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<SEC-DOCUMENT>0000891092-08-002394.txt : 20080502
<SEC-HEADER>0000891092-08-002394.hdr.sgml : 20080502
<ACCEPTANCE-DATETIME>20080502124913
ACCESSION NUMBER:		0000891092-08-002394
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080502
FILED AS OF DATE:		20080502
DATE AS OF CHANGE:		20080502

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:		08797754

	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>e31462_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>




<BODY bgcolor="#ffffff" style="font-family: 'Times New Roman';font-size: 10pt;">

<P align=center><B><font size="3">UNITED STATES<br>
  </font></B><font size="3"><B>SECURITIES AND EXCHANGE COMMISSION</B></font><B><br>
  </B><B>Washington, D.C. 20549</B><BR>
  <BR>
  <B>FORM 6-K</B></P>
<P align=center><B>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
  15d-16 <br>
  UNDER THE SECURITIES EXCHANGE ACT OF 1934</B></P>
<P align=center><B>COMMISSION FILE NUMBER 1-11176</B></P>
<P align=center>For the month of<u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;May</u><u>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>,
  2008.</P>
<div align="center">Group Simec, Inc. </div>
<hr align="center" size="1" noshade>
<div align="center">(Translation of Registrant&#146;s Name Into English)<br>
  <br>
  Av. Lazaro Cardenas 601, Colonia la Nogalera, Guadalajara, Jalisco, Mexico 44440
</div>
<hr align="center" size="1" noshade>
<div align="center">(Address of principal executive office) </div>
<P align=left>Indicate by check mark whether the registrant files or will file
  annual reports under cover of Form 20-F or Form 40-F.<FONT face=Wingdings>&nbsp;&nbsp;</FONT><FONT face=Wingdings>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">Form&nbsp;20-F</font></td>
    <td width="5%"><FONT size="2">&nbsp;|X|</FONT></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">Form&nbsp;40-F</font></td>
    <td width="70%"><FONT size="2">|_|</FONT></td>
  </tr>
</table>
<P align=left>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)</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">Yes</font></td>
    <td width="5%"><FONT size="2">&nbsp;|_|</FONT></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">No</font></td>
    <td width="70%"><FONT size="2">|X|</FONT></td>
  </tr>
</table>
<P align=left>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)</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">Yes</font></td>
    <td width="5%"><font size="2">&nbsp;|_|</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">No</font></td>
    <td width="70%"><font size="2">|X|</font></td>
  </tr>
</table>
<P align=left>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.</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">Yes</font></td>
    <td width="5%"><font size="2">&nbsp;|_|</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">No</font></td>
    <td width="70%"><font size="2">|X|</font></td>
  </tr>
</table>
<P align=left>(If &#147;Yes&#148; is marked, indicate below the file number assigned
  to the registrant in connection with Rule 12g3-2(b): 82-_______________________.)</P>
<HR align=center width="100%" noshade SIZE=5>


<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_2"></A>
<P align=left>SIGNATURE</P>
<P align=left>&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.</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>

    <TD align=left width="71%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp; </TD>
    <TD align=center colSpan=2><FONT size=2>GRUPO SIMEC, S.A.B. de
      C.V.</FONT>
      <hr align="center" size="1" noshade>
      <FONT size=2>(Registrant)</FONT> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="71%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp; </TD>
    <TD align=left width="3%">&nbsp; </TD>
    <TD align=center width="24%">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="71%"><FONT size=2>Date: May 2, 2008.</FONT> </TD>
    <TD align=left width="2%"><FONT size=2>By:</FONT> </TD>
    <TD align=left colSpan=2><FONT size=2>/s/ Luis Garc&#237;a Lim&#243;n</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left width="71%">&nbsp;</TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left colSpan=2>
      <hr align="center" size="1" noshade>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="71%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp; </TD>
    <TD align=left width="3%"><FONT size=2>Name:</FONT> </TD>
    <TD align=left width="24%"><FONT size=2>Luis Garc&#237;a Lim&#243;n</FONT> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="71%">&nbsp; </TD>
    <TD align=left width="2%">&nbsp; </TD>
    <TD align=left width="3%"><FONT size=2>Title:</FONT> </TD>
    <TD align=left width="24%"><FONT size=2>Chief Executive Officer</FONT> </TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_3"></A> <br>
<br>
<IMG src="secfiling1quarter2008x3x1.jpg" border=0> <BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD align=left width="65%"><B><FONT size=2>PRESS RELEASE</FONT></B> </TD>
     <TD align=left width="4%"><FONT size=2>Contact:</FONT> </TD>
     <TD align=left width="31%"><FONT size=2>Sergio Vigil Gonz&#225;lez</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="65%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="31%"><FONT size=2>Jos&#233; Flores Flores</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="65%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="31%"><FONT size=2>Grupo Simec, S.A. de C.V.</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="65%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="31%"><FONT size=2>Calzada L&#225;zaro C&#225;rdenas 601</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="65%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="31%"><FONT size=2>44440 Guadalajara, Jalisco,</FONT> <FONT size=2>M&#233;xico</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="65%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="31%"><FONT size=2>52 55 1165 1025</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="65%">&nbsp; </TD>
     <TD align=left width="4%">&nbsp; </TD>
     <TD align=left width="31%"><FONT size=2>52 33 3770 6734</FONT> </TD></TR></TABLE><BR>
<P align=left><B>GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE FOR THE FIRST THREE MONTHS OF 2008</B></P>
<P align=left>GUADALAJARA, MEXICO, April 28, 2008- Grupo Simec, S.A.B. de C.V. (AMEX-SIM) (&#147;Simec&#148;) announced today its results of operations for the three-month period ended March 31, 2008.</P>
<P align=left>Acquisition of Corporacion Aceros DM, S.A. de C.V.</P>
<P align=left>On February 21, 2008, Simec has executed an agreement to acquire 100% of the shares of Corporaci&#243;n Aceros DM, S.A. de C.V. and certain of its affiliates (&#147;Grupo San&#148;).</P>
<P align=left>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 Potos&#237;, Mexico. Its plants and its 1,457 employees rely on cutting edge technology to produce 700 thousand tons of finished products annually.</P>
<P align=left>With this acquisition, Simec and Industrias CH, S.A.B. de C,V, (&#147;ICH&#148;) position themselves as the second largest producer of rebar and the largest steel producer in Mexico, with a production capacity of approximately 4.5 million tons of liquid steel and 3.8 million tons of finished products.</P>
<P align=left>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 it to better address the natural cycles of the steel industry on the domestic and global levels. Additionally, Simec and ICH have already identified significant synergies and economies of scale that will increase the company&#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.</P>
<P align=left>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.</P>
<P align=left>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 public offering, which took place in February 2007.</P>
<P align=left>This acquisition confirms the growth strategy that has characterized ICH, reaffirming its position as a consolidator in the steel sector.</P>
<HR align=center width="100%" noshade SIZE=5>


<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_4"></A>

<P align="left">
This acquisition is subject to the approval of Mexico&#146;s federal competition commission, Comisi&oacute;n Federal de Competencia. On March 25, 2008 this operation was approved by Simec&#146;s Shareholders Meeting.</P>
<P align="left">
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, Cort&eacute;s y Fuentes, S.C.</P>
<P align="left">
Comparative first quarter 2008 vs first quarter 2007</P>
<P align="left">
<I>Net Sales</I></P>
<P align="left">
Net sales increased 17% to Ps. 7,288 million in the first quarter 2008 compared to Ps. 6,237 million in the same period 2007. Shipments of finished steel products increased 6% to 745 thousand tons in the first quarter 2008 compared to 704 thousand
tons in the same period 2007. Total sales outside of Mexico in the first quarter 2008 increased 24% to Ps. 5,423 million compared with Ps. 4,360 million in the same period 2007, while total Mexican sales decreased 1% from Ps. 1,877 million in the
first quarter 2007 to Ps. 1,865 millions in the same period 2008. The increase in sales can be explained due to higher shipments during the first quarter 2008, comparing with the same period in 2007 (41,000 tons increase) and 10% increase 10% in the
average price of steel products.</P>
<P align="left">
<I>Direct Cost of Sales</I></P>
<P align="left">
Direct cost of sales increased 21% from Ps. 4,995 million in the fist quarter 2007 to Ps. 6,050 million in the same period 2008. Direct cost of sales as a percentage of net sales represented at 83% in the first quarter 2008 compared to 80% in the
same period 2007. The increase in the Direct Cost of Sales is attributable mainly to an increase of 14% in real terms in the average cost of raw materials used to produce steel products in the first quarter 2008 versus the same period 2007,
primarily as a result of increases in the price of scrap and certain other raw materials.</P>
<P align="left">
<I>Gross Profit</I></P>
<P align="left">
Gross profit in the first quarter 2008 was Ps. 1,238 million compared to Ps. 1,242 million in the same period 2007. Gross profit as a percentage of net sales in the first quarter 2008 was 17% compared to 20% in the same period 2007. The decline in
gross profit is due to the increase in cost of goods sold due to the reasons previously mentioned.</P>
<P align="left">
<I>Operating Expenses</I></P>
<P align="left">
Operating expenses decreased 1% to Ps. 360 million in the first quarter 2008 compared to Ps. 364 million in the same period 2007 and represented 5% of net sales in the first quarter 2008 and 6% of net sales in the same period 2007.</P>
<P align="left">
<I>Operating Profit</I></P>
<P align="left">
Operating profit was the same, Ps. 878 million for the first quarter 2008 and the first quarter 2007. Operating profit as a percentage of net sales was 12% in the first quarter 2008compared to 14% in the same period 2007. The decline in operating
profit is due to the increase in cost of goods sold due to the reasons previously mentioned.</P>
<P align="left">
<I>Comprehensive Financial Cost</I></P>
<P align="left">
Comprehensive financial cost in the first quarter 2008 represented an expense of Ps. 62 million compared with a gain of Ps. 77 million in the same period 2007. Net interest income was Ps. 55 million in the first quarter 2008 compared with Ps. 42
million in the same period 2007 due to larger cash balances this year, partly reflecting our capital increase in February 2007. At the same time we registered an exchange loss of Ps. 117 million in the first quarter 2008 compared with an exchange
gain of Ps. 63 million in the same period 2007, reflecting a 1.6% decrease in the value of the peso versus the dollar in the first quarter 2008 compared to same period 2007.</P>

<HR noshade align="center" width="100%" size="5">



<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_5"></A>

<P align="left">
<I>Other Expenses (Income) net</I></P>
<P align="left">
The company recorded other income Net of Ps. 6 million in the first quarter 2008 compared to other income net for Ps. 27 million in the same period 2007.</P>
<P align="left">
<I>Income Taxes</I></P>
<P align="left">
Income Taxes recorded Ps. 230 million in the first quarter 2008 compared to Ps. 237 million in the same period of 2007.</P>
<P align="left">
<I>Net Profit</I></P>
<P align="left">
As a result of the foregoing, net profit decreased by 21% to Ps. 592 million in the first quarter 2008 from Ps. 745 million in the same period 2007.</P>
<P align="left">
<I>Liquidity and Capital Resources</I></P>
<P align="left">
At March 31, 2008 Simec&#146;s total consolidated debt consisted of U.S. &#36;302,000 of 8 7/8% medium-term notes (&#147;MTN&#146;s&#148;) due 1998 (accrued interest at March 31, 2008 was U.S. &#36;370,827 dollars. At December 31, 2007, Simec&#146;s
total consolidated debt consisted of U.S. &#36;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. &#36;363,703 dollars.</P>
<P align="left">
Net resources provided by operations were Ps. 467 million in the first quarter 2008 versus Ps. 654 million of net resources provided by operations in the same period 2007. Net resources provided by financing activities were Ps. 25 million in the
first quarter 2008 versus Ps. 2,421 million of net resources used by financing activities in the same period 2007 (which amount includes the capital increase of Ps. 2,421 million in February 2007). Net resources used in investing activities (to
acquire property, plant and equipment, other non-current assets and liabilities) were Ps. 136 million in the first quarter 2008 versus net resources used in investing activities (to acquire property, plant and equipment and other non-current assets
and liabilities) of Ps. 56 million in 2006.</P>
<P align="left">
Comparative first quarter 2008 vs fourth quarter 2007</P>
<P align="left">
<I>Net Sales</I></P>
<P align="left">
Net sales increased 25% from Ps. 5,824 million for the fourth quarter 2007 to Ps. 7,288 million for the first quarter 2008. Sales in tons of finished steel increased 10% to 745 thousand tons in the first quarter 2008 compared with 675 thousand tons
in the fourth quarter 2007. The total sales outside of Mexico for the first quarter 2008 increased 27% to Ps. 5,423 million compared with Ps. 4,264 million for the fourth quarter 2007. Total Mexican sales increased 20% to 1,865 million in the first
quarter 2008 from Ps. 1,560 millions in the fourth quarter 2007. Prices of finished products sold in the first quarter 2008 increased approximately 13% compared to the fourth quarter 2007.</P>
<P align="left">
<I>Direct Cost of Sales</I></P>
<P align="left">
Direct cost of sales increased 11% from Ps. 5,436 million in the fourth quarter 2007 to Ps. 6,050 million for the first quarter 2008. With respect to sales, in the first quarter 2008, the direct cost of sales represents 83% compared to 93% for the
fourth quarter 2007. The average cost of raw materials used to produce steel products increased 1% in the first quarter 2008 versus the fourth quarter 2007, primarily as a result of increases in the price of scrap and certain other raw materials</P>
<P align="left">&nbsp;
</P>

<HR noshade align="center" width="100%" size="5">



<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_6"></A>
<P align=left><i>Gross Profit</i></P>
<P align=left>Gross profit for the first quarter 2008 increased 219% to Ps. 1,238 million compared to Ps. 388 million in the fourth quarter 2007. The gross profit as a percentage of net sales for the first quarter 2008 was 17% compared with 7% for the fourth quarter of 2007. The increase in gross profit is due to the increase in the prices of finished products sold due to the reasons previously mentioned.</P>
<P align=left><I>Operating Expenses</I></P>
<P align=left>Operating expenses increased 2% to Ps. 360 million in the first quarter 2008 compared to Ps. 352 million for the fourth quarter 2007. Operating expenses as a percentage of net sales represented 5% during the first quarter 2008 compared to 6% in the fourth quarter 2007.</P>
<P align=left><I>Operating Profit</I></P>
<P align=left>Operating profit increased 2,339% from Ps. 36 million in the fourth quarter 2007 to Ps. 878 million for the first quarter 2008. The operating profit as a percentage of net sales in the first quarter 2008 was 12% compared to 1% in the fourth quarter 2007. The increase in operating profit is due to the increase in the prices of finished products sold due to the reasons previously mentioned.</P>
<P align=left><I>Comprehensive Financial Cost</I></P>
<P align=left>Comprehensive financial cost for the first quarter 2008 represented an expense of Ps. 62 million compared with an expense of Ps. 167 million for the fourth quarter 2007. Net interest income was Ps. 55 million in the first quarter 2008 compared with Ps. 55 million of net interest income in the fourth quarter 2007. At the same time we registered an exchange loss of Ps. 117 million in the first quarter 2008 compared with an exchange gain of Ps. 35 million in the fourth quarter 2007.</P>
<P align=left><I>Other Expenses (Income) net</I></P>
<P align=left>The company recorded other income net for Ps. 6 million in the first quarter 2008 compared with other expense net for Ps. 24 million for the fourth quarter 2007.</P>
<P align=left><I>Income Taxes</I></P>
<P align=left>Income Taxes for the first quarter 2008 was an expense of Ps. 230 million compared to Ps. 119 million of income for the fourth quarter 2007</P>
<P align=left><I>Net Profit</I></P>
<P align=left>As a result of the foregoing, net profit was Ps. 592 million in the first quarter 2008 compared to Ps. 35 million of loss profit in the fourth quarter 2007.</P>
<TABLE width="600" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR>
    <TD width="221" align=left></TD>
    <TD width="61" align=right></TD>
    <TD width="61" align=right></TD>
    <TD width="64" align=right></TD>
    <TD width="7" align=left></TD>
    <TD colspan="2" align=center><FONT size=2>1Q&#146;08 vs </FONT></TD>
    <TD colspan="2" align=center><FONT size=2>1Q&#146;08 vs</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>(Millions of pesos)</FONT> </TD>
    <TD align=right><FONT size=2>1Q&#146;08</FONT> </TD>
    <TD align=right><FONT size=2>1Q&#146;07</FONT> </TD>
    <TD align=right><FONT size=2>4Q&#146;07</FONT> </TD>
    <TD align=left></TD>
    <TD colspan="2" align=center><FONT size=2>1Q&#146;07</FONT> </TD>
    <TD colspan="2" align=center><FONT size=2>4Q&#146;07</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Sales</FONT> </TD>
    <TD align=right><FONT size=2>7,288</FONT> </TD>
    <TD align=right><FONT size=2>6,237</FONT> </TD>
    <TD align=right><FONT size=2>5,824</FONT> </TD>
    <TD align=left></TD>
    <TD width="60" align=right><FONT size=2>17%</FONT> </TD>
    <TD width="30" align=right>&nbsp;</TD>
    <TD width="65" align=right><FONT size=2>25%</FONT> </TD>
    <TD width="31" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Cost of Sales</FONT> </TD>
    <TD align=right><FONT size=2>6,050</FONT> </TD>
    <TD align=right><FONT size=2>4,995</FONT> </TD>
    <TD align=right><FONT size=2>5,436</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>21%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>11%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Gross Profit</FONT> </TD>
    <TD align=right><FONT size=2>1,238</FONT> </TD>
    <TD align=right><FONT size=2>1,242</FONT> </TD>
    <TD align=right><FONT size=2>388</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>0%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>219%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Operating Expenses</FONT> </TD>
    <TD align=right><FONT size=2>360</FONT> </TD>
    <TD align=right><FONT size=2>364</FONT> </TD>
    <TD align=right><FONT size=2>352</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>-1%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>2%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Operating Profit</FONT> </TD>
    <TD align=right><FONT size=2>878</FONT> </TD>
    <TD align=right><FONT size=2>878</FONT> </TD>
    <TD align=right><FONT size=2>36</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>0%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>2,339%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>EBITDA</FONT> </TD>
    <TD align=right><FONT size=2>1,008</FONT> </TD>
    <TD align=right><FONT size=2>1,003</FONT> </TD>
    <TD align=right><FONT size=2>206</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>0%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>389%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Net Profit</FONT> </TD>
    <TD align=right><FONT size=2>592</FONT> </TD>
    <TD align=right><FONT size=2>745</FONT> </TD>
    <TD align=right>&nbsp; &nbsp; &nbsp;<FONT size=2>(35</FONT> </TD>
    <TD align=left>)</TD>
    <TD align=right><FONT size=2>-21%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>1,791%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Sales outside Mexico</FONT> </TD>
    <TD align=right><FONT size=2>5,423</FONT> </TD>
    <TD align=right><FONT size=2>4,360</FONT> </TD>
    <TD align=right><FONT size=2>4,264</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>24%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>27%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Sales in Mexico</FONT> </TD>
    <TD align=right><FONT size=2>1,865</FONT> </TD>
    <TD align=right><FONT size=2>1,877</FONT> </TD>
    <TD align=right><FONT size=2>1,560</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>-1%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>20%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Total sales (tons)</FONT> </TD>
    <TD align=right><FONT size=2>745</FONT> </TD>
    <TD align=right><FONT size=2>704</FONT> </TD>
    <TD align=right><FONT size=2>675</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>6%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>10%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>


