      </td>
    </tr>
    <tr>
      <td valign=top align="left" colspan="6">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top align="left">
        <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">FOREIGN
  CURRENCY POSITION</font></b></font></p>
      </td>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">THOUSANDS
  OF <br>
          DOLLARS </font></b></font></p>
      </td>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">THOUSANDS
  OF <br>
          PESOS </font></b></font></p>
      </td>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">THOUSANDS
  OF <br>
          DOLLARS </font></b></font></p>
      </td>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">THOUSANDS
  OF <br>
          PESOS </font></b></font></p>
      </td>
      <td valign=top>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">THOUSANDS
  OF <br>
          PESOS </font></b></font></p>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="6">
        <hr size="1" noshade>
      </td>
    </tr>


    <tr>
      <td valign=top>
        <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">TOTAL ASSETS</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">731,272</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="2"><b><font size="1">7,988,625</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">1</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">16</font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">7,988,641</font></b></font></p>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="6">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr>
      <td valign=top>
        <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">LIABILITIES POSITION</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">210,553</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="2"><b><font size="1">2,300,149</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="2"><b><font size="1">38</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">419</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,300,568</font></b></font></p>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="6">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p><font size="1" face="Arial">SHORT TERM LIABILITIES POSITION</font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">210,553</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="2"><b><font size="1">2,300,149</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="2"><b><font size="1">38</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">419</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,300,568</font></b></font></p>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="6">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr>
      <td valign=top>
        <p><font size="1" face="Arial">LONG TERM LIABILITIES POSITION</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td valign=top>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="6">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr>
      <td valign=top>
        <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">NET BALANCE</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">520,719</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="2"><b><font size="1">5,688,476</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="2"><b><font size="1">(37)</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">(403)</font></b></font></p>
      </td>
      <td valign=top>
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">5,688,073</font></b></font></p>
      </td>
    </tr>
    <tr>
      <td valign=top colspan="6">
        <hr size="1" noshade>
      </td>
    </tr>
  </table>














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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE EXCHANGE RATE OF THE PESO TO THE
U.S. DOLLAR AT SEPTEMBER 30, 2007 WAS PS. 10.9243 </FONT></P>




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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->











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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>RESULT FROM MONETARY
POSITION                                    <BR>            (Thousands of Mexican Pesos) </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Center no bold 2" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSOLIDATED </FONT></P>



<table border=0 cellspacing=0 cellpadding=0 width="650" align="center">
    <tr valign="bottom">
      <td align="left" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td align="left">
        <p><b><font size="1" face="Times New Roman">MONTH</font></b></p>
      </td>
      <td colspan="2">
        <p align=center><b><font size="1" face="Times New Roman">MONETARY <br>
          ASSETS </font></b></p>
      </td>
      <td colspan="2">
        <p align=center><b><font size="1" face="Times New Roman">MONETARY <br>
          LIABILITIES </font></b></p>
      </td>
      <td colspan="2">
        <p align=center><b><font size="1" face="Times New Roman">ASSET (LIABILITY )
<br>
            MONETARY POSITION </font></b></p>
      </td>
      <td colspan="2">
        <p align=center><b><font size="1" face="Times New Roman">MONTHLY <br>
           INFLATION </font></b></p>
      </td>
      <td colspan="2">
        <p align=center><b><font size="1" face="Times New Roman">MONTHLY <br>
           (PROFIT )  <br>
           AND
  LOSS </font></b></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">JANUARY</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,373,099</font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,186,629</font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(1,186,470)</font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0.52</font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(6,128)</font></p>
      </td>
      <td>&nbsp;&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">FEBRUARY</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">3,663,966</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,510,290</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(2,153,673)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0.28</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(6,020)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">MARCH</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6,158,413</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">1,425,766</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(4,732,647)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0.22</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(10,243)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">APRIL</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6,425,075</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,204,991</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(4,220,084)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(0.06)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,520</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">MAY</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6,574,516</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,249,298</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(4,325,218)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(0.49)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">21,100</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">JUNE</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6,644,573</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,526,523</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(4,118,050)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0.12</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(4,945)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">JULY</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">6,889,513</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,504,376</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(4,385,138)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0.42</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(18,626)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">AUGUST</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">7,229,951</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,471,374</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(4,758,577)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0.41</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(19,387)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">SEPTEMBER</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">7,449,185</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">2,522,922</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(4,926,263)</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0.81</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(39,904)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">RESTATEMENT</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(275)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">CAPITALIZATION</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">0</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">FOREIGN CORPOPATION</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">29,408</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">OTHER</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">44,993</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td>
        <p><font size="1" face="Times New Roman">TOTAL</font></p>
      </td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="1" face="Times New Roman">(7,507)</font></p>
      </td>
      <td>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
  </table>


