-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 PVVpkvov/si2oMY1CnfUNwlf5fEKdvhJlLK0982AB66X/oFYXtqC6nfr+xuMxAPf
 FVu+VWGIQEzAMdJuy/9i3A==

<SEC-DOCUMENT>0000891092-08-001291.txt : 20080228
<SEC-HEADER>0000891092-08-001291.hdr.sgml : 20080228
<ACCEPTANCE-DATETIME>20080228125512
ACCESSION NUMBER:		0000891092-08-001291
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080228
FILED AS OF DATE:		20080228
DATE AS OF CHANGE:		20080228

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:		08649401

	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>e30578_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>



<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<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" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the month of
February &nbsp;&nbsp;                                                             , 2008.  </font></P>



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



<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
</div>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Av. Lazaro Cardenas
601, Colonia la Nogalera, Guadalajara, Jalisco, Mexico 44440 </font>
<hr 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 face="Times New Roman, Times, Serif" size=2>Form 20-F </font></td>
    <td align="left" width=12%><font size=2>|X| </font></td>
    <td align="left" width=11%><font face="Times New Roman, Times, Serif" size=2>Form 40-F </font></td>
    <td align="left" width=56%><font size=2>|_|&nbsp; </font></td>
  </tr>
</table>
<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>



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



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



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


<!-- 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: 43; page: 43" -->


<!-- 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>





<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<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=35% colspan="2"><font face="Times New Roman, Times, Serif" size=2>GRUPO SIMEC, S.A.B. de C.V. </font><font size=2> <br>
                                                                                          </font>
      <hr noshade size="1" align="center" width="100%">
      <font size=2>    (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 face="Times New Roman, Times, Serif" size=2>Date: February 28, 2008. </font><font size=2>  </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 face="Times New Roman, Times, Serif" size=2>/s/ Luis Garc&#237;a Lim&#243;n </font><font size=2> <br>
        </font>
      <hr noshade size="1" align="left" width="65%">
      <font face="Times New Roman, Times, Serif" size=2>Name:
Luis Garc&#237;a Lim&#243;n  <br>
         </font><font face="Times New Roman, Times, Serif" size=2>Title:     Chief Executive Officer </font><font size=2>
       </font></td>
  </tr>
</table>
<P>&nbsp;
</P>







<TABLE WIDTH=100%><TR><TD WIDTH=20% ALIGN=left><FONT SIZE=1>&nbsp; </font></TD><TD WIDTH=60% ALIGN=center><FONT SIZE="2">
 </font></TD><TD WIDTH=20% ALIGN=right><FONT SIZE="1">&nbsp; </font></TD></TR></TABLE><HR SIZE=5 noshade WIDTH=100% ALIGN=LEFT>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 43; page: 43" -->




<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width=100% cellpadding=0 cellspacing=0>
  <tr valign=TOP>
    <td width=40%><img src="simec.gif" width="131" height="57"></td>
    <td width=20%>&nbsp;</td>
    <td width=40%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=40%>&nbsp;</td>
    <td width=20%>&nbsp;</td>
    <td width=40%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=40%><font face="Times New Roman, Times, Serif" size=2><b>PRESS RELEASE </b> </font></td>
    <td width=20% align="right"><font face="Times New Roman, Times, Serif" size=2> Contact:&nbsp;&nbsp;
       </font></td>
    <td width=40%>
      <p><font face="Times New Roman, Times, Serif" size=2>Sergio Vigil Gonz&#225;lez <br>
                                              Jos&#233; Flores Flores <br>
                                                                    Grupo Simec, S.A. de
C.V. <br>
                                                                             Calzada L&#225;zaro C&#225;rdenas
601 <br>
                                                                             44440
Guadalajara, Jalisco, M&#233;xico <br>
                                                       52 55 1165
1025                                                                      <br>
        52 33 3770 6734  </font></p>
      </td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Grupo Simec Announces Preliminary
(Unaudited) Results of Operations for the Year Ended December 31, 2007  </b> </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GUADALAJARA,
Mexico, Feb. 27 /PRNewswire-FirstCall/ &#151; Grupo Simec, S.A.B. de C.V. (AMEX: SIM)
(&#147;Simec&#148;) announced today its preliminary (unaudited) results of operations for the year
ended December 31, 2007.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Acquisition
of Corporacion Aceros DM, S.A. de C.V.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
February 21, 2008, Simec executed an agreement to acquire 100% of the shares of
Corporacion Aceros DM, S.A. de C.V. and certain of its affiliates (&#147;Grupo San&#148;).  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Grupo
San is a long products steel mini-mill and the second-largest  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>corrugated
rebar producer in Mexico. Grupo San&#146;s operations are based in San Luis Potosi, Mexico.
Its plants and its 1,457 employees rely on cutting edge technology to produce 700
thousand tons of finished products annually.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With
this acquisition, Simec and Industrias CH, S.A. de C.V. (&#147;ICH&#148;)  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>position
themselves as the second largest producers of rebar and the largest steel producers in
Mexico, with a production capacity of approximately 4.5 million tons of liquid steel and
3.8 million tons of finished products.  </font><!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
</P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With
this strategic acquisition, Simec and ICH will achieve a more  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>diversified
product mix and sales mix, with 50% of sales in Mexico and 50% outside Mexico, both of
which will allow them to better address the natural cycles of the steel industry at the
domestic and global levels. Additionally, Simec and ICH have already identified
significant synergies and economies of scale that will increase Simec&#146;s operating
margins. Grupo San&#146;s central location in Mexico, where Simec and ICH are not currently
present, also represents a strong competitive advantage since it provides several
strategic benefits mainly related to distribution given its proximity to Mexico&#146;s main
cities, sea ports, and borders.  </font><!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
</P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
addition, Grupo San has aggressive expansion plans in its corrugated rebar business,
which ICH and Simec will support and promote to satisfy the growing demand for this
product resulting from the Mexican Government&#146;s aggressive infrastructure plan.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Simec,
the main subsidiary of ICH, will acquire 100% of the shares of  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Grupo
San. The transaction is valued at 850 million U.S. dollars, 85% of which will be paid
with cash generated by the company&#146;s operations and by the company&#146;s stock public
offering, which took place in February 2007.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This
acquisition confirms the growth strategy that has characterized ICH, reaffirming its
position as a consolidator in the steel sector.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This
acquisition is subject to the approval of Mexico&#146;s federal  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>competition
commission, Comision Federal de Competencia, as well as Simec&#146;s shareholders&#146; meeting.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Grupo
San&#146;s shareholders were advised by Lehman Brothers, Inc. and by the law office of Galicia
y Robles, S.C. Simec was represented by the law office of Mijares, Angoitia, Cortes y
Fuentes, S.C.  </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: 43; page: 43" -->


<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Year
Ended December 31, 2007 compared to Year Ended December 31, 2006  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Net
Sales </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net
sales increased 3% to Ps. 24,106 million in  2007 compared to Ps.  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23,515
million in 2006. Shipments of finished steel products increased 0.5% to 2,693 thousand
tons in  2007 compared to 2,673 thousand tons in 2006. Total sales outside of Mexico in
2007 increased 7% to Ps. 17,031 million compared with Ps. 15,939 million  in 2006, while
total Mexican sales decreased 7% from 7,576 million in 2006 to Ps. 7,075 million in 2007.
  The increase in sales can be explained by higher shipments during 2007, compared with
2006 (14,000 tons increase). The increase in tons shipped originated mainly in the plant
of Apizaco and compensated for the two unexpected stoppages in the rolling lines of the
plants in Guadalajara and Apizaco due during the periods July 5-8, July  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10-13,
and September 10-15, as a result of the shortage of natural gas due to the explosions on
the property of Petroleos Mexicanos.  </font><!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
</P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Direct
Cost of Sales </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Direct
cost of sales increased 7% from Ps. 19,132  million in 2006 to  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ps.
20,398 million in 2007. Direct cost of sales as a percentage of net sales represented 85%
in 2007 compared to 81% in 2006. The increase in the Direct Cost of Sales is attributable
mainly to an increase of 6% in real terms in the average cost of raw materials used to
produce steel products in 2007 versus 2006, primarily as a result of increases in the
price of scrap and certain other raw materials and 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 due during the periods 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="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Gross
Profit </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross
profit in 2007 decreased 15% to Ps. 3,708 million compared to  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ps.
4,383 million in 2006. Gross profit as a percentage of net sales in 2007 was 15% compared
to 19% in 2006. The decline in gross profit is due to the increase in cost of goods sold
due to the reasons previously mentioned.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Operating
Expenses </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating
expenses increased 3% to Ps. 1,395 million in 2007 compared to Ps. 1,351  million in 2006
(depreciation and amortization increased  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ps.
56 million in 2007 compared to 2006) but remained stable at 6% of net  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>sales.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Operating
Profit </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating
profit decreased 24% from Ps. 3,032 million in 2006 to  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ps.
2,313 million in 2007. Operating profit as a percentage of net sales was 10% in 2007
compared to 13% in 2006. The decline in operating profit is due to the increase in cost
of goods sold due to the reasons previously mentioned.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" --><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Comprehensive
Financial Cost </i> </b> </font><!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Comprehensive
financial cost in 2007 represented a gain of Ps. 63 million compared with a expense of
Ps. 63 million in 2006. Net interest income was Ps. 273 million in 2007, compared with
Ps. 47 million in 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. 38 million in 2007 compared with an exchange loss of Ps. 37 million in 2006,
reflecting a 0.1% decrease in the value of the peso versus the dollar in 2007 compared to
2006. Simec recorded a loss from monetary position of Ps. 172 million in 2007 compared to
a loss from monetary  </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: 43; page: 43" -->


<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>position of Ps. 73 million in 2006,
reflecting the domestic inflation rate of 3.6% in 2007 as compared to a 4% inflation rate
in 2006.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Other
Expenses (Income) net </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
company recorded other income net of Ps. 49  million in 2007 compared to other income net
for Ps. 39 million in 2006.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Income
Tax </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income
Tax recorded Ps. 601 million in 2007 compared to Ps. 609 million in 2006. In 2006, we
amortized Ps. 364 million of our deferred credit which is non-taxable income. This does
not affect the cash flow.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Net
Profit </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As
a result of the foregoing, net profit decreased by 24% to Ps. 1,824 million in 2007 from
Ps. 2,399 million in 2006.  </font></P>



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

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At
December 31, 2007, Simec&#146;s total consolidated debt consisted of   </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>U.S.
$302,000 of 8 7/8% medium-term notes (&#147;MTN&#146;s&#148;) due 1998 (accrued interest at December 31,
2007 was U.S. $363,703 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 Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net
resources provided by operations were Ps. 2,434 million in 2007 versus Ps. 2,434 million
of net resources provided by operations in 2006. Net resources provided by financing
activities were Ps. 2,384 million in 2007 (which amount includes the capital increase of
Ps. 2,421 million in February 2007) versus Ps. 467 million of net resources used by
financing activities in 2006. Net resources used in investing activities (to acquire
property, plant and equipment, other non-current assets and liabilities) were Ps. 627
million in 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. 13 million in 2006.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Comparative
fourth quarter 2007 vs third quarter 2007  </b> </font></P>
<b><!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
 </b>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Net
Sales </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net
sales increased 2% from Ps. 5,737 million for the third quarter 2007 to Ps. 5,824 million
for the third quarter 2007. Sales in tons of finished steel products increased 7% to 675
thousand tons in the fourth quarter 2007 compared with 635 thousand tons in the third
quarter 2007. The total sales outside of Mexico for the fourth quarter 2007 increased 6%
to Ps. 4,264 million compared with Ps. 4,038 million for the third quarter 2007. Total
Mexican sales decreased from Ps. 1,699 million in the third quarter 2007 to Ps.1,560
millions in the fourth quarter 2007. Prices of finished products sold in the fourth
quarter 2007 decreased approximately 4% in real terms compared to the third quarter 2007.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Direct
Cost of Sales </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Direct
cost of sales increased 8% from Ps. 4,937 million in the third  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>quarter
2007 to Ps. 5,335 million for the fourth quarter 2007. In the fourth quarter 2007, the
direct cost of sales represented 92% of net sales compared to 86% for the third quarter
2007. The average cost of raw materials used to produce steel products increased 2% in
real terms in the fourth quarter 2007 versus the third quarter 2007, primarily as a
result of increases in the price of scrap and certain other raw materials.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" 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: 43; page: 43" -->


<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Gross
Profit </i> </b> </font></P>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross
profit for the fourth quarter 2007 decreased 39% to Ps. 489  million compared to Ps. 800
 million in the third quarter 2007. Gross profit as a percentage of net sales for the
fourth quarter 2007 was 8% compared with 14% for the third quarter 2007. The decline in
gross profit is due to the increase in the average cost of raw materials to produce steel
products due to the reasons previously mentioned.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Operating
Expenses </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating
expenses were Ps. 324 million in the fourth quarter 2007  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>compared
to Ps. 354  million for the third quarter 2007. As a percentage of sales, operating
expense represented 6% during the fourth quarter of 2007 compared to 6% in the third
quarter of 2007.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Operating
Profit </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating
profit decreased 63% from Ps. 446 million in the third quarter 2007 to Ps. 165 million
for the fourth quarter 2007. Operating profit as a percentage of net sales decreased to
3% in the fourth quarter 2007 from 8% in the third quarter 2007. This was due to an
increase of 2% in the average cost of raw materials.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Comprehensive
Financial Cost </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Comprehensive
financial cost for the fourth quarter 2007 represented an expense of Ps. 145 million
compared with an income of Ps. 91 million for the third quarter 2007. Net interest income
was Ps. 55 million in the fourth quarter 2007 compared with Ps. 93 million in the third
quarter 2007, 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. 35 million in the fourth quarter 2007 compared with an exchange gain of Ps. 29
million in the third quarter 2007. Simec recorded a loss from monetary position of Ps.
165 million in the fourth quarter 2007 compared to a loss from monetary position of Ps.
31 million in the third quarter 2007.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Other
Expenses (Income) net </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
company recorded other income net of Ps. 4 million for the fourth quarter 2007 compared
with other income net of Ps. 27 million for the third quarter 2007.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Income
Tax </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income
Tax for the fourth quarter 2007 decreased Ps. 139 million compared to a provision of Ps.
199 million for the third quarter 2007.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Net
Profit </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As
a result of the foregoing, net profit decreased by 55% to Ps. 163 million in the fourth
quarter 2007 from Ps. 365 million in the third quarter 2007.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Comparative
fourth quarter 2007 vs. fourth quarter 2006 </b>  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Net
Sales </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net
sales increased 19% from Ps. 4,898 million for the fourth quarter 2006 compared with Ps.
5,824 million for the same period 2007. Sales in tons of finished steel increased 9% to
675 thousand tons in the fourth quarter 2007 compared with 622 thousand tons in the same
period 2006. The total sales outside of Mexico for the fourth quarter 2007 increased 52%
to Ps. 4,264 million compared with Ps. 2,813 million for the same period 2006. Total
Mexican sales decreased 25% to  1,560 million in the fourth quarter 2007 from Ps. 2,085
millions in the same period 2006.  Prices of finished products sold in the fourth quarter
2007 increased approximately 10% in real terms compared to the fourth quarter 2006.  </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: 43; page: 43" -->


<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Direct
Cost of Sales </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Direct
cost of sales increased 30% from Ps. 4,106  million in the fourth quarter 2006 to Ps.
5,335 million for the same period 2007. With respect to sales, in the fourth quarter
2007, the direct cost of sales represents 92% compared to 84% for the same period 2006.
The average cost of raw materials used to produce steel products increased 20% in real
terms in the fourth quarter 2007 versus the fourth quarter 2006, primarily as a result of
increases in the price of scrap and certain other raw materials.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Gross
Profit </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross
profit for the fourth quarter 2007 decreased 38% to Ps. 489 million compared to Ps. 792
million in the same period 2006. The gross profit as a percentage of net sales for the
fourth quarter 2007 was 8% compared with 16% for the same period of 2006.  The decline in
gross profit is due to the increase in cost of goods sold due to the reasons previously
mentioned.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Operating
Expenses </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating
expenses increased 3% to Ps. 324 million in the fourth quarter 2007 compared to Ps. 315
million for the same period 2006, the depreciation and amortization in the fourth quarter
2007 was Ps. 126 million compared to Ps. 119 million in the same period of 2006.
Operating expenses as a percentage of net sales represented 6% during the fourth quarter
2007 compared to 6% of the same period 2006.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Operating
Profit </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating
profit decreased 65% from Ps. 477 million in the fourth quarter 2006 to Ps. 165 million
for the same period 2007. The operating profit as a percentage of net sales in the fourth
quarter 2007 was 3% compared to 10% in the same period 2006. The decline in operating
profit is due to the increase in cost of goods sold due to the reasons previously
mentioned.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Comprehensive
Financial Cost </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Comprehensive
financial cost for the fourth quarter 2007 represented an expense of Ps. 145 million
compared with an expense of Ps. 54 million for the fourth quarter 2006. Net interest
income was Ps. 55 million in the fourth quarter 2007 compared with Ps. 17 million in the
fourth quarter 2006, due to larger cash balances during 2007 partly reflecting our recent
capital increase in February 2007. At the same time we registered an exchange loss of Ps.
35 million in the fourth quarter 2007 compared with an exchange loss of Ps. 20 million in
the fourth quarter 2006  Simec recorded a loss from monetary position of Ps. 165 million
in the fourth quarter 2007 compared to a loss from monetary position of Ps. 51 million in
the fourth quarter 2006.  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Other
Expenses (Income) net </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
company recorded other income net of Ps. 4 million for the fourth  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=2>quarter
2007 compared with other income net of Ps. 11 million for the same period 2006.  </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Taxes
and Profit Sharing </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxes
and profit sharing for the fourth quarter 2007 decreased to Ps. 139 million compared to
Ps. 247 million for the same period 2006..  </font></P>



<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b><i>Net
Profit </i> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Indent 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As
a result of the foregoing, net profit decreased by 13% to Ps. 163 million in the fourth
quarter 2007 from Ps. 187 million in the fourth quarter 2006.  </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: 43; page: 43" -->











<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=600>
  <TR VALIGN=Bottom>

    <td align="left" width="294"><font face="Times New Roman" size="1"><b>(Millions of pesos) </b></font>

    </td>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Year ended <br>
December 31, <br>
2007 </font></TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Year ended <br>
December 31, <br>
2006 </font></TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">2007 <br>
vs <br>
2006 </font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT colspan="7">
      <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=RIGHT WIDTH=77><FONT FACE="Times New Roman" SIZE=2>24,106 </font></TD>
    <TD ALIGN=LEFT WIDTH=29><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT WIDTH=77><FONT FACE="Times New Roman" SIZE=2>23,515 </font></TD>
    <TD ALIGN=LEFT WIDTH=29><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT WIDTH=48><FONT FACE="Times New Roman" SIZE=2>3</font></TD>
    <TD ALIGN=LEFT WIDTH=46><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="7">
      <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=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>20,398 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>19,132 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="48"><FONT FACE="Times New Roman" SIZE=2>7</font></TD>
    <TD ALIGN=LEFT width="46"><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="7">
      <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=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>3,708 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>4,383 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="48"><FONT FACE="Times New Roman" SIZE=2>-15</font></TD>
    <TD ALIGN=LEFT width="46"><FONT FACE="Times New Roman" SIZE=2>&nbsp; %</font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="7">
      <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=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>1,395 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>1,351 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="48"><FONT FACE="Times New Roman" SIZE=2>3</font></TD>
    <TD ALIGN=LEFT width="46"><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="7">
      <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=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>2,313 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>3,032 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="48"><FONT FACE="Times New Roman" SIZE=2>-24</font></TD>
    <TD ALIGN=LEFT width="46"><FONT FACE="Times New Roman" SIZE=2> %</font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="7">
      <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=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>2,819 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>3,481 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="48"><FONT FACE="Times New Roman" SIZE=2>-19</font></TD>
    <TD ALIGN=LEFT width="46"><FONT FACE="Times New Roman" SIZE=2>&nbsp;%</font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="7">
      <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=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>1,824 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>2,399 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="48"><FONT FACE="Times New Roman" SIZE=2>-24</font></TD>
    <TD ALIGN=LEFT width="46"><FONT FACE="Times New Roman" SIZE=2>&nbsp;%</font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="7">
      <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=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>17,031 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>15,939 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="48"><FONT FACE="Times New Roman" SIZE=2>7</font></TD>
    <TD ALIGN=LEFT width="46"><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="7">
      <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 Mexico </font></TD>
    <TD ALIGN=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>7,075 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>7,576 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="48"><FONT FACE="Times New Roman" SIZE=2>-7</font></TD>
    <TD ALIGN=LEFT width="46"><FONT FACE="Times New Roman" SIZE=2>&nbsp;%</font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="7">
      <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=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>2,693 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="77"><FONT FACE="Times New Roman" SIZE=2>2,673 </font></TD>
    <TD ALIGN=LEFT width="29"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="48"><FONT FACE="Times New Roman" SIZE=2>1</font></TD>
    <TD ALIGN=LEFT width="46"><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="7">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>