<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_7"></A>
<TABLE width="700" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR vAlign=bottom>
    <TD width="146" align=left> <FONT size=2>Product </FONT></TD>
    <TD colspan="2" align=center> <FONT size=2>Thousands </FONT><BR> <FONT size=2>of
      tons </FONT><BR> <FONT size=2>first</FONT><BR> <FONT size=2>quarter </FONT><BR>
      <FONT size=2>2008 </FONT></TD>
    <TD colspan="2" align=center> <FONT size=2>Millions </FONT><BR> <FONT size=2>of
      pesos </FONT><BR> <FONT size=2>first </FONT><BR> <FONT size=2>quarter </FONT><BR>
      <FONT size=2>2008 </FONT></TD>
    <TD colspan="2" align=center><FONT size=2>Average </FONT><BR> <FONT size=2>price
      </FONT><BR> <FONT size=2>per ton </FONT><BR> <FONT size=2>first</FONT><BR>
      <FONT size=2>quarter </FONT><BR> <FONT size=2>2008</FONT></TD>
    <TD colspan="2" align=center> <FONT size=2>Thousands </FONT><BR> <FONT size=2>of
      tons</FONT><BR> <FONT size=2>first </FONT><BR> <FONT size=2>quarter </FONT><BR>
      <FONT size=2>2007 </FONT></TD>
    <TD colspan="2" align=center> <FONT size=2>Millions </FONT><BR> <FONT size=2>of
      pesos </FONT><BR> <FONT size=2>first</FONT><BR> <FONT size=2>quarter </FONT><BR>
      <FONT size=2>2007 </FONT></TD>
    <TD colspan="2" align=center><FONT size=2>Average </FONT><BR> <FONT size=2>price
      </FONT><BR> <FONT size=2>per ton </FONT><BR> <FONT size=2>first </FONT><BR>
      <FONT size=2>quarter </FONT><BR> <FONT size=2>2007 </FONT>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>SBQ</FONT> </TD>
    <TD width="68" align=right><FONT size=2>565</FONT> </TD>
    <TD width="41" align=right>&nbsp;</TD>
    <TD width="58" align=right><FONT size=2>5,749</FONT> </TD>
    <TD width="24" align=right>&nbsp;</TD>
    <TD width="57" align=right><FONT size=2>10,175</FONT> </TD>
    <TD width="25" align=right>&nbsp;</TD>
    <TD width="69" align=right><FONT size=2>516</FONT> </TD>
    <TD width="40" align=right>&nbsp;</TD>
    <TD width="57" align=right><FONT size=2>4,833</FONT> </TD>
    <TD width="25" align=right>&nbsp;</TD>
    <TD width="57" align=right><FONT size=2>9,366</FONT> </TD>
    <TD width="33" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Light Structural</FONT> </TD>
    <TD align=right><FONT size=2>54</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>453</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>8,389</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>62</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>454</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>7,323</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Structural</FONT> </TD>
    <TD align=right><FONT size=2>55</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>504</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>9,164</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>61</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>494</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>8,098</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Rebar</FONT> </TD>
    <TD align=right><FONT size=2>70</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>550</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>7,857</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>64</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>451</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>7,047</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Others</FONT> </TD>
    <TD align=right><FONT size=2>1</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>32</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>-</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>1</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>5</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>-</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Total</FONT> </TD>
    <TD align=right><FONT size=2>745</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>7,288</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>9,783</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>704</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>6,237</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>8,859</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE width="600" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR vAlign=bottom>
    <TD width="308" align=left> <FONT size=2>Product </FONT> </TD>
    <TD colspan="2" align=center><FONT size=2>Thousands </FONT><BR> <FONT size=2>of
      tons </FONT><BR> <FONT size=2>fourth </FONT><BR> <FONT size=2>quarter </FONT><BR>
      <FONT size=2>2007 </FONT></TD>
    <TD colspan="2" align=center><FONT size=2>Millions </FONT><BR> <FONT size=2>of
      pesos </FONT><BR> <FONT size=2>fourth </FONT><BR> <FONT size=2>quarter </FONT><BR>
      <FONT size=2>2007 </FONT></TD>
    <TD colspan="2" align=center><FONT size=2>Average price </FONT><BR> <FONT size=2>per
      ton </FONT><BR> <FONT size=2>fourth </FONT><BR> <FONT size=2>quarter </FONT><BR>
      <FONT size=2>2007 </FONT>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>SBQ</FONT> </TD>
    <TD width="49" align=right><FONT size=2>497</FONT> </TD>
    <TD width="34" align=right>&nbsp;</TD>
    <TD width="65" align=right><FONT size=2>4,524</FONT> </TD>
    <TD width="36" align=right>&nbsp;</TD>
    <TD width="67" align=right><FONT size=2>9,102</FONT> </TD>
    <TD width="41" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Light Structural</FONT> </TD>
    <TD align=right><FONT size=2>59</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>457</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>7,754</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Structural</FONT> </TD>
    <TD align=right><FONT size=2>45</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>357</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>7,930</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Rebar</FONT> </TD>
    <TD align=right><FONT size=2>70</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>456</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>6,510</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Others</FONT> </TD>
    <TD align=right><FONT size=2>4</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>31</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Total</FONT> </TD>
    <TD align=right><FONT size=2>675</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>5,824</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>8,629</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align=left>&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.</P>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_8"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=bottom>
    <TD align=left width="51%"><FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>:
      SIMEC</FONT></B> </TD>
    <TD align=right><FONT size=2>QUARTER:</FONT> <FONT size=2><B>1&nbsp;&nbsp;</B></FONT><FONT size=2>YEAR:</FONT><B><FONT size=2> 2008</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left width="51%"><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT>
    </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
</TABLE>
<BR>
<P align=center><B>CONSOLIDATED FINANCIAL STATEMENT</B><BR>
AT MARCH 31 OF 2008 AND 2007<BR>
(thousands of Mexican pesos)</P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR vAlign=bottom>
    <TD align=center rowSpan=2><strong><FONT size=2>REF</FONT><BR>
      <FONT size=2>S</FONT></strong></TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><strong><FONT size=2>CONCEPTS</FONT></strong></TD>
    <TD align=center colSpan=3><strong><FONT size=2>CURRENT YEAR</FONT> </strong></TD>
    <TD align=center colSpan=2><strong><FONT size=2>PREVIOUS YEAR</FONT></strong></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><strong><FONT size=2>AMOUNT</FONT> </strong></TD>
    <TD align=right>&nbsp; </TD>
    <TD align=right><strong><FONT size=2>%&nbsp;</FONT></strong></TD>
    <TD align=right><strong><FONT size=2>AMOUNT</FONT> </strong></TD>
    <TD align=right><strong><FONT size=2>%</FONT> </strong></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s01</FONT></B> </TD>
    <TD align=left>&nbsp;&nbsp;</TD>
    <TD align=left><B><FONT size=2>TOTAL ASSETS</FONT></B> </TD>
    <TD align=right><B><FONT size=2>23,918,476</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
    <TD align=right><B><FONT size=2>21,498,680</FONT></B> </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
  </TR>
  <TR>
    <TD colSpan=8>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s02</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>CURRENT ASSETS</FONT></B> </TD>
    <TD align=right><B><FONT size=2>15,576,282</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>65</FONT></B> </TD>
    <TD align=right><B><FONT size=2>13,280,741</FONT></B> </TD>
    <TD align=right><B><FONT size=2>62</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s03</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>CASH AND SHORT-TERM INVESTMENTS</FONT> </TD>
    <TD align=right><FONT size=2>6,752,074</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>28</FONT> </TD>
    <TD align=right><FONT size=2>5,223,119</FONT> </TD>
    <TD align=right><FONT size=2>24</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s04</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>ACCOUNTS AND NOTES RECEIVABLE (NET)</FONT> </TD>
    <TD align=right><FONT size=2>3,276,302</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>14</FONT> </TD>
    <TD align=right><FONT size=2>2,783,778</FONT> </TD>
    <TD align=right><FONT size=2>13</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s05</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER ACCOUNTS AND NOTES RECEIVABLE</FONT> </TD>
    <TD align=right><FONT size=2>647,164</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>3</FONT> </TD>
    <TD align=right><FONT size=2>291,056</FONT> </TD>
    <TD align=right><FONT size=2>1</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s06</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>INVENTORIES</FONT> </TD>
    <TD align=right><FONT size=2>4,838,058</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>20</FONT> </TD>
    <TD align=right><FONT size=2>4,920,740</FONT> </TD>
    <TD align=right><FONT size=2>23</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s07</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER CURRENT ASSETS</FONT> </TD>
    <TD align=right><FONT size=2>62,684</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>62,048</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s08</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>LONG-TERM</FONT></B> </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s09</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>ACCOUNTS AND NOTES RECEIVABLE (NET)</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s10</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>INVESTMENT IN SHARES OF NON-CONSOLIDATED</FONT>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp; </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=left><FONT size=2>SUBSIDIARIES AND ASSOCIATES</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s11</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER INVESTMENTS</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s12</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>PROPERTY, PLANT AND EQUIPMENT (NET)</FONT></B>
    </TD>
    <TD align=right><B><FONT size=2>7,858,403</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>33</FONT></B> </TD>
    <TD align=right><B><FONT size=2>7,668,980</FONT></B> </TD>
    <TD align=right><B><FONT size=2>36</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s13</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>LAND AND BUILDINGS</FONT> </TD>
    <TD align=right><FONT size=2>2,619,470</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>11</FONT> </TD>
    <TD align=right><FONT size=2>2,607,253</FONT> </TD>
    <TD align=right><FONT size=2>12</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s14</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>MACHINERY AND INDUSTRIAL EQUIPMENT</FONT> </TD>
    <TD align=right><FONT size=2>9,035,151</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>38</FONT> </TD>
    <TD align=right><FONT size=2>8,242,635</FONT> </TD>
    <TD align=right><FONT size=2>38</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s15</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER EQUIPMENT</FONT> </TD>
    <TD align=right><FONT size=2>110,082</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>108,810</FONT> </TD>
    <TD align=right><FONT size=2>1</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s16</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>ACCUMULATED DEPRECIATION</FONT> </TD>
    <TD align=right><FONT size=2>4,151,159</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>17</FONT> </TD>
    <TD align=right><FONT size=2>3,441,523</FONT> </TD>
    <TD align=right><FONT size=2>16</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s17</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>CONSTRUCTION IN PROGRESS</FONT> </TD>
    <TD align=right><FONT size=2>244,859</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>1</FONT> </TD>
    <TD align=right><FONT size=2>151,805</FONT> </TD>
    <TD align=right><FONT size=2>1</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s18</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS
      (NET)</FONT></B> </TD>
    <TD align=right><B><FONT size=2>381,248</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>2</FONT></B> </TD>
    <TD align=right><B><FONT size=2>454,963</FONT></B> </TD>
    <TD align=right><B><FONT size=2>2</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s19</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>OTHER ASSETS</FONT></B> </TD>
    <TD align=right><B><FONT size=2>102,543</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
    <TD align=right><B><FONT size=2>93,996</FONT></B> </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
  </TR>
  <TR>
    <TD colSpan=8>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s20</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>TOTAL LIABILITIES</FONT></B> </TD>
    <TD align=right><B><FONT size=2>6,115,488</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
    <TD align=right><B><FONT size=2>5,302,903</FONT></B> </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
  </TR>
  <TR>
    <TD colSpan=8>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s21</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>CURRENT LIABILITIES</FONT></B> </TD>
    <TD align=right><B><FONT size=2>3,261,652</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>53</FONT></B> </TD>
    <TD align=right><B><FONT size=2>3,003,745</FONT></B> </TD>
    <TD align=right><B><FONT size=2>57</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s22</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>SUPPLIERS</FONT> </TD>
    <TD align=right><FONT size=2>2,330,209</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>38</FONT> </TD>
    <TD align=right><FONT size=2>1,758,580</FONT> </TD>
    <TD align=right><FONT size=2>33</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s23</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>BANK LOANS</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s24</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>STOCK MARKET LOANS</FONT> </TD>
    <TD align=right><FONT size=2>3,230</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>3,434</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s103</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER LOANS WITH COST</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s25</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>TAXES PAYABLE</FONT> </TD>
    <TD align=right><FONT size=2>292,065</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>5</FONT> </TD>
    <TD align=right><FONT size=2>315,188</FONT> </TD>
    <TD align=right><FONT size=2>6</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s26</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER CURRENT LIABILITIES WITHOUT COST</FONT>
    </TD>
    <TD align=right><FONT size=2>636,148</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>10</FONT> </TD>
    <TD align=right><FONT size=2>926,543</FONT> </TD>
    <TD align=right><FONT size=2>17</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s27</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>LONG-TERM LIABILITIES</FONT></B> </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s28</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>BANK LOANS</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s29</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>STOCK MARKET LOANS</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s30</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER LOANS WITH COST</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s31</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>DEFERRED LIABILITIES</FONT></B> </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
    <TD align=right><B><FONT size=2>0</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s32</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>OTHER NON-CURRENT LIABILITIES WITHOUT COST</FONT></B>
    </TD>
    <TD align=right><B><FONT size=2>2,853,836</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>47</FONT></B> </TD>
    <TD align=right><B><FONT size=2>2,299,158</FONT></B> </TD>
    <TD align=right><B><FONT size=2>43</FONT></B> </TD>
  </TR>
  <TR>
    <TD colSpan=8>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s33</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>CONSOLIDATED STOCKHOLDERS&#146; EQUITY</FONT></B>
    </TD>
    <TD align=right><B><FONT size=2>17,802,988</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
    <TD align=right><B><FONT size=2>16,195,777</FONT></B> </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
  </TR>
  <TR>
    <TD colSpan=8>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s34</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>MINORITY INTEREST</FONT></B> </TD>
    <TD align=right><B><FONT size=2>2,493,092</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>14</FONT></B> </TD>
    <TD align=right><B><FONT size=2>2,420,149</FONT></B> </TD>
    <TD align=right><B><FONT size=2>15</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s35</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>MAJORITY INTEREST</FONT></B> </TD>
    <TD align=right><B><FONT size=2>15,309,896</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>86</FONT></B> </TD>
    <TD align=right><B><FONT size=2>13,775,628</FONT></B> </TD>
    <TD align=right><B><FONT size=2>85</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s36</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>CONTRIBUTED CAPITAL</FONT></B> </TD>
    <TD align=right><B><FONT size=2>7,181,743</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>40</FONT></B> </TD>
    <TD align=right><B><FONT size=2>7,181,743</FONT></B> </TD>
    <TD align=right><B><FONT size=2>44</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>S79</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>CAPITAL STOCK</FONT> </TD>
    <TD align=right><FONT size=2>4,030,427</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>23</FONT> </TD>
    <TD align=right><FONT size=2>4,030,427</FONT> </TD>
    <TD align=right><FONT size=2>25</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s39</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>PREMIUM ON ISSUANCE OF SHARES</FONT> </TD>
    <TD align=right><FONT size=2>3,151,316</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>18</FONT> </TD>
    <TD align=right><FONT size=2>3,151,316</FONT> </TD>
    <TD align=right><FONT size=2>19</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s40</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES</FONT>
    </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s41</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>EARNED CAPITAL</FONT></B> </TD>
    <TD align=right><B><FONT size=2>8,128,153</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>46</FONT></B> </TD>
    <TD align=right><B><FONT size=2>6,593,885</FONT></B> </TD>
    <TD align=right><B><FONT size=2>41</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s42</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>RETAINED EARNINGS AND CAPITAL RESERVES</FONT>
    </TD>
    <TD align=right><FONT size=2>9,155,207</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>51</FONT> </TD>
    <TD align=right><FONT size=2>7,638,476</FONT> </TD>
    <TD align=right><FONT size=2>47</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s44</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER ACCUMULATED COMPREHENSIVE RESULT</FONT>
    </TD>
    <TD align=right><FONT size=2>(1,027,054)</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>(6)</FONT> </TD>
    <TD align=right><FONT size=2>(1,044,591)</FONT> </TD>
    <TD align=right><FONT size=2>(6)</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s80</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>SHARES REPURCHASED</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_9"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=bottom>
    <TD align=left width="51%"><FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>:
      SIMEC</FONT></B> </TD>
    <TD align=right><FONT size=2>QUARTER:</FONT> <FONT size=2><B>1&nbsp;&nbsp;</B></FONT><FONT size=2>YEAR:</FONT><B><FONT size=2> 2008</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left width="51%"><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT>
    </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
</TABLE>
<BR>
<P align=center><B>CONSOLIDATED FINANCIAL STATEMENT</B><BR>
BREAKDOWN OF MAIN CONCEPTS<BR>
(thousands of Mexican pesos)</P>
<table width="740" border=0 align="center" cellpadding=0 cellspacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <tr valign=bottom>
    <td align=center rowspan=2><b><font size=2>REF</font></b><br> <b><font size=2>S</font></b></td>
    <td align=center><b><font size=2>CONCEPTS</font></b></td>
    <td align=center colspan=3><b><font size=2>CURRENT YEAR</font></b> </td>
    <td align=center colspan=3><b><font size=2>PREVIOUS YEAR</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=center>&nbsp; </td>
    <td align=center>&nbsp; </td>
    <td align=center>&nbsp; </td>
    <td align=center>&nbsp; </td>
    <td align=center>&nbsp; </td>
    <td align=center>&nbsp; </td>
    <td align=center>&nbsp; </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>AMOUNT</font></b> </td>
    <td align=right><b></b> </td>
    <td align=right><b><font size=2>%</font></b> </td>
    <td align=right><b><font size=2>AMOUNT</font></b> </td>
    <td align=right><b></b> </td>
    <td align=right><b><font size=2>%</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<b><font size=2>s03</font></b> </td>
    <td align=left><b><font size=2>CASH AND SHORT-TERM INVESTMENTS</font></b>
    </td>
    <td align=right><b><font size=2>6,752,074</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
    <td align=right><b><font size=2>5,223,119</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s46</font> </td>
    <td align=left><font size=2>CASH</font> </td>
    <td align=right><font size=2>423,838</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>6</font> </td>
    <td align=right><font size=2>406,164</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>8</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s47</font> </td>
    <td align=left><font size=2>SHORT-TERM INVESTMENTS</font> </td>
    <td align=right><font size=2>6,328,236</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>94</font> </td>
    <td align=right><font size=2>4,816,955</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>92</font> </td>
  </tr>
  <tr>
    <td colspan=8>&nbsp; </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<b><font size=2>s07</font></b> </td>
    <td align=left><b><font size=2>OTHER CURRENT ASSETS</font></b> </td>
    <td align=right><b><font size=2>62,684</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
    <td align=right><b><font size=2>62,048</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s81</font> </td>
    <td align=left><font size=2>DERIVATIVE FINANCIAL INSTRUMENTS</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s82</font> </td>
    <td align=left><font size=2>DISCONTINUED OPERATIONS</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s83</font> </td>
    <td align=left><font size=2>OTHER</font> </td>
    <td align=right><font size=2>62,684</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>100</font> </td>
    <td align=right><font size=2>62,048</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>100</font> </td>
  </tr>
  <tr>
    <td colspan=8>&nbsp; </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<b><font size=2>s18</font></b> </td>
    <td align=left><b><font size=2>OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS
      (NET)</font></b> </td>
    <td align=right><b><font size=2>381,248</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
    <td align=right><b><font size=2>454,963</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s48</font> </td>
    <td align=left><font size=2>DEFERRED EXPENSES</font> </td>
    <td align=right><font size=2>282,583</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>74</font> </td>
    <td align=right><font size=2>350,891</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>77</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s49</font> </td>
    <td align=left><font size=2>GOODWILL</font> </td>
    <td align=right><font size=2>36,887</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>10</font> </td>
    <td align=right><font size=2>40,557</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>9</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s51</font> </td>
    <td align=left><font size=2>OTHER</font> </td>
    <td align=right><font size=2>61,778</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>16</font> </td>
    <td align=right><font size=2>63,515</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>14</font> </td>
  </tr>
  <tr>
    <td colspan=8>&nbsp; </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<b><font size=2>s19</font></b> </td>
    <td align=left><b><font size=2>OTHER ASSETS</font></b> </td>
    <td align=right><b><font size=2>102,543</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
    <td align=right><b><font size=2>93,996</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s84</font> </td>
    <td align=left><font size=2>INTANGIBLE ASSET FROM LABOR OBLIGATIONS</font>
    </td>
    <td align=right><font size=2>5,084</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>5</font> </td>
    <td align=right><font size=2>5,724</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>6</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s85</font> </td>
    <td align=left><font size=2>DERIVATIVE FINANCIAL INSTRUMENTS</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s50</font> </td>
    <td align=left><font size=2>DEFERRED TAXES</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s86</font> </td>
    <td align=left><font size=2>DISCONTINUED OPERATIONS</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s87</font> </td>
    <td align=left><font size=2>OTHER</font> </td>
    <td align=right><font size=2>97,459</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>95</font> </td>
    <td align=right><font size=2>88,272</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>94</font> </td>
  </tr>
  <tr>
    <td colspan=8>&nbsp; </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<b><font size=2>s21</font></b> </td>
    <td align=left><b><font size=2>CURRENT LIABILITIES</font></b> </td>
    <td align=right><b><font size=2>3,261,652</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
    <td align=right><b><font size=2>3,003,745</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s52</font> </td>
    <td align=left><font size=2>FOREIGN CURRENCY LIABILITIES</font> </td>
    <td align=right><font size=2>2,438,287</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>75</font> </td>
    <td align=right><font size=2>1,932,196</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>64</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s53</font> </td>
    <td align=left><font size=2>MEXICAN PESOS LIABILITIES</font> </td>
    <td align=right><font size=2>823,365</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>25</font> </td>
    <td align=right><font size=2>1,071,549</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>36</font> </td>
  </tr>
  <tr>
    <td colspan=8>&nbsp; </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<b><font size=2>s26</font></b> </td>