<BR>

<table border=0 cellspacing=0 cellpadding=0 width="650" align="center">

    <tr valign="bottom">

      <td align="left" colspan="11">

        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="9"><font size="1" face="Times New Roman, Times, serif">OTHER CONCEPTS:
</font></td>
      <td width="66"><font size="1"></font></td>
      <td width="23"><font size="1"></font></td>
    </tr>
    <tr valign="bottom">
      <td colspan="11"><font size="1"></font><font size="1"></font>
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

      <td colspan="9">

        <p><font size="1" face="Times New Roman, Times, serif">CAPITALIZED RESULT FOR MONETARY POSITION</font></p>
      </td>
      <td width="66">

        <p align=right><font size="1" face="Times New Roman, Times, serif">0</font></p>
      </td>
      <td width="23"><font size="1"></font></td>
    </tr>

    <tr valign="bottom">

      <td colspan="11">

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


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


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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>



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

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


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


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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A)
Current assets to current liabilities must be 1.0 times or more. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
B)
Total liabilities to total assets do not be more than 0.60. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
C)
Operating income plus items added to income which do not require using cash must be 2.0
times or more. </FONT></TD>
</TR>
</TABLE>
<BR>

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






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


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

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A)
Accomplished the actual situation is 4.59 times. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
B)
Accomplished the actual situation is 0.25 </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
C)
Accomplished the actual situation is 131.74 </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
As
of September 30, 2007, the remaining balance of the MTNs not exchanged amounts to Ps.
3,299 ($302,000 dollars). </FONT></TD>
</TR>
</TABLE>
<BR>


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





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




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


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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PLANTS, COMMERCE
CENTERS OR DISTRIBUTION CENTERS </B></FONT></P>


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

<table border=0 cellspacing=0 cellpadding=0 width="725" align="center">

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">PLANT
  OR CENTER</font></b></font></p>
    </td>
    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">ECONOMIC
  ACTIVITY</font></b></font></p>
    </td>
    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">PLANT
  CAPACITY</font></b></font></p>
    </td>
    <td>

      <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">UTILIZATION (%)</font></b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p><font size="1" face="Arial">GUADALAJARA MINI MILL</font></p>
    </td>
    <td>

      <p><font size="1" face="Arial">PRODUCTION AND SALES OF STEEL PRODUCTS</font></p>
    </td>
    <td align="center">

      <p><font size="1" face="Arial">480</font></p>
    </td>
    <td align="center">

      <p><font size="1" face="Times New Roman">88.82</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p><font size="1" face="Arial">MEXICALI MINI MILL</font></p>
    </td>
    <td>

      <p><font size="1" face="Arial">PRODUCTION AND SALES OF STEEL PRODUCTS</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">250</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Times New Roman">80.41</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p><font size="1" face="Arial">INDUSTRIAS DEL ACERO Y DEL ALAMBRE</font></p>
    </td>
    <td>

      <p><font size="1" face="Arial">SALE OF STEEL PRODUCTS</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">0</font></p>
    </td>
    <td align="center">

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

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p><font size="1" face="Arial">APIZACO AND CHOLULA PLANTS</font></p>
    </td>
    <td>

      <p><font size="1" face="Arial">PRODUCTION AND SALES OF STEEL PRODUCTS</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">460</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">97.32</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p><font size="1" face="Arial">CANTON CASTER FACILITY</font></p>
    </td>
    <td>

