<SEC-DOCUMENT>0000891092-11-004782.txt : 20110727
<SEC-HEADER>0000891092-11-004782.hdr.sgml : 20110727
<ACCEPTANCE-DATETIME>20110727170058
ACCESSION NUMBER:		0000891092-11-004782
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20110630
FILED AS OF DATE:		20110727
DATE AS OF CHANGE:		20110727

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:		11990765

	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>e44575_6k.htm
<DESCRIPTION>FORM 6-K
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<P style="TEXT-ALIGN: center"><B><font size="3">UNITED STATES</font></B><font size="3"><BR>

<B>SECURITIES AND EXCHANGE COMMISSION</B><BR>

<B>Washington, D.C. 20549</B></font></P>
<P style="TEXT-ALIGN: center"><font size="3"><B>FORM 6-K</B></font></P>
<P style="TEXT-ALIGN: center"><font size="3"><B>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16</B><BR>

<B>UNDER THE SECURITIES EXCHANGE ACT OF 1934</B></font></P>
<P style="TEXT-ALIGN: center"><font size="3"><B>COMMISSION FILE NUMBER 1-11176</B></font></P>
<P style="TEXT-ALIGN: center">For the month of <u>Jun, 2011</u>.</P>
<div align="center">Group Simec, Inc.
</div>
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<div align="center">(Translation of Registrant&#146;s Name Into English)
<br>
  <br>
</div>
<div align="center">Av. Lazaro Cardenas 601, Colonia la Nogalera, Guadalajara, Jalisco, Mexico 44440
</div>
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<div align="center">(Address of principal executive office)
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<P style="TEXT-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.</P>
<P style="TEXT-ALIGN: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 20-F |X|&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 40-F |_|</P>
<P style="TEXT-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>
<P style="TEXT-ALIGN: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes  |_|&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No  |X|</P>
<P style="TEXT-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>
<P style="TEXT-ALIGN: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes  |_|&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No  |X|</P>
<p style="TEXT-ALIGN: left"></p>
<P style="TEXT-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>
<P style="TEXT-ALIGN: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes  |_|&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No  |X|</P>
<p style="TEXT-ALIGN: left"></p>
<P style="TEXT-ALIGN: left">(If &#147;Yes&#148; is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): <br>
  82-_______________________.)</P>
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<P style="text-align: left;"> SIGNATURE</P>
<P style="text-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>
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    <TD align=center width="54%"> <FONT size=2><u>GRUPO SIMEC, S.A.B. de C.V.</u></FONT></TD>
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  <TR valign="bottom">
    <TD align=center width="46%">&nbsp;</TD>


    <TD align=center width="54%"> <FONT size=2>(Registrant)</FONT></TD>
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    <TD align=left width="46%"> <FONT size=2>Date: Jul 27, 2011.</FONT></TD>

    <TD align=left width="4%"> <FONT size=2>By:</FONT></TD>

    <TD align=left colspan=2> <FONT size=2><u>/s/ Luis Garc&iacute;a Lim&oacute;n</u></FONT></TD>
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    <TD align=left width="46%">&nbsp; </TD>

    <TD align=left width="4%">&nbsp; </TD>

    <TD align=left width="6%"> <FONT size=2>Name:</FONT></TD>

    <TD align=left width="44%"> <FONT size=2>Luis Garc&iacute;a Lim&oacute;n</FONT></TD>
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    <TD align=left width="46%">&nbsp; </TD>