    <td align=left><b><font size=2>OTHER CURRENT LIABILITIES WITHOUT COST</font></b>
    </td>
    <td align=right><b><font size=2>636,148</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
    <td align=right><b><font size=2>926,543</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s88</font> </td>
    <td align=left><font size=2>DERIVATIVE FINANCIAL INSTRUMENTS</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s89</font> </td>
    <td align=left><font size=2>INTEREST LIABILITIES</font> </td>
    <td align=right><font size=2>3,966</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>1</font> </td>
    <td align=right><font size=2>3,906</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s68</font> </td>
    <td align=left><font size=2>PROVISIONS</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>309,643</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>33</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s90</font> </td>
    <td align=left><font size=2>DISCONTINUED OPERATIONS</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s58</font> </td>
    <td align=left><font size=2>OTHER CURRENT LIABILITIES</font> </td>
    <td align=right><font size=2>632,182</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>99</font> </td>
    <td align=right><font size=2>612,994</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>66</font> </td>
  </tr>
  <tr>
    <td colspan=8>&nbsp; </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<b><font size=2>s27</font></b> </td>
    <td align=left><b><font size=2>LONG-TERM LIABILITIES</font></b> </td>
    <td align=right><b><font size=2>0</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>0</font></b> </td>
    <td align=right><b><font size=2>0</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>0</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s59</font> </td>
    <td align=left><font size=2>FOREIGN CURRENCY LIABILITIES</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s60</font> </td>
    <td align=left><font size=2>MEXICAN PESOS LIABILITIES</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr>
    <td colspan=8>&nbsp; </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<b><font size=2>s31</font></b> </td>
    <td align=left><b><font size=2>DEFERRED LIABILITIES</font></b> </td>
    <td align=right><b><font size=2>0</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>0</font></b> </td>
    <td align=right><b><font size=2>0</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>0</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s65</font> </td>
    <td align=left><font size=2>NEGATIVE GOODWILL</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s67</font> </td>
    <td align=left><font size=2>OTHER</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr>
    <td colspan=8>&nbsp; </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<b><font size=2>s32</font></b> </td>
    <td align=left><b><font size=2>OTHER NON-CURRENT LIABILITIES WITHOUT COST</font></b>
    </td>
    <td align=right><b><font size=2>2,853,836</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
    <td align=right><b><font size=2>2,299,158</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s66</font> </td>
    <td align=left><font size=2>DEFERRED TAXES</font> </td>
    <td align=right><font size=2>2,772,284</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>97</font> </td>
    <td align=right><font size=2>2,205,866</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>96</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s91</font> </td>
    <td align=left><font size=2>OTHER LIABILITIES IN RESPECT OF SOCIAL INSURANCE</font>
    </td>
    <td align=right><font size=2>18,990</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>1</font> </td>
    <td align=right><font size=2>16,675</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>1</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s92</font> </td>
    <td align=left><font size=2>DISCONTINUED OPERATIONS</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
    <td align=right><font size=2>0</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s69</font> </td>
    <td align=left><font size=2>OTHER LIABILITIES</font> </td>
    <td align=right><font size=2>62,562</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>2</font> </td>
    <td align=right><font size=2>76,617</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>3</font> </td>
  </tr>
  <tr>
    <td colspan=8>&nbsp; </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<b><font size=2>s79</font></b> </td>
    <td align=left><b><font size=2>CAPITAL STOCK</font></b> </td>
    <td align=right><b><font size=2>4,030,427</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
    <td align=right><b><font size=2>4,030,427</font></b> </td>
    <td align=left>&nbsp; </td>
    <td align=right><b><font size=2>100</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s37</font> </td>
    <td align=left><font size=2>CAPITAL STOCK (NOMINAL)</font> </td>
    <td align=right><font size=2>2,307,961</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>57</font> </td>
    <td align=right><font size=2>2,307,961</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>57</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp; &nbsp;<font size=2>s69</font> </td>
    <td align=left><font size=2>RESTATEMENT OF CAPITAL STOCK</font> </td>
    <td align=right><font size=2>1,722,466</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>43</font> </td>
    <td align=right><font size=2>1,722,466</font> </td>
    <td align=left>&nbsp; </td>
    <td align=right><font size=2>43</font> </td>
  </tr>
</table>
<BR>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_10"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=bottom>
    <TD align=left width="51%"><FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>:
      SIMEC</FONT></B> </TD>
    <TD align=right><FONT size=2>QUARTER:</FONT> <FONT size=2><B>1</B></FONT>
      <FONT size=2>YEAR:</FONT><B><FONT size=2> 2008</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left width="51%"><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT>
    </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
</TABLE>
<BR>
<P align=center><B>CONSOLIDATED FINANCIAL STATEMENT<br>
  </B>BREAKDOWN OF MAIN CONCEPTS <br>
  (thousands of Mexican pesos)</P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR vAlign=bottom>
    <TD align=center rowSpan=2><B><FONT size=2>REF</FONT></B><BR> <B><FONT size=2>S</FONT></B></TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><B><FONT size=2>CONCEPTS</FONT></B></TD>
    <TD align=center colSpan=3><B><FONT size=2>CURRENT YEAR</FONT></B> </TD>
    <TD align=center colSpan=3><B><FONT size=2>PREVIOUS YEAR</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>AMOUNT</FONT></B> </TD>
    <TD align=right><B></B> </TD>
    <TD align=right><B><FONT size=2>%</FONT></B> </TD>
    <TD align=right><B><FONT size=2>AMOUNT</FONT></B> </TD>
    <TD align=right><B></B> </TD>
    <TD align=right><B><FONT size=2>%</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s42</FONT></B> </TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;</TD>
    <TD align=left><B><FONT size=2>RETAINED EARNINGS AND CAPITAL RESERVES</FONT></B>
    </TD>
    <TD align=right><B><FONT size=2>9,155,207</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
    <TD align=right><B><FONT size=2>7,638,476</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s93</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>LEGAL RESERVE</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s43</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>RESERVE FOR REPURCHASE OF SHARES</FONT> </TD>
    <TD align=right><FONT size=2>200,612</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>2</FONT> </TD>
    <TD align=right><FONT size=2>200,624</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>3</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s94</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER RESERVES</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s95</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>RETAINED EARNINGS</FONT> </TD>
    <TD align=right><FONT size=2>8,481,722</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>93</FONT> </TD>
    <TD align=right><FONT size=2>6,820,939</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>89</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s45</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>NET INCOME FOR THE YEAR</FONT> </TD>
    <TD align=right><FONT size=2>472,873</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>5</FONT> </TD>
    <TD align=right><FONT size=2>616,913</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>8</FONT> </TD>
  </TR>
  <TR>
    <TD colSpan=9>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>s44</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>OTHER ACCUMULATED COMPREHENSIVE RESULT</FONT></B>
    </TD>
    <TD align=right><B><FONT size=2>(1,027,054)</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
    <TD align=right><B><FONT size=2>(1,044,591)</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s70</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>ACCUMULATED MONETARY RESULT</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s71</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>RESULT FROM HOLDING NON-MONETARY ASSETS</FONT>
    </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>(46,913)</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>4</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s96</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>CUMULATIVE RESULT FROM FOREIGN CURRENCY</FONT>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>TRANSLATION</FONT> </TD>
    <TD align=right><FONT size=2>(56,541)</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>6</FONT> </TD>
    <TD align=right><FONT size=2>(22,608)</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>2</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s97</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL</FONT>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>INSTRUMENTS</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>(4,557)</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s98</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>CUMULATIVE EFFECT OF DEFERRED INCOME TAXES</FONT>
    </TD>
    <TD align=right><FONT size=2>(970,513)</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>94</FONT> </TD>
    <TD align=right><FONT size=2>(970,513)</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>93</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s99</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>LABOR OBLIGATION ADJUSTMENT</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>s100</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_11"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>BALANCE SHEETS<br>
  </B>OTHER CONCEPTS <br>
  (thousands of Mexican pesos)</P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR vAlign=bottom>
    <TD align=center rowSpan=2 width="45"><B><FONT size=2>REF</FONT></B><BR>
       <B><FONT size=2>S</FONT></B></TD>
    <TD align=center width="14">&nbsp;</TD>
    <TD align=center width="467"><B><FONT size=2>CONCEPTS</FONT></B></TD>
    <TD align=center colspan="2"><B><FONT size=2>CURRENT&nbsp;YEAR</FONT></B>&nbsp;</TD>
    <TD align=center colspan="2"><B><FONT size=2>PREVIOUS&nbsp;YEAR</FONT></B></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="14">&nbsp;</TD>
    <TD align=center width="467">&nbsp; </TD>
    <TD align=center width="85">&nbsp; </TD>
    <TD align=center width="18">&nbsp;</TD>
    <TD align=center width="92">&nbsp; </TD>
    <TD align=center width="19">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="45">&nbsp; </TD>
    <TD align=center width="14">&nbsp;</TD>
    <TD align=center width="467">&nbsp; </TD>
    <TD align=center colspan="2"><B><FONT size=2>AMOUNT</FONT></B>&nbsp;</TD>
    <TD align=center colspan="2"><B><FONT size=2>AMOUNT</FONT></B></TD>
  </TR>
  <TR>
    <TD colSpan=7>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="45"><FONT size=2>S72</FONT> </TD>
    <TD align=left width="14">&nbsp;&nbsp;&nbsp;</TD>
    <TD align=left width="467"><FONT size=2>WORKING CAPITAL</FONT> </TD>
    <TD align=right width="85"><FONT size=2>12,314,630</FONT> </TD>
    <TD align=right width="18">&nbsp;</TD>
    <TD align=right width="92"><FONT size=2>10,276,996</FONT> </TD>
    <TD align=right width="19">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="45"><FONT size=2>S73</FONT> </TD>
    <TD align=left width="14">&nbsp;</TD>
    <TD align=left width="467"><FONT size=2>PENSIONS FUND AND SENIORITY PREMIUMS</FONT>
    </TD>
    <TD align=right width="85"><FONT size=2>0</FONT> </TD>
    <TD align=right width="18">&nbsp;</TD>
    <TD align=right width="92"><FONT size=2>0</FONT> </TD>
    <TD align=right width="19">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="45"><FONT size=2>S74</FONT> </TD>
    <TD align=left width="14">&nbsp;</TD>
    <TD align=left width="467"><FONT size=2>EXECUTIVES (*)</FONT> </TD>
    <TD align=right width="85"><FONT size=2>45</FONT> </TD>
    <TD align=right width="18">&nbsp;</TD>
    <TD align=right width="92"><FONT size=2>54</FONT> </TD>
    <TD align=right width="19">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="45"><FONT size=2>S75</FONT> </TD>
    <TD align=left width="14">&nbsp;</TD>
    <TD align=left width="467"><FONT size=2>EMPLOYERS (*)</FONT> </TD>
    <TD align=right width="85"><FONT size=2>1,220</FONT> </TD>
    <TD align=right width="18">&nbsp;</TD>
    <TD align=right width="92"><FONT size=2>1,153</FONT> </TD>
    <TD align=right width="19">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="45"><FONT size=2>S76</FONT> </TD>
    <TD align=left width="14">&nbsp;</TD>
    <TD align=left width="467"><FONT size=2>WORKERS (*)</FONT> </TD>
    <TD align=right width="85"><FONT size=2>3,183</FONT> </TD>
    <TD align=right width="18">&nbsp;</TD>
    <TD align=right width="92"><FONT size=2>3,082</FONT> </TD>
    <TD align=right width="19">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="45"><FONT size=2>S77</FONT> </TD>
    <TD align=left width="14">&nbsp;</TD>
    <TD align=left width="467"><FONT size=2>COMMON SHARES (*)</FONT> </TD>
    <TD align=right width="85"><FONT size=2>474,621,611</FONT> </TD>
    <TD align=right width="18">&nbsp;</TD>
    <TD align=right width="92"><FONT size=2>474,621,611</FONT> </TD>
    <TD align=right width="19">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="45"><FONT size=2>S78</FONT> </TD>
    <TD align=left width="14">&nbsp;</TD>
    <TD align=left width="467"><FONT size=2>REPURCHASED SHARES (*)</FONT> </TD>
    <TD align=right width="85"><FONT size=2>0</FONT> </TD>
    <TD align=right width="18">&nbsp;</TD>
    <TD align=right width="92"><FONT size=2>0</FONT> </TD>
    <TD align=right width="19">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="45"><FONT size=2>S101</FONT> </TD>
    <TD align=left width="14">&nbsp;</TD>
    <TD align=left width="467"><FONT size=2>RESTRICTED CASH</FONT> </TD>
    <TD align=right width="85"><FONT size=2>0</FONT> </TD>
    <TD align=right width="18">&nbsp;</TD>
    <TD align=right width="92"><FONT size=2>0</FONT> </TD>
    <TD align=right width="19">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="45"><FONT size=2>S102</FONT> </TD>
    <TD align=left width="14">&nbsp;</TD>
    <TD align=left width="467"><FONT size=2>NET DEBT OF NON CONSOLIDATED COMPANIES</FONT>
    </TD>
    <TD align=right width="85"><FONT size=2>0</FONT> </TD>
    <TD align=right width="18">&nbsp;</TD>
    <TD align=right width="92"><FONT size=2>0</FONT> </TD>
    <TD align=right width="19">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top nowrap>(*)&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">THESE ITEMS SHOULD BE EXPRESSED IN UNITS </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_12"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>STATEMENTS OF INCOME<br>
  </B>FROM JANUARY 1 TO MARCH 31 OF 2008 AND 2007 <br>
  (thousands of Mexican pesos)</P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR vAlign=bottom>
    <TD align=center rowSpan=2><B><FONT size=2>REF</FONT></B><BR> <B><FONT size=2>R</FONT></B></TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><B><FONT size=2>CATEGORIES</FONT></B></TD>
    <TD align=center colSpan=3><B><FONT size=2>CURRENT YEAR</FONT></B> </TD>
    <TD align=center colSpan=3><B><FONT size=2>PREVIOUS YEAR</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>AMOUNT</FONT></B> </TD>
    <TD align=right><B></B> </TD>
    <TD align=right><B><FONT size=2>%</FONT></B> </TD>
    <TD align=right><B><FONT size=2>AMOUNT</FONT></B> </TD>
    <TD align=right><B></B> </TD>
    <TD align=right><B><FONT size=2>%</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>r01</FONT></B> </TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;</TD>
    <TD align=left><B><FONT size=2>NET SALES</FONT></B> </TD>
    <TD align=right><B><FONT size=2>7,287,967</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
    <TD align=right><B><FONT size=2>6,237,228</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r02</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>COST OF SALES</FONT> </TD>
    <TD align=right><FONT size=2>6,050,363</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>83</FONT> </TD>
    <TD align=right><FONT size=2>4,995,433</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>80</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>r03</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>GROSS PROFIT</FONT></B> </TD>
    <TD align=right><B><FONT size=2>1,237,604</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>17</FONT></B> </TD>
    <TD align=right><B><FONT size=2>1,241,795</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>20</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r04</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OPERATING EXPENSES</FONT> </TD>
    <TD align=right><FONT size=2>359,374</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>5</FONT> </TD>
    <TD align=right><FONT size=2>363,997</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>6</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>r05</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>OPERATING INCOME</FONT></B> </TD>
    <TD align=right><B><FONT size=2>878,230</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>12</FONT></B> </TD>
    <TD align=right><B><FONT size=2>877,798</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>14</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r08</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER INCOME AND (EXPENSE), NET</FONT>
    </TD>
    <TD align=right><FONT size=2>5,699</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>27,540</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r06</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>COMPREHENSIVE FINANCING RESULT</FONT>
    </TD>
    <TD align=right><FONT size=2>(61,859)</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>77,187</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>1</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r12</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>EQUITY IN NET INCOME OF NON-CONSOLIDATED
      SUBSIDIARIES</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>AND ASSOCIATES</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r48</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>NON ORDINARY ITEMS</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>r09</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>INCOME BEFORE INCOME TAXES</FONT></B>
    </TD>
    <TD align=right><B><FONT size=2>822,070</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>11</FONT></B> </TD>
    <TD align=right><B><FONT size=2>982,525</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>16</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r10</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>INCOME TAXES</FONT> </TD>
    <TD align=right><FONT size=2>230,180</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>3</FONT> </TD>
    <TD align=right><FONT size=2>237,387</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>4</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>r11</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>INCOME (LOSS) BEFORE DISCONTINUED
      OPERATIONS</FONT></B> </TD>
    <TD align=right><B><FONT size=2>591,890</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>8</FONT></B> </TD>
    <TD align=right><B><FONT size=2>745,138</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>12</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r14</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>DISCONTINUED OPERATIONS</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>r18</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>NET CONSOLIDATED INCOME</FONT></B>
    </TD>
    <TD align=right><B><FONT size=2>591,890</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>8</FONT></B> </TD>
    <TD align=right><B><FONT size=2>745,138</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>12</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r19</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>NET INCOME OF MINORITY INTEREST</FONT>
    </TD>
    <TD align=right><FONT size=2>119,017</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>2</FONT> </TD>
    <TD align=right><FONT size=2>128,225</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>2</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r20</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>NET INCOME OF MAJORITY INTEREST</FONT>
    </TD>
    <TD align=right><B><FONT size=2>472,873</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>6</FONT></B> </TD>
    <TD align=right><B><FONT size=2>616,913</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>10</FONT></B> </TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_13"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>STATEMENTS OF INCOME<br>
  </B>BREAKDOWN OF MAIN CONCEPTS <br>
  (thousands of Mexican pesos)</P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR vAlign=bottom>
    <TD align=center rowSpan=2><B><FONT size=2>REF</FONT></B><BR>
      <B><FONT size=2>R</FONT></B></TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><B><FONT size=2>CONCEPTS</FONT></B></TD>
    <TD align=center colSpan=3><B><FONT size=2>CURRENT YEAR</FONT></B> </TD>
    <TD align=center colSpan=3><B><FONT size=2>PREVIOUS YEAR</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>AMOUNT</FONT></B> </TD>
    <TD align=right><B></B> </TD>
    <TD align=right><B><FONT size=2>%</FONT></B> </TD>
    <TD align=right><B><FONT size=2>AMOUNT</FONT></B> </TD>
    <TD align=right><B></B> </TD>
    <TD align=right><B><FONT size=2>%</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>r01</FONT></B> </TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;</TD>
    <TD align=left><B><FONT size=2>NET SALES</FONT></B> </TD>
    <TD align=right><B><FONT size=2>7,287,967</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
    <TD align=right><B><FONT size=2>6,237,228</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r21</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>DOMESTIC</FONT> </TD>
    <TD align=right><FONT size=2>1,864,957</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>26</FONT> </TD>
    <TD align=right><FONT size=2>1,876,221</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>30</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r22</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>FOREIGN</FONT> </TD>
    <TD align=right><FONT size=2>5,423,010</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>74</FONT> </TD>
    <TD align=right><FONT size=2>4,361,007</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>70</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r23</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>TRANSLATED INTO DOLLARS (***)</FONT>
    </TD>
    <TD align=right><FONT size=2>506,617</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>388,343</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD colSpan=9>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>r08</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>OTHER INCOME AND (EXPENSE), NET</FONT></B>
    </TD>
    <TD align=right><B><FONT size=2>5,699</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
    <TD align=right><B><FONT size=2>27,540</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r49</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER INCOME AND (EXPENSE), NET</FONT>
    </TD>
    <TD align=right><FONT size=2>5,699</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100</FONT> </TD>
    <TD align=right><FONT size=2>27,540</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r34</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>EMPLOYEES&#146; PROFIT SHARING EXPENSES</FONT>
    </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r35</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>DEFERRED EMPLOYEES&#146; PROFIT SHARING</FONT>
    </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR>
    <TD colSpan=9>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><B><FONT size=2>r06</FONT></B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B><FONT size=2>COMPREHENSIVE FINANCING RESULT</FONT></B>
    </TD>
    <TD align=right><B><FONT size=2>(61,859)</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
    <TD align=right><B><FONT size=2>77,187</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r24</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>INTEREST EXPENSE</FONT> </TD>
    <TD align=right><FONT size=2>5,048</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>(8)</FONT> </TD>
    <TD align=right><FONT size=2>6,080</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>8</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r42</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>GAIN (LOSS) ON RESTATEMENT OF UDI&#146;S</FONT>
    </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r45</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER FINANCE COSTS</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r26</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>INTEREST INCOME</FONT> </TD>
    <TD align=right><FONT size=2>60,422</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>(98)</FONT> </TD>
    <TD align=right><FONT size=2>48,476</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>63</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r46</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>OTHER FINANCIAL PRODUCTS</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r25</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>FOREIGN EXCHANGE GAIN (LOSS), NET</FONT>
    </TD>
    <TD align=right><FONT size=2>(117,233)</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>190</FONT> </TD>
    <TD align=right><FONT size=2>63,255</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>82</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r28</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>RESULT FROM MONETARY POSITION</FONT>
    </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right><FONT size=2>(28,464)</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>(37)</FONT> </TD>
  </TR>
  <TR>
    <TD colSpan=9>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r10</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>INCOME TAXES</FONT> </TD>
    <TD align=right><B><FONT size=2>230,180</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
    <TD align=right><B><FONT size=2>237,387</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><B><FONT size=2>100</FONT></B> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r32</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>INCOME TAX</FONT> </TD>
    <TD align=right><FONT size=2>119,835</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>52</FONT> </TD>
    <TD align=right><FONT size=2>114,542</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>48</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=right><FONT size=2>r33</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2>DEFERRED INCOME TAX</FONT> </TD>
    <TD align=right><FONT size=2>110,345</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>48</FONT> </TD>
    <TD align=right><FONT size=2>122,845</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>52</FONT> </TD>
  </TR>
</TABLE>
<BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top nowrap>(***)&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">THOUSANDS OF DOLLARS </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_14"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>STATEMENTS OF INCOME<br>
  </B>OTHER CONCEPTS <br>
  (thousands of Mexican pesos)</P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">