</TABLE>







 <br>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=600>
  <tr valign=Bottom>
    <td align=LEFT colspan="11">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <th align="center"><font face="Times New Roman" size="1">(Millions of pesos) </font>

    </th>
    <TH COLSPAN=2><font face="Times New Roman" size="1">4Q&#146;07 </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">3Q&#146;07 </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">4Q&#146;06 </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">4Q&#146;07 vs <br>
3Q&#146;07 </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">4Q&#146;07 vs <br>
4Q&#146;06 </font>

    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT colspan="11">
      <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=RIGHT><FONT FACE="Times New Roman" SIZE=2>5,824 </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>5,737 </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>4,898 </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>% </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>19</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="11">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Cost of Sales </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>5,335 </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>4,937 </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>4,106 </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>% </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>30</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="11">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Gross Profit </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>489 </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>800 </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>792 </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>-39 </font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-38</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="11">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Operating Expenses </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>324 </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>354 </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>315 </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>3</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="11">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Operating Profit </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>165 </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>446 </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>477 </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>-63 </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>-65</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="11">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>EBITDA </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>292 </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>571 </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>596 </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>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-51</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="11">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Net Profit </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>163 </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>365 </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>187 </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>-55 </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>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="11">
      <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=RIGHT><FONT FACE="Times New Roman" SIZE=2>4,264 </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>4,038 </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>2,813 </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>6 </font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>52</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="11">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Sales in Mexico </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,560 </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>1,699 </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>2,085 </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>-25</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>%&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="11">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Total sales (tons) </font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>675 </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>622 </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>
    <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 valign=Bottom>
    <td align=LEFT colspan="11">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>

</TABLE>


















 <br>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 align="center" WIDTH=670>
  <tr valign=Bottom>
    <td align=LEFT colspan="13">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TH align="left" width="167"><font face="Times New Roman" size="1">Product </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Thousands <br>
of tons <br>
year ended <br>
December <br>
31, 2007 </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Millions <br>
of pesos <br>
year ended <br>
December <br>
31, 2007 </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Average <br>
price <br>
per ton <br>
year ended <br>
December <br>
31, 2007 </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Thousands <br>
of tons <br>
year ended <br>
December <br>
31, 2006 </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Millions <br>
of pesos <br>
year ended <br>
December <br>
31, 2006 </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Average <br>
price <br>
per ton <br>
year ended <br>
December <br>
31, 2006 </font>

    </TH>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="13">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="167"><FONT FACE="Times New Roman" SIZE=2>SBQ </font></TD>
    <TD ALIGN=RIGHT width="66"><FONT FACE="Times New Roman" SIZE=2>1,946 </font></TD>
    <TD ALIGN=LEFT width="23"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>18,419 </font></TD>
    <TD ALIGN=LEFT width="19"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="61"><FONT FACE="Times New Roman" SIZE=2>9,465 </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="67"><FONT FACE="Times New Roman" SIZE=2>1,941 </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="63"><FONT FACE="Times New Roman" SIZE=2>18,050 </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>9,300 </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="13">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="167"><FONT FACE="Times New Roman" SIZE=2>Light Structural </font></TD>
    <TD ALIGN=RIGHT width="66"><FONT FACE="Times New Roman" SIZE=2>276 </font></TD>
    <TD ALIGN=LEFT width="23"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>2,162 </font></TD>
    <TD ALIGN=LEFT width="19"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="61"><FONT FACE="Times New Roman" SIZE=2>7,834 </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="67"><FONT FACE="Times New Roman" SIZE=2>266 </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="63"><FONT FACE="Times New Roman" SIZE=2>1,894 </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>7,122 </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="13">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="167"><FONT FACE="Times New Roman" SIZE=2>Structural </font></TD>
    <TD ALIGN=RIGHT width="66"><FONT FACE="Times New Roman" SIZE=2>216 </font></TD>
    <TD ALIGN=LEFT width="23"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>1,752 </font></TD>
    <TD ALIGN=LEFT width="19"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="61"><FONT FACE="Times New Roman" SIZE=2>8,112 </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="67"><FONT FACE="Times New Roman" SIZE=2>204 </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="63"><FONT FACE="Times New Roman" SIZE=2>1,632 </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>7,998 </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="13">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="167"><FONT FACE="Times New Roman" SIZE=2>Rebar </font></TD>
    <TD ALIGN=RIGHT width="66"><FONT FACE="Times New Roman" SIZE=2>250 </font></TD>
    <TD ALIGN=LEFT width="23"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>1,703 </font></TD>
    <TD ALIGN=LEFT width="19"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="61"><FONT FACE="Times New Roman" SIZE=2>6,810 </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="67"><FONT FACE="Times New Roman" SIZE=2>260 </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="63"><FONT FACE="Times New Roman" SIZE=2>1,909 </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>7,343 </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="13">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="167"><FONT FACE="Times New Roman" SIZE=2>Others </font></TD>
    <TD ALIGN=RIGHT width="66"><FONT FACE="Times New Roman" SIZE=2>5 </font></TD>
    <TD ALIGN=LEFT width="23"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>70 </font></TD>
    <TD ALIGN=LEFT width="19"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="61"><FONT FACE="Times New Roman" SIZE=2>-- </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="67"><FONT FACE="Times New Roman" SIZE=2>2 </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="63"><FONT FACE="Times New Roman" SIZE=2>30 </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>&#151; </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="13">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="167"><FONT FACE="Times New Roman" SIZE=2>Total </font></TD>
    <TD ALIGN=RIGHT width="66"><FONT FACE="Times New Roman" SIZE=2>2,693 </font></TD>
    <TD ALIGN=LEFT width="23"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>24,106 </font></TD>
    <TD ALIGN=LEFT width="19"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="61"><FONT FACE="Times New Roman" SIZE=2>8,951 </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="67"><FONT FACE="Times New Roman" SIZE=2>2,673 </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="63"><FONT FACE="Times New Roman" SIZE=2>23,515 </font></TD>
    <TD ALIGN=LEFT width="18"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="62"><FONT FACE="Times New Roman" SIZE=2>8,797 </font></TD>
    <TD ALIGN=LEFT width="22"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT colspan="13">
      <hr noshade color=#000000 size=1>
    </TD>
  </TR>
</TABLE>








 <br>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 align="center">
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </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 <br>
of tons <br>
4Q&#146;07 </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Millions <br>
of pesos <br>
4Q&#146;07 </font>

    </TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Average price <br>
per ton <br>
4Q&#146;07 </font>

    </TH>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD WIDTH=41% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>SBQ </font></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>497 </font></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4,524 </font></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>9,102 </font></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Light Structural </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>59 </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>457 </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>7,754 </font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Structural </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>45 </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>357 </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>7,930 </font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Rebar </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>70 </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>456 </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>6,510 </font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Others </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>31 </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>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Total </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>675 </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>5,824 </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>8,629 </font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT colspan="8">
      <hr noshade color=#000000 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: 43; page: 43" -->







<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 align="center">
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </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 <br>
of tons <br>
3Q&#146;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 price <br>
per ton <br>
3Q&#146;07 </font></TH>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD WIDTH=41% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>SBQ </font></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>467 </font></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4,438 </font></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>9,504 </font></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="41%"><FONT FACE="Times New Roman" SIZE=2>Light Structural </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>60 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>489 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="11%"><FONT FACE="Times New Roman" SIZE=2>8,143 </font></TD>
    <TD ALIGN=LEFT width="3%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="41%"><FONT FACE="Times New Roman" SIZE=2>Structural </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>50 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>401 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="11%"><FONT FACE="Times New Roman" SIZE=2>8,011 </font></TD>
    <TD ALIGN=LEFT width="3%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="41%"><FONT FACE="Times New Roman" SIZE=2>Rebar </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>58 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>388 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="11%"><FONT FACE="Times New Roman" SIZE=2>6,694 </font></TD>
    <TD ALIGN=LEFT width="3%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="41%"><FONT FACE="Times New Roman" SIZE=2>Others </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><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="12%"><FONT FACE="Times New Roman" SIZE=2>21 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="11%"><FONT FACE="Times New Roman" SIZE=2>0 </font></TD>
    <TD ALIGN=LEFT width="3%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="41%"><FONT FACE="Times New Roman" SIZE=2>Total </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>635 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>5,737 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="11%"><FONT FACE="Times New Roman" SIZE=2>9,035 </font></TD>
    <TD ALIGN=LEFT width="3%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT 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>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </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 <br>
of tons <br>
4Q&#146;06 </font></TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Millions <br>
of pesos <br>
4Q&#146;06 </font></TH>
    <TH COLSPAN=2><font face="Times New Roman" size="1">Average price <br>
per ton <br>
4Q&#146;06 </font></TH>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD WIDTH=41% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>SBQ </font></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>459 </font></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,685 </font></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>8,029 </font></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="41%"><FONT FACE="Times New Roman" SIZE=2>Light Structural </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>51 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>371 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="11%"><FONT FACE="Times New Roman" SIZE=2>7,270 </font></TD>
    <TD ALIGN=LEFT width="3%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="41%"><FONT FACE="Times New Roman" SIZE=2>Structural </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>52 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>434 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="11%"><FONT FACE="Times New Roman" SIZE=2>8,339 </font></TD>
    <TD ALIGN=LEFT width="3%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="41%"><FONT FACE="Times New Roman" SIZE=2>Rebar </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>60 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>395 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="11%"><FONT FACE="Times New Roman" SIZE=2>6,577 </font></TD>
    <TD ALIGN=LEFT width="3%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="41%"><FONT FACE="Times New Roman" SIZE=2>Others </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><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="12%"><FONT FACE="Times New Roman" SIZE=2>13 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="11%"><FONT FACE="Times New Roman" SIZE=2>0 </font></TD>
    <TD ALIGN=LEFT width="3%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="41%"><FONT FACE="Times New Roman" SIZE=2>Total </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>622 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>4,898 </font></TD>
    <TD ALIGN=LEFT width="7%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="11%"><FONT FACE="Times New Roman" SIZE=2>7,874 </font></TD>
    <TD ALIGN=LEFT width="3%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>

</TABLE>







<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=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: 43; page: 43" -->


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



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<table width=100%>
  <tr align="center" valign=top>
    <td width=30% align="left"><font face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>CONSOLIDATED FINANCIAL
STATEMENT </b>  <br>
   AT DECEMBER 31 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 width="31">
        <p align=center><font face="Times New Roman" size="1">REF <br>
           </font><font face="Times New Roman" size="1">S </font></p>
      </td>

    <td width="13">&nbsp;&nbsp;</td>

    <td width="450">
        <p align=center><font face="Times New Roman" size="1">CONCEPTS </font></p>
      </td>

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

    <td colspan=4>
        <p align=center><font face="Times New Roman" size="1">PREVIOUS YEAR </font></p>
      </td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=center><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td valign=bottom width="450">
        <p align=center><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>

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

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

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

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

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s01 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">TOTAL ASSETS </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">22,864,653 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">18,042,780 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s02 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">CURRENT ASSETS </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">14,536,494 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">64 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">9,871,045 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">55 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s03 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">CASH AND SHORT-TERM
  INVESTMENTS </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">6,396,155 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">28 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">2,204,018 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">12 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s04 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">ACCOUNTS AND NOTES
  RECEIVABLE (NET) </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">2,502,921 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">11 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">2,243,394 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">12 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s05 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">OTHER ACCOUNTS AND NOTES
  RECEIVABLE </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">615,479 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">3 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">262,838 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">1 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s06 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">INVENTORIES </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">4,955,227 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">22 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">5,052,434 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">28 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s07 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">OTHER CURRENT ASSETS </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">66,712 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">108,361 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">1 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s08 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">LONG-TERM </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s09 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">ACCOUNTS AND NOTES
  RECEIVABLE (NET) </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s10 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">INVESTMENT IN SHARES OF
  NON-CONSOLIDATED  <br>
           </font><font face="Times New Roman" size="1">  SUBSIDIARIES AND
  ASSOCIATES </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s11 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">OTHER INVESTMENTS </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s12 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">PROPERTY, PLANT AND
  EQUIPMENT (NET) </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">7,842,698 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">34 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">7,599,837 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">42 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s13  </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">LAND AND BUILDINGS </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">2,609,508 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">11 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">2,578,197 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">14 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s14 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">MACHINERY AND INDUSTRIAL
  EQUIPMENT </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">8,973,732 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">39 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">8,077,099 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">45 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s15 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">OTHER EQUIPMENT </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">99,378 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">116,054 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">1 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s16 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">ACCUMULATED DEPRECIATION </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">4,033,425 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">18 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">3,299,068 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">18 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s17 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">CONSTRUCTION IN PROGRESS </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">193,505 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">1 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">127,555 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">1 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s18 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <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 width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">394,367 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">476,810 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">3 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s19 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER ASSETS </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">91,094 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">95,088 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">1 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s20  </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">TOTAL LIABILITIES </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">5,651,146 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">5,082,448 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s21 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">CURRENT LIABILITIES </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,936,751 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">52 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,907,499 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">57 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s22 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">SUPPLIERS </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">2,115,657 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">37 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">1,848,858 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">36 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s23 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">BANK LOANS </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s24 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">STOCK MARKET LOANS </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">3,282 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">3,406 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s103 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">OTHER LOANS WITH COST </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s25 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">TAXES PAYABLE </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">74,449 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">1 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">197,922 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">4 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s26 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">OTHER CURRENT LIABILITIES
  WITHOUT COST </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">743,363 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">13 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">857,313 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">17 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s27 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">LONG-TERM LIABILITIES </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s28 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">BANK LOANS </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s29 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">STOCK MARKET LOANS </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s30 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">OTHER LOANS WITH COST </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s31 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">DEFERRED LIABILITIES </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s32 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER NON-CURRENT
  LIABILITIES WITHOUT COST </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,714,395 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">48 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,174,949 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">43 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s33 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">CONSOLIDATED
  STOCKHOLDERS&#146; EQUITY </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">17,213,507 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">12,960,332 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s34 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">MINORITY INTEREST </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,344,352 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">14 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,252,461 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">17 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s35 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">MAJORITY INTEREST </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">14,869,155 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">86 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">10,707,871 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">83 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s36 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">CONTRIBUTED CAPITAL </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">7,181,743 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">42 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">4,761,017 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">37 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">S79 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">CAPITAL STOCK </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">4,030,427 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">23 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">3,763,412 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">29 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s39 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">PREMIUM ON ISSUANCE OF
  SHARES </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">3,151,316 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">18 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">997,605 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">8 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s40 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">CONTRIBUTIONS FOR FUTURE
  CAPITAL INCREASES </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s41 </font> </b> </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="2"><b><font size="1">EARNED CAPITAL </font> </b> </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">7,687,412 </font> </b> </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">45 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">5,946,854 </font> </b> </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">46 </font> </b> </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s42 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">RETAINED EARNINGS AND
  CAPITAL RESERVES </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">8,659,003 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">50 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">7,021,122 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">54 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s44 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">OTHER ACCUMULATED
  COMPREHENSIVE RESULT </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">(971,591) </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">(6) </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">(1,074,268) </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">(8) </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">

    <td width="31">
        <p align=right><font face="Times New Roman" size="1">s80 </font></p>
      </td>

    <td width="13">&nbsp;</td>

    <td width="450">
        <p><font face="Times New Roman" size="1">SHARES REPURCHASED </font></p>
      </td>

    <td width="63">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="11">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>

    <td width="61">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="7">&nbsp;</td>

    <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>

    <td width="8">&nbsp;</td>
    </tr>
    <tr valign="bottom">

    <td colspan="11">
        <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: 43; page: 43" -->





















<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

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



<table border=0 cellspacing=0 cellpadding=0 align="center" width="700">
    <tr valign="bottom">
      <td width="700" 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 width="462">
        <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 width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1"> &nbsp;  </font> </b> </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <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 width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s03  </font> </b> </font></p>
      </td>
      <td width="13">&nbsp;&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="2"><b><font size="1">CASH AND SHORT-TERM
  INVESTMENTS  </font> </b> </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">6,396,155  </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,204,018  </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s46  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">CASH  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">301,766  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">5  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">395,213  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">18  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s47  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">SHORT-TERM INVESTMENTS  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">6,094,389  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">95  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">1,808,805  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">82  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s07  </font> </b> </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER CURRENT ASSETS  </font> </b> </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">66,712  </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">108,361  </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s81  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">DERIVATIVE FINANCIAL INSTRUMENTS  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s82  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">DISCONTINUED OPERATIONS  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s83  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">OTHER  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">66,712  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">100  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">108,361  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">100  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s18  </font> </b> </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <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 width="57">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">394,367  </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">476,810  </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s48  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">DEFERRED EXPENSES  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">294,158  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">75  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">419,274  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">88  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s49  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">GOODWILL  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">36,258  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">9  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s51  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">OTHER  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">63,951  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">16  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">57,536  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">12  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s19  </font> </b> </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER ASSETS  </font> </b> </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">91,094  </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">95,088  </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s84  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">INTANGIBLE ASSET FROM LABOR OBLIGATIONS  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">5,059  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">6  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">5,921  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">6  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s85  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">DERIVATIVE FINANCIAL INSTRUMENTS  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s50  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">DEFERRED TAXES  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s86  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">DISCONTINUED OPERATIONS  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s87  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">OTHER  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">86,035  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">94  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">89,167  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">94  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s21  </font> </b> </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="2"><b><font size="1">CURRENT LIABILITIES  </font> </b> </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,936,751  </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,907,499  </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s52  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">FOREIGN CURRENCY LIABILITIES  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">2,348,357    </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">80    </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">2,223,849    </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">76    </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s53    </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1"> MEXICAN
  PESOS LIABILITIES   </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">588,394  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">20  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">683,650  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">24  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s26  </font> </b> </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER CURRENT LIABILITIES
  WITHOUT COST  </font> </b> </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">743,363  </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">857,313  </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s88  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">DERIVATIVE FINANCIAL INSTRUMENTS  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s89  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">INTEREST LIABILITIES  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">3,952  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">1  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">6,849  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">1  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s68  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">PROVISIONS  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">22,485  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">3  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">22,860  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">3  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s90  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">DISCONTINUED OPERATIONS  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s58  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">OTHER CURRENT LIABILITIES  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">716,926  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">96  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">827,604  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">96  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s27  </font> </b> </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="2"><b><font size="1">LONG-TERM LIABILITIES  </font> </b> </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0  </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0  </font> </b> </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0  </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0  </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s59  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">FOREIGN CURRENCY LIABILITIES  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0    </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0    </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0    </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0    </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s60    </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1"> MEXICAN
  PESOS LIABILITIES   </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0    </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0    </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0    </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0    </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s31  </font> </b> </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="2"><b><font size="1">DEFERRED LIABILITIES  </font> </b> </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0  </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0  </font> </b> </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0  </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">0  </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s65  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">NEGATIVE GOODWILL  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s67  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">OTHER  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s32  </font> </b> </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="2"><b><font size="1">OTHER NON CURRENT
  LIABILITIES WITHOUT COST  </font> </b> </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,714,395  </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,174,949  </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s66  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">DEFERRED TAXES  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">2,657,421  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">98  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">2,081,717  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">96  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s91  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">OTHER LIABILITIES IN RESPECT OF SOCIAL
  INSURANCE  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">18,422  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">1  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">23,107  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">1  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s92  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">DISCONTINUED OPERATIONS  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s69  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">OTHER LIABILITIES  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">38,552  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">1  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">70,125  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">3  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">s79  </font> </b> </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="2"><b><font size="1">CAPITAL STOCK  </font> </b> </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">4,030,427  </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">3,763,412  </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100  </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s37  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">CAPITAL STOCK (NOMINAL)  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">2,307,961  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">57  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">2,048,257  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">54  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">s69  </font></p>
      </td>
      <td width="13">&nbsp;</td>
      <td width="462">
        <p><font face="Times New Roman" size="1">RESTATEMENT OF CAPITAL STOCK  </font></p>
      </td>
      <td width="57">
        <p align=right><font face="Times New Roman" size="1">1,722,466  </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">43  </font></p>
      </td>
      <td width="5">&nbsp;</td>
      <td width="61">
        <p align=right><font face="Times New Roman" size="1">1,715,155  </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">46  </font></p>
      </td>
      <td width="9">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <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: 43; page: 43" -->

