    <TD align=left width="4%">&nbsp; </TD>

    <TD align=left width="6%"> <FONT size=2>Title:</FONT></TD>

    <TD align=left width="44%"> <FONT size=2>Chief Executive Officer</FONT></TD>
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<P style="text-align: left;"> GUADALAJARA, MEXICO, Jul 27, 2011- Grupo Simec, S.A.B. de C.V. (AMEX: SIM) (&#147;Simec&#148;) announced today its results of operations for the six-month period ended June 30, 2011.</P>
<P style="text-align: left;"> <B>Comparative first six months of 2011 vs. first six months of 2010</B></P>
<P style="text-align: left;"> <B><I>Net Sales</I></B></P>
<P style="text-align: left;"> Net sales of the Company increased 8% from Ps. 12,760 million in the first half of 2010 compared to Ps. 13,758 million in the same period of 2011. Shipments of finished steel products decreased 2% from 1,162 thousand tons in the first half of 2010 compared to 1,139 thousand tons in the same period of 2011. Total sales outside of Mexico in the first half of 2011 increased 6% to Ps. 7,575 million compared to Ps. 7,129 million in the same period of 2010, while total Mexican sales increased 10% from Ps. 5,631 million in the first half of 2010 to Ps. 6,183 million in the same period of 2011. The increase in sales for the first six months of 2011 compared to the first six months of 2010, is due to increase in the average sales price, better bland of steel shipment, and the increase in the sales price from the other steel products, while the volume of shipments decrease approximately 23 thousands a fall of 2%.</P>
<P style="text-align: left;"> <B><I>Cost of Sales</I></B></P>
<P style="text-align: left;"> Cost of sales increased 9% from Ps.11,095 million in the first six months of 2010, to Ps. 12,075 million in the same period of 2011.Cost of sales as a percentage of net sales represented 88% in the first half of 2011 compared to 87% in the same period of 2010. The increase in cost of sales is due to the bland of steel shipments, while the cost of certain raw materials reflect mixed results and the net of this main consumption, reflect a low decrease.</P>
<P style="text-align: left;"> <B><I>Gross Profit</I></B></P>
<P style="text-align: left;"> Gross profit of the Company for the first half of 2011 increased 1% from Ps. 1,665 million in the first half of 2010, to Ps. 1,683 million in the same period of 2011. Marginal profit as percentage of net sales in the first half of 2011 was of 12% while to the same period of 2010 was of 13%. The gross profit is similar in both periods, reflected by the increase in the shipments of special bar quality (SBQ), which sales and cost are higher than commercial products.</P>
<P style="text-align: left;"> <B><I>Operating Expenses</I></B></P>
<P style="text-align: left;"> Selling, general and administrative expense decrease 29%, or Ps. 638 million in the first six months of 2010 to Ps. 453 million in the same period 2011, selling, general and administrative expense represented 5% of the net sales of the first six months of 2010 and 3% of net sales in the first half of 2011.</P>
<P style="text-align: left;"> <B><I>Operating Income</I></B></P>
<P style="text-align: left;"> Operating income increased 20% from Ps. 1,027 million for the first six months of 2010 compared to Ps. 1,230 million in the same period of 2011. Operating income as percentage of net sales was 9% in the first half of 2011 compared to 8% in the same period of 2010, respectively. The increase in operating income is due to a better bland of shipments and the reduction in the selling, general and administrative expense.</P>
<P style="text-align: left;"> <B><I>Ebitda</I></B></P>
<P style="text-align: left;"> <I>The ebitda of the first six months of 2011, increase Ps 139 million or 9% this is due to a better bland of steel products shipments and the reduction of selling, general and administrative expense compared to ebitda of Ps.1,547 million of the first half of 2010,and Ps. 1,686 million in the first half of 2011</I></P>
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<P style="text-align: left;"> <B><I>Comprehensive Financial Cost</I></B></P>
<P style="text-align: left;"> Comprehensive financial cost for the first half of 2011 represented an expense of Ps.172 million compared with an expense of Ps. 38 million for the first six months of 2010. The comprehensive financial cost is comprised by the exchange loss of Ps.177 million in the first half of 2011 compared with an exchange loss of Ps. 41 million in the first half of 2010.Also recorded an income interest net of Ps. 5 million and Ps. 3 million in 2011 and 2010 respectively. As of June 30, 2011 the mexican peso record an revaluation of 4% versus dollar compared the exchange rate of Mexican peso to dollar as of December 31, 2010.</P>
<P style="text-align: left;"> <B><I>Other Expenses (Income) net</I></B></P>
<P style="text-align: left;"> The Company recorded other expense net of Ps. 36 million in the first half of 2010 while in the same period of 2011 the other expense reflected an expense net of Ps. 8 million.</P>
<P style="text-align: left;"> <B><I>Income Taxes</I></B></P>
<P style="text-align: left;"> The Company recorded an income tax of Ps. 14 million in the first half of 2010 compared to Ps. 23 million of income tax in the same period of 2011.</P>
<P style="text-align: left;"> <B><I>Net Income</I></B></P>
<P style="text-align: left;"> As a result of the foregoing, the Company record a decrease in net income of 5% from Ps.1,010 million in the first half of 2010 to Ps. 961 million in the same period of 2011.</P>
<P style="text-align: left;"> <B>Comparative second quarter of 2011 vs. first quarter of 2011</B></P>
<P style="text-align: left;"> <B><I>Net Sales</I></B></P>
<P style="text-align: left;"> Net sales of the Company increase 10% in the second quarter of 2011 compared to the first quarter of the same period of the year, from Ps. 6,565 million in the first quarter of 2011 compared to Ps. 7,193 million in the second quarter of 2011. Shipments of finished steel products increased 12% from 538 thousand tons in the first quarter of 2011 to 601 thousand tons in the second quarter of 2011. Total sales outside of Mexico in the second quarter of 2011 increased 6% to rose to Ps. 3,897 million compared to Ps. 3,678 million in the first quarter of 2011.Total Mexican
sales also show the same trend of growth, 14% from Ps. 2,887 million in the first quarter of 2011 to Ps. 3,296 million in the second quarter of 2011. The increase in sales of the second quarter is due to a; better bland of steel products shipments, increase in volume of shipments and a decrease in the average sales price compared to the first quarter of the same year, the volume shipment was better in 63
thousand ton, compared to the first quarter of 2011.</P>
<P style="text-align: left;"> <B><I>Cost of Sales</I></B></P>
<P style="text-align: left;"> Cost of sales increased 13% from Ps. 5,682 million in the first quarter of 2011 to Ps. 6,393 million in the second quarter of 2011. Cost of sales as a percentage of net sales represented 89% in the second quarter of 2011 while in the first quarter of the same year represented 87%, the average cost of sales by ton record an increase between the two quarter of 1%.The increase in the cost of sales is due to a better bland of steel shipments which cost is higher and an increase in volume of products shipments.</P>
<P style="text-align: left;"> <B><I>Gross Profit</I></B></P>
<P style="text-align: left;"> Gross profit of the Company for the second quarter of 2011 decreased 9% to Ps. 883 million in the first quarter to Ps. 800 million in the second quarter of 2011. Gross profit as a percentage of net sales in the second quarter of 2011 was 11% compared to 13% in the first quarter 2011. The decreased in the gross profit in the second quarter of 2011 is due for the bland of steel shipments and the fall in the average sales price in 2%.</P>
<P style="text-align: left;"> <B><I>Operating Expenses</I></B></P>
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<P style="text-align: left;"> Selling, general and administrative expense fell 39% from Ps. 282 million in the first quarter of 2011 to Ps. 171 million in the second quarter of 2011, and represented 4% and 2% of net sales in the first and second quarter of 2011 respectively.</P>
<P style="text-align: left;"> <B><I>Operating Income</I></B></P>
<P style="text-align: left;"> Operating income increased 5%, to Ps. 629 million in the second quarter of 2011 compared to Ps. 601 million in the first quarter of 2011. Operating income as percentage of net sales was 9% in the first and second quarter of 2011respectively. The increase in operating income is due to a better bland of steel products shipments, volume and reduction in selling, general and administrative expense.</P>
<P style="text-align: left;"> <B><I>Ebitda</I></B></P>
<P style="text-align: left;"> <I>The ebitda in the second quarter of 2011 recorded an increase of 3% compared to the first quarter of the same year, this is due to volume and bland of steel products shipment, and a reduction in the selling, general and administrative expense compared to the first quarter from Ps 831 million in the first quarter to Ps 855 million in the second quarter of 2011.</I></P>
<P style="text-align: left;"> <B><I>Comprehensive Financial Cost</I></B></P>
<P style="text-align: left;"> Comprehensive financial cost of the Company in the first quarter of 2011 represented an expense of Ps. 84 million compared with an expense of Ps. 87 million for the second quarter of 2011.The comprehensive financial cost is comprised for: the interest expense net, represented an income interest net of Ps. 3 million in the second quarter of 2011, while in the first quarter of 2011 we had an income interest net of Ps. 2 million. Also we record an exchange loss net of Ps. 90 million in the second quarter of 2011 compared an exchange loss net of Ps. 86 million in the first quarter of the same year.</P>
<P style="text-align: left;"> <B><I>Other Expenses (Income) net</I></B></P>
<P style="text-align: left;"> The Company recorded other expense net of Ps. 9 million in the second quarter of 2011 compared to other income net of Ps. 1 million in the first quarter of 2011.</P>
<P style="text-align: left;"> <B><I>Income Taxes</I></B></P>
<P style="text-align: left;"> The Company recorded an income tax of Ps. 11 million in the second quarter of 2011 compared to an income tax of Ps. 11 million in the first quarter of the same year.</P>
<P style="text-align: left;"> <B><I>Net Income</I></B></P>
<P style="text-align: left;"> As a result of the foregoing, the Company record a net income fell of 1% from a net income of Ps. 483 million in the first quarter of 2011 compared to a net income of Ps. 478 million in the second quarter of 2011.</P>
<P style="text-align: center;"> <B><I>Liquidity and Capital Resources</I></B></P>
<P style="text-align: left;"> As of June 30, 2011, Simec&#146;s total consolidated debt consisted of U.S. &#36;302,000 of 8 7/8% medium-term notes (&#147;MTN's&#148;) due 1998, or Ps. 3.6 million (accrued interest on June 30, 2011 was U.S. &#36;459,000, or Ps. 5.4 million). As of December 31, 2010, Simec&#146;s total consolidated debt consisted of U.S. &#36;302,000 of 8 7/8% medium-term notes (&#147;MTN's&#148;) due 1998, or Ps. 3.7 million (accrued interest on December 31, 2010 was U.S. &#36;445,000, or Ps. 5.5 million).</P>
<P style="text-align: left;"> <B>Comparative second quarter of 2011 vs second quarter of 2010</B></P>
<P style="text-align: left;"> <B><I>Net Sales</I></B></P>
<P style="text-align: left;"> Net sales of the Company increased 13% from Ps. 6,367 million in the second quarter of 2010 to Ps. 7,193 million in the second quarter of 2011. Sales in tons of finished steel increased 8% to 558 thousand tons in the second quarter of 2010 compared with 601thousand tons in the second quarter of 2011. The total sales outside of</P>
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<P style="text-align: left;"> Mexico for the second quarter of 2011 increased 4% from Ps. 3,749 million to Ps. 3,897 million for the second quarter of 2011. Total Mexican sales increase 26% from Ps. 2,618 million in the second quarter of 2010 to Ps. 3,296 million in the second quarter of 2011. Prices of finished products sold in the second quarter of 2011 increased 5% compared to the second quarter of 2010.</P>
<P style="text-align: left;"> <B><I>Cost of Sales</I></B></P>
<P style="text-align: left;"> Cost of sales increased 12% in the second quarter of 2011 compared to same period of 2010, from Ps. 5,704 million in the second quarter of 2010 to Ps. 6,393 million in the second quarter of 2011. With respect to sales, in the second quarter of 2010, the direct cost of sales represent 90% compared to 89% for the second quarter of 2011. The average cost of raw materials used to produce steel products increased 4% in the second quarter of 2011 versus the second quarter of 2010, primarily as a result of better bland of steel products shipments.</P>
<P style="text-align: left;"> <B><I>Gross (Loss) Profit</I></B></P>
<P style="text-align: left;"> Gross profit of the Company for the second quarter of 2011 rose to Ps. 800 million compared to Ps.663 million in the second quarter of 2010, this represented an increase of 21%. The gross profit as a percentage of net sales for the second quarter of 2011 was 11% compared to 10% for the second quarter of 2010. The increase in gross profit is due to the increase in volume, bland of steel products shipments and the average sales price.</P>
<P style="text-align: left;"> <B><I>Operating Expenses</I></B></P>
<P style="text-align: left;"> The selling, general and administrative expense decreased 31% in the second quarter of 2011 from Ps. 248 million in the second quarter of 2010 to Ps. 171 million in the second quarter of 2011.The selling, general and administrative expense as a percentage of net sales represented 2% during the second quarter of 2011 and 4% the second quarter of 2010.</P>
<P style="text-align: left;"> <B><I>Operating (Loss) Income</I></B></P>
<P style="text-align: left;"> Operating income rose to Ps. 629 million in the second quarter 2011 compared to Ps. 415 million in the second quarter of 2010, this represented the 52% of increase. The operating income as a percentage of net sales in the second quarter of 2010 was 6% compared to 9% in the second quarter of 2011. The increase in the operating income is due to better bland of steel products shipments, volume, average sales price and reduction in selling, general and administrative expense.</P>
<P style="text-align: left;"> Ebitda</P>
<P style="text-align: left;"> The ebitda of the second quarter of 2011increasecompared to 2010 in 26% from Ps 676 million in the second quarter of 2010compared to Ps.855 million of the same period of 2011,this is due to the above explained in the operating income.</P>
<P style="text-align: left;"> <B><I>Comprehensive Financial Cost</I></B></P>
<P style="text-align: left;"> Comprehensive financial cost of the Company for the second quarter of 2011 represented an expense of Ps. 87 million compared with an expense of Ps. 14 million for the second quarter of 2010. The comprehensive financial cost is comprised for: The interest cost recorded was an income net of Ps. 3 million in the second quarter of 2011, compared to an income net of Ps. zero. for the same period of 2010. Also recorded an exchange loss of Ps. 90 million in the second quarter of 2011 and Ps.14 million in the second quarter of 2010.</P>
<P style="text-align: left;"> <B><I>Other Expenses (Income) net</I></B></P>
<P style="text-align: left;"> The company recorded other expense net of Ps. 9 million in the second quarter of 2011 compared with other expense net of Ps.46 million for the second quarter of 2010.</P>
<P style="text-align: left;"> <B><I>Income Taxes</I></B></P>
<P style="text-align: left;"> The company record an income tax for Ps. 11 million in the second quarter of 2011 compared to Ps. 33 million of income for income tax for the second quarter of 2010.</P>
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<P style="TEXT-ALIGN: left"><B><I>Net Income (Loss)</I></B></P>
<P style="TEXT-ALIGN: left">As a result of the foregoing, the Company net income was of Ps. 478 million in the second quarter of 2011 compared to Ps.439 million for the second quarter of 2010.</P>
<P style="TEXT-ALIGN: left">Note. In accordance with Mexican Financial Reporting Standards (MFRS), from 2011, only allowed the valuation of inventory through the system absorbing cost, and some figures have been adjusted in the income statement of 2010 for purposes of comparisons.</P>
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    <TD align=center bgColor=#000080><B><FONT color=#ffffff size=2>(millon of pesos)</FONT></B></TD>
    <TD align=center bgColor=#000080><B><FONT color=#ffffff size=2>1H &#145;11</FONT></B></TD>
    <TD align=center bgColor=#000080><B><FONT color=#ffffff size=2>1H &#145;10</FONT></B></TD>
    <TD align=center bgColor=#000080><B><FONT color=#ffffff size=2>Year 11 vs</FONT></B><BR>

<B><font size="2" color="#ffffff">'10</font></B></TD>
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  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Sales</FONT></TD>
    <TD align=right><FONT size=2>13,758</FONT></TD>
    <TD align=right><FONT size=2>12,760</FONT></TD>
    <TD align=center><FONT size=2>8%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Cost of Sales</FONT></TD>
    <TD align=right><FONT size=2>12,075</FONT></TD>
    <TD align=right><FONT size=2>11,095</FONT></TD>
    <TD align=center><FONT size=2>9%</FONT></TD>
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    <TD align=left><FONT size=2>Gross Profit</FONT></TD>
    <TD align=right><FONT size=2>1,683</FONT></TD>
    <TD align=right><FONT size=2>1,665</FONT></TD>
    <TD align=center><FONT size=2>1%</FONT></TD>
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  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Operating Expenses</FONT></TD>
    <TD align=right><FONT size=2>453</FONT></TD>
    <TD align=right><FONT size=2>638</FONT></TD>
    <TD align=center><FONT size=2>-29%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Operating Profit</FONT></TD>
    <TD align=right><FONT size=2>1,230</FONT></TD>
    <TD align=right><FONT size=2>1,027</FONT></TD>
    <TD align=center><FONT size=2>20%</FONT></TD>
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    <TD align=left><FONT size=2>EBITDA</FONT></TD>
    <TD align=right><FONT size=2>1,686</FONT></TD>
    <TD align=right><FONT size=2>1,547</FONT></TD>
    <TD align=center><FONT size=2>9%</FONT></TD>
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  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Net income before Minoritary</FONT></TD>
    <TD align=right><FONT size=2>1,073</FONT></TD>
    <TD align=right><FONT size=2>967</FONT></TD>
    <TD align=center><FONT size=2>11%</FONT></TD>
  </TR>

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    <TD align=left><FONT size=2>Sales Outside Mexico</FONT></TD>
    <TD align=right><FONT size=2>7,575</FONT></TD>
    <TD align=right><FONT size=2>7,129</FONT></TD>
    <TD align=center><FONT size=2>6%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Sales in Mexico</FONT></TD>
    <TD align=right><FONT size=2>6,183</FONT></TD>
    <TD align=right><FONT size=2>5,631</FONT></TD>
    <TD align=center><FONT size=2>10%</FONT></TD>
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  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Total Sales (Tons)</FONT></TD>
    <TD align=right><FONT size=2>1,139</FONT></TD>
    <TD align=right><FONT size=2>1162</FONT></TD>
    <TD align=center><FONT size=2>-2%</FONT></TD>
  </TR>
</TABLE>
<BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 cellpadding="2" width="700">