  <TR vAlign=bottom>

    <TD align=center rowSpan=2 width="32"><B><FONT size=2>REF</FONT></B><BR>
      <B><FONT size=2>R</FONT></B></TD>
    <TD align=center width="485"><B><FONT size=2>CONCEPTS</FONT></B></TD>
    <TD align=center colspan="2"><B><FONT size=2>CURRENT&nbsp;YEAR</FONT></B>&nbsp;&nbsp;</TD>
    <TD align=center colspan="2"><B><FONT size=2>PREVIOUS&nbsp;YEAR</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="485">&nbsp; </TD>
    <TD align=center width="88">&nbsp; </TD>
    <TD align=center width="24">&nbsp;</TD>
    <TD align=center width="88">&nbsp; </TD>
    <TD align=center width="23">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="32">&nbsp; </TD>
    <TD align=center width="485">&nbsp; </TD>
    <TD align=center colspan="2"><B><FONT size=2>AMOUNT</FONT></B></TD>
    <TD align=center colspan="2"><B><FONT size=2>AMOUNT</FONT></B></TD>
  </TR>

  <TR>

    <TD colSpan=6>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="32"><FONT size=2>r36</FONT> </TD>
    <TD align=left width="485"><FONT size=2>TOTAL SALES</FONT> </TD>
    <TD align=right width="88"><FONT size=2>7,379,364</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="88"><FONT size=2>6,270,299</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="32"><FONT size=2>r37</FONT> </TD>
    <TD align=left width="485"><FONT size=2>TAX RESULT FOR THE YEAR</FONT> </TD>
    <TD align=right width="88"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="88"><FONT size=2>0</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="32"><FONT size=2>r38</FONT> </TD>
    <TD align=left width="485"><FONT size=2>NET SALES (**)</FONT> </TD>
    <TD align=right width="88"><FONT size=2>25,156,833</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="88"><FONT size=2>24,306,753</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="32"><FONT size=2>r39</FONT> </TD>
    <TD align=left width="485"><FONT size=2>OPERATION INCOME (**)</FONT> </TD>
    <TD align=right width="88"><FONT size=2>2,184,449</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="88"><FONT size=2>3,653,043</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="32"><FONT size=2>r40</FONT> </TD>
    <TD align=left width="485"><FONT size=2>NET INCOME OF MAJORITY INTEREST (**)</FONT> </TD>
    <TD align=right width="88"><FONT size=2>1,385,017</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="88"><FONT size=2>2,377,095</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="32"><FONT size=2>r41</FONT> </TD>
    <TD align=left width="485"><FONT size=2>NET CONSOLIDATED INCOME (**)</FONT> </TD>
    <TD align=right width="88"><FONT size=2>1,471,926</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="88"><FONT size=2>2,644,986</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="32"><FONT size=2>r47</FONT> </TD>
    <TD align=left width="485"><FONT size=2>OPERATIVE DEPRECIATION AND AMORTIZATION</FONT> </TD>
    <TD align=right width="88"><FONT size=2>130,060</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="88"><FONT size=2>125,683</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top nowrap>(**)&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">RESTATED INFORMATION FOR THE LAST TWELVE MONTHS </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_15"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>STATEMENTS OF CHANGES IN FINANCIAL POSITION</B><BR>
FROM JANUARY 1 TO MARCH 31 OF 2008 AND 2007<BR>
(thousands of pesos)</P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">

  <TR vAlign=bottom>

    <TD align=center rowSpan=2 width="28"><B><FONT size=2>REF</FONT></B><BR>
      <B><FONT size=2>C</FONT></B></TD>
    <TD align=center width="471"><B><FONT size=2>CONCEPTS</FONT></B></TD>
    <TD align=center colspan="2"><B><FONT size=2>CURRENT&nbsp;YEAR</FONT></B></TD>
    <TD align=center colspan="2"><B><FONT size=2>PREVIOUS&nbsp;YEAR</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="471">&nbsp; </TD>
    <TD align=center width="94">&nbsp; </TD>
    <TD align=center width="23">&nbsp;</TD>
    <TD align=center width="95">&nbsp; </TD>
    <TD align=center width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28">&nbsp; </TD>
    <TD align=center width="471">&nbsp; </TD>
    <TD align=center colspan="2"><B><FONT size=2>AMOUNT</FONT></B></TD>
    <TD align=center colspan="2"><B><FONT size=2>AMOUNT</FONT></B></TD>
  </TR>

  <TR>

    <TD colSpan=6>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><B><FONT size=2>c01</FONT></B> </TD>
    <TD align=left width="471"><B><FONT size=2>CONSOLIDATED NET INCOME</FONT></B> </TD>
    <TD align=right width="94"><B><FONT size=2>591,890</FONT></B> </TD>
    <TD align=right width="23">&nbsp;&nbsp;&nbsp;</TD>
    <TD align=right width="95"><B><FONT size=2>745,138</FONT></B> </TD>
    <TD align=right width="29">&nbsp;&nbsp;&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><FONT size=2>c02</FONT> </TD>
    <TD align=left width="471"><FONT size=2>+ (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH</FONT> </TD>
    <TD align=right width="94"><FONT size=2>240,405</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
    <TD align=right width="95"><FONT size=2>248,529</FONT> </TD>
    <TD align=right width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><B><FONT size=2>c03</FONT></B> </TD>
    <TD align=left width="471"><B><FONT size=2>RESOURCES FROM NET INCOME FOR THE YEAR</FONT></B> </TD>
    <TD align=right width="94"><B><FONT size=2>832,295</FONT></B> </TD>
    <TD align=right width="23">&nbsp;</TD>
    <TD align=right width="95"><B><FONT size=2>993,667</FONT></B> </TD>
    <TD align=right width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><FONT size=2>c04</FONT> </TD>
    <TD align=left width="471"><FONT size=2>RESOURCES PROVIDED OR USED IN OPERATION</FONT> </TD>
    <TD align=right width="94"><FONT size=2>(365,028)</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
    <TD align=right width="95"><FONT size=2>(339,673)</FONT> </TD>
    <TD align=right width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><B><FONT size=2>c05</FONT></B> </TD>
    <TD align=left width="471"><B><FONT size=2>RESOURCES PROVIDED BY (USED FOR) OPERATING</FONT></B> </TD>
    <TD align=left width="94">&nbsp; </TD>
    <TD align=left width="23">&nbsp;</TD>
    <TD align=left width="95">&nbsp; </TD>
    <TD align=left width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="28">&nbsp; </TD>
    <TD align=left width="471"><B><FONT size=2>ACTIVITIES</FONT></B> </TD>
    <TD align=right width="94"><B><FONT size=2>467,267</FONT></B> </TD>
    <TD align=right width="23">&nbsp;</TD>
    <TD align=right width="95"><B><FONT size=2>653,994</FONT></B> </TD>
    <TD align=right width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><FONT size=2>c06</FONT> </TD>
    <TD align=left width="471"><FONT size=2>RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING</FONT> </TD>
    <TD align=left width="94">&nbsp; </TD>
    <TD align=left width="23">&nbsp;</TD>
    <TD align=left width="95">&nbsp; </TD>
    <TD align=left width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="28">&nbsp; </TD>
    <TD align=left width="471"><FONT size=2>ACTIVITIES</FONT> </TD>
    <TD align=right width="94"><FONT size=2>24,881</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
    <TD align=right width="95"><FONT size=2>82</FONT> </TD>
    <TD align=right width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><FONT size=2>c07</FONT> </TD>
    <TD align=left width="471"><FONT size=2>RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING</FONT> </TD>
    <TD align=left width="94">&nbsp; </TD>
    <TD align=left width="23">&nbsp;</TD>
    <TD align=left width="95">&nbsp; </TD>
    <TD align=left width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="28">&nbsp; </TD>
    <TD align=left width="471"><FONT size=2>ACTIVITIES</FONT> </TD>
    <TD align=right width="94"><FONT size=2>0</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
    <TD align=right width="95"><FONT size=2>2,420,726</FONT> </TD>
    <TD align=right width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><B><FONT size=2>c08</FONT></B> </TD>
    <TD align=left width="471"><B><FONT size=2>RESOURCES PROVIDED BY (USED FOR)  FINANCING</FONT></B> </TD>
    <TD align=left width="94">&nbsp; </TD>
    <TD align=left width="23">&nbsp;</TD>
    <TD align=left width="95">&nbsp; </TD>
    <TD align=left width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="28">&nbsp; </TD>
    <TD align=left width="471"><B><FONT size=2>ACTIVITIES</FONT></B> </TD>
    <TD align=right width="94"><B><FONT size=2>24,881</FONT></B> </TD>
    <TD align=right width="23">&nbsp;</TD>
    <TD align=right width="95"><B><FONT size=2>2,420,808</FONT></B> </TD>
    <TD align=right width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><B><FONT size=2>c09</FONT></B> </TD>
    <TD align=left width="471"><B><FONT size=2>RESOURCES PROVIDED BY (USED FOR) INVESTMENT</FONT></B> </TD>
    <TD align=left width="94">&nbsp; </TD>
    <TD align=left width="23">&nbsp;</TD>
    <TD align=left width="95">&nbsp; </TD>
    <TD align=left width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="28">&nbsp; </TD>
    <TD align=left width="471"><B><FONT size=2>ACTIVITIES</FONT></B> </TD>
    <TD align=right width="94"><B><FONT size=2>(136,229)</FONT></B> </TD>
    <TD align=right width="23">&nbsp;</TD>
    <TD align=right width="95"><B><FONT size=2>(55,839)</FONT></B> </TD>
    <TD align=right width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><FONT size=2>c10</FONT> </TD>
    <TD align=left width="471"><FONT size=2>NET INCREASE (DECREASE) IN CASH AND SHORT-TERM</FONT> </TD>
    <TD align=left width="94">&nbsp; </TD>
    <TD align=left width="23">&nbsp;</TD>
    <TD align=left width="95">&nbsp; </TD>
    <TD align=left width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="28">&nbsp; </TD>
    <TD align=left width="471"><FONT size=2>INVESTMENTS</FONT> </TD>
    <TD align=right width="94"><FONT size=2>355,919</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
    <TD align=right width="95"><FONT size=2>3,018,963</FONT> </TD>
    <TD align=right width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><FONT size=2>c11</FONT> </TD>
    <TD align=left width="471"><FONT size=2>CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF</FONT> </TD>
    <TD align=left width="94">&nbsp; </TD>
    <TD align=left width="23">&nbsp;</TD>
    <TD align=left width="95">&nbsp; </TD>
    <TD align=left width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="28">&nbsp; </TD>
    <TD align=left width="471"><FONT size=2>PERIOD</FONT> </TD>
    <TD align=right width="94"><FONT size=2>6,396,155</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
    <TD align=right width="95"><FONT size=2>2,204,156</FONT> </TD>
    <TD align=right width="29">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="28"><FONT size=2>c12</FONT> </TD>
    <TD align=left width="471"><FONT size=2>CASH AND SHORT TERM INVESTMENTS AT THE END OF PERIOD</FONT> </TD>
    <TD align=right width="94"><FONT size=2>6,752,074</FONT> </TD>
    <TD align=right width="23">&nbsp;</TD>
    <TD align=right width="95"><FONT size=2>5,223,119</FONT> </TD>
    <TD align=right width="29">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_16"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>STATEMENTS OF CHANGES IN FINANCIAL POSITION</B><BR>
BREAKDOWN OF MAIN CONCEPTS<BR>
(thousands of pesos)</P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">

  <TR vAlign=bottom>

    <TD align=center rowSpan=2 width="31"><B><FONT size=2>REF</FONT></B><BR>
      <B><FONT size=2>C</FONT></B></TD>
    <TD align=center width="464"><B><FONT size=2>CONCEPTS</FONT></B></TD>
    <TD align=center colspan="2"><B><FONT size=2>CURRENT&nbsp;YEAR</FONT></B></TD>
    <TD align=center colspan="2"><B><FONT size=2>PREVIOUS&nbsp;YEAR</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="464">&nbsp; </TD>
    <TD align=center width="93">&nbsp; </TD>
    <TD align=center width="24">&nbsp;</TD>
    <TD align=center width="98">&nbsp; </TD>
    <TD align=center width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31">&nbsp; </TD>
    <TD align=center width="464">&nbsp; </TD>
    <TD align=center colspan="2"><B><FONT size=2>AMOUNT</FONT></B></TD>
    <TD align=center colspan="2"><B><FONT size=2>AMOUNT</FONT></B></TD>
  </TR>

  <TR>

    <TD colSpan=6>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><B><FONT size=2>c02</FONT></B> </TD>
    <TD align=left width="464"><B><FONT size=2>+ (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE</FONT></B> </TD>
    <TD align=left width="93">&nbsp; </TD>
    <TD align=left width="24">&nbsp;</TD>
    <TD align=left width="98">&nbsp; </TD>
    <TD align=left width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="31">&nbsp; </TD>
    <TD align=left width="464"><B><FONT size=2>CASH</FONT></B> </TD>
    <TD align=right width="93"><B><FONT size=2>240,405</FONT></B> </TD>
    <TD align=right width="24">&nbsp;&nbsp;</TD>
    <TD align=right width="98"><B><FONT size=2>248,529</FONT></B> </TD>
    <TD align=right width="30">&nbsp;&nbsp;&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c13</FONT> </TD>
    <TD align=left width="464"><FONT size=2>DEPRECIATION AND AMORTIZATION FOR THE YEAR</FONT> </TD>
    <TD align=right width="93"><FONT size=2>130,060</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>125,683</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c41</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ (-) OTHER ITEMS</FONT> </TD>
    <TD align=right width="93"><FONT size=2>110,345</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>122,846</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR>

    <TD colSpan=6>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><B><FONT size=2>c04</FONT></B> </TD>
    <TD align=left width="464"><B><FONT size=2>RESOURCES PROVIDED OR USED IN OPERATION</FONT></B> </TD>
    <TD align=right width="93"><B><FONT size=2>(365,028)</FONT></B> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><B><FONT size=2>(339,673)</FONT></B> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c18</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE</FONT> </TD>
    <TD align=right width="93"><FONT size=2>(795,113)</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>(540,243)</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c19</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ (-) DECREASE (INCREASE) IN INVENTORIES</FONT> </TD>
    <TD align=right width="93"><FONT size=2>92,346</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>132,012</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c20</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ (-) DECREASE (INCREASE) IN OTHER ACCOUNTS RECEIVABLE</FONT> </TD>
    <TD align=right width="93"><FONT size=2>(63,841)</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>18,117</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c21</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ (-) INCREASE (DECREASE) IN SUPPLIERS</FONT> </TD>
    <TD align=right width="93"><FONT size=2>225,974</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>(90,384)</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c22</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ (-) INCREASE (DECREASE) IN OTHER LIABILITIES</FONT> </TD>
    <TD align=right width="93"><FONT size=2>175,606</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>140,825</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR>

    <TD colSpan=6>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><B><FONT size=2>c06</FONT></B> </TD>
    <TD align=left width="464"><B><FONT size=2>RESOURCES PROVIDED BY (USED FOR) EXTERNAL</FONT></B> </TD>
    <TD align=left width="93">&nbsp; </TD>
    <TD align=left width="24">&nbsp;</TD>
    <TD align=left width="98">&nbsp; </TD>
    <TD align=left width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="31">&nbsp; </TD>
    <TD align=left width="464"><B><FONT size=2>FINANCING ACTIVITIES</FONT></B> </TD>
    <TD align=right width="93"><B><FONT size=2>24,881</FONT></B> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><B><FONT size=2>82</FONT></B> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c23</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ BANK FINANCING</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c24</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ STOCK MARKET FINANCING</FONT> </TD>
    <TD align=right width="93"><FONT size=2>(52)</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>28</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c25</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ DIVIDEND RECEIVED</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c26</FONT> </TD>
    <TD align=left width="464"><FONT size=2>OTHER FINANCING</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>54</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c27</FONT> </TD>
    <TD align=left width="464"><FONT size=2>BANK FINANCING AMORTIZATION</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c28</FONT> </TD>
    <TD align=left width="464"><FONT size=2>(-) STOCK MARKET FINANCING AMORTIZATION</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c29</FONT> </TD>
    <TD align=left width="464"><FONT size=2>(-) OTHER FINANCING AMORTIZATION</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c42</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ (-) OTHER ITEMS</FONT> </TD>
    <TD align=right width="93"><FONT size=2>24,933</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR>

    <TD colSpan=6>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><B><FONT size=2>C07</FONT></B> </TD>
    <TD align=left width="464"><B><FONT size=2>RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING</FONT></B> </TD>
    <TD align=left width="93">&nbsp; </TD>
    <TD align=left width="24">&nbsp;</TD>
    <TD align=left width="98">&nbsp; </TD>
    <TD align=left width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="31">&nbsp; </TD>
    <TD align=left width="464"><B><FONT size=2>ACTIVITIES</FONT></B> </TD>
    <TD align=right width="93"><B><FONT size=2>0</FONT></B> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><B><FONT size=2>2,420,726</FONT></B> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c30</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ (-) INCREASE (DECREASE) IN CAPITAL STOCK</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>267,015</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c31</FONT> </TD>
    <TD align=left width="464"><FONT size=2>(-) DIVIDENDS PAID</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c32</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ PREMIUM ON ISSUANCE OF SHARES</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>2,153,711</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c33</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ CONTRIBUTION FOR FUTURE CAPITAL INCREASES</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c43</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ (-) OTHER ITEMS</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR>

    <TD colSpan=6>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><B><FONT size=2>c09</FONT></B> </TD>
    <TD align=left width="464"><B><FONT size=2>RESOURCES PROVIDED BY (USED FOR) INVESTMENT</FONT></B> </TD>
    <TD align=left width="93">&nbsp; </TD>
    <TD align=left width="24">&nbsp;</TD>
    <TD align=left width="98">&nbsp; </TD>
    <TD align=left width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left width="31">&nbsp; </TD>
    <TD align=left width="464"><B><FONT size=2>ACTIVITIES</FONT></B> </TD>
    <TD align=right width="93"><B><FONT size=2>(136,229)</FONT></B> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><B><FONT size=2>(55,839)</FONT></B> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c34</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ (-) DECREASE (INCREASE) IN PERMANENT INVESTMENTS</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c35</FONT> </TD>
    <TD align=left width="464"><FONT size=2>(-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT</FONT> </TD>
    <TD align=right width="93"><FONT size=2>(75,913)</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>(56,220)</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c36</FONT> </TD>
    <TD align=left width="464"><FONT size=2>(-) INCREASE IN CONSTRUCTION PROGRESS</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c37</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ SALE OF OTHER PERMANENT INVESTMENTS</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c38</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ SALE OF TANGIBLE FIXED ASSETS</FONT> </TD>
    <TD align=right width="93"><FONT size=2>0</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>0</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center width="31"><FONT size=2>c39</FONT> </TD>
    <TD align=left width="464"><FONT size=2>+ (-) OTHER ITEMS</FONT> </TD>
    <TD align=right width="93"><FONT size=2>(60,316)</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="98"><FONT size=2>381</FONT> </TD>
    <TD align=right width="30">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<div align="center"><A name="page_17"></A> <font size="3"><strong>MEXICAN STOCK
  EXCHANGE <br>
  SIFIC / ICS</strong></font> </div>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>DATE PER SHARE</B><BR>
CONSOLIDATED</P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR vAlign=bottom>
    <TD width="25" rowSpan=2 align=center><B><FONT size=2>REF</FONT></B><BR>
      <B><FONT size=2>D</FONT></B></TD>
    <TD width="402" align=center><B><FONT size=2>CATEGORIES</FONT></B></TD>
    <TD colspan="2" rowSpan=2 align=center><B><FONT size=2>QUARTER&nbsp;OF<br>
      PRESENT</FONT></B><BR>
      <B><FONT size=2>FINANCIAL YEAR</FONT></B></TD>
    <TD colspan="2" rowSpan=2 align=center><B><FONT size=2>QUARTER&nbsp;OF<br>
       PREVIOUS</FONT></B><BR>
      <B><FONT size=2>FINANCIAL YEAR</FONT></B></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD width="80" align=left>&nbsp;</TD>
    <TD width="71" align=center>&nbsp;&nbsp;</TD>
    <TD width="85" align=center>&nbsp;</TD>
    <TD width="77" align=center>&nbsp;&nbsp;&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><FONT size=2>d01</FONT> </TD>
    <TD align=left><FONT size=2>BASIC PROFIT PER ORDINARY SHARE (**)</FONT>
    </TD>
    <TD align=right>&nbsp;<FONT size=2>$&nbsp; 2.92</FONT> </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=right><FONT size=2>$&nbsp; 5.64</FONT></TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><FONT size=2>d02</FONT> </TD>
    <TD align=left><FONT size=2>BASIC PROFIT PER PREFERRED SHARE (**)</FONT>
    </TD>
    <TD align=right><FONT size=2>$&nbsp; 0.00</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;<FONT size=2>$&nbsp; 0.00</FONT></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><FONT size=2>d03</FONT> </TD>
    <TD align=left><FONT size=2>DILUTED PROFIT PER ORDINARY SHARE
      (**)</FONT> </TD>
    <TD align=right>&nbsp;<FONT size=2>$&nbsp; 0.00</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2>$&nbsp; 0.00</FONT></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><FONT size=2>d04</FONT> </TD>
    <TD align=left><FONT size=2>EARNINGS (LOSS) BEFORE DISCONTINUED
      OPERATIONS PER</FONT> </TD>
    <TD align=right>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp; </TD>
    <TD align=left><FONT size=2>COMMON SHARE (**)</FONT> </TD>
    <TD align=right><FONT size=2>$&nbsp; 2.92</FONT> </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=right><FONT size=2>$&nbsp; 5.64</FONT></TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><FONT size=2>d05</FONT> </TD>
    <TD align=left><FONT size=2>DISCONTINUED OPERATIONS EFFECT ON
      EARNING (LOSS) PER</FONT> </TD>
    <TD align=right>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp; </TD>
    <TD align=left><FONT size=2>SHARE (**)</FONT> </TD>
    <TD align=right>&nbsp;<FONT size=2>$&nbsp; 0.00</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;<FONT size=2>$&nbsp; 0.00</FONT></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><FONT size=2>d08</FONT> </TD>
    <TD align=left><FONT size=2>CARRYING VALUE PER SHARE</FONT> </TD>
    <TD align=right>&nbsp;<FONT size=2>$32.26</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;<FONT size=2>$29.02</FONT></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><FONT size=2>d09</FONT> </TD>
    <TD align=left><FONT size=2>CASH DIVIDEND ACCUMULATED PER SHARE</FONT>
    </TD>
    <TD align=right><FONT size=2>$&nbsp; 0.00</FONT> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2>$&nbsp; 0.00</FONT></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><FONT size=2>d10</FONT> </TD>
    <TD align=left><FONT size=2>DIVIDEND IN SHARES PER SHARE</FONT>
    </TD>
    <TD align=right>&nbsp;<FONT size=2>0.00</FONT></TD>
    <TD align=left><FONT size=2>&nbsp;shares</FONT> </TD>
    <TD align=right><FONT size=2>0.00</FONT></TD>
    <TD align=left><FONT size=2>&nbsp;shares</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><FONT size=2>d11</FONT> </TD>
    <TD align=left><FONT size=2>MARKET PRICE TO CARRYING VALUE</FONT>
    </TD>
    <TD align=right>&nbsp;<FONT size=2>1.24</FONT></TD>
    <TD align=left><FONT size=2>&nbsp;times</FONT> </TD>
    <TD align=right><FONT size=2>1.60</FONT></TD>
    <TD align=left><FONT size=2>&nbsp;times</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><FONT size=2>d12</FONT> </TD>
    <TD align=left><FONT size=2>MARKET PRICE TO BASIC PROFIT PER ORDINARY
      SHARE</FONT> </TD>
    <TD align=right>&nbsp;<FONT size=2>13.69</FONT></TD>
    <TD align=left><FONT size=2>&nbsp;times</FONT> </TD>
    <TD align=right><FONT size=2>8.36</FONT></TD>
    <TD align=left><FONT size=2>&nbsp;times</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center><FONT size=2>d13</FONT> </TD>
    <TD align=left><FONT size=2>MARKET PRICE TO BASIC PROFIT PER PREFERENT
      SHARE (**)</FONT> </TD>
    <TD align=right>&nbsp;<FONT size=2>0.00</FONT></TD>
    <TD align=left><FONT size=2>&nbsp;times</FONT> </TD>
    <TD align=right>&nbsp;<FONT size=2>0.00</FONT></TD>
    <TD align=left><FONT size=2>&nbsp;times</FONT> </TD>
  </TR>
</TABLE>
<BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top nowrap>(**)&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">TO CALCULATE THE DATE PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS. </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_18"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>RATIOS</B><BR>
CONSOLIDATED</P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">