<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" 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 width="700" colspan="11">

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

  <tr valign="bottom">

    <td colspan="2">

      <p align=center><font face="Times New Roman, Times, serif" size="1"><b>REF <br>
          S </b> </font></p>
    </td>
    <td width="471">

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

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

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

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=center><font face="Times New Roman, Times, serif" size="1"><b>&nbsp; </b> </font></p>
    </td>
    <td width="9">

      <p align=center><font face="Times New Roman, Times, serif" size="1"><b>&nbsp; </b> </font></p>
    </td>
    <td width="471">

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

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

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

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

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

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1"><b>s42 </b> </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1"><b>&nbsp;&nbsp;&nbsp; </b> </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1"><b>RETAINED EARNINGS AND
  CAPITAL RESERVES </b> </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1"><b>8,659,003 </b> </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1"><b>100 </b> </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1"><b>7,021,122 </b> </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1"><b>100 </b> </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s93 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">LEGAL RESERVE </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s43 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">RESERVE FOR REPURCHASE OF
  SHARES </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">200,612 </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">2 </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">200,612 </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">3 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s94 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">OTHER RESERVES </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s95 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">RETAINED EARNINGS </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">6,820,510 </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">79 </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">4,641,816 </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">66 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s45 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">NET INCOME FOR THE YEAR </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">1,637,881 </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">19 </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">2,178,694 </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">31 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="700" colspan="11">

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



  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1"><b>s44 </b> </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1"><b>&nbsp; </b> </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1"><b>OTHER ACCUMULATED
  COMPREHENSIVE RESULT </b> </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1"><b>(971,591) </b> </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1"><b>100 </b> </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1"><b>(1,074,268) </b> </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1"><b>100 </b> </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s70 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">ACCUMULATED MONETARY RESULT </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s71 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">RESULT FROM HOLDING
  NON-MONETARY ASSETS </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">124,418 </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(13) </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(73,659) </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">7 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s96 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">CUMULATIVE RESULT FROM
  FOREIGN CURRENCY TRANSLATION </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(125,496) </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">13 </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(25,539) </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">2 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s97 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">CUMULATIVE RESULT FROM
  DERIVATIVE FINANCIAL INSTRUMENTS </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(4,557) </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s98 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">CUMULATIVE EFFECT OF
  DEFERRED INCOME TAXES  </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(970,513) </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">100 </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(970,513) </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">90 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s99 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">LABOR OBLIGATION ADJUSTMENT </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="29">

      <p align=right><font face="Times New Roman, Times, serif" size="1">s100 </font></p>
    </td>
    <td width="9">

      <p><font face="Times New Roman, Times, serif" size="1">&nbsp; </font></p>
    </td>
    <td width="471">

      <p><font face="Times New Roman, Times, serif" size="1">OTHER </font></p>
    </td>
    <td width="53">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="12"><font size="1"> </font></td>
    <td width="23">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="3"><font size="1"> </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="10"><font size="1"> </font></td>
    <td width="21">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="8"><font size="1"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

      <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: 43; page: 43" -->







<!-- 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 face="Times New Roman, Times, Serif" size=2>STOCK EXCHANGE CODE:  <b>SIMEC </b> <br>
  GRUPO SIMEC, S.A.  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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" 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 width="700" align="center">

  <tr valign="bottom">

    <td width="700" colspan="7">

      <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 width="437">

      <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 width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp; </font> </b> </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="437">

      <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 width="700" colspan="7">

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





  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">S72 </font></p>
    </td>
    <td width="16">&nbsp;&nbsp;</td>
    <td width="437">

      <p><font face="Times New Roman" size="1">WORKING CAPITAL </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman" size="1">11,599,743 </font></p>
    </td>
    <td width="23">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">6,963,546 </font></p>
    </td>
    <td width="24">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">S73 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="437">

      <p><font face="Times New Roman" size="1">PENSIONS FUND AND SENIORITY
  PREMIUMS </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="23">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="24">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">S74 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="437">

      <p><font face="Times New Roman" size="1">EXECUTIVES (*) </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman" size="1">51 </font></p>
    </td>
    <td width="23">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">54 </font></p>
    </td>
    <td width="24">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">S75 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="437">

      <p><font face="Times New Roman" size="1">EMPLOYERS (*) </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman" size="1">1,190 </font></p>
    </td>
    <td width="23">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">1,137 </font></p>
    </td>
    <td width="24">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">S76 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="437">

      <p><font face="Times New Roman" size="1">WORKERS (*) </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman" size="1">3,196 </font></p>
    </td>
    <td width="23">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">2,862 </font></p>
    </td>
    <td width="24">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">S77 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="437">

      <p><font face="Times New Roman" size="1">COMMON SHARES (*)  </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman" size="1">474,621,611 </font></p>
    </td>
    <td width="23">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">421,214,706 </font></p>
    </td>
    <td width="24">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">S78 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="437">

      <p><font face="Times New Roman" size="1">REPURCHASED SHARES (*) </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="23">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="24">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">S101 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="437">

      <p><font face="Times New Roman" size="1">RESTRICTED CASH </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="23">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="24">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">S102 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="437">

      <p><font face="Times New Roman" size="1">NET DEBT OF NON CONSOLIDATED
  COMPANIES </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman" size="1">45,777 </font></p>
    </td>
    <td width="23">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">238,555 </font></p>
    </td>
    <td width="24">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" 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: 43; page: 43" -->





<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>STATEMENTS OF INCOME
 </b> <br> FROM JANUARY 1 TO DECEMBER 31 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 width="700" 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 width="453">
        <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 width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp; </font> </b> </font></p>
      </td>
      <td width="11">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp; </font> </b> </font></p>
      </td>
      <td width="453">
        <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 width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">r01 </font> </b> </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="2"><b><font size="1">&nbsp;&nbsp;&nbsp; </font> </b> </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="2"><b><font size="1">NET SALES </font> </b> </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">24,106,094 </font> </b> </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">23,515,297 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="1">r02 </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="1">COST OF SALES </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="1">20,397,764 </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">85 </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="1">19,131,879 </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">81 </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">r03 </font> </b> </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="2"><b><font size="1">&nbsp; </font> </b> </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="2"><b><font size="1">GROSS PROFIT </font> </b> </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">3,708,330 </font> </b> </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">15 </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">4,383,418 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">19 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="1">r04 </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="1">OPERATING EXPENSES </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="1">1,395,222 </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">6 </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="1">1,351,682 </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">6 </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">r05 </font> </b> </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="2"><b><font size="1">&nbsp; </font> </b> </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="2"><b><font size="1">OPERATING INCOME </font> </b> </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,313,108 </font> </b> </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">10 </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">3,031,736 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">13 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="1">r08 </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="1">OTHER INCOME AND (EXPENSE),
  NET </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="1">49,433 </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="1">39,205 </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="1">r06 </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="1">COMPREHENSIVE FINANCING
  RESULT </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="1">63,222 </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="1">(63,444) </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="1">r12 </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="1">EQUITY IN NET INCOME OF
  NON-CONSOLIDATED SUBSIDIARIES  <br>
          AND ASSOCIATES </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="1">r48 </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="1">NON ORDINARY ITEMS </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">r09 </font> </b> </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="2"><b><font size="1">&nbsp; </font> </b> </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="2"><b><font size="1">INCOME BEFORE INCOME
  TAXES  </font> </b> </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,425,763 </font> </b> </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">10 </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">3,007,497 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">13 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="1">r10 </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="1">INCOME TAXES </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="1">601,316 </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">2 </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="1">608,721 </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">3 </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">r11 </font> </b> </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="2"><b><font size="1">&nbsp; </font> </b> </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="2"><b><font size="1">INCOME (LOSS) BEFORE
  DISCONTINUED OPERATIONS </font> </b> </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,824,447 </font> </b> </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">8 </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,398,776 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">10 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="1">r14 </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="1">DISCONTINUED OPERATIONS </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">0 </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">r18 </font> </b> </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="2"><b><font size="1">&nbsp; </font> </b> </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="2"><b><font size="1">NET CONSOLIDATED INCOME </font> </b> </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,824,447 </font> </b> </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">8 </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,398,776 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">10 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="1">r19 </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="1">NET INCOME OF MINORITY
  INTEREST </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="1">186,566 </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="1">1 </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="1">220,082 </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="1">1 </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="27">
        <p align=right><font face="Times New Roman" size="1">r20 </font></p>
      </td>
      <td width="11">
        <p><font face="Times New Roman" size="1">&nbsp; </font></p>
      </td>
      <td width="453">
        <p><font face="Times New Roman" size="1">NET INCOME OF MAJORITY
  INTEREST </font></p>
      </td>
      <td width="59">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,637,881 </font> </b> </font></p>
      </td>
      <td width="17">&nbsp;</td>
      <td width="21">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">7 </font> </b> </font></p>
      </td>
      <td width="9">&nbsp;</td>
      <td width="51">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,178,694 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
      <td width="24">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">9 </font> </b> </font></p>
      </td>
      <td width="14">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" colspan="11">
        <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: 43; page: 43" -->














<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" 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="690" align="center">

  <tr valign="bottom">

    <td width="690" 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 width="373">

      <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 width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp; </font> </b> </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <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 width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r01 </font> </b> </font></p>
    </td>
    <td width="16">&nbsp;&nbsp;&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="2"><b><font size="1">NET SALES </font> </b> </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">24,106,094 </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">23,515,297 </font> </b> </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r21 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">DOMESTIC </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">7,075,267 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">29 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">7,575,777 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">32 </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r22 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">FOREIGN </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">17,030,827 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">71 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">15,939,520 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">68 </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r23 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">TRANSLATED INTO DOLLARS
  (***) </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">1,564,695 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">&nbsp; </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">1,411,601 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

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


  <tr valign="bottom">

    <td width="690" colspan="11">

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




  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r08 </font> </b> </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="2"><b><font size="1">OTHER INCOME AND
  (EXPENSE), NET </font> </b> </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">49,433 </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">39,205 </font> </b> </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r49 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">OTHER INCOME AND (EXPENSE),
  NET </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">49,433 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">100 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">39,205 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">100 </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r34 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">EMPLOYEES&#146; PROFIT SHARING
  EXPENSES </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r35 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">DEFERRED EMPLOYEES&#146; PROFIT
  SHARING </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>


  <tr valign="bottom">

    <td width="690" colspan="11">

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




  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">r06 </font> </b> </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="2"><b><font size="1">COMPREHENSIVE FINANCING
  RESULT </font> </b> </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">63,222 </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(63,444) </font> </b> </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r24 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">INTEREST EXPENSE </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">24,585 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">39 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">15,518 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">24 </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r42 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">GAIN (LOSS) ON RESTATEMENT
  OF UDI&#146;S </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r45 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">OTHER FINANCE COSTS </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r26 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">INTEREST INCOME </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">297,898 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">471 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">62,450 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">98 </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r46 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">OTHER FINANCIAL PRODUCTS </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r25 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">FOREIGN EXCHANGE GAIN
  (LOSS), NET </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">(37,879) </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">(60) </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">(37,424) </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">(59) </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r28 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">RESULT FROM MONETARY
  POSITION </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">(172,212) </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">(272) </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">(72,952) </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">(115) </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>


  <tr valign="bottom">

    <td width="690" colspan="11">

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




  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r10 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">INCOME TAXES  </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">601,316 </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">608,721 </font> </b> </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r32 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">INCOME TAX </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">53,336 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">9 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">627,612 </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

      <p align=right><font face="Times New Roman" size="1">103 </font></p>
    </td>
    <td width="14">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="690" colspan="11">

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

  <tr valign="bottom">

    <td width="34">

      <p align=right><font face="Times New Roman" size="1">r33 </font></p>
    </td>
    <td width="16">&nbsp;</td>
    <td width="373">

      <p><font face="Times New Roman" size="1">DEFERRED INCOME TAX </font></p>
    </td>
    <td width="67">

      <p align=right><font face="Times New Roman" size="1">547,980 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="32">

      <p align=right><font face="Times New Roman" size="1">91 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="68">

      <p align=right><font face="Times New Roman" size="1">(18,891) </font></p>
    </td>
    <td width="20">&nbsp;</td>
    <td width="35">

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

  <tr valign="bottom">

    <td width="690" 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: 43; page: 43" -->



<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" 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 width="700" colspan="6">

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

  <tr valign="bottom">

    <td>

      <p align=center><font face="Times New Roman, Times, serif" size="3"><b><font size="1">REF <br>
          R </font> </b> </font></p>
    </td>
    <td width="455">

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

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

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

  <tr valign="bottom">

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

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

  <tr valign="bottom">

    <td width="31">

      <p align=center><font face="Times New Roman, Times, serif" size="3"><b><font size="1">&nbsp; </font> </b> </font></p>
    </td>
    <td width="455">

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

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

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


  <tr valign="bottom">

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

      <hr size="1" noshade>
      </td>
  </tr>
  <tr valign="bottom">
    <td width="700" colspan="6">&nbsp;</td>
  </tr>

  <tr valign="bottom">

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

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

  <tr valign="bottom">

    <td width="31">

      <p align=center><font face="Times New Roman, Times, serif" size="1">r36 </font></p>
    </td>
    <td width="455">

      <p><font face="Times New Roman, Times, serif" size="1">TOTAL SALES </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman, Times, serif" size="1">24,593,431 </font></p>
    </td>
    <td width="21"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="81">

      <p align=right><font face="Times New Roman, Times, serif" size="1">24,178,722 </font></p>
    </td>
    <td width="22"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

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

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

  <tr valign="bottom">

    <td width="31">

      <p align=center><font face="Times New Roman, Times, serif" size="1">r37 </font></p>
    </td>
    <td width="455">

      <p><font face="Times New Roman, Times, serif" size="1">TAX RESULT FOR THE YEAR </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="21"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="81">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="22"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

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

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

  <tr valign="bottom">

    <td width="31">

      <p align=center><font face="Times New Roman, Times, serif" size="1">r38 </font></p>
    </td>
    <td width="455">

      <p><font face="Times New Roman, Times, serif" size="1">NET SALES (**) </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman, Times, serif" size="1">24,106,094 </font></p>
    </td>
    <td width="21"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="81">

      <p align=right><font face="Times New Roman, Times, serif" size="1">23,515,297 </font></p>
    </td>
    <td width="22"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

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

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

  <tr valign="bottom">

    <td width="31">

      <p align=center><font face="Times New Roman, Times, serif" size="1">r39 </font></p>
    </td>
    <td width="455">

      <p><font face="Times New Roman, Times, serif" size="1">OPERATION INCOME (**) </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman, Times, serif" size="1">2,313,108 </font></p>
    </td>
    <td width="21"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="81">

      <p align=right><font face="Times New Roman, Times, serif" size="1">3,031,736 </font></p>
    </td>
    <td width="22"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

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

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

  <tr valign="bottom">

    <td width="31">

      <p align=center><font face="Times New Roman, Times, serif" size="1">r40 </font></p>
    </td>
    <td width="455">

      <p><font face="Times New Roman, Times, serif" size="1">NET INCOME OF MAJORITY
  INTEREST (**) </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman, Times, serif" size="1">1,637,881 </font></p>
    </td>
    <td width="21"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="81">

      <p align=right><font face="Times New Roman, Times, serif" size="1">2,178,694 </font></p>
    </td>
    <td width="22"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

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

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

  <tr valign="bottom">

    <td width="31">

      <p align=center><font face="Times New Roman, Times, serif" size="1">r41 </font></p>
    </td>
    <td width="455">

      <p><font face="Times New Roman, Times, serif" size="1">NET CONSOLIDATED INCOME (**) </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman, Times, serif" size="1">1,824,447 </font></p>
    </td>
    <td width="21"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="81">

      <p align=right><font face="Times New Roman, Times, serif" size="1">2,398,776 </font></p>
    </td>
    <td width="22"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

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

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

  <tr valign="bottom">

    <td width="31">

      <p align=center><font face="Times New Roman, Times, serif" size="1">r47 </font></p>
    </td>
    <td width="455">

      <p><font face="Times New Roman, Times, serif" size="1">OPERATIVE DEPRECIATION AND
  AMORTIZATION   </font></p>
    </td>
    <td width="79">

      <p align=right><font face="Times New Roman, Times, serif" size="1">505,823 </font></p>
    </td>
    <td width="21"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="81">

      <p align=right><font face="Times New Roman, Times, serif" size="1">449,742 </font></p>
    </td>
    <td width="22"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

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

      <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: 43; page: 43" -->


<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>QUARTERLY STATEMENTS OF
INCOME  </b> <br> FROM SEPTEMBER 1 TO DECEMBER 31 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 width="700" colspan="11">

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

  <tr valign="bottom">

    <td colspan="2">

      <p align=center><font face="Times New Roman, Times, serif" size="3"><b><font size="1">REF <br>
          R </font> </b> </font></p>
    </td>
    <td width="444">

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

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

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

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=center><font face="Times New Roman, Times, serif" size="3"><b><font size="1">&nbsp; </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

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

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

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

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

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

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="1">rt02 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="1">NET SALES </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="1">5,824,351 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="1">100 </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="1">4,898,726 </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="1">100 </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="1">rt02 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="1">COST OF SALES </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="1">5,334,688 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="1">92 </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="1">4,106,157 </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="1">84 </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>


  <tr valign="bottom">

    <td width="700" colspan="11">

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



  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">rt03 </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="2"><b><font size="1">GROSS PROFIT </font> </b> </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">489,663 </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">8 </font> </b> </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">792,569 </font> </b> </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">16 </font> </b> </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="1">rt04 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="1">OPERATING EXPENSES </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="1">324,087 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="1">6 </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="1">315,355 </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="1">6 </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">rt05 </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="2"><b><font size="1">OPERATING INCOME </font> </b> </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">165,576 </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">3 </font> </b> </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">477,214 </font> </b> </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">10 </font> </b> </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="1">rt08 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="1">OTHER INCOME AND (EXPENSE),
  NET </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="1">3,773 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="1">10,683 </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="1">rt06 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="1">COMPREHENSIVE FINANCING
  RESULT </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(144,599) </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(2) </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(53,614) </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(1) </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="1">rt12 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="1">EQUITY IN NET INCOME OF
  NON-CONSOLIDATED SUBSIDIARIES  <br>
          AND ASSOCIATES </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="1">rt48 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="1">NON ORDINARY ITEMS </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">rt09 </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="2"><b><font size="1">INCOME BEFORE INCOME
  TAXES  </font> </b> </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">24,750 </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">0 </font> </b> </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">434,283 </font> </b> </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">9 </font> </b> </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="1">rt10 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="1">INCOME TAXES </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(138,917) </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(2) </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="1">247,449 </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="1">5 </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">rt11 </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="2"><b><font size="1">INCOME (LOSS) BEFORE
  DISCONTINUED OPERATIONS </font> </b> </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">163,667 </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">3 </font> </b> </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">186,834 </font> </b> </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">4 </font> </b> </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="1">rt14 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="1">DISCONTINUED OPERATIONS </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="1">0 </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">rt18 </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="2"><b><font size="1">NET CONSOLIDATED INCOME </font> </b> </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">163,667 </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">3 </font> </b> </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">186,834 </font> </b> </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">4 </font> </b> </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="1">rt19 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="1">NET INCOME OF MINORITY
  INTEREST </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(49,561) </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(1) </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(46,065) </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="1">(1) </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="32">

      <p align=right><font face="Times New Roman, Times, serif" size="1">rt20 </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="444">