      <p><font size="1" face="Arial">PRODUCTION OF BILLET</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">1,380</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">55.00</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p><font size="1" face="Arial">LORAIN CASTER FACILITY</font></p>
    </td>
    <td>

      <p><font size="1" face="Arial">PRODUCTION OF BILLET</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">1,150</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">85.40</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p><font size="1" face="Arial">LORAIN HOT-ROLLING MILL</font></p>
    </td>
    <td>

      <p><font size="1" face="Arial">PRODUCTION AND SALES OF STEEL PRODUCTS</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">840</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">76.00</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p><font size="1" face="Arial">LACKAWANNA HOT-ROLLING MILL</font></p>
    </td>
    <td>

      <p><font size="1" face="Arial">PRODUCTION AND SALES OF STEEL PRODUCTS</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">600</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">85.30</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p><font size="1" face="Arial">MASSILLON COLD-FINISH FACILITY</font></p>
    </td>
    <td>

      <p><font size="1" face="Arial">PRODUCTION AND SALES OF STEEL PRODUCTS</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">125</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">82.10</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p><font size="1" face="Arial">GARY COLD-FINISH FACILITY</font></p>
    </td>
    <td>

      <p><font size="1" face="Arial">PRODUCTION AND SALES OF STEEL PRODUCTS</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">70</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">52.00</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="4">

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

  <tr valign="bottom">

    <td>

      <p><font size="1" face="Arial">ONTARIO COLD-FINISH FACILITY</font></p>
    </td>
    <td>

      <p><font size="1" face="Arial">PRODUCTION AND SALES OF STEEL PRODUCTS</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">60</font></p>
    </td>
    <td align="center">

      <p align=center><font size="1" face="Arial">60.80</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="4">

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





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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->








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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


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



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




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

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td width="117" align="left">

      <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">DOMESTIC</font></b></font></p>
    </td>
    <td width="87">

      <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">MAIN <br>
  SUPPLIERS</font></b></font></p>
    </td>
    <td colspan="2">

      <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">FOREIGN</font></b></font></p>
    </td>
    <td width="90">

      <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">MAIN <br>
  SUPPLIERS</font></b></font></p>
    </td>
    <td width="116">

      <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">DOMESTIC <br>
  SUBSTITUTION</font></b></font></p>
    </td>
    <td width="140">

      <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">COST <br>
  PRODUCTION (%)</font></b></font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td width="117">

      <p><font size="1" face="Times New Roman">PLANTS IN USA</font></p>
    </td>
    <td width="87">

      <p><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td width="28">&nbsp;</td>
    <td width="122">

      <p><font size="1" face="Times New Roman">SCRAP</font></p>
    </td>
    <td align="center" width="90">

      <p><font size="1" face="Times New Roman">VARIOUS</font></p>
    </td>
    <td width="116">

      <p align=center><font size="1" face="Times New Roman">NO</font></p>
    </td>
    <td width="140">

      <p align=center><font size="1" face="Times New Roman">9.70</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td width="117">

      <p><font size="1" face="Times New Roman">SCRAP</font></p>
    </td>
    <td align="center" width="87">

      <p><font size="1" face="Times New Roman">VARIOUS</font></p>
    </td>
    <td width="28">&nbsp;</td>
    <td width="122">

      <p><font size="1" face="Times New Roman">PLANTS IN MEXICO</font></p>
    </td>
    <td align="center" width="90">

      <p><font size="1" face="Times New Roman">&nbsp;</font></p>
    </td>
    <td width="116">

      <p align=center><font size="1" face="Times New Roman">NO</font></p>
    </td>
    <td width="140">

      <p align=center><font size="1" face="Times New Roman">48.30</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td width="117">

      <p><font size="1" face="Times New Roman">PLANTS IN USA</font></p>
    </td>
    <td align="center" width="87">

      <p><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td width="28">&nbsp;</td>
    <td width="122">

      <p><font size="1" face="Times New Roman">COKE</font></p>
    </td>
    <td align="center" width="90">

      <p><font size="1" face="Times New Roman">VARIOUS</font></p>
    </td>
    <td width="116">

      <p align=center><font size="1" face="Times New Roman">NO</font></p>
    </td>
    <td width="140">