  <TR vAlign=bottom>

    <TD align=center>
      <div align="left"><B><FONT size=2>Quarter</FONT></B></div>
    </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=center bgColor=#000080><B><FONT color=#ffffff size=2>(millones of pesos)</FONT></B></TD>
    <TD align=center bgColor=#000080><B><FONT color=#ffffff size=2>2Q&#145;11</FONT></B></TD>
    <TD align=center bgColor=#000080><B><FONT color=#ffffff size=2>1Q &#145;11</FONT></B></TD>
    <TD align=center bgColor=#000080><B><FONT color=#ffffff size=2>2Q &#145;10</FONT></B></TD>
    <TD align=center bgColor=#000080><B><FONT color=#ffffff size=2>2Q&#180;11vs</FONT></B><BR>

<B><font size="2" color="#ffffff">1Q&#180;11</font></B></TD>
    <TD align=center bgColor=#000080><B><font color="#ffffff" size="2">2Q&#180;11 vs</font></B><font color="#ffffff"><BR>

<B><FONT size=2>2Q '10</FONT></B></font></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Sales</FONT></TD>
    <TD align=right><FONT size=2>7,193</FONT></TD>
    <TD align=right><FONT size=2>6,565</FONT></TD>
    <TD align=right><FONT size=2>6,367</FONT></TD>
    <TD align=center><FONT size=2>10%</FONT></TD>
    <TD align=center><FONT size=2>13%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Cost of Sales</FONT></TD>
    <TD align=right><FONT size=2>6,393</FONT></TD>
    <TD align=right><FONT size=2>5,682</FONT></TD>
    <TD align=right><FONT size=2>5,704</FONT></TD>
    <TD align=center><FONT size=2>13%</FONT></TD>
    <TD align=center><FONT size=2>12%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Gross Profit</FONT></TD>
    <TD align=right><FONT size=2>800</FONT></TD>
    <TD align=right><FONT size=2>883</FONT></TD>
    <TD align=right><FONT size=2>663</FONT></TD>
    <TD align=center><FONT size=2>-9%</FONT></TD>
    <TD align=center><FONT size=2>21%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Operating Expenses</FONT></TD>
    <TD align=right><FONT size=2>171</FONT></TD>
    <TD align=right><FONT size=2>282</FONT></TD>
    <TD align=right><FONT size=2>248</FONT></TD>
    <TD align=center><FONT size=2>-39%</FONT></TD>
    <TD align=center><FONT size=2>-31%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Operating Profit</FONT></TD>
    <TD align=right><FONT size=2>629</FONT></TD>
    <TD align=right><FONT size=2>601</FONT></TD>
    <TD align=right><FONT size=2>415</FONT></TD>
    <TD align=center><FONT size=2>5%</FONT></TD>
    <TD align=center><FONT size=2>52%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>EBITDA</FONT></TD>
    <TD align=right><FONT size=2>855</FONT></TD>
    <TD align=right><FONT size=2>831</FONT></TD>
    <TD align=right><FONT size=2>676</FONT></TD>
    <TD align=center><FONT size=2>3%</FONT></TD>
    <TD align=center><FONT size=2>26%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Net Income before Minoritary</FONT></TD>
    <TD align=right><FONT size=2>544</FONT></TD>
    <TD align=right><FONT size=2>529</FONT></TD>
    <TD align=right><FONT size=2>388</FONT></TD>
    <TD align=center><FONT size=2>3%</FONT></TD>
    <TD align=center><FONT size=2>40%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Sales Outside Mexico</FONT></TD>
    <TD align=right><FONT size=2>3,897</FONT></TD>
    <TD align=right><FONT size=2>3,678</FONT></TD>
    <TD align=right><FONT size=2>3,749</FONT></TD>
    <TD align=center><FONT size=2>6%</FONT></TD>
    <TD align=center><FONT size=2>4%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Sales in Mexico</FONT></TD>
    <TD align=right><FONT size=2>3,296</FONT></TD>
    <TD align=right><FONT size=2>2,887</FONT></TD>
    <TD align=right><FONT size=2>2,618</FONT></TD>
    <TD align=center><FONT size=2>14%</FONT></TD>
    <TD align=center><FONT size=2>26%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Total Sales (Tons)</FONT></TD>
    <TD align=right><FONT size=2>601</FONT></TD>
    <TD align=right><FONT size=2>538</FONT></TD>
    <TD align=right><FONT size=2>558</FONT></TD>
    <TD align=center><FONT size=2>12%</FONT></TD>
    <TD align=center><FONT size=2>8%</FONT></TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
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<BR>

<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 width="100%" border=1 cellpadding="2">







  <tr valign=bottom>
    <td align=center rowspan="3" width="17%"><b><font size=2>Product</font></b></td>
    <td align=center rowspan=3 width="12%"><b><font size=2>Thousand of</font></b><br>

<b><font size=2>Tons</font></b><br>

<b><font size=2>Jan-Jun 2011</font></b></td>
    <td align=center rowspan=3 width="9%"><b><font size=2>Million of</font></b><br>

<b><font size=2>Pesos</font></b><br>

<b><font size=2>Jan-Jun</font></b><br>

<b><font size=2>2011</font></b></td>
    <td align=center rowspan=3 width="8%"><b><font size=2>Average</font></b><br>

<b><font size=2>Price per</font></b><br>

<b><font size=2>Ton</font></b><br>

<b><font size=2>Jan-Jun</font></b><br>

<b><font size=2>2011</font></b></td>
    <td align=center rowspan=3 width="10%"><b><font size=2>Thousand</font></b><br>

<b><font size=2>of Tons</font></b><br>

<b><font size=2>Jan &#150; Jun</font></b><br>

<b><font size=2>2010</font></b></td>
    <td align=center rowspan=3 width="9%"><b><font size=2>Million of</font></b><br>

<b><font size=2>Pesos</font></b><br>

<b><font size=2>Jan- Jun</font></b><br>

<b><font size=2>2010</font></b></td>
    <td align=center rowspan=3 width="8%"><b><font size=2>Average</font></b><br>

<b><font size=2>Price per</font></b><br>

<b><font size=2>Ton</font></b><br>

<b><font size=2>Jan-Jun</font></b><br>

<b><font size=2>2010</font></b></td>
    <td align=center rowspan="3" width="9%">&nbsp;&nbsp;</td>
    <td align=center rowspan="3" width="9%">&nbsp;&nbsp;</td>
    <td align=center rowspan="3" width="9%">&nbsp;&nbsp;</td>
  </tr>

  <tr valign=bottom>

    </tr>

  <tr valign=bottom>

    </tr>



  <tr valign=bottom>

    <td align=left width="17%"><b><font size=2>Commercial Profiles</font></b></td>
    <td align=right width="12%"><font size=2>419</font></td>
    <td align=right width="9%"><font size=2>4,148</font></td>
    <td align=right width="8%"><font size=2>9,900</font></td>
    <td align=right width="10%"><font size=2>542</font></td>
    <td align=right width="9%"><font size=2>4,810</font></td>
    <td align=right width="8%"><font size=2>8,874</font></td>
    <td align=left width="9%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
  </tr>

  <tr valign=bottom>

    <td align=left width="17%"><b><font size=2>Special Profiles</font></b></td>
    <td align=right width="12%"><font size=2>720</font></td>
    <td align=right width="9%"><font size=2>9,610</font></td>
    <td style="TEXT-INDENT: 2px" align=left width="8%">
      <div align="right"><font size=2>13,347</font></div>
    </td>
    <td align=right width="10%"><font size=2>620</font></td>
    <td align=right width="9%"><font size=2>7,950</font></td>
    <td style="TEXT-INDENT: 2px" align=left width="8%">
      <div align="right"><font size=2>12,823</font></div>
    </td>
    <td align=left width="9%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
  </tr>

  <tr>

    <td width="17%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
  </tr>

  <tr>

    <td width="17%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
  </tr>

  <tr>

    <td width="17%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
  </tr>



  <tr valign=bottom>

    <td align=left width="17%"><b><font size=2>Total</font></b></td>
    <td align=right width="12%"><font size=2>1,139</font></td>
    <td align=right width="9%"><font size=2>13,758</font></td>
    <td style="TEXT-INDENT: 2px" align=left width="8%">
      <div align="right"><font size=2>12,079</font></div>
    </td>
    <td align=right width="10%"><font size=2>1,162</font></td>
    <td align=right width="9%"><font size=2>12,760</font></td>
    <td style="TEXT-INDENT: 2px" align=left width="8%">
      <div align="right"><font size=2>10,981</font></div>
    </td>
    <td align=left width="9%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left width="17%">&nbsp;</td>
    <td align=right width="12%">&nbsp;</td>
    <td align=right width="9%">&nbsp;</td>
    <td style="TEXT-INDENT: 2px" align=left width="8%">&nbsp;</td>
    <td align=right width="10%">&nbsp;</td>
    <td align=right width="9%">&nbsp;</td>
    <td style="TEXT-INDENT: 2px" align=left width="8%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
  </tr>




































</table>
<br>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">




































  <TR vAlign=bottom>

    <TD align=center rowspan="5"><B><FONT size=2>Product</FONT></B></TD>
    <TD align=center rowspan="5"><B><FONT size=2>Thousand of</FONT></B><B><FONT size=2> <br>
      Tons <br>
      </FONT></B><B><FONT size=2>Apr-Jun 2011</FONT></B></TD>
    <TD align=center rowspan="5"><B><FONT size=2>Million of <br>
      </FONT></B><B><FONT size=2>Pesos</FONT></B><B><FONT size=2> <br>
      Apr-Jun <br>
      </FONT></B><B><FONT size=2>2011</FONT></B></TD>
    <TD align=center rowspan="5"><B><FONT size=2>Average</FONT></B><B><FONT size=2> <br>
      Price per <br>
      </FONT></B><B><FONT size=2>Ton</FONT></B><B><FONT size=2> <br>
      Apr-Jun <br>
      </FONT></B><B><FONT size=2>2011</FONT></B></TD>
    <TD align=center rowspan="5"><B><FONT size=2>Thousand <br>
      </FONT></B><B><FONT size=2>of  Tons <br>
      </FONT></B><B><FONT size=2>Jan &#150; Mar <br>
      </FONT></B><B><FONT size=2>2011</FONT></B></TD>
    <TD align=center rowspan="5"><B><FONT size=2>Million of </FONT></B><B><FONT size=2><br>
      Pesos </FONT></B><B><FONT size=2><br>
      Jan- Mar </FONT></B><B><FONT size=2><br>
      2011</FONT></B></TD>
    <TD align=center rowspan="5"><B><FONT size=2>Average </FONT></B><B><FONT size=2><br>
      Price per </FONT></B><B><FONT size=2><br>
      Ton </FONT></B><B><FONT size=2><br>
      Jan-Mar </FONT></B><B><FONT size=2><br>
      2011</FONT></B></TD>
    <TD align=center rowspan="5"><B><FONT size=2>Thousand </FONT></B><B><FONT size=2> <br>
      of Tons </FONT></B><B><FONT size=2><br>
      Apr-Jun </FONT></B><B><FONT size=2><br>
      2010</FONT></B></TD>
    <TD align=center rowspan="5"><B><FONT size=2>Million of </FONT></B><B><FONT size=2><br>
      Pesos </FONT></B><B><FONT size=2><br>
      Apr-Jun </FONT></B><B><FONT size=2><br>
      2010</FONT></B></TD>
    <TD align=center rowspan="5"><B><FONT size=2>Average </FONT></B><B><FONT size=2><br>
      Price per </FONT></B><B><FONT size=2><br>
      Ton </FONT></B><B><FONT size=2><br>
      Apr-Jun </FONT></B><B><FONT size=2><br>
      2010</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    </TR>