      <p><font face="Times New Roman, Times, serif" size="1">NET INCOME OF MAJORITY
  INTEREST </font></p>
    </td>
    <td width="60">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">213,228 </font> </b> </font></p>
    </td>
    <td width="13"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="24">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">4 </font> </b> </font></p>
    </td>
    <td width="10"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="57">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">232,899 </font> </b> </font></p>
    </td>
    <td width="12"><font face="Times New Roman, Times, serif"> </font></td>
    <td width="20">

      <p align=right><font face="Times New Roman, Times, serif" size="3"><b><font size="1">5 </font> </b> </font></p>
    </td>
    <td width="15"><font face="Times New Roman, Times, serif"> </font></td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

      <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: 43; page: 43" -->




<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" 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 width="700" 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 width="395">

      <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 width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp; </font> </b> </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <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 width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt01 </font> </b> </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="2"><b><font size="1">NET SALES </font> </b> </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">5,824,351 </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">4,898,726 </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt21 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">DOMESTIC </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">1,559,961 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">27 </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">2,085,359 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">43 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt22 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">FOREIGN </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">4,264,390 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">73 </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">2,813,367 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">57 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt23 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">TRANSLATED INTO DOLLARS
  (***) </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">420,709 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">&nbsp; </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">293,798 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

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


  <tr valign="bottom">

    <td width="700" colspan="11">

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




  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt08 </font> </b> </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="2"><b><font size="1">OTHER INCOME AND
  (EXPENSE), NET </font> </b> </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">3,773 </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">10,683 </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt49 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">OTHER INCOME AND (EXPENSE),
  NET </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">3,773 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">100 </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">10,683 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">100 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt34 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">EMPLOYEES&#146; PROFIT SHARING
  EXPENSES </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt35 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">DEFERRED EMPLOYEES&#146; PROFIT
  SHARING </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>


  <tr valign="bottom">

    <td width="700" colspan="11">

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




  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt06 </font> </b> </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="2"><b><font size="1">COMPREHENSIVE FINANCING
  RESULT </font> </b> </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(144,599) </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(53,614) </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt24 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">INTEREST EXPENSE </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">5,120 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">(4) </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">6,144 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

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

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt42 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">GAIN (LOSS) ON RESTATEMENT
  OF UDI&#146;S </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt45 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">OTHER FINANCE COSTS </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt26 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">INTEREST INCOME </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">60,589 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">(42) </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">23,178 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">(43) </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt46 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">OTHER FINANCIAL PRODUCTS </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt25 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">FOREIGN EXCHANGE GAIN
  (LOSS), NET </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">(35,466) </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">25 </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">(20,256) </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">38 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt28 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">RESULT FROM MONETARY
  POSITION </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">(164,602) </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">114 </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">(50,392) </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">94 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>


  <tr valign="bottom">

    <td width="700" colspan="11">

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




  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt10 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">INCOME TAXES  </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(138,917) </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">247,449 </font> </b> </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">100 </font> </b> </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt32 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">INCOME TAX </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">(216,427) </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">156 </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">98,360 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">40 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="11">

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

  <tr valign="bottom">

    <td width="37">

      <p align=right><font face="Times New Roman" size="1">rt33 </font></p>
    </td>
    <td width="13">&nbsp;</td>
    <td width="395">

      <p><font face="Times New Roman" size="1">DEFERRED INCOME TAX </font></p>
    </td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">77,510 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="25">

      <p align=right><font face="Times New Roman" size="1">(56) </font></p>
    </td>
    <td width="11">&nbsp;</td>
    <td width="69">

      <p align=right><font face="Times New Roman" size="1">149,089 </font></p>
    </td>
    <td width="21">&nbsp;</td>
    <td width="28">

      <p align=right><font face="Times New Roman" size="1">60 </font></p>
    </td>
    <td width="11">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" 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: 43; page: 43" -->




<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" 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 width="700" colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td colspan="2" height="12">
        <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 height="12" width="458">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CONCEPTS </font> </b> </font></p>
      </td>
      <td height="12" colspan="2">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">CURRENT YEAR </font> </b> </font></p>
      </td>
      <td height="12" 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 width="700" colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>
    <tr valign="bottom">
      <td width="33">
        <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp; </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="458">
        <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 width="700" colspan="7">
        <hr size="1" noshade>
      </td>
    </tr>

    <tr valign="bottom">
      <td width="33">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">rt47 </font> </b> </font></p>
      </td>
      <td width="10">&nbsp;</td>
      <td width="458">
        <p><font face="Times New Roman" size="2"><b><font size="1">OPERATIVE DEPRECIATION
  AND ACCUMULATED IMPAIRMENT LOSSES </font> </b> </font></p>
      </td>
      <td width="76">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">126,447 </font> </b> </font></p>
      </td>
      <td width="31">&nbsp;</td>
      <td width="68">
        <p align=right><font face="Times New Roman" size="3"><b><font size="1">119,188 </font> </b> </font></p>
      </td>
      <td width="24">&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width="700" 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: 43; page: 43" -->


<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" 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 DECEMBER 31 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 width="700" colspan="7">

      <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">C </font> </b> </font></p>
    </td>
    <td width="426">

      <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 width="700" colspan="7">

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







  <tr valign="bottom">
    <td width="46">&nbsp;</td>
    <td width="4">&nbsp;</td>
    <td width="426">&nbsp;</td>
    <td width="119" align="center" colspan="2"><font face="Times New Roman, Times, serif" size="1"><b>AMOUNT</b></font></td>
    <td width="105" align="center" colspan="2"><font face="Times New Roman, Times, serif" size="1"><b>AMOUNT</b></font></td>
  </tr>
  <tr valign="bottom">

    <td width="700" colspan="7">

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




  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">c01 </font> </b> </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <p><font face="Times New Roman" size="3"><b><font size="1">CONSOLIDATED NET INCOME </font> </b> </font></p>
    </td>
    <td width="87">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,824,447 </font> </b> </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,398,776 </font> </b> </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="1">c02 </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <p><font face="Times New Roman" size="1">+ (-) ITEMS ADDED TO INCOME
  WHICH DO NOT REQUIRE CASH </font></p>
    </td>
    <td width="87">

      <p align=right><font face="Times New Roman" size="1">1,053,803 </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">436,311 </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">c03 </font> </b> </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <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 width="87">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,878,250 </font> </b> </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,835,087 </font> </b> </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="1">c04 </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <p><font face="Times New Roman" size="1">RESOURCES PROVIDED OR USED
  IN OPERATION </font></p>
    </td>
    <td width="87">

      <p align=right><font face="Times New Roman" size="1">(443,936) </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">(401,251) </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">c05 </font> </b> </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <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 width="87">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,434,314 </font> </b> </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,433,836 </font> </b> </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="1">c06 </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <p><font face="Times New Roman" size="1">RESOURCES PROVIDED BY (USED
  FOR) EXTERNAL FINANCING ACTIVITIES </font></p>
    </td>
    <td width="87">

      <p align=right><font face="Times New Roman" size="1">(36,382) </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">(597,934) </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="1">c07 </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <p><font face="Times New Roman" size="1">RESOURCES PROVIDED BY (USED
  FOR) INTERNAL FINANCING ACTIVITIES </font></p>
    </td>
    <td width="87">

      <p align=right><font face="Times New Roman" size="1">2,420,726 </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">130,900 </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">c08 </font> </b> </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <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 width="87">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,384,344 </font> </b> </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(467,034) </font> </b> </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">c09 </font> </b> </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <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 width="87">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(626,521) </font> </b> </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">12,845 </font> </b> </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="1">c10 </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <p><font face="Times New Roman" size="1">NET INCREASE (DECREASE) IN
  CASH AND SHORT-TERM INVESTMENTS </font></p>
    </td>
    <td width="87">

      <p align=right><font face="Times New Roman" size="1">4,192,137 </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">1,979,647 </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="1">c11 </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <p><font face="Times New Roman" size="1">CASH AND SHORT-TERM
  INVESTMENTS AT THE BEGINNING OF PERIOD </font></p>
    </td>
    <td width="87">

      <p align=right><font face="Times New Roman" size="1">2,204,018 </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">224,371 </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="46">

      <p align=center><font face="Times New Roman" size="1">c12 </font></p>
    </td>
    <td width="4">&nbsp;</td>
    <td width="426">

      <p><font face="Times New Roman" size="1">CASH AND SHORT TERM
  INVESTMENTS AT THE END OF PERIOD </font></p>
    </td>
    <td width="87">

      <p align=right><font face="Times New Roman" size="1">6,396,155 </font></p>
    </td>
    <td width="32">&nbsp;</td>
    <td width="80">

      <p align=right><font face="Times New Roman" size="1">2,204,018 </font></p>
    </td>
    <td width="25">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" 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: 43; page: 43" -->




<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" 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 valign="bottom">

    <td width="700" colspan="7">

      <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">C </font> </b> </font></p>
    </td>
    <td width="445">

      <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 width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp; </font> </b> </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <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 width="700" colspan="7">

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




  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">c02 </font> </b> </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <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 width="92">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">1,053,803 </font> </b> </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">436,311 </font> </b> </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c13 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">505,823 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">449,742 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c41 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">547,980 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">(13,431) </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>


  <tr valign="bottom">

    <td width="700" colspan="7">

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




  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">c04 </font> </b> </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="3"><b><font size="1">RESOURCES PROVIDED OR
  USED IN OPERATION </font> </b> </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(443,936) </font> </b> </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(401,251) </font> </b> </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c18 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">+ (-) DECREASE (INCREASE) IN
  ACCOUNTS RECEIVABLE </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">(259,527) </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">205,507 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c19 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">97,207 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">(1,219,702) </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c20 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">+ (-) DECREASE (INCREASE) IN
  OTHER ACCOUNTS RECEIVABLE </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">(310,992) </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">234,752 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c21 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">+ (-) INCREASE (DECREASE) IN
  SUPPLIERS </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">266,799 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">336,227 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c22 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">(237,423) </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">41,965 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>


  <tr valign="bottom">

    <td width="700" colspan="7">

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




  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">c06 </font> </b> </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <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 width="92">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(36,382) </font> </b> </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(597,934) </font> </b> </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c23 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">+ BANK FINANCING </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c24 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">+ STOCK MARKET FINANCING </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">(124) </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">(105) </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c25 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">+ DIVIDEND RECEIVED </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c26 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">OTHER FINANCING </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">(36,258) </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">(159,293) </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c27 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">BANK FINANCING AMORTIZATION </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">(438,536) </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c28 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">(-) STOCK MARKET FINANCING
  AMORTIZATION </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c29 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c42 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>


  <tr valign="bottom">

    <td width="700" colspan="7">

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




  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">C07 </font> </b> </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <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 width="92">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">2,420,726 </font> </b> </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">130,900 </font> </b> </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c30 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">267,015 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">38,655 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c31 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c32 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">+ PREMIUM ON ISSUANCE OF
  SHARES </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">2,153,711 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">92,245 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c33 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c43 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>


  <tr valign="bottom">

    <td width="700" colspan="7">

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




  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">c09 </font> </b> </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <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 width="92">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">(626,521) </font> </b> </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="3"><b><font size="1">12,845 </font> </b> </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c34 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">+ (-) DECREASE (INCREASE) IN
  PERMANENT INVESTMENTS </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c35 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">(540,844) </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">(417,219) </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c36 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c37 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

      <p><font face="Times New Roman" size="1">+ SALE OF OTHER
  PERMANENT INVESTMENTS </font></p>
    </td>
    <td width="92">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c38 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">0 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="7">

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

  <tr valign="bottom">

    <td width="37">

      <p align=center><font face="Times New Roman" size="1">c39 </font></p>
    </td>
    <td width="10">&nbsp;</td>
    <td width="445">

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

      <p align=right><font face="Times New Roman" size="1">(85,677) </font></p>
    </td>
    <td width="14">&nbsp;</td>
    <td width="76">

      <p align=right><font face="Times New Roman" size="1">430,064 </font></p>
    </td>
    <td width="26">&nbsp;</td>
  </tr>

  <tr valign="bottom">

    <td width="700" 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: 43; page: 43" -->



















<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" 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 valign="bottom">
    <td width="700" colspan="7">
      <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">D </font> </b> </font></p>
    </td>
    <td width="452">

      <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 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">

      <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 valign="bottom">
    <td width="700" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>





  <tr valign="bottom">

    <td width="44">

      <p align=center><font face="Times New Roman" size="1">d01 </font></p>
    </td>
    <td width="8">&nbsp;&nbsp;</td>
    <td width="452">

      <p><font face="Times New Roman" size="1">BASIC PROFIT PER ORDINARY
  SHARE (**) </font></p>
    </td>
    <td align="right" width="57">

      <p align=right><font face="Times New Roman" size="1">$&nbsp;   3.50 </font></p>
    </td>
    <td width="38">&nbsp;</td>
    <td width="61">

      <p align=right><font face="Times New Roman" size="1">$&nbsp;  5.18 </font></p>
    </td>
    <td width="40">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="700" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="44">

      <p align=center><font face="Times New Roman" size="1">d02 </font></p>
    </td>
    <td width="8">&nbsp;</td>
    <td width="452">

      <p><font face="Times New Roman" size="1">BASIC PROFIT PER PREFERRED
  SHARE (**) </font></p>
    </td>
    <td align="right" width="57">

      <p align=right><font face="Times New Roman" size="1">$&nbsp;   0.00 </font></p>
    </td>
    <td width="38">&nbsp;</td>
    <td width="61">

      <p align=right><font face="Times New Roman" size="1">$&nbsp;   0.00 </font></p>
    </td>
    <td width="40">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="700" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="44">

      <p align=center><font face="Times New Roman" size="1">d03 </font></p>
    </td>
    <td width="8">&nbsp;</td>
    <td width="452">

      <p><font face="Times New Roman" size="1">DILUTED PROFIT PER ORDINARY
  SHARE (**) </font></p>
    </td>
    <td align="right" width="57">

      <p align=right><font face="Times New Roman" size="1">$&nbsp;   0.00 </font></p>
    </td>
    <td width="38">&nbsp;</td>
    <td width="61">

      <p align=right><font face="Times New Roman" size="1">$&nbsp;   0.00 </font></p>
    </td>
    <td width="40">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="700" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="44">

      <p align=center><font face="Times New Roman" size="1">d04 </font></p>
    </td>
    <td width="8">&nbsp;</td>
    <td width="452">

      <p><font face="Times New Roman" size="1">EARNINGS (LOSS) BEFORE
  DISCONTINUED OPERATIONS PER COMMON  <br>
          SHARE (**) </font></p>
    </td>
    <td align="right" width="57">

      <p align=right><font face="Times New Roman" size="1">$&nbsp;   3.50 </font></p>
    </td>
    <td width="38">&nbsp;</td>
    <td width="61">

      <p align=right><font face="Times New Roman" size="1">$  &nbsp;5.18 </font></p>
    </td>
    <td width="40">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="700" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="44">

      <p align=center><font face="Times New Roman" size="1">d05 </font></p>
    </td>
    <td width="8">&nbsp;</td>
    <td width="452">

      <p><font face="Times New Roman" size="1">DISCONTINUED OPERATIONS
  EFFECT ON EARNING (LOSS) PER SHARE (**) </font></p>
    </td>
    <td align="right" width="57">

      <p align=right><font face="Times New Roman" size="1">$&nbsp;   0.00 </font></p>
    </td>
    <td width="38">&nbsp;</td>
    <td width="61">

      <p align=right><font face="Times New Roman" size="1">$&nbsp;   0.00 </font></p>
    </td>
    <td width="40">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="700" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="44">

      <p align=center><font face="Times New Roman" size="1">d08 </font></p>
    </td>
    <td width="8">&nbsp;</td>
    <td width="452">

      <p><font face="Times New Roman" size="1">CARRYING VALUE PER SHARE </font></p>
    </td>
    <td align="right" width="57">

      <p align=right><font face="Times New Roman" size="1">$31.33 </font></p>
    </td>
    <td width="38">&nbsp;</td>
    <td width="61">

      <p align=right><font face="Times New Roman" size="1">$25.42 </font></p>
    </td>
    <td width="40">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="700" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="44">

      <p align=center><font face="Times New Roman" size="1">d09 </font></p>
    </td>
    <td width="8">&nbsp;</td>
    <td width="452">

      <p><font face="Times New Roman" size="1">CASH DIVIDEND ACCUMULATED
  PER SHARE </font></p>
    </td>
    <td align="right" width="57">

      <p align=right><font face="Times New Roman" size="1">$&nbsp;   0.00 </font></p>
    </td>
    <td width="38">&nbsp;</td>
    <td width="61">

      <p align=right><font face="Times New Roman" size="1">$&nbsp;   0.00 </font></p>
    </td>
    <td width="40">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="700" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="44">

      <p align=center><font face="Times New Roman" size="1">d10 </font></p>
    </td>
    <td width="8">&nbsp;</td>
    <td width="452">

      <p><font face="Times New Roman" size="1">DIVIDEND IN SHARES PER SHARE </font></p>
    </td>
    <td align="right" width="57">

      <p align=right><font face="Times New Roman" size="1">               0.00  </font></p>
    </td>
    <td width="38"><font face="Times New Roman" size="1">&nbsp;shares </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman" size="1">                0.00  </font></p>
    </td>
    <td width="40"><font face="Times New Roman" size="1"> &nbsp;shares </font></td>
  </tr>
  <tr valign="bottom">
    <td width="700" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="44">

      <p align=center><font face="Times New Roman" size="1">d11 </font></p>
    </td>
    <td width="8">&nbsp;</td>
    <td width="452">

      <p><font face="Times New Roman" size="1">MARKET PRICE TO CARRYING
  VALUE </font></p>
    </td>
    <td align="right" width="57">

      <p align=right><font face="Times New Roman" size="1">              1.23  </font></p>
    </td>
    <td width="38"><font face="Times New Roman" size="1">&nbsp;times </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman" size="1">               2.13  </font></p>
    </td>
    <td width="40"><font face="Times New Roman" size="1">&nbsp;times </font></td>
  </tr>
  <tr valign="bottom">
    <td width="700" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="44">

      <p align=center><font face="Times New Roman" size="1">d12 </font></p>
    </td>
    <td width="8">&nbsp;</td>
    <td width="452">

      <p><font face="Times New Roman" size="1">MARKET PRICE TO BASIC PROFIT
  PER ORDINARY SHARE </font></p>
    </td>
    <td align="right" width="57">

      <p align=right><font face="Times New Roman" size="1">           11.03  </font></p>
    </td>
    <td width="38"><font face="Times New Roman" size="1">&nbsp;times </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman" size="1">              10.44  </font></p>
    </td>
    <td width="40"><font face="Times New Roman" size="1">&nbsp;times </font></td>
  </tr>
  <tr valign="bottom">
    <td width="700" colspan="7">
      <hr size="1" noshade>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="44">

      <p align=center><font face="Times New Roman" size="1">d13 </font></p>
    </td>
    <td width="8">&nbsp;</td>
    <td width="452">

      <p><font face="Times New Roman" size="1">MARKET PRICE TO BASIC PROFIT
  PER PREFERENT SHARE (**) </font></p>
    </td>
    <td align="right" width="57">

      <p align=right><font face="Times New Roman" size="1">            0.00  </font></p>
    </td>
    <td width="38"><font face="Times New Roman" size="1">&nbsp;times </font></td>
    <td width="61">

      <p align=right><font face="Times New Roman" size="1">              0.00  </font></p>
    </td>
    <td width="40"><font face="Times New Roman" size="1">&nbsp;times </font></td>
  </tr>
  <tr valign="bottom">
    <td width="700" 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>(**) 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: 43; page: 43" -->




<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center no bold" 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 width="700" colspan="5">

      <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">P </font> </b> </font></p>
    </td>
    <td width="388">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">CATEGORIES </font> </b> </font></p>
    </td>
    <td width="126">

      <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 width="136">

      <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 valign="bottom">

    <td width="700" colspan="5">

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





  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">&nbsp; </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="3"><b><font size="1">YIELD </font> </b> </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">&nbsp; </font></p>
    </td>
    <td width="136">

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

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p01 </font></p>
    </td>
    <td width="9">&nbsp;&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">NET INCOME TO NET SALES </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">7.56% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">10.20% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p02 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">NET INCOME TO STOCKHOLDERS&#146;
  EQUITY (**) </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">11.01% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">20.34% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p03 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">NET INCOME TO TOTAL ASSETS
  (**) </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">7.97% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">13.29% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p04 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">CASH DIVIDENDS TO PREVIOUS
  YEAR NET INCOME </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">0.00% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">0.00% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p05 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">INCOME DUE TO MONETARY
  POSITION TO NET INCOME </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">(9.43)% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">(3.04)% </font></p>
    </td>
  </tr>