<TR vAlign=bottom>
     <TD width="33" rowSpan=2 align=center><B><FONT size=2>REF</FONT></B><BR>
<B><FONT size=2>P</FONT></B></TD>
     <TD width="399" align=center><B><FONT size=2>CATEGORIES</FONT></B></TD>
     <TD width="149" rowSpan=2 align=center><B><FONT size=2>QUARTER OF PRESENT</FONT></B><BR>
<B><FONT size=2>FINANCIAL YEAR</FONT></B></TD>
     <TD width="159" rowSpan=2 align=center><B><FONT size=2>QUARTER OF PREVIOUS</FONT></B><BR>
<B><FONT size=2>FINANCIAL YEAR</FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD align=center>&nbsp; </TD></TR>
<TR>
     <TD colSpan=4>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><B><FONT size=2>YIELD</FONT></B> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p01</FONT> </TD>
     <TD align=left><FONT size=2>NET INCOME TO NET SALES</FONT> </TD>
     <TD align=center><FONT size=2>8.12%</FONT> </TD>
     <TD align=center><FONT size=2>11.95%</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p02</FONT> </TD>
     <TD align=left><FONT size=2>NET INCOME TO STOCKHOLDERS&#146; EQUITY (**)</FONT> </TD>
     <TD align=center><FONT size=2>9.05%</FONT> </TD>
     <TD align=center><FONT size=2>17.26%</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p03</FONT> </TD>
     <TD align=left><FONT size=2>NET INCOME TO TOTAL ASSETS (**)</FONT> </TD>
     <TD align=center><FONT size=2>6.15%</FONT> </TD>
     <TD align=center><FONT size=2>12.30%</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p04</FONT> </TD>
     <TD align=left><FONT size=2>CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME</FONT> </TD>
     <TD align=center><FONT size=2>0.00%</FONT> </TD>
     <TD align=center><FONT size=2>0.00%</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p05</FONT> </TD>
     <TD align=left><FONT size=2>INCOME DUE TO MONETARY POSITION TO NET INCOME</FONT> </TD>
     <TD align=center><FONT size=2>0.00%</FONT> </TD>
     <TD align=center><FONT size=2>(3.82)%</FONT> </TD></TR>
<TR>
     <TD colSpan=4>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><B><FONT size=2>ACTIVITY</FONT></B> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p06</FONT> </TD>
     <TD align=left><FONT size=2>NET SALES TO NET ASSETS (**)</FONT> </TD>
     <TD align=center><FONT size=2>1.05 times</FONT> </TD>
     <TD align=center><FONT size=2>1.13 times</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p07</FONT> </TD>
     <TD align=left><FONT size=2>NET SALES TO FIXED ASSETS (**)</FONT> </TD>
     <TD align=center><FONT size=2>3.20 times</FONT> </TD>
     <TD align=center><FONT size=2>3.17 times</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p08</FONT> </TD>
     <TD align=left><FONT size=2>INVENTORIES TURNOVER (**)</FONT> </TD>
     <TD align=center><FONT size=2>4.46 times</FONT> </TD>
     <TD align=center><FONT size=2>5.94 times</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p09</FONT> </TD>
     <TD align=left><FONT size=2>ACCOUNTS RECEIVABLE IN DAYS OF SALES</FONT> </TD>
     <TD align=center><FONT size=2>35 days</FONT> </TD>
     <TD align=center><FONT size=2>35 days</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p10</FONT> </TD>
     <TD align=left><FONT size=2>PAID INTEREST TO TOTAL LIABILITIES WITH COST (**)</FONT> </TD>
     <TD align=center><FONT size=2>0.00%</FONT> </TD>
     <TD align=center><FONT size=2>11.58%</FONT> </TD></TR>
<TR>
     <TD colSpan=4>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><B><FONT size=2>LEVERAGE</FONT></B> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p11</FONT> </TD>
     <TD align=left><FONT size=2>TOTAL LIABILITIES TO TOTAL ASSETS</FONT> </TD>
     <TD align=center><FONT size=2>25.57%</FONT> </TD>
     <TD align=center><FONT size=2>24.67%</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p12</FONT> </TD>
     <TD align=left><FONT size=2>TOTAL LIABILITIES TO STOCKHOLDERS&#146; EQUITY</FONT> </TD>
     <TD align=center><FONT size=2>0.34 times</FONT> </TD>
     <TD align=center><FONT size=2>0.33 times</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p13</FONT> </TD>
     <TD align=left><FONT size=2>FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES</FONT> </TD>
     <TD align=center><FONT size=2>39.87%</FONT> </TD>
     <TD align=center><FONT size=2>36.44%</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p14</FONT> </TD>
     <TD align=left><FONT size=2>LONG-TERM LIABILITIES TO FIXED ASSETS</FONT> </TD>
     <TD align=center><FONT size=2>0.00%</FONT> </TD>
     <TD align=center><FONT size=2>0.00%</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p15</FONT> </TD>
     <TD align=left><FONT size=2>OPERATING INCOME TO INTEREST PAID</FONT> </TD>
     <TD align=center><FONT size=2>173.98 times</FONT> </TD>
     <TD align=center><FONT size=2>144.37 times</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p16</FONT> </TD>
     <TD align=left><FONT size=2>NET SALES TO TOTAL LIABILITIES (**)</FONT> </TD>
     <TD align=center><FONT size=2>4.11 times</FONT> </TD>
     <TD align=center><FONT size=2>4.58 times</FONT> </TD></TR>
<TR>
     <TD colSpan=4>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><B><FONT size=2>LIQUIDITY</FONT></B> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p17</FONT> </TD>
     <TD align=left><FONT size=2>CURRENT ASSETS TO CURRENT LIABILITIES</FONT> </TD>
     <TD align=center><FONT size=2>4.78 times</FONT> </TD>
     <TD align=center><FONT size=2>4.42 times</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p18</FONT> </TD>
     <TD align=left><FONT size=2>CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES</FONT> </TD>
     <TD align=center><FONT size=2>3.29 times</FONT> </TD>
     <TD align=center><FONT size=2>2.78 times</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p19</FONT> </TD>
     <TD align=left><FONT size=2>CURRENT ASSETS TO TOTAL LIABILITIES</FONT> </TD>
     <TD align=center><FONT size=2>2.55 times</FONT> </TD>
     <TD align=center><FONT size=2>2.50 times</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT size=2>p20</FONT> </TD>
     <TD align=left><FONT size=2>AVAILABLE ASSETS TO CURRENT LIABILITIES</FONT> </TD>
     <TD align=center><FONT size=2>207.01%</FONT> </TD>
     <TD align=center><FONT size=2>173.89%</FONT> </TD></TR>
<TR>
     <TD colSpan=4>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left>&nbsp; </TD>
     <TD align=left><B><FONT size=2>CASH FLOW</FONT></B> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>

    <TD align=center valign="top"><FONT size=2>p21</FONT> </TD>

    <TD align=left valign="top"><FONT size=2>RESOURCES FROM NET INCOME TO NET SALES</FONT> </TD>
     <TD align=center><FONT size=2>11.42%</FONT> </TD>
     <TD align=center><FONT size=2>15.93%</FONT> </TD></TR>
<TR vAlign=bottom>

    <TD align=center valign="top"><FONT size=2>p22</FONT> </TD>

    <TD align=left valign="top"><FONT size=2>RESOURCES FROM CHANGES IN WORKING CAPITAL TO NET</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>

    <TD align=left valign="top">&nbsp; </TD>

    <TD align=left valign="top"><FONT size=2>SALES</FONT> </TD>
     <TD align=center><FONT size=2>(5.01)%</FONT> </TD>
     <TD align=center><FONT size=2>(5.45)%</FONT> </TD></TR>
<TR vAlign=bottom>

    <TD align=center valign="top"><FONT size=2>p23</FONT> </TD>

    <TD align=left valign="top"><FONT size=2>RESOURCES GENERATED (USED) IN OPERATING TO INTEREST</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>

    <TD align=left valign="top">&nbsp; </TD>

    <TD align=left valign="top"><FONT size=2>PAID</FONT> </TD>
     <TD align=center><FONT size=2>92.56 times</FONT> </TD>
     <TD align=center><FONT size=2>107.56 times</FONT> </TD></TR>
<TR vAlign=bottom>

    <TD align=center valign="top"><FONT size=2>p24</FONT> </TD>

    <TD align=left valign="top"><FONT size=2>EXTERNAL FINANCING TO RESOURCES PROVIDED BY (USED</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>

    <TD align=left valign="top">&nbsp; </TD>

    <TD align=left valign="top"><FONT size=2>FOR) FINANCING</FONT> </TD>
     <TD align=center><FONT size=2>100.00%</FONT> </TD>
     <TD align=center><FONT size=2>0.00%</FONT> </TD></TR>
<TR vAlign=bottom>

    <TD align=center valign="top"><FONT size=2>p25</FONT> </TD>

    <TD align=left valign="top"><FONT size=2>INTERNAL FINANCING TO RESOURCES PROVIDED (USED FOR)</FONT> </TD>
     <TD align=left>&nbsp; </TD>
     <TD align=left>&nbsp; </TD></TR>
<TR vAlign=bottom>

    <TD align=left valign="top">&nbsp; </TD>

    <TD align=left valign="top"><FONT size=2>FINANCING</FONT> </TD>
     <TD align=center><FONT size=2>0.00%</FONT> </TD>
     <TD align=center><FONT size=2>100.00%</FONT> </TD></TR>
<TR vAlign=bottom>

    <TD align=center valign="top"><FONT size=2>p26</FONT> </TD>

    <TD align=left valign="top"><FONT size=2>RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES</FONT> </TD>
     <TD align=center><FONT size=2>55.72%</FONT> </TD>
     <TD align=center><FONT size=2>100.68%</FONT> </TD></TR></TABLE><BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top nowrap>(**)&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">IN THESE RATIOS FOR THE DATA TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS </TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_19"></A>
<P align="center"> <font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align="center"> <B>DIRECTOR REPORT</B></P>
<P align="right"> CONSOLIDATED</P>
<P align="left">
<B>Acquisition of Corporacion Aceros DM, S.A. de C.V.</B></P>
<P align="left">
On February 21, 2008, Simec has executed an agreement to acquire 100% of the shares of Corporaci&oacute;n Aceros DM, S.A. de C.V. and certain of its affiliates (&#147;Grupo San&#148;).</P>
<P align="left">
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 Potos&iacute;, Mexico. Its plants and its 1,457 employees rely on cutting edge technology to
produce 700 thousand tons of finished products annually.</P>
<P align="left">
With this acquisition, Simec and Industrias CH, S.A.B. de C,V, (&#147;ICH&#148;) position themselves as the second largest producer of rebar and the largest steel producer in Mexico, with a production capacity of approximately 4.5 million tons of
liquid steel and 3.8 million tons of finished products.</P>
<P align="left">
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 it to better address the natural cycles of the steel industry on
the domestic and global levels. Additionally, Simec and ICH have already identified significant synergies and economies of scale that will increase the company&#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.</P>
<P align="left">
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.</P>
<P align="left">
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 public
offering, which took place in February 2007.</P>
<P align="left">
This acquisition confirms the growth strategy that has characterized ICH, reaffirming its position as a consolidator in the steel sector.</P>
<P align="left">
This acquisition is subject to the approval of Mexico&#146;s federal competition commission, Comisi&oacute;n Federal de Competencia. On March 25, 2008 this operation was approved by Simec&#146;s Shareholders Meeting.</P>
<P align="left">
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, Cort&eacute;s y Fuentes, S.C.
</P>
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<A name="page_20"></A>

<P align="left">
<b>Comparative first quarter 2008 vs first quarter 2007</b></P>
<p align="left">
<b><i>Net Sales</i></b></p>
<P align="left">Net sales increased 17% to Ps. 7,288 million in the first quarter 2008 compared to Ps. 6,237 million in the same period 2007. Shipments of finished steel products increased 6% to 745 thousand tons in the first quarter 2008 compared to 704 thousand
tons in the same period 2007. Total sales outside of Mexico in the first quarter 2008 increased 24% to Ps. 5,423 million compared with Ps. 4,360 million in the same period 2007, while total Mexican sales decreased 1% from Ps. 1,877 million in the
first quarter 2007 to Ps. 1,865 millions in the same period 2008. The increase in sales can be explained due to higher shipments during the first quarter 2008, comparing with the same period in 2007 (41,000 tons increase) and 10% increase 10% in the
average price of steel products.</P>
<P align="left">
<B><I>Direct Cost of Sales</I></B></P>
<P align="left">
Direct cost of sales increased 21% from Ps. 4,995 million in the fist quarter 2007 to Ps. 6,050 million in the same period 2008. Direct cost of sales as a percentage of net sales represented at 83% in the first quarter 2008 compared to 80% in the
same period 2007. The increase in the Direct Cost of Sales is attributable mainly to an increase of 14% in real terms in the average cost of raw materials used to produce steel products in the first quarter 2008 versus the same period 2007,
primarily as a result of increases in the price of scrap and certain other raw materials.</P>
<P align="left">
<B><I>Gross Profit</I></B></P>
<P align="left">
Gross profit in the first quarter 2008 was Ps. 1,238 million compared to Ps. 1,242 million in the same period 2007. Gross profit as a percentage of net sales in the first quarter 2008 was 17% compared to 20% in the same period 2007. The decline in
gross profit is due to the increase in cost of goods sold due to the reasons previously mentioned.</P>
<P align="left">
<B><I>Operating Expenses</I></B></P>
<P align="left">
Operating expenses decreased 1% to Ps. 360 million in the first quarter 2008 compared to Ps. 364 million in the same period 2007 and represented 5% of net sales in the first quarter 2008 and 6% of net sales in the same period 2007.</P>
<P align="left">
<B><I>Operating Profit</I></B></P>
<P align="left">
Operating profit was the same, Ps. 878 million for the first quarter 2008 and the first quarter 2007. Operating profit as a percentage of net sales was 12% in the first quarter 2008 compared to 14% in the same period 2007. The decline in operating
profit is due to the increase in cost of goods sold due to the reasons previously mentioned.</P>
<P align="left">
<B><I>Comprehensive Financial Cost</I></B></P>
<P align="left">
Comprehensive financial cost in the first quarter 2008 represented an expense of Ps. 62 million compared with a gain of Ps. 77 million in the same period 2007. Net interest income was Ps. 55 million in the first quarter 2008 compared with Ps. 42
million in the same period 2007 due to larger cash balances this year, partly reflecting our capital increase in February 2007. At the same time we registered an exchange loss of Ps. 117 million in the first quarter 2008 compared with an exchange
gain of Ps. 63 million in the same period 2007, reflecting a 1.6% decrease in the value of the peso versus the dollar in the first quarter 2008 compared to same period 2007.</P>
<P align="left">
<B><I>Other Expenses (Income) net</I></B></P>
<P align="left">
The company recorded other income Net of Ps. 6 million in the first quarter 2008 compared to other income net for Ps. 27 million in the same period 2007.</P>
<P align="left">
<B><I>Income Taxes</I></B></P>
<P align="left">
Income Taxes recorded Ps. 230 million in the first quarter 2008 compared to Ps. 237 million in the same period of 2007.</P>
<P align="left">
<B></B></P>

<HR noshade align="center" width="100%" size="5">



<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_21"></A>

<P align="left">
<b><i>Net Profit</i></b></P>
<P align="left">As a result of the foregoing, net profit decreased by 21% to Ps. 592 million in the first quarter 2008 from Ps. 745 million in the same period 2007.</P>
<P align="left">
<I>Liquidity and Capital Resources</I></P>
<P align="left">
At March 31, 2008 Simec&#146;s total consolidated debt consisted of U.S. &#36;302,000 of 8 7/8% medium-term notes (&#147;MTN&#146;s&#148;) due 1998 (accrued interest at March 31, 2008 was U.S. &#36;370,827 dollars. At December 31, 2007, Simec&#146;s
total consolidated debt consisted of U.S. &#36;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. &#36;363,703 dollars.</P>
<P align="left">
Net resources provided by operations were Ps. 467 million in the first quarter 2008 versus Ps. 654 million of net resources provided by operations in the same period 2007. Net resources provided by financing activities were Ps. 25 million in the
first quarter 2008 versus Ps. 2,421 million of net resources used by financing activities in the same period 2007 (which amount includes the capital increase of Ps. 2,421 million in February 2007). Net resources used in investing activities (to
acquire property, plant and equipment, other non-current assets and liabilities) were Ps. 136 million in the first quarter 2008 versus net resources used in investing activities (to acquire property, plant and equipment and other non-current assets
and liabilities) of Ps. 56 million in 2006.</P>
<P align="left">
<B>Comparative first quarter 2008 vs fourth quarter 2007</B></P>
<P align="left">
<B><I>Net Sales</I></B></P>
<P align="left">
Net sales increased 25% from Ps. 5,824 million for the fourth quarter 2007 to Ps. 7,288 million for the first quarter 2008. Sales in tons of finished steel increased 10% to 745 thousand tons in the first quarter 2008 compared with 675 thousand tons
in the fourth quarter 2007. The total sales outside of Mexico for the first quarter 2008 increased 27% to Ps. 5,423 million compared with Ps. 4,264 million for the fourth quarter 2007. Total Mexican sales increased 20% to 1,865 million in the first
quarter 2008 from Ps. 1,560 millions in the fourth quarter 2007. Prices of finished products sold in the first quarter 2008 increased approximately 13% compared to the fourth quarter 2007.</P>
<P align="left">
<B><I>Direct Cost of Sales</I></B></P>
<P align="left">
Direct cost of sales increased 11% from Ps. 5,436 million in the fourth quarter 2007 to Ps. 6,050 million for the first quarter 2008. With respect to sales, in the first quarter 2008, the direct cost of sales represents 83% compared to 93% for the
fourth quarter 2007. The average cost of raw materials used to produce steel products increased 1% in the first quarter 2008 versus the fourth quarter 2007, primarily as a result of increases in the price of scrap and certain other raw materials</P>
<P align="left">
<B><I>Gross Profit</I></B></P>
<P align="left">
Gross profit for the first quarter 2008 increased 219% to Ps. 1,238 million compared to Ps. 388 million in the fourth quarter 2007. The gross profit as a percentage of net sales for the first quarter 2008 was 17% compared with 7% for the fourth
quarter of 2007. The increase in gross profit is due to the increase in the prices of finished products sold due to the reasons previously mentioned.</P>
<P align="left">
<B><I>Operating Expenses</I></B></P>
<P align="left">
Operating expenses increased 2% to Ps. 360 million in the first quarter 2008 compared to Ps. 352 million for the fourth quarter 2007. Operating expenses as a percentage of net sales represented 5% during the first quarter 2008 compared to 6% in the
fourth quarter 2007.</P>
<P align="left">
<B></B></P>