  <TR vAlign=bottom>

    </TR>

  <TR vAlign=bottom>

    </TR>

  <TR vAlign=bottom>

    </TR>



  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>Commercial Profiles</FONT></B></TD>
    <TD align=right><FONT size=2>222</FONT></TD>
    <TD align=right><FONT size=2>2,163</FONT></TD>
    <TD align=right><FONT size=2>9,746</FONT></TD>
    <TD align=right><FONT size=2>197</FONT></TD>
    <TD align=right><FONT size=2>1,984</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=left>
      <div align="right"><FONT size=2>10,073</FONT></div>
    </TD>
    <TD align=right><FONT size=2>250</FONT></TD>
    <TD align=right><FONT size=2>2,277</FONT></TD>
    <TD align=right><FONT size=2>9,108</FONT></TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>Special Profiles</FONT></B></TD>
    <TD align=right><FONT size=2>379</FONT></TD>
    <TD align=right><FONT size=2>5,029</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=left>
      <div align="right"><FONT size=2>13,269</FONT></div>
    </TD>
    <TD align=right><FONT size=2>341</FONT></TD>
    <TD align=right><FONT size=2>4,581</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=left>
      <div align="right"><FONT size=2>13,434</FONT></div>
    </TD>
    <TD align=right><FONT size=2>308</FONT></TD>
    <TD align=right><FONT size=2>4,090</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=left>
      <div align="right"><FONT size=2>13,279</FONT></div>
    </TD>
  </TR>

  <TR>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>

  <TR>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>

  <TR>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>Total</FONT></B></TD>
    <TD align=right><FONT size=2>601</FONT></TD>
    <TD align=right><FONT size=2>7,193</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=left>
      <div align="right"><FONT size=2>11,968</FONT></div>
    </TD>
    <TD align=right><FONT size=2>538</FONT></TD>
    <TD align=right><FONT size=2>6,565</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=left>
      <div align="right"><FONT size=2>12,203</FONT></div>
    </TD>
    <TD align=right><FONT size=2>558</FONT></TD>
    <TD align=right><FONT size=2>6,367</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=left>
      <div align="right"><FONT size=2>11,410</FONT></div>
    </TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD style="TEXT-INDENT: 2px" align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD style="TEXT-INDENT: 2px" align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD style="TEXT-INDENT: 2px" align=left>&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: left"><I>Any forward-looking information contained herein is inherently subject to various risks, uncertainties and assumptions which, if incorrect, may cause actual results to vary materially from those anticipated, expected or estimated. The company assumes no obligation to update any forward-looking information contained herein.</I></P>
<HR align=center width="100%" noshade SIZE=5>
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<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
<!-- -->
<BR>
<P style="text-align: center;"> <B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE border=0 width=100% cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">

  <TR>

    <TD width=53%></TD>
    <TD width=35%></TD>
    <TD width=11%></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER:</FONT> <FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>
  <TR valign="bottom">
    <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>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

</TABLE>

<P style="text-align: center;"> <B>CONSOLIDATED FINANCIAL STATEMENT</B><BR>
AT JUNE 30 OF 2011 AND 2010<BR>
(thousands of Mexican pesos)</P>
<TABLE border=1 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" cellpadding="2" width=100%>


  <TR valign="top">

    <TD align=center> <FONT size=2>REF <br>
      S</FONT></TD>
    <TD align=center style="TEXT-INDENT:29.000000px"> <FONT size=2>CONCEPTS</FONT></TD>
    <TD align=center colspan=2> <FONT size=2>CURRENT YEAR</FONT> </TD>
    <TD align=center colspan=2 style="TEXT-INDENT:2.000000px"> <FONT size=2>PREVIOUS YEAR</FONT></TD>
  </TR>


  <TR valign="bottom">

    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
    <TD align=center> <FONT size=2>AMOUNT</FONT></TD>
    <TD align=center><font size=2>%</font> </TD>
    <TD align=center> <FONT size=2>AMOUNT</FONT></TD>
    <TD align=center> <FONT size=2>%</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>s01</FONT></B></TD>
    <TD align=left> <B><FONT size=2>TOTAL ASSETS</FONT></B></TD>
    <TD align=right> <B><FONT size=2>28,065,851</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
    <TD align=right> <B><FONT size=2>27,433,035</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR>

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

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>s02</FONT></B></TD>
    <TD align=left> <B><FONT size=2>CURRENT ASSETS</FONT></B></TD>
    <TD align=right> <B><FONT size=2>13,327,,499</FONT></B></TD>
    <TD align=right> <B><FONT size=2>47</FONT></B></TD>
    <TD align=right> <B><FONT size=2>11,913,535</FONT></B></TD>
    <TD align=right> <B><FONT size=2>43</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s03</FONT></TD>
    <TD align=left> <FONT size=2>CASH AND SHORT-TERM INVESTMENTS</FONT></TD>
    <TD align=right> <FONT size=2>4,047,112</FONT></TD>
    <TD align=right> <FONT size=2>14</FONT></TD>
    <TD align=right> <FONT size=2>2,868,445</FONT></TD>
    <TD align=right> <FONT size=2>10</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s04</FONT></TD>
    <TD align=left> <FONT size=2>ACCOUNTS AND NOTES RECEIVABLE (NET)</FONT></TD>
    <TD align=right> <FONT size=2>3,271,900</FONT></TD>
    <TD align=right> <FONT size=2>12</FONT></TD>
    <TD align=right> <FONT size=2>3,232,511</FONT></TD>
    <TD align=right> <FONT size=2>12</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s05</FONT></TD>
    <TD align=left> <FONT size=2>OTHER ACCOUNTS AND NOTES RECEIVABLE</FONT></TD>
    <TD align=right> <FONT size=2>744,856</FONT></TD>
    <TD align=right> <FONT size=2>3</FONT></TD>
    <TD align=right> <FONT size=2>560,912</FONT></TD>
    <TD align=right> <FONT size=2>2</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s06</FONT></TD>
    <TD align=left> <FONT size=2>INVENTORIES</FONT></TD>
    <TD align=right> <FONT size=2>5,192,598</FONT></TD>
    <TD align=right> <FONT size=2>19</FONT></TD>
    <TD align=right> <FONT size=2>5,044,796</FONT></TD>
    <TD align=right> <FONT size=2>18</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s07</FONT></TD>
    <TD align=left> <FONT size=2>OTHER CURRENT ASSETS</FONT></TD>
    <TD align=right> <FONT size=2>71,033</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
    <TD align=right> <FONT size=2>206,871</FONT></TD>
    <TD align=right> <FONT size=2>1</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>s08</FONT></B></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=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> <FONT size=2>ACCOUNTS AND NOTES RECEIVABLE (NET)</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 valign="top">

    <TD align=right> <FONT size=2>s10</FONT></TD>
    <TD align=left> <FONT size=2>INVESTMENT IN SHARES OF NON-CONSOLIDATED <br>
      &nbsp;&nbsp;&nbsp;
      SUBSIDIARIES AND ASSOCIATES</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 valign="bottom">

    <TD align=right> <FONT size=2>s11</FONT></TD>
    <TD align=left> <FONT size=2>OTHER INVESTMENTS</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 valign="bottom">

    <TD align=right> <B><FONT size=2>s12</FONT></B></TD>
    <TD align=left> <B><FONT size=2>PROPERTY, PLANT AND EQUIPMENT (NET)</FONT></B></TD>
    <TD align=right> <B><FONT size=2>9,231,223</FONT></B></TD>
    <TD align=right> <B><FONT size=2>33</FONT></B></TD>
    <TD align=right> <B><FONT size=2>9,563,054</FONT></B></TD>
    <TD align=right> <B><FONT size=2>35</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s13</FONT></TD>
    <TD align=left> <FONT size=2>LAND AND BULIDINGS</FONT></TD>
    <TD align=right> <FONT size=2>3,985,966</FONT></TD>
    <TD align=right> <FONT size=2>14</FONT></TD>
    <TD align=right> <FONT size=2>3,724,126</FONT></TD>
    <TD align=right> <FONT size=2>14</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s14</FONT></TD>
    <TD align=left> <FONT size=2>MACHINERY AND INDUSTRIAL EQUIPMENT</FONT></TD>
    <TD align=right> <FONT size=2>13,039,559</FONT></TD>
    <TD align=right> <FONT size=2>46</FONT></TD>
    <TD align=right> <FONT size=2>12,982,644</FONT></TD>
    <TD align=right> <FONT size=2>47</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s15</FONT></TD>
    <TD align=left> <FONT size=2>OTHER EQUIPMENT</FONT></TD>
    <TD align=right> <FONT size=2>244,918</FONT></TD>
    <TD align=right> <FONT size=2>1</FONT></TD>
    <TD align=right> <FONT size=2>232,798</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> <FONT size=2>ACCUMULATED DEPRECIATION</FONT></TD>
    <TD align=right> <FONT size=2>8,465,457</FONT></TD>
    <TD align=right> <FONT size=2>30</FONT></TD>
    <TD align=right> <FONT size=2>7,807,070</FONT></TD>
    <TD align=right> <FONT size=2>28</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s17</FONT></TD>
    <TD align=left> <FONT size=2>CONSTRUCTION IN PROGRESS</FONT></TD>
    <TD align=right> <FONT size=2>426,237</FONT></TD>
    <TD align=right> <FONT size=2>2</FONT></TD>
    <TD align=right> <FONT size=2>430,556</FONT></TD>
    <TD align=right> <FONT size=2>2</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <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>3,948,380</FONT></B></TD>
    <TD align=right> <B><FONT size=2>14</FONT></B></TD>
    <TD align=right> <B><FONT size=2>4,329,433</FONT></B></TD>
    <TD align=right> <B><FONT size=2>16</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <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>1,558,749</FONT></B></TD>
    <TD align=right> <B><FONT size=2>6</FONT></B></TD>
    <TD align=right> <B><FONT size=2>1,627,013</FONT></B></TD>
    <TD align=right> <B><FONT size=2>1</FONT></B></TD>
  </TR>