  <tr valign="bottom">

    <td width="700" colspan="5">

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




  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="3"><b><font size="1">&nbsp; </font> </b> </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="3"><b><font size="1">ACTIVITY </font> </b> </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">&nbsp; </font></p>
    </td>
    <td width="136">

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

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p06 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">NET SALES TO NET ASSETS (**) </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">1.05 times </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">1.30 times </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p07 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">NET SALES TO FIXED ASSETS
  (**) </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">3.07 times </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">3.09 times </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p08 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">INVENTORIES TURNOVER (**) </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">4.11 times </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">3.78 times </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p09 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">ACCOUNTS RECEIVABLE IN DAYS
  OF SALES </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">32.50 days </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">29.86 days </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p10 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">PAID INTEREST TO TOTAL
  LIABILITIES WITH COST (**) </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">50.11% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">0.06% </font></p>
    </td>
  </tr>


  <tr valign="bottom">

    <td width="700" colspan="5">

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




  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">&nbsp; </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="3"><b><font size="1">LEVERAGE </font> </b> </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">&nbsp; </font></p>
    </td>
    <td width="136">

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

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p11 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">TOTAL LIABILITIES TO TOTAL
  ASSETS </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">24.71% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">28.16% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p12 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">TOTAL LIABILITIES TO
  STOCKHOLDERS&#146; EQUITY </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">0.32 times </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">0.39 times </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p13 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">FOREIGN CURRENCY LIABILITIES
  TO TOTAL LIABILITIES </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">41.55% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">43.75% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p14 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">LONG-TERM LIABILITIES TO
  FIXED ASSETS </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">0.00% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">0.00% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p15 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">OPERATING INCOME TO INTEREST
  PAID </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">94.08 times </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">195.36 times </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p16 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">NET SALES TO TOTAL
  LIABILITIES (**) </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">4.26 times </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">4.62 times </font></p>
    </td>
  </tr>


  <tr valign="bottom">

    <td width="700" colspan="5">

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




  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">&nbsp; </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="3"><b><font size="1">LIQUIDITY </font> </b> </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">&nbsp; </font></p>
    </td>
    <td width="136">

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

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p17 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">CURRENT ASSETS TO CURRENT
  LIABILITIES </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">4.94 times </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">3.39 times </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p18 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">CURRENT ASSETS LESS
  INVENTORY TO CURRENT LIABILITIES </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">3.26 times </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">1.65 times </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p19 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">CURRENT ASSETS TO TOTAL
  LIABILITIES </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">2.57 times </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">1.94 times </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p20 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">AVAILABLE ASSETS TO CURRENT
  LIABILITIES </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">217.79% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">75.80% </font></p>
    </td>
  </tr>


  <tr valign="bottom">

    <td width="700" colspan="5">

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




  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">&nbsp; </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="3"><b><font size="1">CASH FLOW </font> </b> </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">&nbsp; </font></p>
    </td>
    <td width="136">

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

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p21 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">RESOURCES FROM NET INCOME TO
  NET SALES </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">11.93% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">12.05% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p22 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">RESOURCES FROM CHANGES IN
  WORKING CAPITAL TO NET SALES </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">(1.84)% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">(1.70)% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p23 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">RESOURCES GENERATED (USED)
  IN OPERATING TO INTEREST PAID </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">99.01 times </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">156.83 times </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p24 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">EXTERNAL FINANCING TO
  RESOURCES PROVIDED BY (USED FOR) FINANCING </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">(1.52)% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">128.02% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p25 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">INTERNAL FINANCING TO
  RESOURCES PROVIDED (USED FOR) FINANCING </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">101.52% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">(28.02)% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

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

  <tr valign="bottom">

    <td width="41">

      <p align=center><font face="Times New Roman" size="1">p26 </font></p>
    </td>
    <td width="9">&nbsp;</td>
    <td width="388">

      <p><font face="Times New Roman" size="1">RESOURCES PROVIDED BY (USED
  FOR) INVESTMENT ACTIVITIES </font></p>
    </td>
    <td width="126">

      <p align=center><font face="Times New Roman" size="1">86.32% </font></p>
    </td>
    <td width="136">

      <p align=center><font face="Times New Roman" size="1">(3,248.10)% </font></p>
    </td>
  </tr>

  <tr valign="bottom">

    <td width="700" colspan="5">

      <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>(**) IN THESE RATIOS FOR THE DATA
TAKE INTO CONSIDERATION 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: 43; page: 43" -->



<!-- 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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size=2>
  QUARTER: <b>4 </b>  YEAR: <b>2007  </b> </font></td>
  </tr>

</table>
<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>DIRECTOR REPORT  </b> </font></P>

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





<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Acquisition of Corporacion Aceros
DM, S.A. de C.V.  </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;On
February 21, 2008, Simec executed an agreement to acquire 100% of the shares of
Corporacion Aceros DM, S.A. de C.V. and certain of its affiliates (&#147;Grupo San&#148;).  </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;Grupo
San is a long products steel mini-mill and the second-largest corrugated rebar producer
in Mexico. Grupo San&#146;s operations are based in San Luis Potosi, Mexico. Its plants and
its 1,457 employees rely on cutting edge technology to produce 700 thousand tons of
finished products annually.  </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;With
this acquisition, Simec and Industrias CH, S.A. de C.V. (&#147;ICH&#148;) position themselves as
the second largest producers of rebar and the largest steel producers in Mexico, with a
production capacity of approximately 4.5 million tons of liquid steel and 3.8 million
tons of finished products.  </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;With
this strategic acquisition, Simec and ICH will achieve a more diversified product mix and
sales mix, with 50% of sales in Mexico and 50% outside Mexico, both of which will allow
them to better address the natural cycles of the steel industry at the domestic and
global levels. Additionally, Simec and ICH have already identified significant synergies
and economies of scale that will increase Simec&#146;s operating margins. Grupo San&#146;s central
location in Mexico, where Simec and ICH are not currently present, also represents a
strong competitive advantage since it provides several strategic benefits mainly related
to distribution given its proximity to Mexico&#146;s main cities, sea ports, and borders.  </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;In
addition, Grupo San has aggressive expansion plans in its corrugated rebar business,
which ICH and Simec will support and promote to satisfy the growing demand for this
product resulting from the Mexican Government&#146;s aggressive infrastructure plan.  </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;Simec,
the main subsidiary of ICH, will acquire 100% of the shares of Grupo San. The transaction
is valued at 850 million U.S. dollars, 85% of which will be paid with cash generated by
the company&#146;s operations and by the company&#146;s stock public offering, which took place in
February 2007.  </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;This
acquisition confirms the growth strategy that has characterized ICH, reaffirming its
position as a consolidator in the steel sector.  </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;This
acquisition is subject to the approval of Mexico&#146;s federal competition commission,
Comision Federal de Competencia, as well as Simec&#146;s shareholders&#146; meeting.  </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;Grupo
San&#146;s shareholders were advised by Lehman Brothers, Inc. and by the law office of Galicia
y Robles, S.C. Simec was represented by the law office of Mijares, Angoitia, Cortes y
Fuentes, S.C.  </font></P>










<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Year Ended December
31, 2007 compared to Year Ended December 31, 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 increased 3% to Ps. 24,106
million in  2007 compared to Ps. 23,515 million in 2006. Shipments of finished steel
products increased 0.5% to 2,693 thousand tons in  2007 compared to 2,673 thousand tons
in 2006. Total sales outside of Mexico in 2007 increased 7% to Ps. 17,031 million
compared with Ps. 15,939 million  in 2006, while total Mexican sales decreased 7% from
7,576 million in 2006 to Ps. 7,075 million in 2007.   The increase in sales can be
explained by higher shipments during 2007, compared with 2006 (14,000 tons increase). The   </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: 43; page: 43" -->



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>increase in tons shipped originated
mainly in the plant of Apizaco and compensated for the two unexpected stoppages in the
rolling lines of the plants in Guadalajara and Apizaco due during the periods July 5-8,
July 10-13, and September 10-15, as a result of the shortage of 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 7%
from Ps. 19,132  million in 2006 to Ps. 20,398 million in 2007. Direct cost of sales as a
percentage of net sales represented 85% in 2007 compared to 81% in 2006. The increase in
the Direct Cost of Sales is attributable mainly to an increase of 6% in real terms in the
average cost of raw materials used to produce steel products in 2007 versus 2006,
primarily as a result of increases in the price of scrap and certain other raw materials
and 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 due during the periods 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>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 in 2007 decreased 15%
to Ps. 3,708 million compared to Ps. 4,383 million in 2006. Gross profit as a percentage
of net sales in 2007 was 15% compared to 19% in 2006. The decline in gross profit is due
to 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 3% to
Ps. 1,395 million in 2007 compared to Ps. 1,351  million in 2006 (depreciation and
amortization increased Ps. 56 million in 2007 compared to 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 24% from
Ps. 3,032 million in 2006 to Ps. 2,313 million in 2007. Operating profit as a percentage
of net sales was 10% in 2007 compared to 13% in 2006. The decline in operating profit is
due to 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>Comprehensive
Financial Cost </I> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Comprehensive financial cost in 2007
represented a gain of Ps. 63 million compared with a expense of Ps. 63 million in 2006.
Net interest income was Ps. 273 million in 2007, compared with Ps. 47 million in 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. 38 million in 2007
compared with an exchange loss of Ps. 37 million in 2006, reflecting a 0.1% decrease in
the value of the peso versus the dollar in 2007 compared to 2006. Simec recorded a loss
from monetary position of Ps. 172 million in 2007 compared to a loss from monetary
position of Ps. 73 million in 2006, reflecting the domestic inflation rate of 3.6% in
2007 as compared to a 4% inflation rate in 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 of Ps. 49  million in 2007 compared to other income net for Ps. 39 million in 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>Income Tax </I> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income Tax recorded Ps. 601 million
in 2007 compared to Ps. 609 million in 2006. In 2006, we amortized Ps. 364 million of our
deferred credit which is non-taxable income. This does not affect the cash flow.  </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: 43; page: 43" -->


<!-- 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 24% to Ps. 1,824 million in 2007 from Ps. 2,399 million in 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 December 31, 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 December 31, 2007 was U.S. $363,703 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. 2,434 million in 2007 versus Ps. 2,434 million of net resources provided by
operations in 2006. Net resources provided by financing activities were Ps. 2,384 million
in 2007 (which amount includes the capital increase of Ps. 2,421 million in February
2007) versus Ps. 467 million of net resources used by financing activities in 2006. Net
resources used in investing activities (to acquire property, plant and equipment, other
non-current assets and liabilities) were Ps. 627 million in 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. 13 million in
2006.  </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 fourth
quarter 2007 vs third 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 increased 2% from Ps.
5,737 million for the third quarter 2007 to Ps. 5,824 million for the third quarter 2007.
Sales in tons of finished steel products increased 7% to 675 thousand tons in the fourth
quarter 2007 compared with 635 thousand tons in the third quarter 2007. The total sales
outside of Mexico for the fourth quarter 2007 increased 6% to Ps. 4,264 million compared
with Ps. 4,038 million for the third quarter 2007. Total Mexican sales decreased from Ps.
1,699 million in the third quarter 2007 to Ps.1,560 millions in the fourth quarter 2007.
Prices of finished products sold in the fourth quarter 2007 decreased approximately 4% in
real terms compared to the third 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>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 8%
from Ps. 4,937 million in the third quarter 2007 to Ps. 5,335 million for the fourth
quarter 2007. In the fourth quarter 2007, the direct cost of sales represented 92% of net
sales compared to 86% for the third quarter 2007. The average cost of raw materials used
to produce steel products increased 2% in real terms in the fourth quarter 2007 versus
the third quarter 2007, primarily as a result of increases in the price of scrap and
certain other 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>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 fourth quarter
2007 decreased 39% to Ps. 489  million compared to Ps. 800  million in the third quarter
2007. Gross profit as a percentage of net sales for the fourth quarter 2007 was 8%
compared with 14% for the third quarter 2007. The decline in gross profit is due to 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. 324
million in the fourth quarter 2007 compared to Ps. 354  million for the third quarter
2007. As a percentage of sales, operating expense represented 6% during the fourth
quarter of 2007 compared to 6% in the third quarter of 2007.  </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: 43; page: 43" -->



<!-- 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 63% from
Ps. 446 million in the third quarter 2007 to Ps. 165 million for the fourth quarter 2007.
Operating profit as a percentage of net sales decreased to 3% in the fourth quarter 2007
from 8% in the third quarter 2007. This was due to an increase of 2% 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>Comprehensive
Financial Cost </I> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Comprehensive financial cost for the
fourth quarter 2007 represented an expense of Ps. 145 million compared with an income of
Ps. 91 million for the third quarter 2007. Net interest income was Ps. 55 million in the
fourth quarter 2007 compared with Ps. 93 million in the third quarter 2007, 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. 35 million in the fourth
quarter 2007 compared with an exchange gain of Ps. 29 million in the third quarter 2007.
Simec recorded a loss from monetary position of Ps. 165 million in the fourth quarter
2007 compared to a loss from monetary position of Ps. 31 million in the third 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>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. 4 million for the fourth quarter 2007 compared with other income net of Ps. 27
million for the third 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>Income Tax </I> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income Tax for the fourth quarter
2007 decreased Ps. 139 million compared to a provision of Ps. 199 million for the third
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>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 55% to Ps. 163 million in the fourth quarter 2007 from Ps. 365
million in the third 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 fourth
quarter 2007 vs. fourth 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 increased 19% from Ps.
4,898 million for the fourth quarter 2006 compared with Ps. 5,824 million for the same
period 2007. Sales in tons of finished steel increased 9% to 675 thousand tons in the
fourth quarter 2007 compared with 622 thousand tons in the same period 2006. The total
sales outside of Mexico for the fourth quarter 2007 increased 52% to Ps. 4,264 million
compared with Ps. 2,813 million for the same period 2006. Total Mexican sales decreased
25% to  1,560 million in the fourth quarter 2007 from Ps. 2,085 millions in the same
period 2006.  Prices of finished products sold in the fourth quarter 2007 increased
approximately 10% in real terms compared to the fourth quarter 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>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 30%
from Ps. 4,106  million in the fourth quarter 2006 to Ps. 5,335 million for the same
period 2007. With respect to sales, in the fourth quarter 2007, the direct cost of sales
represents 92% compared to 84% for the same period 2006. The average cost of raw
materials used to produce steel products increased 20% in real terms in the fourth
quarter 2007 versus the fourth quarter 2006, primarily as a result of increases in the
price of scrap and certain other 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>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 fourth quarter
2007 decreased 38% to Ps. 489 million compared to Ps. 792 million in the same period
2006. The gross profit as a percentage of net sales for the
fourth quarter 2007 was 8% compared with 16% for the same period of 2006.  The decline in
gross profit is due to the increase in cost of goods sold due to the reasons previously
mentioned. </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: 43; page: 43" -->




<!-- 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. 324 million in the fourth quarter 2007 compared to Ps. 315 million for the same
period 2006, the depreciation and amortization in the fourth quarter 2007 was Ps. 126
million compared to Ps. 119 million in the same period of 2006. Operating expenses as a
percentage of net sales represented 6% during the fourth 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 65% from
Ps. 477 million in the fourth quarter 2006 to Ps. 165 million for the same period 2007.
The operating profit as a percentage of net sales in the fourth quarter 2007 was 3%
compared to 10% in the same period 2006. The decline in operating profit is due to 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>Comprehensive
Financial Cost </I> </b> </font></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Comprehensive financial cost for the
fourth quarter 2007 represented an expense of Ps. 145 million compared with an expense of
Ps. 54 million for the fourth quarter 2006. Net interest income was Ps. 55 million in the
fourth quarter 2007 compared with Ps. 17 million in the fourth quarter 2006, due to
larger cash balances during 2007 partly reflecting our recent capital increase in
February 2007. At the same time we registered an exchange loss of Ps. 35 million in the
fourth quarter 2007 compared with an exchange loss of Ps. 20 million in the fourth
quarter 2006  Simec recorded a loss from monetary position of Ps. 165 million in the
fourth quarter 2007 compared to a loss from monetary position of Ps. 51 million in the
fourth quarter 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 of Ps. 4 million for the fourth quarter 2007 compared with other income net of Ps. 11
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
fourth quarter 2007 decreased to Ps. 139 million compared to Ps. 247 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 13% to Ps. 163 million in the fourth quarter 2007 from Ps. 187
million in the fourth quarter 2006.  </font></P>






<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 align="center">
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TH COLSPAN=2 align="left"><FONT FACE="Times New Roman" SIZE=2>(Millions of pesos) </font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman" SIZE=2>Year ended <br>
December 31, <br>
2007 </font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman" SIZE=2>Year ended <br>
December 31, <br>
2006 </font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman" SIZE=2>2007 <br>
vs <br>
2006 </font></TH>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD WIDTH=44% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Sales </font></TD>
    <TD WIDTH=6% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>24,106 </font></TD>
    <TD WIDTH=6% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>23,515 </font></TD>
    <TD WIDTH=6% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3 </font></TD>
    <TD WIDTH=6% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="44%"><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="12%"><FONT FACE="Times New Roman" SIZE=2>20,398 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>19,132 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="8%"><FONT FACE="Times New Roman" SIZE=2>7 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="44%"><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="12%"><FONT FACE="Times New Roman" SIZE=2>3,708 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>4,383 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="8%"><FONT FACE="Times New Roman" SIZE=2>-15 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>%&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="44%"><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="12%"><FONT FACE="Times New Roman" SIZE=2>1,395 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>1,351 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="8%"><FONT FACE="Times New Roman" SIZE=2>3 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="44%"><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="12%"><FONT FACE="Times New Roman" SIZE=2>2,313 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>3,032 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="8%"><FONT FACE="Times New Roman" SIZE=2>-24 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>%&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="44%"><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="12%"><FONT FACE="Times New Roman" SIZE=2>2,819 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>3,481 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="8%"><FONT FACE="Times New Roman" SIZE=2>-19 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>%&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="44%"><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="12%"><FONT FACE="Times New Roman" SIZE=2>1,824 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>2,399 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="8%"><FONT FACE="Times New Roman" SIZE=2>-24 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>%&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="44%"><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="12%"><FONT FACE="Times New Roman" SIZE=2>17,031 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>15,939 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="8%"><FONT FACE="Times New Roman" SIZE=2>7 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="44%"><FONT FACE="Times New Roman" SIZE=2>Sales in Mexico </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>7,075 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>7,576 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="8%"><FONT FACE="Times New Roman" SIZE=2>-7 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>%&nbsp; </font></TD>
  </TR>
  <tr valign=Bottom>
    <td align=LEFT colspan="8">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <TR VALIGN=Bottom>

    <TD ALIGN=LEFT width="44%"><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="12%"><FONT FACE="Times New Roman" SIZE=2>2,693 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="12%"><FONT FACE="Times New Roman" SIZE=2>2,673 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>&nbsp; </font></TD>
    <TD ALIGN=RIGHT width="8%"><FONT FACE="Times New Roman" SIZE=2>1 </font></TD>
    <TD ALIGN=LEFT width="6%"><FONT FACE="Times New Roman" SIZE=2>% </font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT colspan="8">
      <hr noshade color=#000000 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: 43; page: 43" -->