      <p align=center><font size="1" face="Times New Roman">4.50</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td width="117">

      <p><font size="1" face="Times New Roman">PLANTS IN USA</font></p>
    </td>
    <td align="center" width="87">

      <p><font face="Times New Roman" size="3"><b><font size="1">&nbsp;</font></b></font></p>
    </td>
    <td width="28">&nbsp;</td>
    <td width="122">

      <p><font size="1" face="Times New Roman">PELLETS</font></p>
    </td>
    <td align="center" width="90">

      <p><font size="1" face="Times New Roman">VARIOUS</font></p>
    </td>
    <td width="116">

      <p align=center><font size="1" face="Times New Roman">NO</font></p>
    </td>
    <td width="140">

      <p align=center><font size="1" face="Times New Roman">14.70</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td width="117">

      <p><font size="1" face="Times New Roman">FERROALLOYS</font></p>
    </td>
    <td align="center" width="87">

      <p><font size="1" face="Times New Roman">VARIOUS</font></p>
    </td>
    <td width="28">&nbsp;</td>
    <td width="122">

      <p><font size="1" face="Times New Roman">PLANTS IN MEXICO</font></p>
    </td>
    <td align="center" width="90">

      <p><font size="1" face="Times New Roman">&nbsp;</font></p>
    </td>
    <td width="116">

      <p align=center><font size="1" face="Times New Roman">YES</font></p>
    </td>
    <td width="140">

      <p align=center><font size="1" face="Times New Roman">7.10</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td width="117">

      <p><font size="1" face="Times New Roman">PLANTS IN USA</font></p>
    </td>
    <td align="center" width="87">

      <p><font size="1" face="Times New Roman">&nbsp;</font></p>
    </td>
    <td width="28">&nbsp;</td>
    <td width="122">

      <p><font size="1" face="Times New Roman">FERROALLOYS</font></p>
    </td>
    <td align="center" width="90">

      <p><font size="1" face="Times New Roman">VARIOUS</font></p>
    </td>
    <td width="116">

      <p align=center><font size="1" face="Times New Roman">NO</font></p>
    </td>
    <td width="140">

      <p align=center><font size="1" face="Times New Roman">4.40</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td width="117">

      <p><font size="1" face="Times New Roman">ELECTRODES</font></p>
    </td>
    <td align="center" width="87">

      <p><font size="1" face="Times New Roman">VARIOUS</font></p>
    </td>
    <td width="28">&nbsp;</td>
    <td width="122">

      <p><font size="1" face="Times New Roman">PLANTS IN MEXICO</font></p>
    </td>
    <td align="center" width="90">

      <p><font size="1" face="Times New Roman">VARIOUS</font></p>
    </td>
    <td width="116">

      <p align=center><font size="1" face="Times New Roman">YES</font></p>
    </td>
    <td width="140">

      <p align=center><font size="1" face="Times New Roman">2.00</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

  <tr valign="bottom">

    <td width="117">

      <p><font size="1" face="Times New Roman">PLANTS IN USA</font></p>
    </td>
    <td width="87">

      <p><font size="1" face="Times New Roman">&nbsp;</font></p>
    </td>
    <td width="28">&nbsp;</td>
    <td width="122">

      <p><font size="1" face="Times New Roman">ELECTRODES</font></p>
    </td>
    <td align="center" width="90">

      <p><font size="1" face="Times New Roman">VARIOUS</font></p>
    </td>
    <td width="116">

      <p align=center><font size="1" face="Times New Roman">NO</font></p>
    </td>
    <td width="140">

      <p align=center><font size="1" face="Times New Roman">0.70</font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td colspan="7">

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

</table>


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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->




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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


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


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


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




<table border=0 cellspacing=0 cellpadding=0 align="center" width="700">
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>