  <TR>

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

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>s20</FONT></B></TD>
    <TD align=left> <B><FONT size=2>TOTAL LIABILITIES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>6,637,447</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
    <TD align=right> <B><FONT size=2>6,633,206</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR>

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

  <TR valign="bottom">

    <TD align=right> <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>3,921,440</FONT></B></TD>
    <TD align=right> <B><FONT size=2>59</FONT></B></TD>
    <TD align=right> <B><FONT size=2>3,840,858</FONT></B></TD>
    <TD align=right> <B><FONT size=2>58</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s22</FONT></TD>
    <TD align=left> <FONT size=2>SUPPLIERS</FONT></TD>
    <TD align=right> <FONT size=2>2,429,174</FONT></TD>
    <TD align=right> <FONT size=2>37</FONT></TD>
    <TD align=right> <FONT size=2>2,294,030</FONT></TD>
    <TD align=right> <FONT size=2>35</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s23</FONT></TD>
    <TD align=left> <FONT size=2>BANK LOANS</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 valign="bottom">

    <TD align=right> <FONT size=2>s24</FONT></TD>
    <TD align=left> <FONT size=2>STOCK MARKET LOANS</FONT></TD>
    <TD align=right> <FONT size=2>3,575</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
    <TD align=right> <FONT size=2>3,822</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> <FONT size=2>OTHER LOANS WITH COST</FONT></TD>
    <TD align=right> <FONT size=2>633,838</FONT></TD>
    <TD align=right> <FONT size=2>10</FONT></TD>
    <TD align=right> <FONT size=2>586,824</FONT></TD>
    <TD align=right> <FONT size=2>9</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s25</FONT></TD>
    <TD align=left> <FONT size=2>TAXES PAYABLE</FONT></TD>
    <TD align=right> <FONT size=2>367,020</FONT></TD>
    <TD align=right> <FONT size=2>6</FONT></TD>
    <TD align=right> <FONT size=2>147,557</FONT></TD>
    <TD align=right> <FONT size=2>2</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s26</FONT></TD>
    <TD align=left> <FONT size=2>OTHER CURRENT LIABILITIES WITHOUT COST</FONT></TD>
    <TD align=right> <FONT size=2>487,833</FONT></TD>
    <TD align=right> <FONT size=2>7</FONT></TD>
    <TD align=right> <FONT size=2>808,625</FONT></TD>
    <TD align=right> <FONT size=2>12</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <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=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> <FONT size=2>BANK LOANS</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 valign="bottom">

    <TD align=right> <FONT size=2>s29</FONT></TD>
    <TD align=left> <FONT size=2>STOCK MARKET LOANS</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 valign="bottom">

    <TD align=right> <FONT size=2>s30</FONT></TD>
    <TD align=left> <FONT size=2>OTHER LOANS WITH COST</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 valign="bottom">

    <TD align=right> <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=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> <B><FONT size=2>OTHER NON-CURRENT LIABILITIES WITHOUT COST</FONT></B></TD>
    <TD align=right> <B><FONT size=2>2,716,007</FONT></B></TD>
    <TD align=right> <B><FONT size=2>41</FONT></B></TD>
    <TD align=right> <B><FONT size=2>2,792,348</FONT></B></TD>
    <TD align=right> <B><FONT size=2>42</FONT></B></TD>
  </TR>

  <TR>

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

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>s33</FONT></B></TD>
    <TD align=left> <B><FONT size=2>CONSOLIDATED STOCKHOLDERS&#146; EQUITY</FONT></B></TD>
    <TD align=right> <B><FONT size=2>21,428,404</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
    <TD align=right> <B><FONT size=2>20,799,829</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR>

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

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>s34</FONT></B></TD>
    <TD align=left> <B><FONT size=2>MINORITY INTEREST</FONT></B></TD>
    <TD align=right> <B><FONT size=2>1,818,002</FONT></B></TD>
    <TD align=right> <B><FONT size=2>8</FONT></B></TD>
    <TD align=right> <B><FONT size=2>2,080,577</FONT></B></TD>
    <TD align=right> <B><FONT size=2>10</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>s35</FONT></B></TD>
    <TD align=left> <B><FONT size=2>MAJORITY INTEREST</FONT></B></TD>
    <TD align=right> <B><FONT size=2>19,610,402</FONT></B></TD>
    <TD align=right> <B><FONT size=2>92</FONT></B></TD>
    <TD align=right> <B><FONT size=2>18,719,252</FONT></B></TD>
    <TD align=right> <B><FONT size=2>90</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>s36</FONT></B></TD>
    <TD align=left> <B><FONT size=2>CONTRIBUTED CAPITAL</FONT></B></TD>
    <TD align=right> <B><FONT size=2>8,350,900</FONT></B></TD>
    <TD align=right> <B><FONT size=2>39</FONT></B></TD>
    <TD align=right> <B><FONT size=2>8,350,900</FONT></B></TD>
    <TD align=right> <B><FONT size=2>40</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>S79</FONT></TD>
    <TD align=left> <FONT size=2>CAPITAL STOCK</FONT></TD>
    <TD align=right> <FONT size=2>4,142,696</FONT></TD>
    <TD align=right> <FONT size=2>19</FONT></TD>
    <TD align=right> <FONT size=2>4,142,696</FONT></TD>
    <TD align=right> <FONT size=2>20</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s39</FONT></TD>
    <TD align=left> <FONT size=2>PREMIUM ON ISSUANCE OF SHARES</FONT></TD>
    <TD align=right> <FONT size=2>4,208,204</FONT></TD>
    <TD align=right> <FONT size=2>20</FONT></TD>
    <TD align=right> <FONT size=2>4,208,204</FONT></TD>
    <TD align=right> <FONT size=2>20</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s40</FONT></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=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> <B><FONT size=2>EARNED CAPITAL</FONT></B></TD>
    <TD align=right> <B><FONT size=2>11,259,502</FONT></B></TD>
    <TD align=right> <B><FONT size=2>53</FONT></B></TD>
    <TD align=right> <B><FONT size=2>10,368,352</FONT></B></TD>
    <TD align=right> <B><FONT size=2>50</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s42</FONT></TD>
    <TD align=left> <FONT size=2>RETAINED EARNINGS AND CAPITAL RESERVES</FONT></TD>
    <TD align=right> <FONT size=2>10,940,361</FONT></TD>
    <TD align=right> <FONT size=2>51</FONT></TD>
    <TD align=right> <FONT size=2>10,038,287</FONT></TD>
    <TD align=right> <FONT size=2>48</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s44</FONT></TD>
    <TD align=left> <FONT size=2>OTHER ACCUMULATED COMPREHENSIVE RESULT</FONT></TD>
    <TD align=right> <FONT size=2>319,141</FONT></TD>
    <TD align=right> <FONT size=2>1</FONT></TD>
    <TD align=right> <FONT size=2>330,065</FONT></TD>
    <TD align=right> <FONT size=2>2</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s80</FONT></TD>
    <TD align=left> <FONT size=2>SHARES REPURCHASED</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>

</TABLE>
<BR>
<HR noshade align="center" width="100%" size="5">
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<div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></div>
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<BR>
<P style="TEXT-ALIGN: left"><B><font size="3">MEXICAN STOCK EXCHANGE</font></B></P>
<P style="TEXT-ALIGN: center"><B><font size="3">SIFIC / ICS</font></B></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 width="100%" border=0>

  <TR>

    <TD width="53%"></TD>
    <TD width="35%"></TD>
    <TD width="11%"></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT><FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>CONSOLIDATED FINANCIAL STATEMENT</B><BR>
BREAKDOWN OF MAIN CONCEPTS<BR>
(thousands of Mexican pesos)</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">


  <TR vAlign=top>

    <TD align=center><B><FONT size=2>REF <br>
      S</FONT></B></TD>
    <TD style="TEXT-INDENT: 29px" align=left>
      <div align="center"><B><FONT size=2>CONCEPTS</FONT></B></div>
    </TD>
    <TD align=right colSpan=2>
      <div align="center"><B><FONT size=2>CURRENT YEAR</FONT></B></div>
    </TD>
    <TD align=right colSpan=2>
      <div align="center"><B><FONT size=2>PREVIOUS YEAR</FONT></B></div>
    </TD>
  </TR>


  <TR vAlign=bottom>

    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center><B><FONT size=2>AMOUNT</FONT></B></TD>
    <TD align=center><b><font size=2>%</font></b></TD>
    <TD align=center><B><FONT size=2>AMOUNT</FONT></B></TD>
    <TD align=center><b><font size=2>%</font></b></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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>4,047,112</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>2,868,445</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><FONT size=2>s46</FONT></TD>
    <TD align=left><FONT size=2>CASH</FONT></TD>
    <TD align=right><FONT size=2>1,305,835</FONT></TD>
    <TD align=right><FONT size=2>32</FONT></TD>
    <TD align=right><FONT size=2>2,003,547</FONT></TD>
    <TD align=right><FONT size=2>70</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><FONT size=2>s47</FONT></TD>
    <TD align=left><FONT size=2>SHORT-TERM INVESTMENTS</FONT></TD>
    <TD align=right><FONT size=2>2,741,277</FONT></TD>
    <TD align=right><FONT size=2>68</FONT></TD>
    <TD align=right><FONT size=2>864,898</FONT></TD>
    <TD align=right><FONT size=2>30</FONT></TD>
  </TR>

  <TR>

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

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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>71,033</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>206,871</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><FONT size=2>s83</FONT></TD>
    <TD align=left><FONT size=2>OTHER</FONT></TD>
    <TD align=right><FONT size=2>71,033</FONT></TD>
    <TD align=right><FONT size=2>100</FONT></TD>
    <TD align=right><FONT size=2>206,871</FONT></TD>
    <TD align=right><FONT size=2>100</FONT></TD>
  </TR>

  <TR>

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

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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>3,948,380</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>4,329,433</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><FONT size=2>s48</FONT></TD>
    <TD align=left><FONT size=2>DEFERRED EXPENSES</FONT></TD>
    <TD align=right><FONT size=2>2,139,506</FONT></TD>
    <TD align=right><FONT size=2>54</FONT></TD>
    <TD align=right><FONT size=2>2,520,375</FONT></TD>
    <TD align=right><FONT size=2>58</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><FONT size=2>s49</FONT></TD>
    <TD align=left><FONT size=2>GOODWILL</FONT></TD>
    <TD align=right><FONT size=2>1,798,293</FONT></TD>
    <TD align=right><FONT size=2>46</FONT></TD>
    <TD align=right><FONT size=2>1,798,293</FONT></TD>
    <TD align=right><FONT size=2>42</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><FONT size=2>s51</FONT></TD>
    <TD align=left><FONT size=2>OTHER</FONT></TD>
    <TD align=right><FONT size=2>10,581</FONT></TD>
    <TD align=right><FONT size=2>0</FONT></TD>
    <TD align=right><FONT size=2>10,765</FONT></TD>
    <TD align=right><FONT size=2>0</FONT></TD>
  </TR>