<table cellpadding=0 cellspacing=0 border=0 width=600 align="center">
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th align="left" width="223"><font face="Times New Roman" size=2>(Millions of pesos) </font></th>
    <th colspan=2><font face="Times New Roman" size=2>4Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>3Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>4Q&#146;06 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>4Q&#146;07 vs<br>
3Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>4Q&#146;07 vs<br>
4Q&#146;06 </font></th>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width=223><font face="Times New Roman" size=2>Sales</font></td>
    <td align=RIGHT width=51><font face="Times New Roman" size=2>5,824</font></td>
    <td align=LEFT width=23><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=51><font face="Times New Roman" size=2>5,737</font></td>
    <td align=LEFT width=23><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=51><font face="Times New Roman" size=2>4,898</font></td>
    <td align=LEFT width=23><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=39><font face="Times New Roman" size=2>2</font></td>
    <td align=LEFT width=35><font face="Times New Roman" size=2>%</font></td>
    <td align=RIGHT width=39><font face="Times New Roman" size=2>19</font></td>
    <td align=LEFT width=42><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="223"><font face="Times New Roman" size=2>Cost of Sales</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>5,335</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>4,937</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>4,106</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>8</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>30</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="223"><font face="Times New Roman" size=2>Gross Profit</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>489</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>800</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>792</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>-39</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>-38</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="223"><font face="Times New Roman" size=2>Operating Expenses</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>324</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>354</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>315</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>-8</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="39"><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=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="223"><font face="Times New Roman" size=2>Operating Profit</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>165</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>446</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>477</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>-63</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>-65</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="223"><font face="Times New Roman" size=2>EBITDA</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>292</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>571</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>596</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>-49</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>-51</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="223"><font face="Times New Roman" size=2>Net Profit</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>163</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>365</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>187</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>-55</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>-13</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="223"><font face="Times New Roman" size=2>Sales outside Mexico</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>4,264</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>4,038</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>2,813</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>6</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>52</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="223"><font face="Times New Roman" size=2>Sales in Mexico</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>1,560</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>1,699</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>2,085</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>-8</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%&nbsp;</font></td>
    <td align=RIGHT width="39"><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=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="223"><font face="Times New Roman" size=2>Total sales (tons)</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>675</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>635</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="51"><font face="Times New Roman" size=2>622</font></td>
    <td align=LEFT width="23"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>6</font></td>
    <td align=LEFT width="35"><font face="Times New Roman" size=2>%</font></td>
    <td align=RIGHT width="39"><font face="Times New Roman" size=2>9</font></td>
    <td align=LEFT width="42"><font face="Times New Roman" size=2>%</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>






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

    <td colspan=13>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th align="left"><font face="Times New Roman" size=2>Product</font></th>
    <th colspan=2><font face="Times New Roman" size=2>Thousands<br>
of tons<br>
year ended<br>
December<br>
31, 2007 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Millions<br>
of pesos<br>
year ended<br>
December<br>
31, 2007 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Average<br>
price<br>
per ton<br>
year ended<br>
December<br>
31, 2007 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Thousands<br>
of tons<br>
year ended<br>
December<br>
31, 2006 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Millions<br>
of pesos<br>
year ended<br>
December<br>
31, 2006 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Average<br>
price<br>
per ton<br>
year ended<br>
December<br>
31, 2006 </font></th>
  </tr>
  <tr>

    <td colspan=13>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>SBQ</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>1,946</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>18,419</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>9,465</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>1,941</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>18,050</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>9,300</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=13>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>Light Structural</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>276</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>2,162</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>7,834</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>266</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>1,894</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>7,122</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=13>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>Structural</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>216</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>1,752</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>8,112</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>204</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>1,632</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>7,998</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=13>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>Rebar</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>250</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>1,703</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>6,810</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>260</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>1,909</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>7,343</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=13>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>Others</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>5</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>70</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>&#151;</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>
    <td align=RIGHT><font face="Times New Roman" size=2>30</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>&#151;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=13>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>Total</font></td>
    <td align=RIGHT><font face="Times New Roman" size=2>2,693</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>24,106</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>8,951</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>2,673</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>23,515</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>8,797</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=13>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>

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

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th align="left" width="211"><font face="Times New Roman" size=2>Product</font></th>
    <th colspan=2><font face="Times New Roman" size=2>Thousands<br>
of tons<br>
4Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Millions<br>
of pesos<br>
4Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Average price<br>
per ton<br>
4Q&#146;07 </font></th>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width=211><font face="Times New Roman" size=2>SBQ</font></td>
    <td align=RIGHT width=88><font face="Times New Roman" size=2>497</font></td>
    <td align=LEFT width=61><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=73><font face="Times New Roman" size=2>4,524</font></td>
    <td align=LEFT width=43><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=78><font face="Times New Roman" size=2>9,102</font></td>
    <td align=LEFT width=46><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="211"><font face="Times New Roman" size=2>Light Structural</font></td>
    <td align=RIGHT width="88"><font face="Times New Roman" size=2>59</font></td>
    <td align=LEFT width="61"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="73"><font face="Times New Roman" size=2>457</font></td>
    <td align=LEFT width="43"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="78"><font face="Times New Roman" size=2>7,754</font></td>
    <td align=LEFT width="46"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="211"><font face="Times New Roman" size=2>Structural</font></td>
    <td align=RIGHT width="88"><font face="Times New Roman" size=2>45</font></td>
    <td align=LEFT width="61"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="73"><font face="Times New Roman" size=2>357</font></td>
    <td align=LEFT width="43"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="78"><font face="Times New Roman" size=2>7,930</font></td>
    <td align=LEFT width="46"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="211"><font face="Times New Roman" size=2>Rebar</font></td>
    <td align=RIGHT width="88"><font face="Times New Roman" size=2>70</font></td>
    <td align=LEFT width="61"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="73"><font face="Times New Roman" size=2>456</font></td>
    <td align=LEFT width="43"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="78"><font face="Times New Roman" size=2>6,510</font></td>
    <td align=LEFT width="46"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="211"><font face="Times New Roman" size=2>Others</font></td>
    <td align=RIGHT width="88"><font face="Times New Roman" size=2>4</font></td>
    <td align=LEFT width="61"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="73"><font face="Times New Roman" size=2>31</font></td>
    <td align=LEFT width="43"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="78"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="46"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="211"><font face="Times New Roman" size=2>Total</font></td>
    <td align=RIGHT width="88"><font face="Times New Roman" size=2>675</font></td>
    <td align=LEFT width="61"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="73"><font face="Times New Roman" size=2>5,824</font></td>
    <td align=LEFT width="43"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="78"><font face="Times New Roman" size=2>8,629</font></td>
    <td align=LEFT width="46"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <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 align="left" width="42%"><font face="Times New Roman" size=2>Product</font></th>
    <th colspan=2><font face="Times New Roman" size=2>Thousands<br>
of tons<br>
3Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Millions<br>
of pesos<br>
3Q&#146;07 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Average price<br>
per ton<br>
3Q&#146;07 </font></th>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=42% align=LEFT><font face="Times New Roman" size=2>SBQ</font></td>
    <td width=13% align=RIGHT><font face="Times New Roman" size=2>467</font></td>
    <td width=8% align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td width=13% align=RIGHT><font face="Times New Roman" size=2>4,438</font></td>
    <td width=8% align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td width=10% align=RIGHT><font face="Times New Roman" size=2>9,504</font></td>
    <td width=6% align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="42%"><font face="Times New Roman" size=2>Light Structural</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>60</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>489</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>8,143</font></td>
    <td align=LEFT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="42%"><font face="Times New Roman" size=2>Structural</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>50</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>401</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>8,011</font></td>
    <td align=LEFT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="42%"><font face="Times New Roman" size=2>Rebar</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>58</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>388</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>6,694</font></td>
    <td align=LEFT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="42%"><font face="Times New Roman" size=2>Others</font></td>
    <td align=RIGHT width="13%"><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="13%"><font face="Times New Roman" size=2>21</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="42%"><font face="Times New Roman" size=2>Total</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>635</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>5,737</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>9,035</font></td>
    <td align=LEFT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 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" -->

<table cellpadding=0 cellspacing=0 border=0 width=600 align="center">
  <tr valign=Bottom>

    <th align="left" width="42%"><font face="Times New Roman" size=2>Product</font></th>
    <th colspan=2><font face="Times New Roman" size=2>Thousands<br>
of tons<br>
4Q&#146;06 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Millions<br>
of pesos<br>
4Q&#146;06 </font></th>
    <th colspan=2><font face="Times New Roman" size=2>Average price<br>
per ton<br>
4Q&#146;06 </font></th>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=42% align=LEFT><font face="Times New Roman" size=2>SBQ</font></td>
    <td width=13% align=RIGHT><font face="Times New Roman" size=2>459</font></td>
    <td width=8% align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td width=13% align=RIGHT><font face="Times New Roman" size=2>3,685</font></td>
    <td width=8% align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman" size=2>8,029</font></td>
    <td width=5% align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="42%"><font face="Times New Roman" size=2>Light Structural</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>51</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>371</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font face="Times New Roman" size=2>7,270</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="42%"><font face="Times New Roman" size=2>Structural</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>52</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>434</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font face="Times New Roman" size=2>8,339</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="42%"><font face="Times New Roman" size=2>Rebar</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>60</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>395</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font face="Times New Roman" size=2>6,577</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="42%"><font face="Times New Roman" size=2>Others</font></td>
    <td align=RIGHT width="13%"><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="13%"><font face="Times New Roman" size=2>13</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="42%"><font face="Times New Roman" size=2>Total</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>622</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="13%"><font face="Times New Roman" size=2>4,898</font></td>
    <td align=LEFT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="11%"><font face="Times New Roman" size=2>7,874</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
</table>

<!-- 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;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. </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>4</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="Para Flush 00" FSL="Workstation" -->
<p align="right"><font face="Times New Roman, Times, Serif" size=2>CONSOLIDATED </font></p>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>(1) Operations preparation bases and
summary of significant accounting policies: </B><br>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>- 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>



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



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The main subsidiaries of CSG are the
following: </FONT></P>



<!-- MARKER FORMAT-SHEET="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT SIZE=2>
Compa&#241;&#237;a
Sider&#250;rgica de California, S.A. de C.V.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT SIZE=2>
Industrias
del Acero y del Alambre, S.A. de C.V.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT SIZE=2>
Pacific
Steel Inc.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT SIZE=2>
SimRep
Corporation and PAV Republic and Subsidiaries</FONT></TD></TR></TABLE>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All significant intercompany
balances and transactions have been eliminated in consolidation. </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>c. Cash and cash equivalents </B>- The
Company considers short-term investments with original maturities not greater than three
months to be cash equivalent. Cash equivalents 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>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>d. Inventories </B>- The inventories are
originally stated at average cost and subsequently adjusted to replacement value at the
balance sheet date. The replacement values do not exceed market and are determined as
follows: </FONT> </P>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<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  - 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="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="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>The Company is using derivative financial instruments for hedging risks
associated with natural gas prices and conducted studies on historical consumption,
future requirements and commitments; thus it avoided exposure to risks other than the
normal operating risks. Management of the Company examines its financial risks by
continually analyzing price, credit and liquidity risks. </FONT> </P>



<!-- 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 adoption of Bulletin C-10 &#147;Derivative Financial Instruments
and Hedging&#148;; therefore, at December 31, 2003 the fair value of natural gas in force
during 2004, 2005 and 2006 and which effective portions will not be offset against the
asset risks until consumed, were recognized within the comprehensive income account in
stockholders&#146; equity. </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>f. Property, plant and equipment </B>-
Property, plant and equipment of domestic origin are restated by using factors derived
from The National Consumer Price Index (&#147;NCPI&#148;) from the date of their acquisition, and
imported machinery and equipment are restated by applying devaluation and inflation
factors of the country of origin. Depreciation recorded in the consolidated statement of
income (loss) is computed based upon the estimated useful life and the restated cost of
each asset. In addition, Financial expense incurred during the construction period is
capitalized as construction in progress. The capitalized amounts are restated using a
factor derived from the NCPI cumulative from the date of capitalization through
period-end and are amortized over the average depreciation period of the corresponding
assets. The estimated useful lives of assets as of December 31, 2007 are as follows: </FONT> </P>



<table cellpadding=0 cellspacing=0 border=0 width=600 align="center">
  <tr>

    <td colspan=3>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th width="492"><font face="Times New Roman" size=2></font></th>
    <th colspan=2><font face="Times New Roman" size=2>Years</font></th>
  </tr>
  <tr>

    <td colspan=3>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width=492><font face="Times New Roman" size=2>Buildings</font></td>
    <td align=RIGHT width=79><font face="Times New Roman" size=2>15 to 50</font></td>
    <td align=LEFT width=29><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=3>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="492"><font face="Times New Roman" size=2>Machinery and equipment</font></td>
    <td align=RIGHT width="79"><font face="Times New Roman" size=2>10 to 40</font></td>
    <td align=LEFT width="29"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=3>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="492"><font face="Times New Roman" size=2>Buildings and improvements (Republic)</font></td>
    <td align=RIGHT width="79"><font face="Times New Roman" size=2>10 to 25</font></td>
    <td align=LEFT width="29"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=3>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="492"><font face="Times New Roman" size=2>Land improvements (Republic)</font></td>
    <td align=RIGHT width="79"><font face="Times New Roman" size=2>5 to 25</font></td>
    <td align=LEFT width="29"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=3>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="492"><font face="Times New Roman" size=2>Machinery and equipment (Republic)</font></td>
    <td align=RIGHT width="79"><font face="Times New Roman" size=2>5 to 20</font></td>
    <td align=LEFT width="29"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=3>
      <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"><B>g. Other assets </B>- Organization and
pre-operating expenses are capitalized and restated using a factor derived from the NCPI
cumulative from the date of generation through period-end, and their amortization is
calculated by the straight-line method over a period of 20 years. </FONT> </P>



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



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



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>i. Pension plan </B>- Until 1995, the
Company provided pension benefits for all personnel with a minimum of 10 years of service
and 35 years of age. The Company had established an irrevocable trust for its
contributions, which were based on actuarial calculations. In December 1995, the board of
directors of the Company, in agreement with the trade union,
discontinued these benefits and related contributions to the trust fund. This decision
was made because of the new Mexican pension fund system, Administradoras de Fondos para
el Retiro, which establishes similar benefits for the employees. The balance of the trust
fund will be applied to the retirement benefits of qualifying employees until the fund is
exhausted due to the irrevocable status of the fund. </FONT> </P>

<!-- 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="Para Flush 00" FSL="Workstation" -->
<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>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>j. Cost of sales </B>- Cost of sales
related to sales of inventory items is recorded at standard cost, which approximates the
replacement cost at the date of sale. </FONT> </P>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>k. Income tax and employee profit
sharing </B>- In 1999, the Mexican Institute of Public Accountants issued Bulletin D-4, &#147;Accounting
for Income and Asset Taxes and Employee Profit Sharing&#148;, which is effective for all
fiscal years beginning January 1, 2000. Bulletin D-4 establishes financial accounting and
reporting standards for the effects of asset tax, income tax and employee profit sharing
that result from enterprise activities during the current and preceding years. </FONT> </P>



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



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



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



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



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><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. <br>-By applying the prevailing
 exchange rate for  stockholders&#146;  equity accounts,  at the time capital  contributions
were made and earnings were generated. <br>-By applying the prevailing
 exchange rate at the consolidated  balance sheet date for revenues and expenses during
the reporting period. <br>-The related effect of translation
is recorded in  stockholders&#146;  equity under the caption Equity  adjustments  for non
monetary assets. <br>-The  resulting  amounts were
restated  applying  adjustment  factors  derived from the NCPI,  in  conformity  with
Mexican accounting Bulletin B-10. </FONT></P>



<!-- 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>

<!-- 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="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By applying the prevailing exchange
rate at the consolidated balance sheet date for monetary items. <BR>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. <BR>The related effect of  translation is recorded in the statement of operations as
part of the caption  Comprehensive financing cost. <BR>The resulting amounts were restated
applying  adjustment  factors derived from the Mexican NCPI, in conformity with Mexican
accounting Bulletin B-10. </FONT></P>



<!-- 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>- The Company sells its products primarily to distributors for the
construction industry with no specific geographic concentration. Additionally, no
single customer accounted for a significant amount of the Company&#146;s sales, and there
were no significant accounts receivable from a single customer or affiliate at
December 31, 2007 and at December 31, 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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>n. Other income (expenses) </B>- Other
income (expenses) shown in the consolidated statements of operations primarily includes
other financial operations. </FONT> </P>



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



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>p. Restatement of capital stock and
retained earnings (losses) </B>&#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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At December 31, 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 December 31, 2007 was U.S. $363,703 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="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(3) Commitments and
contingent liabilities: </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<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. 14,727 (U.S.
$1,355,297) at December 31, 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>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b. The Company is subject to various
other legal proceeding and claims, which have arisen, in the ordinary course of its
business. It is the opinion of management that their ultimate resolution will not have a
material adverse effect on the Company&#146;s consolidated financial position or consolidated
results of operations. </FONT></P>


<!-- MARKER FORMAT-SHEET="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>4</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>RELATIONS OF SHARES
INVESTMENTS </B></FONT></P>

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


<table cellpadding=0 cellspacing=0 border=0 width=600 align="center">
  <tr valign=Bottom>

    <th width="239" align="left"><font face="Times New Roman" size=2>COMPANY NAME</font></th>
    <th width="169"><font face="Times New Roman" size=2>MAIN ACTIVITIES</font></th>
    <th colspan=2><font face="Times New Roman" size=2>NUMBER&nbsp;OF<br>
SHARES</font></th>
    <th colspan=2><font face="Times New Roman" size=2>OWNERSHIP</font></th>
  </tr>
  <tr>

    <td colspan=6>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>SUBSIDIARIES</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2></font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Cia siderurgica de Guadalajara</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Sub-Holding</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>99.99</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Simec International</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Production and sales of <br>
      steel products</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>99.99</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Arrendadora Simec</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Production and sales of <br>
      steel products</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Controladora Simec</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Sub-Holding</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Pacific Steel</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Scrap purchase</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Cia. Sider&#250;rgica del Pac&#237;fico</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Rent of land</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>99.99</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Coordinadora de Servicios Sider&#250;rgicos de Calidad</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Administrative services</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Comercializadora Simec</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Sales of steel products</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>99.99</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Industrias del Acero y del Alambre</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Sales of steel products</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>99.99</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Procesadora Mexicali</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Scrap purchase</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>99.99</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Servicios Simec</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Administrative services</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Sistemas de Transporte de Baja California</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Freight services</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Operadora de Metales</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Administrative services</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Operadora de Servicios Sider&#250;rgicos de Tlaxcala</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Administrative services</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Administradora de Servicios Sider&#250;rgicos de Tlaxcala</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Administrative services</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Operadora de Servicios de la Industria Sider&#250;rgica</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Administrative services</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>SimRep</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Sub-Holding</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>PAV Republic</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Production and sales of <br>
      steel products</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>100.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>CSG Comercial</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Sales of steel products</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>99.95</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Comercializadora de Aceros de Tlaxcala</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Sales of steel products</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>99.95</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>Sider&#250;rgica de Baja California</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>Sales of steel products</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>99.95</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><b><font face="Times New Roman" size=2>TOTAL INVESTMENT IN SUBSIDIARIES</font></b></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><b><font face="Times New Roman" size=2>ASSOCIATEDS</font></b></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><b><font face="Times New Roman" size=2>TOTAL INVESTMENT IN ASSOCIATEDS</font></b></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><b><font face="Times New Roman" size=2>OTHER PERMANENT INVESTMENTS</font></b></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>0.00</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6 valign="top">
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="239" valign="top"><b><font face="Times New Roman" size=2>TOTAL</font></b></td>
    <td align=CENTER width="169"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="48"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="70"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="26"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=6>
      <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>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>4</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="Para Flush 00" FSL="Workstation" -->
<P align=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSOLIDATED </FONT></P>


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

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th align="left"><font face="Times New Roman" size="1">Credit Type /
Institution </font></th>
    <th><font face="Times New Roman" size="1">Amortization<br>
Date </font></th>
    <th><font face="Times New Roman" size="1">Rate of<br>
Interest </font></th>
    <th colspan=12><font face="Times New Roman" size="1">Denominated in Pesos<br>
(Thousands of Pesos) </font></th>
    <th colspan=12><font face="Times New Roman" size="1">Denominated in Foreign Currency<br>
(Thousands of Pesos) </font></th>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=12>
      <hr noshade color=#000000 size=1 width="98%">
    </th>
    <th colspan=12>
      <hr noshade color=#000000 size=1 width="98%">
    </th>
  </tr>

  <tr valign=Bottom>

    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=12><font face="Times New Roman" size="1">Time Interval</font></th>
    <th colspan=12><font face="Times New Roman" size="1">Time Interval</font></th>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=12>
      <hr noshade color=#000000 size=1 width="98%">
    </th>
    <th colspan=12>
      <hr noshade color=#000000 size=1 width="98%">
    </th>
  </tr>