<HR noshade align="center" width="100%" size="5">



<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_22"></A>
<P align=left><b><i>Operating Profit</i></b></P>
<P align=left>
  Operating profit increased 2,339% from Ps. 36 million in the fourth quarter 2007 to Ps. 878 million for the first quarter 2008. The operating profit as a percentage of net sales in the first quarter 2008 was 12% compared to 1% in the fourth quarter 2007. The increase in operating profit is due to the increase in the prices of finished products sold due to the reasons previously mentioned.</P>
<P align=left><B><I>Comprehensive Financial Cost</I></B></P>
<P align=left>Comprehensive financial cost for the first quarter 2008 represented an expense of Ps. 62 million compared with an expense of Ps. 167 million for the fourth quarter 2007. Net interest income was Ps. 55 million in the first quarter 2008 compared with Ps. 55 million of net interest income in the fourth quarter 2007. At the same time we registered an exchange loss of Ps. 117 million in the first quarter 2008 compared with an exchange gain of Ps. 35 million in the fourth quarter 2007.</P>
<P align=left><B><I>Other Expenses (Income) net</I></B></P>
<P align=left>The company recorded other income net for Ps. 6 million in the first quarter 2008 compared with other expense net for Ps. 24 million for the fourth quarter 2007.</P>
<P align=left><B><I>Income Taxes</I></B></P>
<P align=left>Income Taxes for the first quarter 2008 was an expense of Ps. 230 million compared to Ps. 119 million of income for the fourth quarter 2007.</P>
<P align=left><B><I>Net Profit</I></B></P>
<P align=left>As a result of the foregoing, net profit was Ps. 592 million in the first quarter 2008 compared to Ps. 35 million of loss profit in the fourth quarter 2007.</P>
<TABLE width="600" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR>
    <TD width="228" align=center></TD>
    <TD width="59" align=center></TD>
    <TD width="59" align=center></TD>
    <TD width="67" align=center></TD>
    <TD width="7" rowSpan=2 align=center></TD>
    <TD colspan="2" rowSpan=2 align=center><FONT size=2>1Q&#146;08 vs</FONT><BR> <FONT size=2>1Q&#146;07</FONT></TD>
    <TD colspan="2" rowSpan=2 align=center><FONT size=2>1Q&#146;08 vs</FONT><BR> <FONT size=2>4Q&#146;07</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>(Millions of pesos)</FONT></TD>
    <TD align=right><FONT size=2>1Q&#146;08</FONT></TD>
    <TD align=right><FONT size=2>1Q&#146;07</FONT></TD>
    <TD align=right><FONT size=2>4Q&#146;07</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Sales</FONT> </TD>
    <TD align=right><FONT size=2>7,288</FONT> </TD>
    <TD align=right><FONT size=2>6,237</FONT> </TD>
    <TD align=right><FONT size=2>5,824</FONT> </TD>
    <TD align=right></TD>
    <TD width="57" align=right><FONT size=2>17%</FONT> </TD>
    <TD width="30" align=right>&nbsp;</TD>
    <TD width="62" align=right><FONT size=2>25%</FONT> </TD>
    <TD width="31" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Cost of Sales</FONT> </TD>
    <TD align=right><FONT size=2>6,050</FONT> </TD>
    <TD align=right><FONT size=2>4,995</FONT> </TD>
    <TD align=right><FONT size=2>5,436</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>21%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>11%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Gross Profit</FONT> </TD>
    <TD align=right><FONT size=2>1,238</FONT> </TD>
    <TD align=right><FONT size=2>1,242</FONT> </TD>
    <TD align=right><FONT size=2>388</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>0%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>219%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Operating Expenses</FONT> </TD>
    <TD align=right><FONT size=2>360</FONT> </TD>
    <TD align=right><FONT size=2>364</FONT> </TD>
    <TD align=right><FONT size=2>352</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>-1%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>2%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Operating Profit</FONT> </TD>
    <TD align=right><FONT size=2>878</FONT> </TD>
    <TD align=right><FONT size=2>878</FONT> </TD>
    <TD align=right><FONT size=2>36</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>0%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>2,339%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>EBITDA</FONT> </TD>
    <TD align=right><FONT size=2>1,008</FONT> </TD>
    <TD align=right><FONT size=2>1,003</FONT> </TD>
    <TD align=right><FONT size=2>206</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>0%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>389%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Net Profit</FONT> </TD>
    <TD align=right><FONT size=2>592</FONT> </TD>
    <TD align=right><FONT size=2>745</FONT> </TD>
    <TD align=right>&nbsp; &nbsp; &nbsp;<FONT size=2>(35</FONT> </TD>
    <TD align=left>)</TD>
    <TD align=right><FONT size=2>-21%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>1,791%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Sales outside Mexico</FONT> </TD>
    <TD align=right><FONT size=2>5,423</FONT> </TD>
    <TD align=right><FONT size=2>4,360</FONT> </TD>
    <TD align=right><FONT size=2>4,264</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>24%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>27%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Sales in Mexico</FONT> </TD>
    <TD align=right><FONT size=2>1,865</FONT> </TD>
    <TD align=right><FONT size=2>1,877</FONT> </TD>
    <TD align=right><FONT size=2>1,560</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>-1%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>20%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Total sales (tons)</FONT> </TD>
    <TD align=right><FONT size=2>745</FONT> </TD>
    <TD align=right><FONT size=2>704</FONT> </TD>
    <TD align=right><FONT size=2>675</FONT> </TD>
    <TD align=left></TD>
    <TD align=right><FONT size=2>6%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>10%</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" width="700">
  <TR vAlign=bottom>
    <TD align=center width="155">&nbsp; </TD>
    <TD colspan="2" rowspan="6" align=center> <FONT size=2>Thousands</FONT><BR>

      <FONT size=2>of tons</FONT><BR>
       <FONT size=2>first</FONT><BR>
       <FONT size=2>quarter</FONT><BR>

      <FONT size=2>2008</FONT></TD>
    <TD colspan="2" rowspan="6" align=center> <FONT size=2>Millions</FONT><BR>

      <FONT size=2>of pesos</FONT><BR>
       <FONT size=2>first</FONT><BR>
       <FONT size=2>quarter</FONT><BR>

      <FONT size=2>2008</FONT></TD>
    <TD colspan="2" rowSpan=6 align=center><FONT size=2>Average</FONT><BR>
       <FONT size=2>price</FONT><BR>

      <FONT size=2>per ton</FONT><BR>
       <FONT size=2>first</FONT><BR>
       <FONT size=2>quarter</FONT><BR>

      <FONT size=2>2008</FONT></TD>
    <TD colspan="2" rowspan="6" align=center> <FONT size=2>Thousands</FONT><BR>

      <FONT size=2>of tons</FONT><BR>
       <FONT size=2>first</FONT><BR>
       <FONT size=2>quarter</FONT><BR>

      <FONT size=2>2007</FONT></TD>
    <TD colspan="2" rowspan="6" align=center> <FONT size=2>Millions</FONT><BR>

      <FONT size=2>of pesos</FONT><BR>
       <FONT size=2>first</FONT><BR>
       <FONT size=2>quarter</FONT><BR>

      <FONT size=2>2007</FONT></TD>
    <TD colspan="2" rowSpan=6 align=center><FONT size=2>Average</FONT><BR>
       <FONT size=2>price</FONT><BR>

      <FONT size=2>per ton</FONT><BR>
       <FONT size=2>first</FONT><BR>
       <FONT size=2>quarter</FONT><BR>

      <FONT size=2>2007</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="155">&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="155">&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="155">&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width="155">&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left width="155"><FONT size=2>Product</FONT></TD>
  </TR>

  <TR vAlign=bottom>
    <TD align=left width="155"><font size=2>SBQ</font></TD>
    <TD align=right width="74"><font size=2>565</font> </TD>
    <TD align=right width="24">&nbsp;&nbsp;</TD>
    <TD align=right width="70"><font size=2>5,749</font> </TD>
    <TD align=right width="19">&nbsp;&nbsp;</TD>
    <TD align=right width="72"><font size=2>10,175</font> </TD>
    <TD align=right width="20">&nbsp;&nbsp;</TD>
    <TD align=right width="66"><font size=2>516</font> </TD>
    <TD align=right width="24">&nbsp;&nbsp;</TD>
    <TD align=right width="70"><font size=2>4,833</font> </TD>
    <TD align=right width="17">&nbsp;&nbsp;</TD>
    <TD align=right width="73"><font size=2>9,366</font> </TD>
    <TD align=right width="16">&nbsp;&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left width="155"><FONT size=2>Light Structural</FONT> </TD>
    <TD align=right width="74">54 </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="70"><FONT size=2>453 </FONT></TD>
    <TD align=right width="19">&nbsp;</TD>
    <TD align=right width="72"><FONT size=2>8,389</FONT> </TD>
    <TD align=right width="20">&nbsp;</TD>
    <TD align=right width="66"><FONT size=2>62</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="70"><FONT size=2>454</FONT> </TD>
    <TD align=right width="17">&nbsp;</TD>
    <TD align=right width="73"><FONT size=2>7,323</FONT> </TD>
    <TD align=right width="16">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left width="155"><FONT size=2>Structural</FONT> </TD>
    <TD align=right width="74">55 </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="70"><FONT size=2>504 </FONT></TD>
    <TD align=right width="19">&nbsp;</TD>
    <TD align=right width="72"><FONT size=2>9,164</FONT> </TD>
    <TD align=right width="20">&nbsp;</TD>
    <TD align=right width="66"><FONT size=2>61</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="70"><FONT size=2>494</FONT> </TD>
    <TD align=right width="17">&nbsp;</TD>
    <TD align=right width="73"><FONT size=2>8,098</FONT> </TD>
    <TD align=right width="16">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left width="155"><FONT size=2>Rebar</FONT> </TD>
    <TD align=right width="74">70 </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="70"><FONT size=2>550</FONT> </TD>
    <TD align=right width="19">&nbsp;</TD>
    <TD align=right width="72"><FONT size=2>7,857</FONT> </TD>
    <TD align=right width="20">&nbsp;</TD>
    <TD align=right width="66"><FONT size=2>64</FONT> </TD>
    <TD align=right width="24">&nbsp;</TD>
    <TD align=right width="70"><FONT size=2>451</FONT> </TD>
    <TD align=right width="17">&nbsp;</TD>
    <TD align=right width="73"><FONT size=2>7,047</FONT> </TD>
    <TD align=right width="16">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <td align=left width="155"><font size=2>Others</font> </td>
    <td align=right width="74">1 </td>
    <TD align=right width="24">&nbsp;</TD>
    <td align=right width="70">32 </td>
    <TD align=right width="19">&nbsp;</TD>
    <td align=right width="72"><font size=2>-</font> </td>
    <TD align=right width="20">&nbsp;</TD>
    <td align=right width="66"><font size=2>1</font> </td>
    <TD align=right width="24">&nbsp;</TD>
    <td align=right width="70"><font size=2>5</font> </td>
    <TD align=right width="17">&nbsp;</TD>
    <td align=right width="73"><font size=2>-</font> </td>
    <TD align=right width="16">&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <td align=left width="155"><font size=2>Total</font> </td>
    <td align=right width="74">745 </td>
    <TD align=right width="24">&nbsp;</TD>
    <td align=right width="70"><font size=2>7,288</font> </td>
    <TD align=right width="19">&nbsp;</TD>
    <td align=right width="72"><font size=2>9,783</font> </td>
    <TD align=right width="20">&nbsp;</TD>
    <td align=right width="66"><font size=2>704</font> </td>
    <TD align=right width="24">&nbsp;</TD>
    <td align=right width="70"><font size=2>6,237</font> </td>
    <TD align=right width="17">&nbsp;</TD>
    <td align=right width="73"><font size=2>8.859</font> </td>
    <TD align=right width="16">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
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<BR>
<TABLE width="600" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR vAlign=bottom>
    <TD width="338" align=left> <FONT size=2>Product</FONT> </TD>
    <TD colspan="2" align=center><FONT size=2>Thousands</FONT><BR> <FONT size=2>of
      tons</FONT><BR> <FONT size=2>fourth</FONT><BR> <FONT size=2>quarter</FONT><BR>
      <FONT size=2>2007</FONT></TD>
    <TD colspan="2" align=center><FONT size=2>Millions</FONT><BR> <FONT size=2>of
      pesos</FONT><BR> <FONT size=2>fourth</FONT><BR> <FONT size=2>quarter</FONT><BR>
      <FONT size=2>2007</FONT></TD>
    <TD colspan="2" align=center><FONT size=2>Average price</FONT><BR> <FONT size=2>per
      ton</FONT><BR> <FONT size=2>fourth</FONT><BR> <FONT size=2>quarter</FONT><BR>
      <FONT size=2>2007</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>SBQ</FONT> </TD>
    <TD width="46" align=right><FONT size=2>497</FONT> </TD>
    <TD width="28" align=right>&nbsp;</TD>
    <TD width="52" align=right><FONT size=2>4,524</FONT> </TD>
    <TD width="26" align=right>&nbsp;</TD>
    <TD width="67" align=right><FONT size=2>9,102</FONT> </TD>
    <TD width="43" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Light Structural</FONT> </TD>
    <TD align=right><FONT size=2>59</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>457</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>7,754</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Structural</FONT> </TD>
    <TD align=right><FONT size=2>45</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>357</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>7,930</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Rebar</FONT> </TD>
    <TD align=right><FONT size=2>70</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>456</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>6,510</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Others</FONT> </TD>
    <TD align=right><FONT size=2>4</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>31</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Total</FONT> </TD>
    <TD align=right><FONT size=2>675</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>5,824</FONT> </TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>8,629</FONT> </TD>
    <TD align=right>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align=left>&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.</P>
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<P align="center"> <font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align="center"> <B>FINANCIAL STATEMENT NOTES</B></P>
<P align="right"> CONSOLIDATED</P>
<P align="left">
<B>(1) Operations preparation bases and summary of significant accounting policies:</B></P>
<P align="left">
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.</P>
<P align="left">
Significant accounting policies and practices followed by the Companies which affect the principal captions of the financial statements are described below:</P>
<P align="left">
<B>a. Financial statement presentation &#150;</b> Below is a summary of the most significant accounting policies and practices used in the preparation of the consolidated financial statements, in conformity with Mexican Financial Reporting Standards
(MFRS), which include Bulletins and Circulars issued by the Accounting Principles Commission (CPC) of the Mexican Institute of Public Accountants (IMCP) which have not been amended, replaced or abrogated by MFRS issued by the Mexican Financial
Reporting Standards Research and Development Board (Consejo Mexicano para la Investigaci&oacute;n y Desarrollo de Normas de Informaci&oacute;n Financiera, A.C. (CINIF)</P>
<P align="left"><b>b.</b>
 <b>Principles of Consolidation  &#150;</b> As part of the financial debt restructuring agreement into during 1997, Compa&ntilde;&iacute;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.</P>
<P align="left">
The main subsidiaries of CSG are the following:</P>
<UL>
<LI>
Compa&ntilde;&iacute;a Sider&#250;rgica de California, S.A. de C.V.</LI>
<LI>
Industrias del Acero y del Alambre, S.A. de C.V.</LI>
<LI>
Pacific Steel Inc.</LI>
<LI>
SimRep Corporation and PAV Republic and Subsidiaries</LI>
</UL>
<P align="left">
All significant intercompany balances and transactions have been eliminated in consolidation.</P>
<P align="left">
<B>c. Cash and cash equivalents &#150;</b> The Company considers short-term investments with original maturities not greater than three months to be cash equivalent. Cash equivalents 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.</P>
<P align="left">
<B>d. Inventories &#150;</b> Domestic subsidiaries&#146; inventories are recorded initially at average cost under the direct costing system. Foreign subsidiaries&#146; inventories are valued on a last-in, first-out (LIFO). For translation effects into
MFRS the inventories have been adjusted from LIFO to average cost under the direct costing system.</P>
<P align="left">
Billet finished goods and work in process, raw materials and materials, supplies and rollers - At the average cost.</P>

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<P align=left>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.</P>
<P align=left><B>e. Derivative financial instruments &#150;</b> The Company is using derivative financial instruments for hedging risks associated with natural gas prices and conducted studies on historical consumption, future requirements and commitments; thus it avoided exposure to risks other than the normal operating risks. Management of the Company examines its financial risks by continually analyzing price, credit and liquidity risks.</P>
<P align=left>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.</P>
<P align=left>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.</P>
<P align=left><B>f. Property, plant and equipment &#150;</b> Property, plant and equipment of domestic origin are restated by using factors derived from The National Consumer Price Index (&#147;NCPI&#148;) from the date of their acquisition, and imported machinery and equipment are restated by applying devaluation and inflation factors of the country of origin, until December 31, 2007. 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 estimated useful lives of assets as of March 31, 2008 are as follows:</P>
<TABLE width="600" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
<TR vAlign=bottom>
     <TD width="551" align=left>&nbsp; </TD>
     <TD width="49" align=center><U><FONT size=2>Years</FONT></U> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=2>Buildings</FONT> </TD>
     <TD align=right><FONT size=2>15 to 50</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=2>Machinery and equipment</FONT> </TD>
     <TD align=right><FONT size=2>10 to 40</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=2>Buildings and improvements (Republic)</FONT></TD>
     <TD align=right>&nbsp;<FONT size=2>10 to 25</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=2>Land improvements (Republic)</FONT> </TD>
     <TD align=right><FONT size=2>5 to 25</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=2>Machinery and equipment (Republic)</FONT> </TD>
     <TD align=right><FONT size=2>5 to 20</FONT> </TD></TR></TABLE><BR>
<P align=left><B>g. Other assets &#150;</b> Organization and pre-operating expenses are capitalized and and their amortization is calculated by the straight-line method over a period of 20 years.</P>
<P align=left><B>h. Seniority premiums and severance payments &#150; </B>According to Federal Labor Law, employees are entitled to seniority premiums after fifteen years or more of services. These premiums are recognized as expenses in the years in which the services are rendered, using actuarial calculations based on the projected unit credit method, and since 1996 by applying real interest and salary increases.</P>
<P align=left>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.</P>
<P align=left><B>i. Pension plan &#150;</b> Until 1995, the Company provided pension benefits for all personnel with a minimum of 10 years of service and 35 years of age. The Company had established an irrevocable trust for its contributions, which were based on actuarial calculations. In December 1995, the board of directors of the Company, in agreement with the trade union, discontinued these benefits and related contributions to the trust fund. This decision was made because of the new Mexican pension fund system, Administradoras de Fondos para el Retiro,</P>
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<P align=left>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.</P>
<P align=left>The Company does not have any contractual obligation regarding the payment of pensions of retirements.</P>
<P align=left><B>j. Income taxes &#150;</b> In 1999, the Mexican Institute of Public Accountants issued Bulletin D-4, &#147;Accounting for Income and Asset Taxes and Employee Profit Sharing&#148;, which is effective for all fiscal years beginning January 1, 2000. Bulletin D-4 establishes financial accounting and reporting standards for the effects of asset tax, income tax and employee profit sharing that result from enterprise activities during the current and preceding years.</P>
<P align=left>The Company and its subsidiaries are included in the consolidated tax returns of the company&#146;s parent.</P>
<P align=left><B>k. Foreign currency transactions and exchange differences &#150; </B>All transactions in foreign currency are recorded at the exchange rates prevailing on the date of their execution or liquidation. Foreign currency denominated assets and liabilities are translated at the exchange rates prevailing at the balance sheet date. Any exchange differences incurred with regard to assets or liabilities denominated in foreign currency are charged to operations of the period and are included in financial income (expense) in the accompanying consolidated statements of income (loss).</P>
<P align=left>For consolidation purposes, the financial statements of the foreign subsidiaries, were translated into pesos in conformity with Mexican accounting Bulletin MFRS B-15, Transactions in Foreign Currency.</P>
<P align=left>The first step in the process of conversion of financial information of the operations is the determination of the functional currency, which is in first instance the currency of primary the economic surroundings of the foreign operation; nevertheless, despite the previous thing, the functional currency can differ from the premises or registry, in the measurement that this one does not represent the currency that fundamentally affects the cash flow of the operations abroad. The financial statements of the foreign subsidiaries were turned to Mexican pesos with the following procedure:</P>
<P align=left>- Applying the prevailing exchange rate at the consolidated balance date for monetary assets and liabilities.<BR>
- - Applying the prevailing historical exchange rate for nonmonetary assets and liabilities and for stockholders&#146; equity accounts.<BR>
- - Applying the prevailing the historical exchange rate at the consolidated balance sheet date for revenues and expenses during the reporting period <BR>
- - The resulting effect of translation, the process of consolidation and to apply the participation method, is recorded in stockholders&#146; equity under the accumulated effect by conversion forming part of the Comprehensive Income.</P>
<P align=left><B>l. Geographic concentration of credit risk &#150;</b> The Company sells its products primarily to distributors for the construction industry with no specific geographic concentration. Additionally, no single customer accounted for a significant amount of the Company&#146;s sales, and there were no significant accounts receivable from a single customer or affiliate at March 31, 2008 sales to five customers accounted for approximately 34.5% 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.</P>
<P align=left><B>m. Other income (expenses) &#150;</b> Other income (expenses) shown in the consolidated statements of operations primarily includes other financial operations.</P>
<P align=left>&nbsp;</P>
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<P align="left">
<b>(2) Financial Debt:</b></P>
<P align="left">At March 31, 2008 Simec&#146;s total consolidated debt consisted of U.S. &#36;302,000 of 8 7/8% medium-term notes (&#147;MTN&#146;s&#148;) due 1998 (accrued interest at March 31, 2008 was U.S. &#36;370,827 dollars. At December 31, 2007, Simec&#146;s
total consolidated debt consisted of U.S. &#36;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. &#36;363,703 dollars.</P>
<P align="left">
<B>(3) Commitments and contingent liabilities: </B>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. 13,263 (U.S. &#36;1,239,969) at March 31, 2008, (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.</P>
<P align="left">
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.</P>