  <TR>

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

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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>1,558,749</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>1,627,013</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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>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 vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><FONT size=2>s87</FONT></TD>
    <TD align=left><FONT size=2>OTHER</FONT></TD>
    <TD align=right><FONT size=2>1,558,749</FONT></TD>
    <TD align=right><FONT size=2>100</FONT></TD>
    <TD align=right><FONT size=2>1,627,013</FONT></TD>
    <TD align=right><FONT size=2>100</FONT></TD>
  </TR>

  <TR>

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

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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>3,921,440</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>3,840,858</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><FONT size=2>s52</FONT></TD>
    <TD align=left><FONT size=2>FOREIGN CURRENCY LIABILITIES</FONT></TD>
    <TD align=right><FONT size=2>2,831,444</FONT></TD>
    <TD align=right><FONT size=2>72</FONT></TD>
    <TD align=right><FONT size=2>2,502,693</FONT></TD>
    <TD align=right><FONT size=2>65</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><FONT size=2>s53</FONT></TD>
    <TD align=left><FONT size=2>MEXICAN PESOS LIABILITIES</FONT></TD>
    <TD align=right><FONT size=2>1,089,996</FONT></TD>
    <TD align=right><FONT size=2>28</FONT></TD>
    <TD align=right><FONT size=2>1,338,165</FONT></TD>
    <TD align=right><FONT size=2>35</FONT></TD>
  </TR>

  <TR>

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

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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>487,833</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>808,625</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><FONT size=2>s88</FONT></TD>
    <TD align=left><FONT size=2>DERIVATIVE FINANCIAL INSTRUMENTS</FONT></TD>
    <TD align=right><FONT size=2>6,035</FONT></TD>
    <TD align=right><FONT size=2>1</FONT></TD>
    <TD align=right><FONT size=2>169,894</FONT></TD>
    <TD align=right><FONT size=2>21</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><FONT size=2>s89</FONT></TD>
    <TD align=left><FONT size=2>INTEREST LIABILITIES</FONT></TD>
    <TD align=right><FONT size=2>5,430</FONT></TD>
    <TD align=right><FONT size=2>1</FONT></TD>
    <TD align=right><FONT size=2>5,463</FONT></TD>
    <TD align=right><FONT size=2>1</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><FONT size=2>s58</FONT></TD>
    <TD align=left><FONT size=2>OTHER CURRENT LIABILITIES</FONT></TD>
    <TD align=right><FONT size=2>476,368</FONT></TD>
    <TD align=right><FONT size=2>98</FONT></TD>
    <TD align=right><FONT size=2>633,268</FONT></TD>
    <TD align=right><FONT size=2>78</FONT></TD>
  </TR>

  <TR>

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

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>0</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><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=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>0</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><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>2,716,007</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>2,792,348</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><FONT size=2>s66</FONT></TD>
    <TD align=left><FONT size=2>DEFERRED TAXES</FONT></TD>
    <TD align=right><FONT size=2>2,617,154</FONT></TD>
    <TD align=right><FONT size=2>96</FONT></TD>
    <TD align=right><FONT size=2>2,705,881</FONT></TD>
    <TD align=right><FONT size=2>97</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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>45,321</FONT></TD>
    <TD align=right><FONT size=2>2</FONT></TD>
    <TD align=right><FONT size=2>32,955</FONT></TD>
    <TD align=right><FONT size=2>1</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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=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 style="TEXT-INDENT: 2px" align=left><FONT size=2>s69</FONT></TD>
    <TD align=left><FONT size=2>OTHER LIABILITIES</FONT></TD>
    <TD align=right><FONT size=2>53,532</FONT></TD>
    <TD align=right><FONT size=2>2</FONT></TD>
    <TD align=right><FONT size=2>53,512</FONT></TD>
    <TD align=right><FONT size=2>2</FONT></TD>
  </TR>

  <TR>

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

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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>4,142,696</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>4,142,696</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><FONT size=2>s37</FONT></TD>
    <TD align=left><FONT size=2>CAPITAL STOCK (NOMINAL)</FONT></TD>
    <TD align=right><FONT size=2>2,420,230</FONT></TD>
    <TD align=right><FONT size=2>58</FONT></TD>
    <TD align=right><FONT size=2>2,420,230</FONT></TD>
    <TD align=right><FONT size=2>58</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 2px" align=left><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=right><FONT size=2>42</FONT></TD>
    <TD align=right><FONT size=2>1,722,466</FONT></TD>
    <TD align=right><FONT size=2>42</FONT></TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
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<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
<!-- -->
<BR>
<P style="text-align: center;"> <B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE border=0 width=100% cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">

  <TR>

    <TD width=53%></TD>
    <TD width=35%></TD>
    <TD width=11%></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT> <FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

</TABLE>

<P style="text-align: center;"> <B>CONSOLIDATED FINANCIAL STATEMENT</B><BR>
BREAKDOWN OF MAIN CONCEPTS<BR>
(thousands of Mexican pesos)</P>
<TABLE border=1 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" cellpadding="2" width=100%>


  <TR valign="top">

    <TD align=right>
      <div align="center"><B><FONT size=2>REF <br>
        S</FONT></B></div>
    </TD>
    <TD align=left style="TEXT-INDENT:29.000000px">
      <div align="center"><B><FONT size=2>CONCEPTS</FONT></B></div>
    </TD>
    <TD align=right colspan="2">
      <div align="center"><B><FONT size=2>CURRENT YEAR</FONT></B></div>
    </TD>
    <TD align=right colspan="2">
      <div align="center"><B><FONT size=2>PREVIOUS YEAR</FONT></B></div>
    </TD>
  </TR>



  <TR valign="bottom">

    <TD align=left>
      <div align="center"></div>
    </TD>
    <TD align=left>
      <div align="center"></div>
    </TD>
    <TD align=right>
      <div align="center"><B><FONT size=2>AMOUNT</FONT></B></div>
    </TD>
    <TD align=left>
      <div align="center"><b><font size=2>%</font></b> </div>
    </TD>
    <TD align=right>
      <div align="center"><B><FONT size=2>AMOUNT</FONT></B></div>
    </TD>
    <TD align=left>
      <div align="center"><b><font size=2>%</font></b> </div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>s42</FONT></B></TD>
    <TD align=left> <B><FONT size=2>RETAINED EARNINGS AND CAPITAL RESERVES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>10,940,361</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
    <TD align=right> <B><FONT size=2>10,038,287</FONT></B></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> <FONT size=2>LEGAL RESERVE</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 valign="bottom">

    <TD align=right> <FONT size=2>s43</FONT></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=right> <FONT size=2>2</FONT></TD>
    <TD align=right> <FONT size=2>200,612</FONT></TD>
    <TD align=right> <FONT size=2>2</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s94</FONT></TD>
    <TD align=left> <FONT size=2>OTHER RESERVES</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 valign="bottom">

    <TD align=right> <FONT size=2>s95</FONT></TD>
    <TD align=left> <FONT size=2>RETAINED EARNINGS</FONT></TD>
    <TD align=right> <FONT size=2>9,778,636</FONT></TD>
    <TD align=right> <FONT size=2>89</FONT></TD>
    <TD align=right> <FONT size=2>8,875,093</FONT></TD>
    <TD align=right> <FONT size=2>88</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s45</FONT></TD>
    <TD align=left> <FONT size=2>NET INCOME FOR THE YEAR</FONT></TD>
    <TD align=right> <FONT size=2>961,113</FONT></TD>
    <TD align=right> <FONT size=2>9</FONT></TD>
    <TD align=right> <FONT size=2>962,582</FONT></TD>
    <TD align=right> <FONT size=2>10</FONT></TD>
  </TR>

  <TR>

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

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>s44</FONT></B></TD>
    <TD align=left> <B><FONT size=2>OTHER ACCUMULATED COMPREHENSIVE RESULT</FONT></B></TD>
    <TD align=right> <B><FONT size=2>319,141</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
    <TD align=right> <B><FONT size=2>330,065</FONT></B></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> <FONT size=2>ACCUMULATED MONETARY RESULT</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 valign="bottom">

    <TD align=right> <FONT size=2>s71</FONT></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=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=left valign="top">
      <div align="right"><font size=2>s96</font></div>
    </TD>
    <TD align=left valign="top"> <FONT size=2>CUMULATIVE RESULT FROM FOREIGN CURRENCY <br>
      TRANSLATION</FONT></TD>
    <TD align=right> <FONT size=2>323,366</FONT></TD>
    <TD align=right> <FONT size=2>101</FONT></TD>
    <TD align=right> <FONT size=2>448,991</FONT></TD>
    <TD align=right> <FONT size=2>136</FONT></TD>
  </TR>



  <TR valign="bottom">

    <TD align=right valign="top"><font size=2>s97</font></TD>
    <TD align=left valign="top"> <FONT size=2>CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL<br>
      INSTRUMENTS</FONT></TD>
    <TD align=right> <FONT size=2>(4,225)</FONT></TD>
    <TD align=right> <FONT size=2>(1)</FONT></TD>
    <TD align=right> <FONT size=2>(118,926)</FONT></TD>
    <TD align=right> <FONT size=2>(36)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>s98</FONT></TD>
    <TD align=left> <FONT size=2>CUMULATIVE EFFECT OF DEFERRED INCOME TAXES</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 valign="bottom">

    <TD align=right> <FONT size=2>s99</FONT></TD>
    <TD align=left> <FONT size=2>LABOR OBLIGATION ADJUSTMENT</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 valign="bottom">

    <TD align=right> <FONT size=2>s100</FONT></TD>
    <TD align=left> <FONT size=2>OTHER</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>

</TABLE>
<BR>
<HR noshade align="center" width="100%" size="5">
<!-- *************************************************************************** -->
<div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></div>
<!-- -->
<BR>
<P style="TEXT-ALIGN: center"><B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 width="100%" border=0>

  <TR>

    <TD width="53%"></TD>
    <TD width="35%"></TD>
    <TD width="11%"></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT><FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>GRUPO SIMEC, S.A. DE C.V.</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>BALANCE SHEETS</B><BR>
OTHER CONCEPTS<BR>
(thousands of Mexican pesos)</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 cellpadding="2" width="100%">


  <TR vAlign=top>

    <TD align=center><B><FONT size=2>REF <br>
      S</FONT></B></TD>
    <TD style="TEXT-INDENT: 29px" align=left>
      <div align="center"><B><FONT size=2>CONCEPTS</FONT></B></div>
    </TD>
    <TD align=center><B><FONT size=2>CURRENT YEAR</FONT></B></TD>
    <TD align=center><B><FONT size=2>PREVIOUS YEAR</FONT></B></TD>
  </TR>