  <tr valign=Bottom>

    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman" size="1">Current<br>
Year </font></th>
    <th colspan=2><font face="Times New Roman" size="1">Until 1<br>
Year </font></th>
    <th colspan=2><font face="Times New Roman" size="1">Until 2<br>
Years </font></th>
    <th colspan=2><font face="Times New Roman" size="1">Until 3<br>
Years </font></th>
    <th colspan=2><font face="Times New Roman" size="1">Until 4<br>
Years </font></th>
    <th colspan=2><font face="Times New Roman" size="1">Until 5<br>
Years or<br>
More </font></th>
    <th colspan=2><font face="Times New Roman" size="1">Current<br>
Year </font></th>
    <th colspan=2><font face="Times New Roman" size="1">Until 1<br>
Year </font></th>
    <th colspan=2><font face="Times New Roman" size="1">Until 2<br>
Years </font></th>
    <th colspan=2><font face="Times New Roman" size="1">Until 3<br>
Years </font></th>
    <th colspan=2><font face="Times New Roman" size="1">Until 4<br>
Years </font></th>
    <th colspan=2><font face="Times New Roman" size="1">Until 5<br>
Years&nbsp;or<br>
More </font></th>
  </tr>
  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size="1"><b>BANKS</b></font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=4%>&nbsp;</td>
    <td align=LEFT width=2%><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=1%>&nbsp;</td>
    <td align=LEFT width=1%><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=4%>&nbsp;</td>
    <td align=LEFT width=2%><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=4%>&nbsp;</td>
    <td align=LEFT width=2%><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=4%>&nbsp;</td>
    <td align=LEFT width=2%><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=4%>&nbsp;</td>
    <td align=LEFT width=2%><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=4%>&nbsp;</td>
    <td align=LEFT width=2%><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=5%>&nbsp;</td>
    <td align=LEFT width=1%><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=4%>&nbsp;</td>
    <td align=LEFT width=2%><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=4%>&nbsp;</td>
    <td align=LEFT width=2%><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=4%>&nbsp;</td>
    <td align=LEFT width=2%><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width=4%>&nbsp;</td>
    <td align=LEFT width=2%><font face="Times New Roman" size="1">&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size="1">With Warranty</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
  </tr>



  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size="1"><b>TOTAL BANKS</b></font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>



  <tr valign=Bottom>

    <td align=LEFT><b><font face="Times New Roman" size="1">LISTED IN THE STOCK EXCHANGE</font></b></td>
  </tr>

  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><b><font face="Times New Roman" size="1">UNSECURED DEBT</font></b></td>
  </tr>
  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>

  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size="1">Medium Term Notes</font></td>
    <td align=center><font face="Times New Roman" size="1">15/12/1998</font></td>
    <td align=center><font face="Times New Roman" size="1">9.33</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">3,282</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
  </tr>

  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size="1"><b>TOTAL STOCK EXCHANGE</b></font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">3,282</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
  </tr>



  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size="1"><b>SUPPLIERS</b></font></td>
  </tr>
  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size="1">Various</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">272,702</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">1,842,955</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
  </tr>


  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><b><font face="Times New Roman" size="1">TOTAL SUPPLIERS</font></b></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">272,702</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">1,842,955</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>



  <tr valign=Bottom>

    <td align=LEFT><b><font face="Times New Roman" size="1">OTHER LOANS WITH COST</font></b></td>
  </tr>


  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><b><font face="Times New Roman" size="1">TOTAL</font></b></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
  </tr>

  <tr>

    <td colspan=27>
      <hr noshade color=#000000 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" -->

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

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>



















  <tr valign=Bottom>

    <td align=LEFT><b><font face="Times New Roman" size="1">OTHER CURRENT LIABILITIES WITHOUT COST</font></b></td>
  </tr>
  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size="1">Various</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">241,243</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">502,120</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT width="3%"><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size="1">&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><b><font face="Times New Roman" size="1">TOTAL</font></b></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">241,243</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">502,120</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=27>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><b><font face="Times New Roman" size="1">TOTAL</font></b></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">513,945</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">2,348,357</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman" size="1">0</font></td>
    <td align=LEFT><font face="Times New Roman" size="1">&nbsp;</font></td>
  </tr>

  <tr>

    <td colspan=27>
      <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"><B>NOTES: </B>The exchange rate of the peso
to the U.S. Dollar at December 31, 2007 was Ps. 10.8662 </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>4</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="Para Flush 00" FSL="Workstation" -->
<P align=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONSOLIDATED </FONT></P>



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

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

    <th colspan=2><font face="Times New Roman" size=2>&nbsp;</font></th>
    <th colspan=4><font face="Times New Roman" size=2>DOLLARS </font><font face="Times New Roman" size=2></font></th>
    <th colspan=4><font face="Times New Roman" size=2>OTHER CURRENCIES </font><font face="Times New Roman" size=2></font></th>
    <th colspan=2><font face="Times New Roman" size=2>TOTAL </font></th>
  </tr>
  <tr>

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

    <th colspan=2 align="left"><font face="Times New Roman" size=2>FOREIGN CURRENCY POSITION </font></th>
    <th colspan=2><font face="Times New Roman" size=2>THOUSANDS OF<br>
DOLLARS </font></th>
    <th colspan=2><font face="Times New Roman" size=2>THOUSANDS OF<br>
PESOS </font></th>
    <th colspan=2><font face="Times New Roman" size=2>THOUSANDS OF<br>
DOLLARS </font></th>
    <th colspan=2><font face="Times New Roman" size=2>THOUSANDS OF<br>
PESOS </font></th>
    <th colspan=2><font face="Times New Roman" size=2>THOUSANDS OF<br>
PESOS </font></th>
  </tr>
  <tr>

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






  <tr valign=Bottom>

    <td align=LEFT width=34%><b><font face="Times New Roman" size=2>TOTAL ASSETS</font></b></td>
    <td align=LEFT width=1%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=10%><b><font face="Times New Roman" size=2>758,115</font></b></td>
    <td align=LEFT width=3%><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT width=9%><b><font face="Times New Roman" size=2>8,237,831</font></b></td>
    <td align=LEFT width=4%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=7%><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width=5%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=8%><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width=5%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=9%><b><font face="Times New Roman" size=2>8,237,831</font></b></td>
    <td align=LEFT width=5%><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="34%">&nbsp;</td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=RIGHT width="10%"><b></b></td>
    <td align=LEFT width="3%"><b></b></td>
    <td align=RIGHT width="9%"><b></b></td>
    <td align=LEFT width="4%">&nbsp;</td>
    <td align=RIGHT width="7%">&nbsp;</td>
    <td align=LEFT width="5%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="5%">&nbsp;</td>
    <td align=RIGHT width="9%"><b></b></td>
    <td align=LEFT width="5%">&nbsp;</td>
  </tr>
  <tr>

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

  <tr valign=Bottom>

    <td align=LEFT width="34%"><b><font face="Times New Roman" size=2>LIABILITIES POSITION</font></b></td>
    <td align=LEFT width="1%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><b><font face="Times New Roman" size=2>216,080</font></b></td>
    <td align=LEFT width="3%"><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT width="9%"><b><font face="Times New Roman" size=2>2,347,980</font></b></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><b><font face="Times New Roman" size=2>34</font></b></td>
    <td align=LEFT width="5%"><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT width="8%"><b><font face="Times New Roman" size=2>377</font></b></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><b><font face="Times New Roman" size=2>2,348,357</font></b></td>
    <td align=LEFT width="5%"><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="34%"><font face="Times New Roman" size=2>SHORT TERM LIABILITIES POSITION</font></td>
    <td align=LEFT width="1%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><b><font face="Times New Roman" size=2>216,080</font></b></td>
    <td align=LEFT width="3%"><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT width="9%"><b><font face="Times New Roman" size=2>2,347,980</font></b></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><b><font face="Times New Roman" size=2>34</font></b></td>
    <td align=LEFT width="5%"><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT width="8%"><b><font face="Times New Roman" size=2>377</font></b></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><b><font face="Times New Roman" size=2>2,348,357</font></b></td>
    <td align=LEFT width="5%"><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="34%"><font face="Times New Roman" size=2>LONG TERM LIABILITIES POSITION</font></td>
    <td align=LEFT width="1%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="5%"><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="34%">&nbsp;</td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=RIGHT width="10%">&nbsp;</td>
    <td align=LEFT width="3%">&nbsp;</td>
    <td align=RIGHT width="9%">&nbsp;</td>
    <td align=LEFT width="4%">&nbsp;</td>
    <td align=RIGHT width="7%">&nbsp;</td>
    <td align=LEFT width="5%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="5%">&nbsp;</td>
    <td align=RIGHT width="9%">&nbsp;</td>
    <td align=LEFT width="5%">&nbsp;</td>
  </tr>
  <tr>

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

    <td align=LEFT width="34%"><b><font face="Times New Roman" size=2>NET BALANCE</font></b></td>
    <td align=LEFT width="1%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><b><font face="Times New Roman" size=2>542,035</font></b></td>
    <td align=LEFT width="3%"><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT width="9%"><b><font face="Times New Roman" size=2>5,889,851</font></b></td>
    <td align=LEFT width="4%"><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT width="7%"><b><font face="Times New Roman" size=2>(34</font></b></td>
    <td align=LEFT width="5%"><b><font face="Times New Roman" size=2>)</font></b></td>
    <td align=RIGHT width="8%"><b><font face="Times New Roman" size=2>(377</font></b></td>
    <td align=LEFT width="5%"><b><font face="Times New Roman" size=2>)</font></b></td>
    <td align=RIGHT width="9%"><b><font face="Times New Roman" size=2>5,889,474</font></b></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

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


<!-- MARKER FORMAT-SHEET="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOTES </B></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;THE
EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT DECEMBER 31, 2007 WAS PS. 10.8662 </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>4</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="Para Flush 00" FSL="Workstation" -->
<P align=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>CONSOLIDATED</b> </FONT></P>

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

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th align="left" width="45%"><font face="Times New Roman" size=2>MONTH</font></th>
    <th colspan=2><font face="Times New Roman" size=2>MONETARY<br>
ASSETS </font></th>
    <th colspan=2><font face="Times New Roman" size=2>MONETARY<br>
LIABILITIES </font></th>
    <th colspan=2><font face="Times New Roman" size=2>ASSET (LIABILITY)<br>
MONETARY POSITION </font></th>
    <th colspan=2><font face="Times New Roman" size=2>MONTHLY INFLATION</font></th>
    <th colspan=2><font face="Times New Roman" size=2>MONTHLY (PROFIT)<br>
AND LOSS </font></th>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr>
    <td colspan=11>&nbsp;</td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width=45%><font face="Times New Roman" size=2>JANUARY</font></td>
    <td align=RIGHT width=8%><font face="Times New Roman" size=2>3,373,099</font></td>
    <td align=LEFT width=3%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=8%><font face="Times New Roman" size=2>2,186,629</font></td>
    <td align=LEFT width=4%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=9%><font face="Times New Roman" size=2>(1,186,470</font></td>
    <td align=LEFT width=3%><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width=6%><font face="Times New Roman" size=2>0.52</font></td>
    <td align=LEFT width=4%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=7%><font face="Times New Roman" size=2>(6,128</font></td>
    <td align=LEFT width=3%><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>FEBRUARY</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>3,663,966</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>1,510,290</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>(2,153,676</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>0.28</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(6,020</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>MARCH</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>6,158,413</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>1,425,766</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>(4,732,647</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>0.22</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(10,243</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>APRIL</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>6,425,075</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>2,204,991</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>(4,220,084</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>(0.06</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>2,520</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>MAY</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>6,574,516</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>2,249,298</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>(4,325,218</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>(0.49</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>21,100</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>JUNE</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>6,644,573</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>2,526,523</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>(4,118,050</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>0.12</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(4,945</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>JULY</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>6,889,513</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>2,504,376</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>(4,385,138</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>0.42</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(18,626</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>AUGUST</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>7,229,951</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>2,471,374</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>(4,758,577</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>0.41</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(19,387</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>SEPTEMBER</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>7,449,185</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>2,522,922</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>(4,926,263</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>0.78</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(38,251</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>OCTOBER</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>7,414,411</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>2,505,795</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>(4,908,616</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>0.39</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(19,128</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>NOVEMBER</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>7,512,548</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>3,290,602</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>(4,221,946</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>0.71</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(29,785</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>DECEMBER</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>7,850,262</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>3,104,608</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>(4,745,654</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>0.41</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(19,621</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>RESTATEMENT</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(7,857</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>CAPITALIZATION</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>FOREIGN CORPORATION</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>39,042</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>OTHER</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(54,883)</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>

  <tr valign=Bottom>
    <td align=LEFT width="45%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="3%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="4%">&nbsp;</td>
    <td align=RIGHT width="9%">&nbsp;</td>
    <td align=LEFT width="3%">&nbsp;</td>
    <td align=RIGHT width="6%">&nbsp;</td>
    <td align=LEFT width="4%">&nbsp;</td>
    <td align=RIGHT width="7%">&nbsp;</td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>TOTAL</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>(172,212</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>)</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>OTHER CONCEPTS:</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="45%"><font face="Times New Roman" size=2>CAPITALIZED RESULT FOR MONETARY POSITION</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="9%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=11>
      <hr noshade color=#000000 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>4</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>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>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A) Current assets to current
liabilities must be 1.0 times or more. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B) Total liabilities to total assets
do not be more than 0.60. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><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></P>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This notes was offered in the
international market. </FONT></P>

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

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

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A) Accomplished the actual situation
is 4.93 times. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B) Accomplished the actual situation
is 0.25 </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>C) Accomplished the actual situation
is 114.66 </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of December 31, 2007, the
remaining balance of the MTNs not exchanged amounts to Ps. 3,282 ($302,000
       dollars). </FONT></P>





<!-- MARKER FORMAT-SHEET="Para Flush 00" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>C.P. Jos&#233; Flores Flores <BR>       Chief
Financial Officer </FONT></P>




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


<!-- MARKER FORMAT-SHEET="Page Break CENTER" FSL="Workstation" -->
<BR>&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>4</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="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CONSOLIDATED </B></FONT></P>



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

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th align="left"><font face="Times New Roman" size=2>PLANT OR CENTER</font></th>
    <th><font face="Times New Roman" size=2>ECONOMIC ACTIVITY</font></th>
    <th><font face="Times New Roman" size=2>PLANT <br>
      CAPACITY </font></th>
    <th><font face="Times New Roman" size=2>UTILIZATION <br>
       (%)</font></th>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>GUADALAJARA MINI MILL</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>480</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>87.63</font></td>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>MEXICALI MINI MILL</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>250</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>80.88</font></td>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>INDUSTRIAS DEL ACERO Y DEL ALAMBRE</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>SALE OF STEEL PRODUCTS</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>0</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>0</font></td>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>APIZACO AND CHOLULA PLANTS</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>460</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>97.19</font></td>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>CANTON CASTER FACILITY</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PRODUCTION OF BILLET</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>1,380</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>52.70</font></td>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>LORAIN CASTER FACILITY</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PRODUCTION OF BILLET</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>1,150</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>85.60</font></td>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>LORAIN HOT-ROLLING MILL</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>840</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>76.70</font></td>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>LACKAWANNA HOT-ROLLING MILL</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>600</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>82.60</font></td>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>MASSILLON COLD-FINISH FACILITY</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>125</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>79.90</font></td>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>GARY COLD-FINISH FACILITY</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>70</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>51.40</font></td>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>ONTARIO COLD-FINISH FACILITY</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PRODUCTION AND SALES OF STEEL PRODUCTS</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>60</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>59.40</font></td>
  </tr>
  <tr>

    <td colspan=4>
      <hr noshade color=#000000 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>4</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="Left Head 2 Bold" FSL="Workstation" -->
<P ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CONSOLIDATED </B></FONT></P>



<table cellpadding=0 cellspacing=0 border=0 width=100%>
  <tr valign=Bottom>

    <th align="left"><font face="Times New Roman" size=2>DOMESTIC </font></th>
    <th><font face="Times New Roman" size=2>MAIN SUPPLIERS </font></th>
    <th><font face="Times New Roman" size=2>FOREIGN </font></th>
    <th><font face="Times New Roman" size=2>MAIN SUPPLIERS </font></th>
    <th><font face="Times New Roman" size=2>DOMESTIC<br>
SUBSTITUTION </font></th>
    <th><font face="Times New Roman" size=2>COST PRODUCTION (%) </font></th>
  </tr>
  <tr>

    <td colspan=6>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>PLANTS IN USA</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>SCRAP</font></td>
    <td align=center><font face="Times New Roman" size=2>VARIOUS</font></td>
    <td align=center><font face="Times New Roman" size=2>NO</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>19.25</font></td>
  </tr>
  <tr>

    <td colspan=6>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>SCRAP</font></td>
    <td align=center><font face="Times New Roman" size=2>VARIOUS</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PLANTS IN MEXICO</font></td>
    <td align=center><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=center><font face="Times New Roman" size=2>NO</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>50.78</font></td>
  </tr>
  <tr>

    <td colspan=6>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>PLANTS IN USA</font></td>
    <td align=center><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>COKE</font></td>
    <td align=center><font face="Times New Roman" size=2>VARIOUS</font></td>
    <td align=center><font face="Times New Roman" size=2>NO</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>11.82</font></td>
  </tr>
  <tr>

    <td colspan=6>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>PLANTS IN USA</font></td>
    <td align=center><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PELLETS</font></td>
    <td align=center><font face="Times New Roman" size=2>VARIOUS</font></td>
    <td align=center><font face="Times New Roman" size=2>NO</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>9.81</font></td>
  </tr>
  <tr>

    <td colspan=6>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>FERROALLOYS</font></td>
    <td align=center><font face="Times New Roman" size=2>VARIOUS</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PLANTS IN MEXICO</font></td>
    <td align=center><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=center><font face="Times New Roman" size=2>YES</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>7.61</font></td>
  </tr>
  <tr>

    <td colspan=6>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>PLANTS IN USA</font></td>
    <td align=center><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>FERROALLOYS</font></td>
    <td align=center><font face="Times New Roman" size=2>VARIOUS</font></td>
    <td align=center><font face="Times New Roman" size=2>NO</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>19.71</font></td>
  </tr>
  <tr>

    <td colspan=6>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>ELECTRODES</font></td>
    <td align=center><font face="Times New Roman" size=2>VARIOUS</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>PLANTS IN MEXICO</font></td>
    <td align=center><font face="Times New Roman" size=2>VARIOUS</font></td>
    <td align=center><font face="Times New Roman" size=2>YES</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>2.24</font></td>
  </tr>
  <tr>

    <td colspan=6>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>PLANTS IN USA</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>ELECTRODES</font></td>
    <td align=center><font face="Times New Roman" size=2>VARIOUS</font></td>
    <td align=center><font face="Times New Roman" size=2>NO</font></td>
    <td align=CENTER><font face="Times New Roman" size=2>1.33</font></td>
  </tr>
  <tr>

    <td colspan=6>
      <hr noshade color=#000000 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>4</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 cellpadding=0 cellspacing=0 border=0 width=100%>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th width="46%" align="left"><font face="Times New Roman" size=2>MAIN PRODUCTS</font></th>
    <th colspan=4><font face="Times New Roman" size=2>NET SALES</font><font face="Times New Roman" size=2></font></th>
    <th colspan=2><font face="Times New Roman" size=2>MAIN DESTINATION</font><font face="Times New Roman" size=2></font></th>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th width="46%"><font face="Times New Roman" size=2></font></th>
    <th colspan=2><font face="Times New Roman" size=2>VOLUME </font></th>
    <th colspan=2><font face="Times New Roman" size=2>AMOUNT </font></th>
    <th width="17%"><font face="Times New Roman" size=2>TRADEMARKS </font></th>
    <th width="15%"><font face="Times New Roman" size=2>COSTUMERS </font></th>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width=46%><font face="Times New Roman" size=2>STRUCTURAL PROFILES</font></td>
    <td align=RIGHT width=7%><font face="Times New Roman" size=2>188</font></td>
    <td align=LEFT width=4%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=8%><font face="Times New Roman" size=2>1,528,851</font></td>
    <td align=LEFT width=3%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width=17%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width=15%><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><font face="Times New Roman" size=2>COMMERCIAL PROFILES</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>81</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>618,226</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><font face="Times New Roman" size=2>REBAR</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>168</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>1,155,065</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><font face="Times New Roman" size=2>FLAT BAR</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>162</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>1,285,627</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><font face="Times New Roman" size=2>STEEL BARS</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>299</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>2,417,309</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><font face="Times New Roman" size=2>OTHER</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>2</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>57,797</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><font face="Times New Roman" size=2>BILLET</font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2>3</font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman" size=2>12,392</font></td>
    <td align=LEFT width="3%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><font face="Times New Roman" size=2>HOT-ROLLED BARS</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><font face="Times New Roman" size=2>COLD-FINISHED BARS</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><font face="Times New Roman" size=2>SEMI-FINISHED SEAMLESS TUBE ROUNDS</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><font face="Times New Roman" size=2>OTHER SEMI-FINISHED TRADE PRODUCTS</font></td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><b><font face="Times New Roman" size=2>T O T A L</font></b></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2></font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=right width="8%"><b><font face="Times New Roman" size=2>7,075,267</font></b></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr>
    <td colspan=7>&nbsp;</td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><b><font face="Times New Roman" size=2>FOREIGN SALES</font></b></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2></font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=right width="8%"><b><font face="Times New Roman" size=2>17,030,827</font></b></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="46%"><b><font face="Times New Roman" size=2>TOTAL</font></b></td>
    <td align=RIGHT width="7%"><font face="Times New Roman" size=2></font></td>
    <td align=LEFT width="4%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=right width="8%"><b><font face="Times New Roman" size=2>24,106,094</font></b></td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr>