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<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>RELATIONS OF SHARES INVESTMENTS</B></P>
<P align=right>CONSOLIDATED</P>
<TABLE width="700" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
  <TR vAlign=bottom>
    <TD align=center><strong><FONT size=2>COMPANY NAME</FONT></strong></TD>
    <TD align=center><strong><FONT size=2>MAIN ACTIVITIES</FONT></strong></TD>
    <TD align=center rowSpan=2><strong><FONT size=2>NUMBER OF</FONT><BR>
      <FONT size=2>SHARES</FONT></strong></TD>
    <TD align=center><strong><FONT size=2>OWNERSHIP</FONT></strong></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>SUBSIDIARIES</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Cia. Sider&#250;rgica de Guadalajara</FONT>
    </TD>
    <TD align=center><FONT size=2>Sub-Holding</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>99.99</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Simec International</FONT> </TD>
    <TD align=center><FONT size=2>Production and sales of steel products</FONT>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>99.99</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Arrendadora Simec</FONT> </TD>
    <TD align=center><FONT size=2>Production and sales of steel products</FONT>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100.00</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Controladora Simec</FONT> </TD>
    <TD align=center><FONT size=2>Sub-Holding</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100.00</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Pacific Steel</FONT> </TD>
    <TD align=center><FONT size=2>Scrap purchase</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100.00</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Cia. Sider&#250;rgica del Pac&#237;fico</FONT>
    </TD>
    <TD align=center><FONT size=2>Rent of land</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>99.99</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Coordinadora de Servicios Sider&#250;rgicos
      de</FONT> </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Calidad</FONT> </TD>
    <TD align=center><FONT size=2>Administrative services</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100.00</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Comercializadora Simec</FONT> </TD>
    <TD align=center><FONT size=2>Sales of steel products</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>99.99</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Industrias del Acero y del Alambre</FONT>
    </TD>
    <TD align=center><FONT size=2>Sales of steel products</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>99.99</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Procesadora Mexicali</FONT> </TD>
    <TD align=center><FONT size=2>Scrap purchase</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>99.99</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Servicios Simec</FONT> </TD>
    <TD align=center><FONT size=2>Administrative services</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100.00</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Sistemas de Transporte de Baja California</FONT>
    </TD>
    <TD align=center><FONT size=2>Freight services</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100.00</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Operadora de Metales</FONT> </TD>
    <TD align=center><FONT size=2>Administrative services</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100.00</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Operadora de Servicios Sider&#250;rgicos
      de</FONT> </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Tlaxcala</FONT> </TD>
    <TD align=center><FONT size=2>Administrative services</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100.00</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Administradora de Servicios Sider&#250;rgicos
      de</FONT> </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Tlaxcala</FONT> </TD>
    <TD align=center><FONT size=2>Administrative services</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100.00</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Operadora de Servicios de la Industria</FONT>
    </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Sider&#250;rgica</FONT> </TD>
    <TD align=center><FONT size=2>Administrative services</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>100.00</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>SimRep</FONT> </TD>
    <TD align=center><FONT size=2>Sub-Holding</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>50.22</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>PAV Republic</FONT> </TD>
    <TD align=center><FONT size=2>Production and sales of steel products</FONT>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>50.22</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>CSG Comercial</FONT> </TD>
    <TD align=center><FONT size=2>Sales of steel products</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>99.95</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Comercializadora de Aceros de Tlaxcala</FONT>
    </TD>
    <TD align=center><FONT size=2>Sales of steel products</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>99.95</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><FONT size=2>Sider&#250;rgica de Baja California</FONT>
    </TD>
    <TD align=center><FONT size=2>Sales of steel products</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>99.95</FONT> </TD>
  </TR>
  <TR>
    <TD colSpan=4>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><B><FONT size=2>TOTAL INVESTMENT IN SUBSIDIARIES</FONT></B>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD colSpan=4>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><B><FONT size=2>ASSOCIATEDS</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR>
    <TD colSpan=4>&nbsp; </TD>
  </TR>
  <TR>
    <TD colSpan=4>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><B><FONT size=2>TOTAL INVESTMENT IN ASSOCIATEDS</FONT></B>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><B><FONT size=2>OTHER PERMANENT INVESTMENTS</FONT></B>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0.00</FONT> </TD>
  </TR>
  <TR>
    <TD colSpan=4>&nbsp; </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left><B><FONT size=2>TOTAL</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right><FONT size=2>0</FONT> </TD>
  </TR>
</TABLE>
<BR>
<P align=left>NOTES</P>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_29"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>CREDITS BREAK DOWN <br>
  (THOUSANDS OF MEXICAN PESOS)</B></P>
<P align=right>CONSOLIDATED</P>
<table border=0 align="center" cellpadding=0 cellspacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" width="100%">
  <tr valign=bottom>
    <td align=center width="11%"><font size="1">&nbsp;</font></td>
    <td align=center width="10%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center colspan=7><font size="1"><b>Denominated in Pesos <br>
      (Thousands of Pesos) </b></font></td>
    <td colspan="7" align=center> <font size="1"><b>Denominated in Foreign Currency
      <br>
      (Thousands of Pesos) </b> </font></td>
  </tr>
  <tr valign=bottom>
    <td align=center width="11%"><font size="1"><b>
      </b></font></td>
    <td align=center width="10%"><font size="1"> </font></td>
    <td align=center width="6%"><font size="1"> </font></td>
    <td align=center width="17%" colspan="7"><font size="1">&nbsp;</font> <font size="1"><b><br>
      Time Interval </b></font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></td>
    <td align=center width="19%" colspan="7"><font size="1">&nbsp;</font><font size="1"><b>Time Interval </b></font><font size="1">&nbsp;</font><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=center width="11%"><font size="1"><b>Credit Type /</b><br>
       <b>Institution </b>&nbsp;</font></td>
    <td align=center width="10%"><font size="1">&nbsp;<b>Amortization <br>
      Date </b></font></td>
    <td align=center width="6%"><font size="1"><b>Rate of <br>
      Interest </b>&nbsp;</font></td>
    <td align=center width="6%"><font size="1"><b>Current <br>
      Year</b> </font></td>
    <td align=center colspan="2"><font size="1"><b>Until <br>
      1Year </b> </font></td>
    <td align=center width="5%"><font size="1"><b>Until <br>
      2Years </b> </font></td>
    <td align=center width="5%"><font size="1"><b>Until <br>
      3Years </b> </font></td>
    <td align=center width="5%"><font size="1"><b>Until <br>
      4Years </b> </font></td>
    <td align=center width="6%"><font size="1"><b>Until <br>
      5 Years </b><br>
       <b>or</b>
      <b>More </b></font></td>
    <td align=center width="6%"><font size="1"><b>Current <br>
      Year </b> </font></td>
    <td align=center colspan="2"><font size="1"><b>Until <br>
      1Year </b> </font></td>
    <td align=center width="5%"><font size="1"><b>Until <br>
      2Years </b> </font></td>
    <td align=center width="5%"><font size="1"><b>Until <br>
      3Years </b> </font></td>
    <td align=center width="5%"><font size="1"><b>Until <br>
      4Years </b> </font></td>
    <td align=center width="8%"><font size="1"><b>Until <br>
      5 Years </b><br>
       <b>or</b>
      <b>More </b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>BANKS</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1">With</font> </td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="5%"><font size="1">&nbsp;</font></td>
    <td align=left width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1">Warranty</font> </td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="6%"><font size="1">0</font> </td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="7%"><font size="1">0</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="8%"><font size="1">0</font> </td>
  </tr>


  <tr>
    <td colspan=17><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>TOTAL</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>BANKS</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="6%"><font size="1">0</font> </td>
    <td align=center width="2%"><font size="1">&nbsp;&nbsp;&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="7%"><font size="1">0</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="8%"><font size="1">0</font> </td>
  </tr>



  <tr>
    <td colspan=17><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>LISTED IN</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>THE</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>STOCK</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>EXCHANGE</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=17><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>UNSECURED</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>DEBT</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=17><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1">Medium Term</font> </td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1">Notes</font> </td>
    <td align=center width="10%"><font size="1">15/12/1998</font> </td>
    <td align=center width="6%"><font size="1">9.33</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="6%"><font size="1">0</font> </td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="7%"><font size="1">3,230</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="8%"><font size="1">0</font> </td>
  </tr>
  <tr>
    <td colspan=17><font size="1">&nbsp;</font></td>
  </tr>

  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>TOTAL</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>STOCK</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>EXCHANGE</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="6%"><font size="1">0</font> </td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="7%"><font size="1">3,230</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="8%"><font size="1">0</font> </td>
  </tr>



  <tr>
    <td colspan=17><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>SUPPLIERS</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=17><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1">Various</font> </td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="6%"><font size="1">348,854</font> </td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="7%"><font size="1">1,981,355</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="8%"><font size="1">0</font> </td>
  </tr>
  <tr>
    <td colspan=17><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>TOTAL</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>SUPPLIERS</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="6%"><font size="1">348,854</font> </td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="7%"><font size="1">1,981,355</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="8%"><font size="1">0</font> </td>
  </tr>
  <tr>
    <td colspan=17><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>OTHER</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>LOANS WITH</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>COST</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=left width="7%"><font size="1">&nbsp;</font></td>
    <td align=left width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>



  <tr>
    <td colspan=17><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1"><b>TOTAL</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="6%"><font size="1">0</font> </td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font> </td>
    <td align=right width="7%"><font size="1">0</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="5%"><font size="1">0</font> </td>
    <td align=center width="8%"><font size="1">0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1">&nbsp;</font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="7%"><font size="1">&nbsp;</font></td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width=11%> <font size="1"><b>OTHER</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="7%"><font size="1">&nbsp;</font></td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"> <font size="1"><b>CURRENT</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="7%"><font size="1">&nbsp;</font></td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"> <font size="1"><b>LIABILITIES</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="7%"><font size="1">&nbsp;</font></td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"> <font size="1"><b>WITHOUT</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="7%"><font size="1">&nbsp;</font></td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"> <font size="1"><b>COST</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="7%"><font size="1">&nbsp;</font></td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"> <font size="1">Various</font> </td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">0&nbsp;</font></td>
    <td align=right width="6%"> <font size="1"> 185,348</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font></td>
    <td align=center width="5%"> <font size="1"> 0</font> </td>
    <td align=center width="5%"> <font size="1">0</font> </td>
    <td align=center width="6%"> <font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font></td>
    <td align=right width="7%"> <font size="1"> 450,800</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font></td>
    <td align=center width="5%"> <font size="1"> 0</font> </td>
    <td align=center width="5%"><font size="1">0</font></td>
    <td align=center width="8%"> <font size="1"> 0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"> <font size="1"><b>TOTAL</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">0&nbsp;</font></td>
    <td align=right width="6%"> <font size="1"> 185,348</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font></td>
    <td align=center width="5%"> <font size="1"> 0</font> </td>
    <td align=center width="5%"> <font size="1">0</font> </td>
    <td align=center width="6%"> <font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font></td>
    <td align=right width="7%"> <font size="1"> 450,800</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font></td>
    <td align=center width="5%"> <font size="1"> 0</font> </td>
    <td align=center width="5%"><font size="1">0</font></td>
    <td align=center width="8%"> <font size="1"> 0</font> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"><font size="1">&nbsp;</font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">&nbsp;</font></td>
    <td align=right width="7%"><font size="1">&nbsp;</font></td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">&nbsp;</font></td>
    <td align=center width="8%"><font size="1">&nbsp;</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left width="11%"> <font size="1"><b>TOTAL</b> </font></td>
    <td align=left width="10%"><font size="1">&nbsp;</font></td>
    <td align=left width="6%"><font size="1">&nbsp;</font></td>
    <td align=center width="6%"><font size="1">0&nbsp;</font></td>
    <td align=right width="6%"> <font size="1"> 534,202</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font></td>
    <td align=center width="5%"> <font size="1"> 0</font> </td>
    <td align=center width="5%"> <font size="1">0</font> </td>
    <td align=center width="6%"> <font size="1">0</font> </td>
    <td align=center width="6%"><font size="1">0</font></td>
    <td align=right width="7%"> <font size="1"> 2,435,385</font> </td>
    <td align=right width="2%"><font size="1">&nbsp;</font></td>
    <td align=center width="5%"><font size="1">0</font></td>
    <td align=center width="5%"> <font size="1"> 0</font> </td>
    <td align=center width="5%"><font size="1">0</font></td>
    <td align=center width="8%"> <font size="1"> 0</font> </td>
  </tr>


</table>
<br>
<b>NOTES: </b>The exchange rate of the peso to the U.S. Dollar at March 31, 2008 was Ps. 10.6962<BR>

<br>
<HR noshade align="center" width="100%" size="5">
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_31"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>MONETARY FOREIGN CURRENCY POSITION</B><BR>
<B>(Thousands of Mexican Pesos)</B></P>
<P align=right><B>CONSOLIDATED</B></P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">
<TR vAlign=bottom>
     <TD align=center>&nbsp; </TD>
     <TD align=center colSpan=2><B><FONT size=2>DOLLARS</FONT></B></TD>
     <TD align=center colSpan=2><B><FONT size=2>OTHER CURRENCIES</FONT></B></TD>
     <TD align=center rowSpan=3><B><FONT size=2>TOTAL</FONT></B><BR>
<B><FONT size=2>THOUSANDS</FONT></B><BR>
<B><FONT size=2>OF PESOS</FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD align=center><B><FONT size=2>FOREIGN CURRENCY POSITION</FONT></B></TD>
     <TD align=center rowSpan=2><B><FONT size=2>THOUSANDS </FONT></B><BR>
<B><FONT size=2>OF DOLLARS </FONT></B></TD>
     <TD align=center rowSpan=2><B><FONT size=2>THOUSANDS </FONT></B><BR>
<B><FONT size=2>OF PESOS </FONT></B></TD>
     <TD align=center rowSpan=2><B><FONT size=2>THOUSANDS </FONT></B><BR>
<B><FONT size=2>OF DOLLARS </FONT></B></TD>
     <TD align=center rowSpan=2><B><FONT size=2>THOUSANDS </FONT></B><BR>
<B><FONT size=2>OF PESOS </FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD align=center>&nbsp; </TD></TR>
<TR>
     <TD colSpan=6>&nbsp; </TD></TR>
<TR>
     <TD colSpan=6>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT size=2>TOTAL ASSETS</FONT></B> </TD>
     <TD align=right><B><FONT size=2>869,120</FONT></B> </TD>
     <TD align=right><B><FONT size=2>9,305,651</FONT></B> </TD>
     <TD align=right><FONT size=2>0</FONT> </TD>
     <TD align=right><FONT size=2>0</FONT> </TD>
     <TD align=right><B><FONT size=2>9,305,651</FONT></B> </TD></TR>
<TR>
     <TD colSpan=6>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT size=2>LIABILITIES POSITION</FONT></B> </TD>
     <TD align=right><B><FONT size=2>227,744</FONT></B> </TD>
     <TD align=right><B><FONT size=2>2,347,704</FONT></B> </TD>
     <TD align=right><B><FONT size=2>52</FONT></B> </TD>
     <TD align=right><B><FONT size=2>583</FONT></B> </TD>
     <TD align=right><B><FONT size=2>2,438,287</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=2>SHORT TERM LIABILITIES POSITION</FONT> </TD>
     <TD align=right><B><FONT size=2>227,744</FONT></B> </TD>
     <TD align=right><B><FONT size=2>2,347,704</FONT></B> </TD>
     <TD align=right><B><FONT size=2>52</FONT></B> </TD>
     <TD align=right><B><FONT size=2>583</FONT></B> </TD>
     <TD align=right><B><FONT size=2>2,438,287</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT size=2>LONG TERM LIABILITIES POSITION</FONT> </TD>
     <TD align=right><FONT size=2>0</FONT> </TD>
     <TD align=right><FONT size=2>0</FONT> </TD>
     <TD align=right><FONT size=2>0</FONT> </TD>
     <TD align=right><FONT size=2>0</FONT> </TD>
     <TD align=right><FONT size=2>0</FONT> </TD></TR>
<TR>
     <TD colSpan=6>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left><B><FONT size=2>NET BALANCE</FONT></B> </TD>
     <TD align=right><B><FONT size=2>641,376</FONT></B> </TD>
     <TD align=right><B><FONT size=2>6,867,947</FONT></B> </TD>
     <TD align=right><B><FONT size=2>(52)</FONT></B> </TD>
     <TD align=right><B><FONT size=2>(583)</FONT></B> </TD>
     <TD align=right><B><FONT size=2>6,867,364</FONT></B> </TD></TR></TABLE><BR>
<P align=left><B>NOTES</B><br>
  <BR>
  &nbsp;&nbsp;&nbsp;&nbsp; THE EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT
  MARCH 31, 2008 WAS PS. 10.6962</P>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_32"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>DEBT INSTRUMENTS</B></P>
<P align=right><B>CONSOLIDATED</B></P>
<P align=left><B>FINANCIAL LIMITED BASED IN ISSUED DEED AND/OR TITLE</B></P>
<P align=center><B>MEDIUM TERM NOTES</B></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 border=0>
  <TR>
    <TD vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top nowrap>A)&nbsp; &nbsp; &nbsp; </TD>
    <TD width="100%">Current assets to current liabilities must be 1.0 times or
      more. </TD>
  </TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top nowrap>B)&nbsp; &nbsp; &nbsp; </TD>
    <TD width="100%">Total liabilities to total assets do not be more than 0.60.
    </TD>
  </TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top nowrap>C)&nbsp; &nbsp; &nbsp; </TD>
    <TD width="100%">Operating income plus items added to income which do not
      require using cash must be 2.0 times or more. </TD>
  </TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD>
  </TR>
</TABLE>
<P align=left>This notes was offered in the international market.</P>
<P align=center><B>ACTUAL SITUATION OF FINANCIAL LIMITED</B></P>
<P align=left>MEDIUM TERM NOTES</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 cellPadding=0 border=0 width="100%">
  <TR>
    <TD vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top nowrap>A)&nbsp; &nbsp; &nbsp; </TD>
    <TD width="100%">Accomplished the actual situation is 4.479 times. </TD>
  </TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top nowrap>B)&nbsp; &nbsp; &nbsp; </TD>
    <TD width="100%">Accomplished the actual situation is 0.26 </TD>
  </TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top nowrap>C)&nbsp; &nbsp; &nbsp; </TD>
    <TD width="100%">Accomplished the actual situation is 199.74 </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colSpan=2>As of March 31, 2008, the remaining balance of the MTNs not exchanged amounts to Ps. 3,230 ($302,000 dollars).</TD>
  </TR>
</TABLE>
<P align=left>C.P. Jos&#233; Flores Flores<BR>
Chief Financial Officer</P>
<P align=center><B>BONDS AND/OR MEDIUM TERM NOTES CERTIFICATE</B></P>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_33"></A>
<P align=center><font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align=center><B>PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS</B></P>
<P align=right><B>CONSOLIDATED</B></P>
<TABLE width="740" border=0 align="center" cellPadding=0 cellSpacing=0 style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'">