    <tr valign="bottom">
      <td><font face="Times New Roman" size="2"><b><font face="Arial">MAIN
  PRODUCTS</font></b></font></td>
      <td colspan="4" align="center"><font face="Times New Roman" size="2"><b><font face="Arial">NET
  SALES</font></b></font></td>
      <td colspan=3 align="center"><font face="Times New Roman" size="2"><b><font face="Arial">MAIN
  DESTINATION</font></b></font></td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">VOLUME</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">AMOUNT</font></b></font></p>
      </td>
      <td colspan=2>
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">TRADEMARKS</font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">COSTUMERS</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">STRUCTURAL PROFILES</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">147</font></p>
      </td>
      <td><font size="2">&nbsp;&nbsp;</font></td>
      <td>
        <p align=right><font size="2" face="Arial">1,188,659</font></p>
      </td>
      <td><font size="2">&nbsp;&nbsp;</font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">COMMERCIAL PROFILES</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">68</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="2" face="Arial">517,409</font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">REBAR</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">131</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="2" face="Arial">906,596</font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">FLAT BAR</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">130</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="2" face="Arial">1,018,647</font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">STEEL BARS</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">221</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="2" face="Arial">1,770,643</font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">OTHER</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">1</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="2" face="Arial">38,813</font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">BILLET</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="2" face="Arial">0</font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">HOT-ROLLED BARS</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">COLD-FINISHED BARS</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">SEMI-FINISHED SEAMLESS TUBE ROUNDS</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">OTHER SEMI-FINISHED TRADE PRODUCTS</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">T O T A L</font></b></font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="2"><b><font face="Arial">5,440,767</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>

    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">FOREIGN SALES</font></b></font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="2"><b><font face="Arial">12,593,901</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">TOTAL</font></b></font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td>&nbsp;</td>
      <td>
        <p align=right><font face="Times New Roman" size="2"><b><font face="Arial">18,034,668</font></b></font></p>
      </td>
      <td>&nbsp;</td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr height=0>
      <td colspan="8">
        <hr noshade size="1">
      </td>
    </tr>
  </table>



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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->




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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


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


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


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





<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>

    <tr valign="bottom">
      <td><font face="Times New Roman" size="2"><b><font face="Arial">MAIN
  PRODUCTS</font></b></font></td>
      <td colspan="4" align="center"><font face="Times New Roman" size="2"><b><font face="Arial">NET
  SELLS</font></b></font></td>
      <td colspan=3 align="center"><font face="Times New Roman" size="2"><b><font face="Arial">MAIN</font></b></font></td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">VOLUME</font></b></font></p>
      </td>
      <td colspan="2">
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">AMOUNT</font></b></font></p>
      </td>
      <td colspan=2>
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">TRADEMARKS</font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">COSTUMERS</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">EXPORTS</font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">STRUCTURAL PROFILES</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">24</font></p>
      </td>
      <td><font size="2">&nbsp;&nbsp;</font></td>
      <td>
        <p align=right><font size="2" face="Arial">187,914</font></p>
      </td>
      <td><font size="2">&nbsp;&nbsp;</font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">COMMERCIAL PROFILES</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">16</font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=right><font size="2" face="Arial">121,675</font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">REBAR</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">49</font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=right><font size="2" face="Arial">323,410</font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">STEEL BARS</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">3</font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=right><font size="2" face="Arial">23,934</font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">FLAT BAR</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">24</font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=right><font size="2" face="Arial">196,670</font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">BILLET</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">0</font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=right><font size="2" face="Arial">0</font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">FOREIGN SUBSIDIARIES</font></b></font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">HOT-ROLLED BARS</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">675</font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=right><font size="2" face="Arial">7,138,162</font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">COLD-FINISHED BARS</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">117</font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=right><font size="2" face="Arial">1,631,406</font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">SEMI-FINISHED SEAMLESS TUBE ROUNDS</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">157</font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=right><font size="2" face="Arial">1,212,275</font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font size="2" face="Arial">OTHER SEMI-FINISHED TRADE PRODUCTS</font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">255</font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=right><font size="2" face="Arial">1,758,455</font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="8"><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font>
        <hr noshade size="1">
        </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">T O T A L</font></b></font></p>
      </td>
      <td>
        <p align=right><font size="2" face="Arial">&nbsp;</font></p>
      </td>
      <td><font size="2"></font></td>
      <td>
        <p align=right><font face="Times New Roman" size="2"><b><font face="Arial">12,593,901</font></b></font></p>
      </td>
      <td><font size="2"></font></td>
      <td colspan=2>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p><font face="Times New Roman" size="2"><b><font face="Arial">&nbsp;</font></b></font></p>
      </td>
    </tr>
    <tr height=0>
      <td colspan="8">
        <hr size="1" noshade>
      </td>
    </tr>
  </table>