    <td colspan=7>
      <hr noshade color=#000000 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>4</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 cellpadding=0 cellspacing=0 border=0 width=100%>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2 align="left"><font face="Times New Roman" size=2>MAIN PRODUCTS</font></th>
    <th colspan=4><font face="Times New Roman" size=2>NET SELLS</font><font face="Times New Roman" size=2></font></th>
    <th colspan=4><font face="Times New Roman" size=2>MAIN</font><font face="Times New Roman" size=2></font></th>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font face="Times New Roman" size=2></font></th>
    <th colspan=2><font face="Times New Roman" size=2>VOLUME</font></th>
    <th colspan=2><font face="Times New Roman" size=2>AMOUNT</font></th>
    <th colspan=2><font face="Times New Roman" size=2>TRADEMARKS</font></th>
    <th colspan=2><font face="Times New Roman" size=2>COSTUMERS</font></th>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width=35%><b><font face="Times New Roman" size=2>EXPORTS</font></b></td>
    <td align=LEFT width=0%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=10%><font face="Times New Roman" size=2></font></td>
    <td align=LEFT width=5%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=10%><font face="Times New Roman" size=2></font></td>
    <td align=LEFT width=5%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width=7%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width=7%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width=7%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width=14%><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="35%"><font face="Times New Roman" size=2>STRUCTURAL PROFILES</font></td>
    <td align=LEFT width="0%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>28</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>223,417</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT width="7%"><font size="2">&nbsp;</font></td>
    <td align=LEFT width="7%"><font face="Times New Roman" size="2">&nbsp;</font></td>
    <td align=LEFT width="7%"><font size="2">&nbsp;</font></td>
    <td align=LEFT width="14%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="35%"><font face="Times New Roman" size=2>COMMERCIAL PROFILES</font></td>
    <td align=LEFT width="0%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>26</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>199,355</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="35%"><font face="Times New Roman" size=2>REBAR</font></td>
    <td align=LEFT width="0%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>82</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>547,494</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="35%"><font face="Times New Roman" size=2>STEEL BARS</font></td>
    <td align=LEFT width="0%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>7</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>58,956</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="35%"><font face="Times New Roman" size=2>FLAT BAR</font></td>
    <td align=LEFT width="0%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>36</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>298,349</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="35%"><font face="Times New Roman" size=2>BILLET</font></td>
    <td align=LEFT width="0%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="35%"><b><font face="Times New Roman" size=2>FOREIGN SUBSIDIARIES</font></b></td>
    <td align=LEFT width="0%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="35%"><font face="Times New Roman" size=2>HOT-ROLLED BARS</font></td>
    <td align=LEFT width="0%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>920</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>9,577,814</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="35%"><font face="Times New Roman" size=2>COLD-FINISHED BARS</font></td>
    <td align=LEFT width="0%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>149</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>2,101,196</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="35%"><font face="Times New Roman" size=2>SEMI-FINISHED SEAMLESS TUBE ROUNDS</font></td>
    <td align=LEFT width="0%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>216</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>1,642,198</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="35%"><font face="Times New Roman" size=2>OTHER SEMI-FINISHED TRADE PRODUCTS</font></td>
    <td align=LEFT width="0%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>326</font></td>
    <td align=LEFT width="5%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="10%"><font face="Times New Roman" size=2>2,382,048</font></td>
    <td align=LEFT width=5%>&nbsp;</td>
    <td align=LEFT width=7%>&nbsp;</td>
    <td align=LEFT width=7%>&nbsp;</td>
    <td align=LEFT width=7%>&nbsp;</td>
    <td align=LEFT width=14%>&nbsp;</td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="35%"><b><font face="Times New Roman" size=2>T O T A L</font></b></td>
    <td align=LEFT width="0%"><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT width="10%"><b></b></td>
    <td align=LEFT width=5%><b></b></td>
    <td align=RIGHT width="10%"><b><font face="Times New Roman" size=2>17,030,827</font></b></td>
    <td align=LEFT width=5%>&nbsp;</td>
    <td align=LEFT width=7%>&nbsp;</td>
    <td align=LEFT width=7%>&nbsp;</td>
    <td align=LEFT width=7%>&nbsp;</td>
    <td align=LEFT width=14%>&nbsp;</td>
  </tr>
  <tr>

    <td colspan=10>
      <hr noshade color=#000000 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>4</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 cellpadding=0 cellspacing=0 border=0 width=100%>
  <tr valign=Bottom>

    <th colspan=2><font face="Times New Roman" size=2>SERIES</font></th>
    <th colspan=2><font face="Times New Roman" size=2>NOMINAL<br>
VALUE</font></th>
    <th colspan=2><font face="Times New Roman" size=2>VALID<br>
COUPON </font></th>
    <th colspan=8><font face="Times New Roman" size=2>NUMBER OF SHARES</font><font face="Times New Roman" size=2></font><font face="Times New Roman" size=2></font><font face="Times New Roman" size=2></font></th>
    <th colspan=4><font face="Times New Roman" size=2>CAPITAL STOCK<br>
(Thousands of Pesos)</font><font face="Times New Roman" size=2></font></th>
  </tr>
  <tr>

    <td colspan=18>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <th colspan=2><font face="Times New Roman" size=2></font></th>
    <th colspan=2><font face="Times New Roman" size=2></font></th>
    <th colspan=2><font face="Times New Roman" size=2></font></th>
    <th colspan=2><font face="Times New Roman" size=2>FIXED <br>
      PORTION </font></th>
    <th colspan=2><font face="Times New Roman" size=2>VARIABLE<br>
PORTION</font></th>
    <th colspan=2><font face="Times New Roman" size=2>MEXICAN</font></th>
    <th colspan=2><font face="Times New Roman" size=2>FREE <br>
      SUSCRIPTION </font></th>
    <th colspan=2><font face="Times New Roman" size=2>FIXED</font></th>
    <th colspan=2><font face="Times New Roman" size=2>VARIABLE</font></th>
  </tr>
  <tr>

    <td colspan=18>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><font face="Times New Roman" size=2>B</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=9%><font face="Times New Roman" size=2>90,850,050</font></td>
    <td align=LEFT width=4%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=9%><font face="Times New Roman" size=2>383,771,561</font></td>
    <td align=LEFT width=4%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=9%><font face="Times New Roman" size=2>0</font></td>
    <td align=LEFT width=4%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=9%><font face="Times New Roman" size=2>474,621,611</font></td>
    <td align=LEFT width=4%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=9%><font face="Times New Roman" size=2>441,786</font></td>
    <td align=LEFT width=4%><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width=9%><font face="Times New Roman" size=2>1,866,175</font></td>
    <td align=LEFT width=4%><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=18>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT><b><font face="Times New Roman" size=2>TOTAL</font></b></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman" size=2>90,850,050</font></b></td>
    <td align=LEFT><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman" size=2>383,771,561</font></b></td>
    <td align=LEFT><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman" size=2>0</font></b></td>
    <td align=LEFT><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman" size=2>474,621,611</font></b></td>
    <td align=LEFT><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman" size=2>441,786</font></b></td>
    <td align=LEFT><b><font face="Times New Roman" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman" size=2>1,866,175</font></b></td>
    <td align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr>

    <td colspan=18>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr>
    <td colspan=18>&nbsp;</td>
  </tr>
  <tr>
    <td colspan=18>
      <hr noshade color=#000000 size=1>
    </td>
  </tr>
  <tr>
    <td colspan=18><font size="2"><b>TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION:</b>
474,621,611</font></td>
  </tr>
  <tr>
    <td colspan=18>
      <hr noshade color=#000000 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>4</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 DECEMBER
31, 2007, ARE: </FONT></P>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <td align=LEFT colspan="4">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>

    <th align="left"><font face="Times New Roman" size=2>PROJECTS IN PROGRESS</font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman" size=2>TOTAL INVESTMENT</font></th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="4">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>

    <td width=68% align=LEFT><font face="Times New Roman" size=2>PROJECTS IN REPUBLIC</font></td>
    <td width=9% align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td width=17% align=RIGHT><font face="Times New Roman" size=2>86,521</font></td>
    <td width=6% align=LEFT><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="4">
      <hr noshade size="1">
    </td>
  </tr>



  <tr valign=Bottom>

    <td align=LEFT width="68%"><font face="Times New Roman" size=2>PROJECTS IN MEXICALI</font></td>
    <td align=LEFT width="9%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="17%"><font face="Times New Roman" size=2>88,236</font></td>
    <td align=LEFT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="4">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="68%"><font face="Times New Roman" size=2>PROJECTS IN TLAXCALA</font></td>
    <td align=LEFT width="9%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="17%"><font face="Times New Roman" size=2>4,193</font></td>
    <td align=LEFT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="4">
      <hr noshade size="1">
    </td>
  </tr>
  <tr valign=Bottom>

    <td align=LEFT width="68%"><font face="Times New Roman" size=2>PROJECTS IN GUADALAJARA</font></td>
    <td align=LEFT width="9%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="17%"><font face="Times New Roman" size=2>14,555</font></td>
    <td align=LEFT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="4">
      <hr noshade size="1">
    </td>
  </tr>

  <tr valign=Bottom>

    <td align=LEFT width="68%"><font face="Times New Roman" size=2><b>TOTAL INVESTMENT AT DECEMBER 31, 2007</b></font></td>
    <td align=LEFT width="9%"><font face="Times New Roman" size=2>&nbsp;</font></td>
    <td align=RIGHT width="17%"><b><font face="Times New Roman" size=2>193,505</font></b></td>
    <td align=LEFT width="6%"><font face="Times New Roman" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT colspan="4">
      <hr noshade size="2">
    </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>4</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="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT SIZE=2>
Monetary
items at the exchange rate at the balance sheet date.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT SIZE=2>
Non-monetary
 items and stockholders&#146;  equity at the exchange rate prevailing at the date the
transactions     occurred.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT SIZE=2>
Income
and expense items at an appropriate average exchange rate.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT 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>

<!-- MARKER FORMAT-SHEET="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT 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>



<!-- 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="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT SIZE=2>
Monetary
and non-monetary items at the exchange rate at the balance sheet date.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT SIZE=2>
Income
and expense items at the exchange rate at the balance sheet date.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT SIZE=2>
The
resulting foreign currency translation differences are included in the stockholders&#146; equity.</FONT></TD></TR></TABLE>

<!-- MARKER FORMAT-SHEET="Bullet 05" FSL="Workstation" -->
<TABLE WIDTH=100%>
  <TR>
    <TD WIDTH=5% VALIGN=top><FONT SIZE=3>&#149;</FONT></TD>
    <TD WIDTH=95%><FONT 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>

<!-- 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>4</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>DECLARATION OF THE
COMPANY OFFICIALS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THIS REPORT. </B></FONT></P>



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


<table width="75%" border="0" cellspacing="0" cellpadding="00" align="center">
  <tr align="center">
    <td><font size="2"><b>ING LUIS GARCIA LIMON<br>
CHIEF EXECUTIVE OFFICER </b></font></td>
    <td><font size="2"><b>C.P. JOSE FLORES FLORES
 <br>
      CHIEF FINANCIAL OFFICER </b></font></td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Center Head 2-Bold" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>GUADALAJARA, JAL, AT
FEBRUARY 28 OF 2007. </B></FONT></P>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>simec.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 simec.gif
M1TE&.#=A@P`Y`'<``"P`````@P`Y`(<``````-0!`=0!`=4"`M0"`M4#`]0#
M`]4$!-4&!M4("-4)"=4("-8*"M8,#-8.#M8/#]8/#]<0$-82$M<4%-<6%M<4
M%-@5%=@6%M@8&-@:&M@<'-D>'MD@(-D@(-HC(]DB(MHD)-HE)=HF)MHG)]LH
M*-LJ*MLK*]LJ*MPL+-LL+-PN+MPP,-PR,MPT--PV-MPW-]XX.-TX.-XY.=XZ
M.MX\/-X^/MX_/]X_/]]`0-Y"0M]$1-]&1M]'1]]$1.!&1N!(2.!)2>!*2N!,
M3.!.3N!/3^)04.%04.)24N)45.)55>)65N)65N-75^)75^-86.):6N):6N-;
M6^-<7.-=7>->7N-<7.1?7^1@8.1B8N1D9.5E9>5F9N5G9^5H:.5I:>5H:.9J
M:N5J:N9L;.9M;>9M;>=N;N9P<.9Q<>9Q<>=R<N=S<^=T=.=V=N=W=^=V=NAX
M>.AY>>AZ>NA\?.A^?NA^?NE_?^F`@.F`@.J#@^F"@NJ$A.J&ANJ'A^J(B.J*
MBNN+B^N+B^R,C.N.CNR/C^R0D.R2DNR4E.R5E>V6ENV7E^Z8F.V9F>V8F.Z:
MFNV:FNZ<G.Z<G.^=G>Z>GNZ@H.^AH>^BHN^CH^^DI.^FIN^HJ.^EI?"FIO"H
MJ/"IJ?"JJO"KJ_"KJ_&LK/"MK?"MK?&NKO&PL/&PL/*RLO*TM/*VMO*XN/*X
MN/.YN?*YN?.ZNO.\O/.]O?.^OO._O_3`P/3"PO3$Q/3&QO7(R/7)R?7*RO7+
MR_7*RO;,S/;.SO;/S_;0T/;0T/?1T?;1T??2TO;2TO?3T_?4U/?5U??6UO?7
MU_?7U_C9V??8V/C:VOC<W/C<W/G=W?C=W?G>WOG?W_G@X/GBXOGCX_GBXOKC
MX_KDY/KEY?KEY?OFYOKGY_KGY_OHZ/KHZ/OIZ?OJZOOKZ_OL[/OO[_OM[?SO
M[_SP\/OP\/SQ\?SR\OSS\_ST]/ST]/WU]?SU]?WV]OSV]OWW]_WX^/WY^?WZ
M^OW[^_WZ^O[[^_[\_/W\_/[]_?[^_O[___\(_P#K"1Q(L*#!@P@3*ES(L*'#
MAQ`C2IQ(L:+%BQ@S:MS(L:/'CR!#BAQ)LJ3)DRA3JES)LJ7+ES!CRIQ)LZ;-
MFSASZERXK-`;+$"""AU*M"B00A[!50,WL%JS:ND$*JV7;FFZ9D\+IF.ZDM:3
M"`'"BAU+MFQ8!6\X5MOTQ@N<3ELC/?'B9Q4X4W[`+;NS"=>;)V\65:NW]@Z<
M0KA2+GMBMK'C`!G\;`3GIT.)'"5P=&J&Q0*.$CY,W3%2;54..*9*J"ZQB'()
M%I^-T$*Y*</CVV-+=-JXR@>03K@685D$S$OH0C[@C"[MXXVI&%XH0:=EY(DI
M6G=88&EFLIH7W.`#`/]9IC&='Q:[I3H%BLM4\^6K8J".,<:4$2Q^@*P26.U-
M#,DEX>)#>+=9`$=4&8$#!PZK-+-((84LLHD7'6!A!`Z%P)=<:I?%\-,3@PFT
M2`E8F$3+@(\I\%H,,;#`HHLMLOA&8N5EUXDI.+"000988!%!!"7XT0Q\IYD"
M&Q9W=/($B`*9QT):)2UCQ&T\=K***5=FB>5U7&W4"0M>K+))=BSX@05H.=!B
MWGB=X(":$90TF0B&Z:2S"A`^;-(='`G<YL-L*#5S1@E&P/$$"W#0XL51R8&S
M"0YC8!'#C4#H*=`R6^!P1WXEW-$E2:D5^`1W*.%R)@L^W%%--87`T=,;S2S_
MXP4+B(*#"QS[#>15CC[X$6)W;X#U6`9P?%I2,YUTT@N"3A&V#%/-F&(*=U<A
MV&0S5RZK$BU`X%9"(=8>E,XR5R:+2[3)=J*F0M68DJQ=]2SC[B;I)DOO)O2N
M,E@UM+A;;[KW7I=2)R7@%D.N!U43B1$L="`!CX5D(($$%@`!:,)P.%PQ+;1@
M(?'$$UM`\<@26-S+&#AT(#+(+%/L84K@W&%;BD;T@A#!8RG@UE@2O&$L?W#,
M',`3M)RA`'A&W!J>#^FAM-C1CUDPQJ]-84%6!S^1Q8(I!E4CLUAH&0F>!(EV
MBYL"8_Q<TBHXX!:9L;3$0)9\;>?LQ:=>"PV9'Y%`_YVB#ZMTT@%X'2"U4CJ%
M#'X;>@751A807VO=M->*B\5")'>4E8$/1G3>N1>=@%.(WV>5P&(.+"9'ZDK]
M67";`G\.9%Y93]Q!^EE8#!9SY6+]QMA8&9RQS*I*@<,4.&^0!?LFJW#,,2Y4
MKX2+V5%O)Q!G9/'XG5D=1%)-969A@>/<"!<DY=6&VX0SE0?6(R!9);R!8EFP
M4VA6!&]THG<`+!2RRO__H\5@5L$"LOB`1C:AS/[,PH+]Z,^`&2/06`HW.K)8
M8#6K,<)^(N&ZL90H)\UXPNW*8@&?%:(L1KB#L"08@!BP!3P'3$?FQF*!.^R$
M;;C1S_;$$@'`F&6$9?G-E/]P\P2E6&V"EM+)(GC'0#A0+RP\&B+87I.;`I*E
M/G4#6P>VR,4@U>-$9&&00@```)BT[C$E>`(363`&*XJ%6'=PG8KN,`8+)JF#
M8O%!(2*Q"#[VD3RF8*(15G<0,HKD*KA(I"(7F4A:%*)@CF&!$6X'!#C@,2SH
MF9X"+N<5^"W"#V0A6T(6<<D`8"%<!C$D2'!QAR<`(0>PC*4L<^"#&"QP+#[X
M'=@*518?+",=BZB4G>0V%AQ,Z&IQ$A<<[+@057JD&5X`(@L#`+LG!L`"3]@"
M[9A2#6T)CBQ&Z(0U.^"%19CSG(N@Q3*.*!9LHO.<%W-F1S;!Q&F^$0AN#$L)
M,F7_03@8I((\K`\D7X>K+#XF`OX4B#PY,D-[]M(+^VO._CJPB((@+WM\6^%C
M"O=`MZ5OH1MAIT/?>`?;D:5V98G!Q2XE14PNHJ&+Z\0)P7.P@8!4(RT=:0;>
M0(ME3A`.R0,G(;^83_%T0J2/`8(IZ@@>(*SNIAEA@0)^%`$%2,"J6+WJ5:=*
MU1]9@`60BY4N`]##35@S`&,PB."J6E4%8&$5:LP`%^=*US>L8I)4G:H"N$I5
M"7B!(%#%R!W>0-@Q$/:PB$VL80T+ATW\,E[&\8%OO&"*7AAJ24O"0M,&<JO$
MFJ(:,GW0@R($H=$^B!;-\$EA$_N&Q3H'L&7<2;LZ02]:(W!E5;BU"DT"NY/>
:^O:WP`VN<(=+W.(:][C(3:YRE\M<F@0$`#L_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