  <TR vAlign=bottom>

    <TD align=center><b><font size=2>PLANT OR CENTER</font></b> </TD>
    <TD align=center><b><font size=2>ECONOMIC ACTIVITY</font></b> </TD>
    <TD align=center><B><FONT size=2>PLANT</FONT></B>&nbsp;<br>
      <B><FONT size=2>CAPACITY</FONT></B></TD>
    <TD align=center><b><font size=2>UTILIZATION (%)</font></b> </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>GUADALAJARA MINI MILL</FONT> </TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left>&nbsp; </TD>
    <TD align=left><FONT size=2>PRODUCTS</FONT> </TD>
    <TD align=center><FONT size=2>480</FONT> </TD>
    <TD align=center><FONT size=2>95.83</FONT> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>MEXICALI MINI MILL</FONT> </TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left>&nbsp; </TD>
    <TD align=left><FONT size=2>PRODUCTS</FONT> </TD>
    <TD align=center><FONT size=2>250</FONT> </TD>
    <TD align=center><FONT size=2>88.43</FONT> </TD>
  </TR>


  <TR vAlign=bottom>

    <TD align=left><font size=2>INDUSTRIAS DEL ACERO Y DEL ALAMBRE</font>  </TD>
    <TD align=left><FONT size=2>SALE OF STEEL PRODUCTS</FONT> </TD>
    <TD align=center><FONT size=2>0</FONT> </TD>
    <TD align=center><FONT size=2>95.81</FONT> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>APIZACO AND CHOLULA PLANTS</FONT> </TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left>&nbsp; </TD>
    <TD align=left><FONT size=2>PRODUCTS</FONT> </TD>
    <TD align=center><FONT size=2>460</FONT> </TD>
    <TD align=center><FONT size=2>0</FONT> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>CANTON CASTER FACILITY</FONT> </TD>
    <TD align=left><FONT size=2>PRODUCTION OF BILLET</FONT> </TD>
    <TD align=center><FONT size=2>1,380</FONT> </TD>
    <TD align=center><FONT size=2>66.20</FONT> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>LORAIN CASTER FACILITY</FONT> </TD>
    <TD align=left><FONT size=2>PRODUCTION OF BILLET</FONT> </TD>
    <TD align=center><FONT size=2>1,150</FONT> </TD>
    <TD align=center><FONT size=2>88.80</FONT> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>LORAIN HOT-ROLLING MILL</FONT> </TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left>&nbsp; </TD>
    <TD align=left><FONT size=2>PRODUCTS</FONT> </TD>
    <TD align=center><FONT size=2>840</FONT> </TD>
    <TD align=center><FONT size=2>80.40</FONT> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>LACKAWANNA HOT-ROLLING MILL</FONT> </TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left>&nbsp; </TD>
    <TD align=left><FONT size=2>PRODUCTS</FONT> </TD>
    <TD align=center><FONT size=2>600</FONT> </TD>
    <TD align=center><FONT size=2>89.00</FONT> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>MASSILLON COLD-FINISH FACILITY</FONT> </TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left>&nbsp; </TD>
    <TD align=left><FONT size=2>PRODUCTS</FONT> </TD>
    <TD align=center><FONT size=2>125</FONT> </TD>
    <TD align=center><FONT size=2>78.60</FONT> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>GARY COLD-FINISH FACILITY</FONT> </TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left>&nbsp; </TD>
    <TD align=left><FONT size=2>PRODUCTS</FONT> </TD>
    <TD align=center><FONT size=2>70</FONT> </TD>
    <TD align=center><FONT size=2>46.00</FONT> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>ONTARIO COLD-FINISH FACILITY</FONT> </TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left>&nbsp; </TD>
    <TD align=left><FONT size=2>PRODUCTS</FONT> </TD>
    <TD align=center><FONT size=2>60</FONT> </TD>
    <TD align=center><FONT size=2>45.60</FONT> </TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_34"></A>
<P align="center"> <font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align="center"> <B>MAIN RAW MATERIALS</B></P>
<P align="right"><B><FONT size=2>CONSOLIDATED</FONT></B> </P>
<TABLE width=740 border=0 align="center" cellpadding=0 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2>DOMESTIC</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>COST</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2>DOMESTIC</FONT></B>
        </TD>
        <TD align=left>
 &nbsp;<B><FONT size=2>MAIN SUPPLIERS</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>FOREIGN</FONT></B>
        </TD>
        <TD align=left>
 &nbsp;<B><FONT size=2>MAIN SUPPLIERS</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>SUBSTITUTION</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>PRODUCTION (%)</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>PLANTS IN USA</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2>SCRAP</FONT>
        </TD>
        <TD align=left>
<FONT size=2>VARIOUS</FONT>
        </TD>
        <TD align=center>
<FONT size=2>NO</FONT>
        </TD>
        <TD align=center>
<FONT size=2>19.40</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>SCRAP</FONT>
        </TD>
        <TD align=left>
<FONT size=2>VARIOUS</FONT>
        </TD>
        <TD align=left>
<FONT size=2>PLANTS IN MEXICO</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2>50.25</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>PLANTS IN USA</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2>COKE</FONT>
        </TD>
        <TD align=left>
<FONT size=2>VARIOUS</FONT>
        </TD>
        <TD align=center>
<FONT size=2>NO</FONT>
        </TD>
        <TD align=center>
<FONT size=2>4.20</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>PLANTS IN USA</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2>PELLETS</FONT>
        </TD>
        <TD align=left>
<FONT size=2>VARIOUS</FONT>
        </TD>
        <TD align=center>
<FONT size=2>NO</FONT>
        </TD>
        <TD align=center>
<FONT size=2>1.60</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>FERROALLOYS</FONT>
        </TD>
        <TD align=left>
<FONT size=2>VARIOUS</FONT>
        </TD>
        <TD align=left>
<FONT size=2>PLANTS IN MEXICO</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2>YES</FONT>
        </TD>
        <TD align=center>
<FONT size=2>7.50</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>PLANTS IN USA</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2>FERROALLOYS</FONT>
        </TD>
        <TD align=left>
<FONT size=2>VARIOUS</FONT>
        </TD>
        <TD align=center>
<FONT size=2>NO</FONT>
        </TD>
        <TD align=center>
<FONT size=2>14.90</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>ELECTRODES</FONT>
        </TD>
        <TD align=left>
<FONT size=2>VARIOUS</FONT>
        </TD>
        <TD align=left>
<FONT size=2>PLANTS IN MEXICO</FONT>
        </TD>
        <TD align=left>
<FONT size=2>VARIOUS</FONT>
        </TD>
        <TD align=center>
<FONT size=2>YES</FONT>
        </TD>
        <TD align=center>
<FONT size=2>2.30</FONT>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>PLANTS IN USA</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2>ELECTRODES</FONT>
        </TD>
        <TD align=left>
<FONT size=2>VARIOUS</FONT>
        </TD>
        <TD align=center>
<FONT size=2>NO</FONT>
        </TD>
        <TD align=center>
<FONT size=2>1.30</FONT>
        </TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size="5">
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_35"></A>
<P align="center"> <font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<br>
<br>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman';font-size: 10pt;">
  <TR valign="bottom">
    <TD align=center width=98% colspan=4> <B><FONT size=2>SELLS DISTRIBUTION BY
      PRODUCT</FONT></B> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=98%>&nbsp; </TD>
    <TD align=left width=45%>&nbsp; </TD>
    <TD align=left width=6%>&nbsp; </TD>
    <TD align=left width=18%> <div align="right">&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2>CONSOLIDATED</FONT></B>
      </div></TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<B>DOMESTIC SELLS</B></P>
<TABLE width=700 border=0 align="center" cellpadding=0 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2>MAIN PRODUCTS</FONT></B>
        </TD>

    <TD align=center colspan=2>
<B><FONT size=2>NET SALES</FONT></B>
        </TD>
        <TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2>MAIN DESTINATION</FONT></B>
        </TD>
</TR>
<TR>
        <TD colspan=5>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<B><FONT size=2>VOLUME</FONT></B>
        </TD>
        <TD align=right>
<B><FONT size=2>AMOUNT</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>TRADEMARKS</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>COSTUMERS</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>STRUCTURAL PROFILES</FONT>
        </TD>
        <TD align=right>
<FONT size=2>44</FONT>
        </TD>
        <TD align=right>
<FONT size=2>410,976</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>COMMERCIAL PROFILES</FONT>
        </TD>
        <TD align=right>
<FONT size=2>12</FONT>
        </TD>
        <TD align=right>
<FONT size=2>103,126</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>REBAR</FONT>
        </TD>
        <TD align=right>
<FONT size=2>37</FONT>
        </TD>
        <TD align=right>
<FONT size=2>317,658</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>FLAT BAR</FONT>
        </TD>
        <TD align=right>
<FONT size=2>33</FONT>
        </TD>
        <TD align=right>
<FONT size=2>276,843</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>STEEL BARS</FONT>
        </TD>
        <TD align=right>
<FONT size=2>82</FONT>
        </TD>
        <TD align=right>
<FONT size=2>724,652</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>OTHER</FONT>
        </TD>
        <TD align=right>
<FONT size=2>0</FONT>
        </TD>
        <TD align=right>
<FONT size=2>24,433</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>BILLET</FONT>
        </TD>
        <TD align=right>
<FONT size=2>1</FONT>
        </TD>
        <TD align=right>
<FONT size=2>7,269</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>HOT-ROLLED BARS</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>COLD-FINISHED BARS</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>SEMI-FINISHED SEAMLESS TUBE ROUNDS</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2>OTHER SEMI-FINISHED TRADE PRODUCTS</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">

    <TD align=left>
<B><FONT size=2>TOTAL</FONT></B>        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<B><FONT size=2>1,864,957</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2>FOREIGN SALES</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<B><FONT size=2>5,423,010</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2>TOTAL</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<B><FONT size=2>7,287,967</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size="5">
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_36"></A>
<P align="center"> <font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<br>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman';font-size: 10pt;">
  <TR valign="bottom">
    <TD align=center width=98% colspan=4> <B><FONT size=2>SELLS DISTRIBUTION BY
      PRODUCT</FONT></B> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=98%>&nbsp; </TD>
    <TD align=left width=45%>&nbsp; </TD>
    <TD align=left width=6%>&nbsp; </TD>
    <TD align=right width=18%> &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2>CONSOLIDATED</FONT></B>
    </TD>
  </TR>
</TABLE>
<BR>
<TABLE width=740 border=0 align="center" cellpadding=0 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD align=center colspan=3> <B><FONT size=2>FOREIGN SELLS</FONT></B>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=7>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center> <B><FONT size=2>MAIN PRODUCTS</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=2>NET SELLS</FONT></B> </TD>
    <TD colspan="3" align=center> <B><FONT size=2>MAIN</FONT></B> </TD>
  </TR>
  <TR>
    <TD colspan=7>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=right> <b><font size=2>VOLUME</font></b> </TD>
    <TD align=right> <B><FONT size=2>AMOUNT</FONT></B> </TD>
    <TD align=center> <B><FONT size=2>TRADEMARKS</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD align=center> <B><FONT size=2>COSTUMERS</FONT></B> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B><FONT size=2>EXPORTS</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>STRUCTURAL PROFILES</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right> <FONT size=2>11</FONT> </TD>
    <TD align=right> <FONT size=2>92,692</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>COMMERCIAL PROFILES</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right> <FONT size=2>8</FONT> </TD>
    <TD align=right> <FONT size=2>63,700</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>REBAR</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right> <FONT size=2>33</FONT> </TD>
    <TD align=right> <FONT size=2>232,699</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>STEEL BARS</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right> <FONT size=2>24</FONT> </TD>
    <TD align=right> <FONT size=2>205,327</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>FLAT BAR</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right> <FONT size=2>1</FONT> </TD>
    <TD align=right> <FONT size=2>9,797</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>BILLET</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right> <FONT size=2>0</FONT> </TD>
    <TD align=right> <FONT size=2>0</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=7>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B><FONT size=2>FOREIGN SUBSIDIARIES</FONT></B>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>HOT-ROLLED BARS</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right> <FONT size=2>268</FONT> </TD>
    <TD align=right> <FONT size=2>2,858,766</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>COLD-FINISHED BARS</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right> <FONT size=2>35</FONT> </TD>
    <TD align=right> <FONT size=2>537,781</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>SEMI-FINISHED SEAMLESS TUBE</FONT>
    </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>ROUNDS</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right> <FONT size=2>103</FONT> </TD>
    <TD align=right> <FONT size=2>943,839</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>OTHER SEMI-FINISHED TRADE</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>PRODUCTS</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right> <FONT size=2>53</FONT> </TD>
    <TD align=right> <FONT size=2>478,409</FONT> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B><FONT size=2>TOTAL</FONT></B></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right> <B><FONT size=2>5,423,010</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
</TABLE>
<BR>

<HR noshade align="center" width="100%" size="5">
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<p align="center"><A name="page_37"></A> <br>
  <font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font> </p>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<br>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman';font-size: 10pt;">
  <TR valign="bottom">
    <TD align=center width=97% colspan=4> <B><FONT size=2>CONSTRUCTION IN PROGRESS</FONT></B>
    </TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left width=97%>&nbsp; </TD>
    <TD align=left width=97%>&nbsp; </TD>
    <TD align=left width=97%>&nbsp; </TD>
    <TD align=left width=97%> &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2>CONSOLIDATED</FONT></B>
    </TD>
  </TR>
</TABLE>
<BR>
<P align="left">
THE PROJECTS IN PROGRESS AT MARCH 31, 2008, ARE:</P>
<TABLE width=600 border=0 cellpadding=0 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">
  <TR valign="bottom">
    <TD width=471 align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2>PROJECTS
      IN PROGRESS</FONT> </TD>
    <TD width=129 align=right> <FONT size=2>TOTAL&nbsp;INVESTMENT</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>PROJECTS IN REPUBLIC</FONT> </TD>
    <TD align=right> <FONT size=2>114,909</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>PROJECTS IN MEXICALI</FONT> </TD>
    <TD align=right> <FONT size=2>94,452</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>PROJECTS IN TLAXCALA</FONT> </TD>
    <TD align=right> <FONT size=2>8,455</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2>PROJECTS IN GUADALAJARA</FONT> </TD>
    <TD align=right> <FONT size=2>27,043</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B><FONT size=2>TOTAL INVESTMENT AT</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <B><FONT size=2>MARCH 31, 2008</FONT></B> </TD>
    <TD align=right> <B><FONT size=2>244,859</FONT></B> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=right><hr align="right" size="2" noshade></TD>
  </TR>
</TABLE>
<BR>

<HR noshade align="center" width="100%" size="5">
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_38"></A>
<P align="center"> <font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<P align="center"> <B>TRANSACTIONS IN FOREIGN CURRENCY AND CONVERSION OF FINANCIAL
  STATEMENTS OF FOREIGN OPERATIONS <br>
  INFORMATION RELATED TO BULLETIN B-15</B></P>
<P align="right">
<B>CONSOLIDATED</B></P>
<P align="left">
<B>Foreign currency transactions and exchange differences &#150; </B>All transactions in foreign currency are recorded at the exchange rates prevailing on the date of their execution or liquidation. Foreign currency denominated assets and
liabilities are translated at the exchange rates prevailing at the balance sheet date. Any exchange differences incurred with regard to assets or liabilities denominated in foreign currency are charged to operations of the period and are included in
financial income (expense) in the accompanying consolidated statements of income (loss).</P>
<P align="left">
For consolidation purposes, the financial statements of the foreign subsidiaries, were translated into pesos in conformity with Mexican accounting Bulletin MFRS B-15, Transactions in Foreign Currency.</P>
<P align="left">
The first step in the process of conversion of financial information of the operations is the determination of the functional currency, which is in first instance the currency of primary the economic surroundings of the foreign operation;
nevertheless, despite the previous thing, the functional currency can differ from the premises or registry, in the measurement that this one does not represent the currency that fundamentally affects the cash flow of the operations abroad. The
financial statements of the foreign subsidiaries were turned to Mexican pesos with the following procedure:</P>
<P align="left">
- - Applying the prevailing exchange rate at the consolidated balance date for monetary assets and liabilities.</P>
<P align="left">
- - Applying the prevailing historical exchange rate for nonmonetary assets and liabilities and for stockholders&#146; equity accounts.</P>
<P align="left">
- - Applying the prevailing the historical exchange rate at the consolidated balance sheet date for revenues and expenses during the reporting period </P>
<P align="left">- The resulting effect of translation, the process of consolidation and to apply the participation
method, is recorded in stockholders&#146; equity under the accumulated effect by conversion forming part of the Comprehensive Income.</P>

<HR noshade align="center" width="100%" size="5">
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_39"></A>
<P align="center"> <font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<br>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman';font-size: 10pt;">
  <TR valign="bottom">
    <TD align=left width=40%>&nbsp; </TD>
    <TD align=left width=22%>&nbsp; </TD>
    <TD align=left width=12%>&nbsp; </TD>
    <TD align=left width=7%>&nbsp; </TD>
    <TD align=right width=17%> &nbsp; &nbsp;<B><FONT size=2>CONSOLIDATED</FONT></B>
    </TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<B>INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK</B><BR>
<B>CHARACTERISTICS OF THE SHARES</B></P>
<TABLE width=740 border=0 align="center" cellpadding=0 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2>SERIES</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>NOMINAL</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>VALID</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
    <TD align=center colspan=2> <B><FONT size=2>NUMBER OF SHARES</FONT></B>
    </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center colspan=2>
 &nbsp; &nbsp;<B><FONT size=2>CAPITAL STOCK</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2>VALUE</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>COUPON</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center colspan=2>
<B><FONT size=2>(Thousands of Pesos)</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
 &nbsp;<B><FONT size=2>FIXED</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>VARIABLE</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2>FREE</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2>PORTION</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>PORTION</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>MEXICAN</FONT></B>
        </TD>
        <TD align=center>
<B><FONT size=2>SUBCRIPTION</FONT></B>
        </TD>
        <TD align=center colspan=2>
<B><FONT size=2>FIXED VARIABLE</FONT></B>
        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD>
<FONT size=2>B</FONT>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
 &nbsp; &nbsp;<FONT size=2>90,850,050</FONT>
        </TD>
        <TD>
 &nbsp;<FONT size=2>383,771,561</FONT>
        </TD>
    <TD><FONT size=2>0</FONT> </TD>
    <TD> <FONT size=2> 474,621,611</FONT> </TD>
        <TD>
 &nbsp; &nbsp;<FONT size=2>441,786</FONT>
        </TD>
        <TD>
<FONT size=2>1,866,175</FONT>
        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD>
<B><FONT size=2>TOTAL</FONT></B>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
 &nbsp; &nbsp;<B><FONT size=2>90,850,050</FONT></B>
        </TD>
        <TD>
 &nbsp;<B><FONT size=2>383,771,561</FONT></B>
        </TD>
    <TD><B><FONT size=2>0</FONT></B> </TD>
    <TD> <B></B><FONT size=2>474,621,611</FONT> </TD>
        <TD>
 &nbsp; &nbsp;<B><FONT size=2>441,786</FONT></B>
        </TD>
        <TD>
<B><FONT size=2>1,866,175</FONT></B>
        </TD>
</TR>
</TABLE><BR>
<P align="left">
<B>TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION: </B>474,621,611</P>

<HR noshade align="center" width="100%" size="5">
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<A name="page_40"></A>
<P align="center"> <font size="3"><strong>MEXICAN STOCK EXCHANGE <br>
  SIFIC / ICS</strong></font></P>
<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 cellpadding=0 width="100%" border=0>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>STOCK EXCHANGE CODE</font><b><font size=2>:
      SIMEC</font></b> </td>
    <td align=right><font size=2>QUARTER:</font> <font size=2><b>1&nbsp;&nbsp;</b></font><font size=2>YEAR:</font><b><font size=2> 2008</font></b> </td>
  </tr>
  <tr valign=bottom>
    <td align=left width="51%"><font size=2>GRUPO SIMEC, S.A.B. DE C.V.</font>
    </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<br>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman';font-size: 10pt;">
  <TR valign="bottom">
    <TD align=left width=40%>&nbsp; </TD>
    <TD align=left width=22%>&nbsp; </TD>
    <TD align=left width=12%>&nbsp; </TD>
    <TD align=left width=7%>&nbsp; </TD>
    <TD align=right width=17%> &nbsp; &nbsp;<B><FONT size=2>CONSOLIDATED</FONT></B>
    </TD>
  </TR>
</TABLE>
<BR>
<P align="left">
<B>DECLARATION OF THE COMPANY OFFICIALS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THIS REPORT.</B></P>
<P align="left">
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 FIRST QUARTER REPORT.</P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman';font-size: 10pt;">
  <TR valign="bottom" align="center">

    <TD width=30%>
<B>ING LUIS GARCIA LIMON</B>
        </TD>
    <TD width=30%>
<B>C.P. JOSE FLORES FLORES</B>
        </TD>
  </TR>
  <TR valign="bottom" align="center">

    <TD width=30%>
<B>CHIEF EXECUTIVE OFFICER</B>
        </TD>
    <TD width=30%>
<B>CHIEF FINANCIAL OFFICER</B>
        </TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<B>GUADALAJARA, JAL, AT APRIL 28 OF 2008.</B></P>

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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