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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->





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




<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


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




<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>INTEGRATION OF THE
PAID SOCIAL CAPITAL STOCK               <BR>                                CHARACTERISTICS
OF THE SHARES </B></FONT></P>



<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">SERIES</font></b></font></p>
      </td>
      <td colspan=2>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">NOMINAL <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font face="Arial" size="1">VALUE </font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">VALID <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font face="Arial" size="1">CUPON </font></b></font></p>
      </td>
      <td colspan=4>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">NUMBER
  OF SHARES</font></b></font></p>
      </td>
      <td colspan=2>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">CAPITAL
  STOCK <br>
          </font></b></font><font face="Times New Roman" size="3"><b><font face="Arial" size="1">(Thousands
  of Pesos) </font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">&nbsp;</font></b></font></p>
      </td>
      <td colspan=2>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">&nbsp;</font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">FIXED
  <br>
          PORTION </font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">VARIABLE <br>
           PORTION </font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">MEXICAN</font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">FREE <br>
  SUSCRIPTION </font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">FIXED</font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">VARIABLE</font></b></font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font size="1" face="Arial">B</font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">&nbsp;</font></b></font></p>
      </td>
      <td colspan=2>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">&nbsp;</font></b></font></p>
      </td>
      <td align="center">
        <p><font size="1" face="Arial">90,850,050</font></p>
      </td>
      <td align="center">
        <p><font size="1" face="Arial">383,771,561</font></p>
      </td>
      <td align="center">
        <p><font size="1" face="Arial">0</font></p>
      </td>
      <td align="center">
        <p><font size="1" face="Arial">474,621,611</font></p>
      </td>
      <td align="center">
        <p><font size="1" face="Arial">441,786</font></p>
      </td>
      <td align="center">
        <p><font size="1" face="Arial">1,866,320</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">TOTAL</font></b></font></p>
      </td>
      <td>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">&nbsp;</font></b></font></p>
      </td>
      <td colspan=2>
        <p align=center><font face="Times New Roman" size="3"><b><font face="Arial" size="1">&nbsp;</font></b></font></p>
      </td>
      <td align="center">
        <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">90,850,050</font></b></font></p>
      </td>
      <td align="center">
        <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">383,771,561</font></b></font></p>
      </td>
      <td align="center">
        <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">0</font></b></font></p>
      </td>
      <td align="center">
        <p><font size="1" face="Arial">474,621,611</font></p>
      </td>
      <td align="center">
        <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">441,786</font></b></font></p>
      </td>
      <td align="center">
        <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">1,866,320</font></b></font></p>
      </td>
    </tr>
    <tr height=0>
      <td colspan="10">
        <hr size="1">
      </td>
    </tr>
  </table>

<BR>


<table border=0 cellspacing=0 cellpadding=0 width="700" align="center">
    <tr valign="bottom">
      <td colspan="10">
        <hr size="1">
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="9" align="left">
        <p><font size="1" face="Times New Roman, Times, serif">TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION:</font></p>
        </td>
      <td align="center" width="83">
        <p><font face="Times New Roman" size="3"><b><font face="Arial" size="1">474,621,611</font></b></font></p>
      </td>
    </tr>
    <tr height=0>
      <td colspan="10">
        <hr size="1">
      </td>
    </tr>
  </table>



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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->




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


<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>



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


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


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE PROJECTS IN PROGRESS AT
SEPTEMBER 30, 2007, ARE: </FONT></P>



<table border=0 cellspacing=0 cellpadding=0 width="600" align="center">
    <tr valign="bottom">
      <td width=451>
        <p><font size="2" face="Times New Roman">PROJECTS IN PROGRESS</font></p>
      </td>
      <td width=149 align="right">
        <p><font size="2" face="Times New Roman">TOTAL INVESTMENT</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td width=451>&nbsp;</td>
      <td width=149>&nbsp;</td>
    </tr>