  <TR vAlign=bottom>

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

  <TR>

    <TD colSpan=4>&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>S72</FONT></TD>
    <TD align=left><FONT size=2>WORKING CAPITAL</FONT></TD>
    <TD align=right><FONT size=2>9,406,059</FONT></TD>
    <TD align=right><FONT size=2>8,072,677</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>S73</FONT></TD>
    <TD align=left><FONT size=2>PENSIONS FUND AND SENIORITY PREMIUMS</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=center><FONT size=2>S74</FONT></TD>
    <TD align=left><FONT size=2>EXECUTIVES (*)</FONT></TD>
    <TD align=right><FONT size=2>54</FONT></TD>
    <TD align=right><FONT size=2>56</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>S75</FONT></TD>
    <TD align=left><FONT size=2>EMPLOYERS (*)</FONT></TD>
    <TD align=right><FONT size=2>1,479</FONT></TD>
    <TD align=right><FONT size=2>1,421</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>S76</FONT></TD>
    <TD align=left><FONT size=2>WORKERS (*)</FONT></TD>
    <TD align=right><FONT size=2>3,127</FONT></TD>
    <TD align=right><FONT size=2>3,048</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>S77</FONT></TD>
    <TD align=left><FONT size=2>COMMON SHARES (*)</FONT></TD>
    <TD align=right><FONT size=2>497,709,214</FONT></TD>
    <TD align=right><FONT size=2>497,709,214</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>S78</FONT></TD>
    <TD align=left><FONT size=2>REPURCHASED SHARES (*)</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=center><FONT size=2>S101</FONT></TD>
    <TD align=left><FONT size=2>RESTRICTED CASH</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=center><FONT size=2>S102</FONT></TD>
    <TD align=left><FONT size=2>NET DEBT OF NON CONSOLIDATED COMPANIES</FONT></TD>
    <TD align=right><FONT size=2>633,838</FONT></TD>
    <TD align=right><FONT size=2>586,824</FONT></TD>
  </TR>
</TABLE>
<BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0>
<TR>
     <TD vAlign=top nowrap width="2%">(*)&nbsp; &nbsp; &nbsp; </TD>
     <TD width="98%">THESE ITEMS SHOULD BE EXPRESSED IN UNITS </TD></TR>
<TR>
     <TD width="100%" colSpan=2>&nbsp;</TD></TR></TABLE>
<HR align=center width="100%" noshade SIZE=5>
<!-- *************************************************************************** -->
<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
<!-- -->
<BR>
<P style="TEXT-ALIGN: center"><B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 width="100%" border=0>

  <TR>

    <TD width="53%"></TD>
    <TD width="35%"></TD>
    <TD width="11%"></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT><FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>STATEMENTS OF INCOME</B><BR>
FROM JANUARY 1 TO JUNE 30 OF 2011 AND 2010<BR>
(thousands of Mexican pesos)</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">


  <TR vAlign=top>

    <TD align=center><B><FONT size=2>REF <br>
      R</FONT></B></TD>
    <TD align=center><B><FONT size=2>CATEGORIES</FONT></B></TD>
    <TD align=center colSpan=2><B><FONT size=2>CURRENT YEAR</FONT></B></TD>
    <TD align=center colSpan=2><B><FONT size=2>PREVIOUS YEAR</FONT></B></TD>
  </TR>


  <TR vAlign=bottom>

    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center><B><FONT size=2>AMOUNT</FONT></B></TD>
    <TD align=center><b><font size=2>%</font></b></TD>
    <TD align=center><B><FONT size=2>AMOUNT</FONT></B></TD>
    <TD align=center><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><B><FONT size=2>NET SALES</FONT></B></TD>
    <TD align=right><B><FONT size=2>13,758,184</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>12,759,896</FONT></B></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><FONT size=2>COST OF SALES</FONT></TD>
    <TD align=right><FONT size=2>12,074,630</FONT></TD>
    <TD align=right><FONT size=2>88</FONT></TD>
    <TD align=right><FONT size=2>10,772,164</FONT></TD>
    <TD align=right><FONT size=2>84</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><B><FONT size=2>r03</FONT></B></TD>
    <TD align=left><B><FONT size=2>GROSS PROFIT</FONT></B></TD>
    <TD align=right><B><FONT size=2>1,683,554</FONT></B></TD>
    <TD align=right><B><FONT size=2>12</FONT></B></TD>
    <TD align=right><B><FONT size=2>1,987,732</FONT></B></TD>
    <TD align=right><B><FONT size=2>16</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r04</FONT></TD>
    <TD align=left><FONT size=2>OPERATING EXPENSES</FONT></TD>
    <TD align=right><FONT size=2>453,331</FONT></TD>
    <TD align=right><FONT size=2>3</FONT></TD>
    <TD align=right><FONT size=2>1,007,880</FONT></TD>
    <TD align=right><FONT size=2>8</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><B><FONT size=2>r05</FONT></B></TD>
    <TD align=left><B><FONT size=2>OPERATING INCOME</FONT></B></TD>
    <TD align=right><B><FONT size=2>1,230,223</FONT></B></TD>
    <TD align=right><B><FONT size=2>9</FONT></B></TD>
    <TD align=right><B><FONT size=2>979,852</FONT></B></TD>
    <TD align=right><B><FONT size=2>8</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r08</FONT></TD>
    <TD align=left><FONT size=2>OTHER INCOME AND (EXPENSE), NET</FONT></TD>
    <TD align=right><FONT size=2>(8,308)</FONT></TD>
    <TD align=right><FONT size=2>0</FONT></TD>
    <TD align=right><FONT size=2>(35,911)</FONT></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><FONT size=2>COMPREHENSIVE FINANCING RESULT</FONT></TD>
    <TD align=right><FONT size=2>(171,535)</FONT></TD>
    <TD align=right><FONT size=2>(1)</FONT></TD>
    <TD align=right><FONT size=2>(38,311)</FONT></TD>
    <TD align=right><FONT size=2>0</FONT></TD>
  </TR>



  <TR vAlign=top>

    <TD align=left>
      <div align="right"><font size=2>r12</font></div>
    </TD>
    <TD align=left><FONT size=2>EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES <br>
      &nbsp;&nbsp;&nbsp;AND ASSOCIATES</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 vAlign=bottom>

    <TD align=right><FONT size=2>r48</FONT></TD>
    <TD align=left><FONT size=2>NON ORDINARY ITEMS</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 vAlign=bottom>

    <TD align=right><B><FONT size=2>r09</FONT></B></TD>
    <TD align=left><B><FONT size=2>INCOME BEFORE INCOME TAXES</FONT></B></TD>
    <TD align=right><B><FONT size=2>1,050,380</FONT></B></TD>
    <TD align=right><B><FONT size=2>8</FONT></B></TD>
    <TD align=right><B><FONT size=2>905,630</FONT></B></TD>
    <TD align=right><B><FONT size=2>7</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r10</FONT></TD>
    <TD align=left><FONT size=2>INCOME TAXES</FONT></TD>
    <TD align=right><FONT size=2>(22,701)</FONT></TD>
    <TD align=right><FONT size=2>0</FONT></TD>
    <TD align=right><FONT size=2>(13,556)</FONT></TD>
    <TD align=right><FONT size=2>0</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><B><FONT size=2>r11</FONT></B></TD>
    <TD align=left><B><FONT size=2>INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS</FONT></B></TD>
    <TD align=right><B><FONT size=2>1,073,081</FONT></B></TD>
    <TD align=right><B><FONT size=2>8</FONT></B></TD>
    <TD align=right><B><FONT size=2>919,186</FONT></B></TD>
    <TD align=right><B><FONT size=2>7</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r14</FONT></TD>
    <TD align=left><FONT size=2>DISCONTINUED OPERATIONS</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 vAlign=bottom>

    <TD align=right><B><FONT size=2>r18</FONT></B></TD>
    <TD align=left><B><FONT size=2>NET CONSOLIDATED INCOME</FONT></B></TD>
    <TD align=right><B><FONT size=2>1,073,081</FONT></B></TD>
    <TD align=right><B><FONT size=2>8</FONT></B></TD>
    <TD align=right><B><FONT size=2>919,186</FONT></B></TD>
    <TD align=right><B><FONT size=2>7</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r19</FONT></TD>
    <TD align=left><FONT size=2>NET INCOME OF MINORITY INTEREST</FONT></TD>
    <TD align=right><FONT size=2>111,968</FONT></TD>
    <TD align=right><FONT size=2>1</FONT></TD>
    <TD align=right><FONT size=2>(43,396)</FONT></TD>
    <TD align=right><FONT size=2>0</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r20</FONT></TD>
    <TD align=left><FONT size=2>NET INCOME OF MAJORITY INTEREST</FONT></TD>
    <TD align=right><B><FONT size=2>961,113</FONT></B></TD>
    <TD align=right><B><FONT size=2>7</FONT></B></TD>
    <TD align=right><B><FONT size=2>962,582</FONT></B></TD>
    <TD align=right><B><FONT size=2>8</FONT></B></TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
<!-- *************************************************************************** -->
<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
<!-- -->
<BR>
<P style="TEXT-ALIGN: center"><B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 width="100%" border=0>

  <TR>

    <TD width="53%"></TD>
    <TD width="35%"></TD>
    <TD width="11%"></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT><FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>STATEMENTS OF INCOME</B><BR>
BREAKDOWN OF MAIN CONCEPTS<BR>
(thousands of Mexican pesos)</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">


  <TR vAlign=top>

    <TD align=right>
      <div align="center"><B><FONT size=2>REF <br>
        R</FONT></B></div>
    </TD>
    <TD style="TEXT-INDENT: 29px" align=left>
      <div align="center"><B><FONT size=2>CONCEPTS</FONT></B></div>
    </TD>
    <TD align=right colspan="2">
      <div align="center"><B><FONT size=2>CURRENT YEAR</FONT></B></div>
      </TD>
    <TD align=right colSpan=2>
      <div align="center"><B><FONT size=2>PREVIOUS YEAR</FONT></B></div>
    </TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=left>
      <div align="center"></div>
    </TD>
    <TD align=left>
      <div align="center"></div>
    </TD>
    <TD align=right>
      <div align="center"><B><FONT size=2>AMOUNT</FONT></B></div>
    </TD>
    <TD align=left>
      <div align="center"><b><font size=2>%</font></b></div>
    </TD>
    <TD align=right>
      <div align="center"><B><FONT size=2>AMOUNT</FONT></B></div>
    </TD>
    <TD align=right>
      <div align="center"><B><FONT size=2>%</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><B><FONT size=2>r01</FONT></B></TD>
    <TD align=left><B><FONT size=2>NET SALES</FONT></B></TD>
    <TD align=right><B><FONT size=2>13,758,184</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>12,759,896</FONT></B></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><FONT size=2>DOMESTIC</FONT></TD>
    <TD align=right><FONT size=2>6,183,036</FONT></TD>
    <TD align=right><FONT size=2>45</FONT></TD>
    <TD align=right><FONT size=2>5,630,508</FONT></TD>
    <TD align=right><FONT size=2>44</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r22</FONT></TD>
    <TD align=left><FONT size=2>FOREIGN</FONT></TD>
    <TD align=right><FONT size=2>7,575,148</FONT></TD>
    <TD align=right><FONT size=2>55</FONT></TD>
    <TD align=right><FONT size=2>7,129,388</FONT></TD>
    <TD align=right><FONT size=2>56</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r23</FONT></TD>
    <TD align=left><FONT size=2>TRANSLATED INTO DOLLARS (***)</FONT></TD>
    <TD align=right><FONT size=2>639,852</FONT></TD>
    <TD align=right><FONT size=2>5</FONT></TD>
    <TD align=right><FONT size=2>565,855</FONT></TD>
    <TD align=right><FONT size=2>4</FONT></TD>
  </TR>