    <tr valign="bottom">
      <td width=451>
        <p><font size="2" face="Times New Roman">PROJECTS IN
  REPUBLIC </font></p>
      </td>
      <td width=149>
        <p align=right><font size="2" face="Times New Roman">93,338</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td width=451>
        <p><font size="2" face="Times New Roman">PROJECTS IN MEXICALI </font></p>
      </td>
      <td width=149>
        <p align=right><font size="2" face="Times New Roman">37,244</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td width=451>
        <p><font size="2" face="Times New Roman">PROJECTS IN TLAXCALA</font></p>
      </td>
      <td width=149>
        <p align=right><font size="2" face="Times New Roman">73,478</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td width=451>
        <p><font size="2" face="Times New Roman">PROJECTS IN GUADALAJARA</font></p>
      </td>
      <td width=149>
        <p align=right><font size="2" face="Times New Roman">3,596</font></p>
      </td>
    </tr>
    <tr valign="bottom">
      <td width=451>
        <p><font face="Times New Roman" size="2"><b>TOTAL INVESTMENT AT  <br>
          </b></font><font face="Times New Roman" size="2"><b>SEPTEMBER 30, 2007 </b></font></p>
      </td>
      <td width=149>
        <p align=right><font face="Times New Roman" size="2"><b>207,656</b></font></p>
      </td>
    </tr>
  </table>






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


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->





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

<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
  </tr>
</table>


<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>INFORMATION RELATED
TO BULLETIN B-15        <BR>                                       (FOREIGN CURRENCY
TRANSLATION) </B></FONT></P>

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


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

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pacific Steel and Undershaft
 investments  are considered to be &#147;integrated  foreign  operations&#148;,  as
defined in Bulletin B-15, and accordingly such financial statements were translated as
follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Monetary
items at the exchange rate at the balance sheet date. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Non-monetary
 items and  stockholders&#146;  equity  at the  exchange  rate  prevailing  at the date
the  transactions      occurred. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income
and expense items at an appropriate average exchange rate. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
resulting  foreign  currency  translation  differences are included in the financial
 income (expense) in the      statement of income (loss). </FONT></TD>
</TR>
</TABLE>
<BR>

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SimRep and  subsidiaries  are
considered to be &#147;foreign  operations&#148;,  as defined in Bulletin B-15, and
 accordingly  such financial statements were translated as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Monetary
and non-monetary items at the exchange rate at the balance sheet date. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income
and expense items at the exchange rate at the balance sheet date. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang 05" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
resulting foreign currency translation differences are included in the stockholders&#146; equity. </FONT></TD>
</TR>
</TABLE>
<BR>

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



<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>&nbsp;
<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp;</FONT></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>MEXICAN STOCK
EXCHANGE                 <BR>                                       SIFIC / ICS </B></FONT></P>

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  <tr align="center" valign=top>
    <td width=30% align="left"><font size=2>STOCK
EXCHANGE CODE:  <b>SIMEC</b> <br>

                                                                    GRUPO SIMEC, S.A.B.
DE C.V. </font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>&nbsp;</font></td>
    <td width=5%>&nbsp;&nbsp;</td>
    <td width=30%><font size=2>QUARTER: <b>3</b>
YEAR: <b>2007</b> &nbsp;</font></td>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CONSOLIDATED </B></FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>DECLARATION OF THE
COMPANY OFFICIALS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THIS REPORT. </B></FONT></P>

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




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    <td colspan="2"><b><font size=2>ING
LUIS GARCIA LIMON <br>
                                                                CHIEF
EXECUTIVE OFFICER  </font>&nbsp;&nbsp;</b></td>
    <td colspan="3" width=52%><b><font size=2>&nbsp;</font>&nbsp;&nbsp;<font size=2>&nbsp;C.P.
JOSE FLORES FLORES <br>
        CHIEF FINANCIAL OFFICER </font></b></td>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>GUADALAJARA, JAL, AT
OCTOBER 26 OF 2007. </B></FONT></P>





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