  <TR>

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

  <TR vAlign=bottom>

    <TD align=right><B><FONT size=2>r08</FONT></B></TD>
    <TD align=left><B><FONT size=2>OTHER INCOME AND (EXPENSE), NET</FONT></B></TD>
    <TD align=right><B><FONT size=2>(8,308)</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>(35,911)</FONT></B></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><FONT size=2>OTHER INCOME AND (EXPENSE), NET</FONT></TD>
    <TD align=right><FONT size=2>(8,308)</FONT></TD>
    <TD align=right><FONT size=2>100</FONT></TD>
    <TD align=right><FONT size=2>(35,911)</FONT></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><FONT size=2>EMPLOYEES&#146; PROFIT SHARING EXPENSES</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 vAlign=bottom>

    <TD align=right><FONT size=2>r35</FONT></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=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=right><B><FONT size=2>r06</FONT></B></TD>
    <TD align=left><B><FONT size=2>COMPREHENSIVE FINANCING RESULT</FONT></B></TD>
    <TD align=right><B><FONT size=2>(171,535)</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>(38,311)</FONT></B></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><FONT size=2>INTEREST EXPENSE</FONT></TD>
    <TD align=right><FONT size=2>5,409</FONT></TD>
    <TD align=right><FONT size=2>(3)</FONT></TD>
    <TD align=right><FONT size=2>6,096</FONT></TD>
    <TD align=right><FONT size=2>(16)</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r42</FONT></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=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>r45</FONT></TD>
    <TD align=left><FONT size=2>OTHER FINANCE COSTS</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 vAlign=bottom>

    <TD align=right><FONT size=2>r26</FONT></TD>
    <TD align=left><FONT size=2>INTEREST INCOME</FONT></TD>
    <TD align=right><FONT size=2>9,920</FONT></TD>
    <TD align=right><FONT size=2>(6)</FONT></TD>
    <TD align=right><FONT size=2>8,531</FONT></TD>
    <TD align=right><FONT size=2>(22)</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r46</FONT></TD>
    <TD align=left><FONT size=2>OTHER FINANCIAL PRODUCTS</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 vAlign=bottom>

    <TD align=right><FONT size=2>r25</FONT></TD>
    <TD align=left><FONT size=2>FOREIGN EXCHANGE GAIN (LOSS), NET</FONT></TD>
    <TD align=right><FONT size=2>(176,046)</FONT></TD>
    <TD align=right><FONT size=2>103</FONT></TD>
    <TD align=right><FONT size=2>(40,746)</FONT></TD>
    <TD align=right><FONT size=2>106</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r28</FONT></TD>
    <TD align=left><FONT size=2>RESULT FROM MONETARY 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>
  </TR>

  <TR>

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

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r10</FONT></TD>
    <TD align=left><FONT size=2>INCOME TAXES</FONT></TD>
    <TD align=right><B><FONT size=2>(22,701)</FONT></B></TD>
    <TD align=right><B><FONT size=2>100</FONT></B></TD>
    <TD align=right><B><FONT size=2>(13,556)</FONT></B></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><FONT size=2>INCOME TAX</FONT></TD>
    <TD align=right><FONT size=2>16,712</FONT></TD>
    <TD align=right><FONT size=2>(74)</FONT></TD>
    <TD align=right><FONT size=2>32,391</FONT></TD>
    <TD align=right><FONT size=2>(239)</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=right><FONT size=2>r33</FONT></TD>
    <TD align=left><FONT size=2>DEFERRED INCOME TAX</FONT></TD>
    <TD align=right><FONT size=2>(39,413)</FONT></TD>
    <TD align=right><FONT size=2>174</FONT></TD>
    <TD align=right><FONT size=2>(45,947)</FONT></TD>
    <TD align=right><FONT size=2>339</FONT></TD>
  </TR>
</TABLE>
<BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0>
<TR>
     <TD vAlign=top nowrap width="2%">(***)&nbsp; &nbsp; &nbsp; </TD>
     <TD width="98%">THOUSANDS OF DOLLARS </TD></TR>
<TR>
     <TD width="100%" colSpan=2>&nbsp;</TD></TR></TABLE>
<HR align=center width="100%" noshade SIZE=5>
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<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
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<BR>
<P style="TEXT-ALIGN: center"><B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 width="100%" border=0>

  <TR>

    <TD width="53%"></TD>
    <TD width="35%"></TD>
    <TD width="11%"></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT><FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>STATEMENTS OF INCOME</B><BR>
OTHER CONCEPTS<BR>
(thousands of Mexican pesos)</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">


  <TR vAlign=top>

    <TD align=center><B><FONT size=2>REF <br>
      R
      </FONT></B></TD>
    <TD style="TEXT-INDENT: 29px" align=left><B><FONT size=2>CONCEPTS</FONT></B></TD>
    <TD align=center><B><FONT size=2>CURRENT YEAR</FONT></B></TD>
    <TD align=center><B><FONT size=2>PREVIOUS YEAR</FONT></B></TD>
  </TR>


  <TR vAlign=bottom>

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

  <TR>

    <TD colSpan=4>&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>r36</FONT></TD>
    <TD align=left><FONT size=2>TOTAL SALES</FONT></TD>
    <TD align=right><FONT size=2>13,914,351</FONT></TD>
    <TD align=right><FONT size=2>13,292,195</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>r37</FONT></TD>
    <TD align=left><FONT size=2>TAX RESULT FOR THE YEAR</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=center><FONT size=2>r38</FONT></TD>
    <TD align=left><FONT size=2>NET SALES (**)</FONT></TD>
    <TD align=right><FONT size=2>25,574,724</FONT></TD>
    <TD align=right><FONT size=2>22,749,360</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>r39</FONT></TD>
    <TD align=left><FONT size=2>OPERATION INCOME (**)</FONT></TD>
    <TD align=right><FONT size=2>1,336,681</FONT></TD>
    <TD align=right><FONT size=2>(552,918)</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>r40</FONT></TD>
    <TD align=left><FONT size=2>NET INCOME OF MAJORITY INTEREST (**)</FONT></TD>
    <TD align=right><FONT size=2>903,558</FONT></TD>
    <TD align=right><FONT size=2>(781,538)</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>r41</FONT></TD>
    <TD align=left><FONT size=2>NET CONSOLIDATED INCOME (**)</FONT></TD>
    <TD align=right><FONT size=2>760,316</FONT></TD>
    <TD align=right><FONT size=2>(181,863)</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>r47</FONT></TD>
    <TD align=left><FONT size=2>OPERATIVE DEPRECIATION AND AMORTIZATION</FONT></TD>
    <TD align=right><FONT size=2>456,201</FONT></TD>
    <TD align=right><FONT size=2>519,626</FONT></TD>
  </TR>
</TABLE>
<BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0>
<TR>
     <TD vAlign=top nowrap width="2%">(**)&nbsp; &nbsp; &nbsp; </TD>
     <TD width="98%">RESTATED INFORMATION FOR THE LAST TWELVE MONTHS </TD></TR>
<TR>
     <TD width="100%" colSpan=2>&nbsp;</TD></TR></TABLE>
<HR align=center width="100%" noshade SIZE=5>
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<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
<!-- -->
<BR>
<P style="text-align: center;"> <B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE border=0 width=100% cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">

  <TR>

    <TD width=53%></TD>
    <TD width=35%></TD>
    <TD width=11%></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT> <FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

</TABLE>

<P style="text-align: center;"> <B>QUARTERLY STATEMENTS OF INCOME</B><BR>
FROM JANUARY 1 TO JUNE 30 OF 2011 AND 2010<BR>
(thousands of Mexican pesos)</P>
<TABLE border=1 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" width=100% cellpadding="2">


  <TR valign="bottom">

    <TD align=center>
      <div align="center"><B><FONT size=2>REF <br>
      R
      </FONT></B></div>
    </TD>
    <TD align=center>
      <div align="center"><B><FONT size=2>CATEGORIES</FONT></B></div>
    </TD>
    <TD align=right colspan="2">
      <div align="center"><B><FONT size=2>CURRENT YEAR</FONT></B></div>
      <div align="center"></div>
    </TD>
    <TD align=right colspan="2">
      <div align="center"><B><FONT size=2>PREVIOUS YEAR</FONT></B></div>
      <div align="center"></div>
    </TD>
  </TR>



  <TR valign="bottom">

    <TD align=left>
      <div align="center"></div>
    </TD>
    <TD align=left>
      <div align="center"></div>
    </TD>
    <TD align=right>
      <div align="center"><B><FONT size=2>AMOUNT</FONT></B></div>
    </TD>
    <TD align=left>
      <div align="center"><b><font size=2>%</font></b> </div>
    </TD>
    <TD align=right>
      <div align="center"><B><FONT size=2>AMOUNT</FONT></B></div>
    </TD>
    <TD align=left>
      <div align="center"><b><font size=2>%</font></b> </div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>r01</FONT></B></TD>
    <TD align=left> <B><FONT size=2>NET SALES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>7,192,733</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
    <TD align=right> <B><FONT size=2>6,366,902</FONT></B></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> <FONT size=2>COST OF SALES</FONT></TD>
    <TD align=right> <FONT size=2>6,392,363</FONT></TD>
    <TD align=right> <FONT size=2>89</FONT></TD>
    <TD align=right> <FONT size=2>5,503,367</FONT></TD>
    <TD align=right> <FONT size=2>86</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>r03</FONT></B></TD>
    <TD align=left> <B><FONT size=2>GROSS PROFIT</FONT></B></TD>
    <TD align=right> <B><FONT size=2>800,370</FONT></B></TD>
    <TD align=right> <B><FONT size=2>11</FONT></B></TD>
    <TD align=right> <B><FONT size=2>863,535</FONT></B></TD>
    <TD align=right> <B><FONT size=2>14</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>r04</FONT></TD>
    <TD align=left> <FONT size=2>OPERATING EXPENSES</FONT></TD>
    <TD align=right> <FONT size=2>171,072</FONT></TD>
    <TD align=right> <FONT size=2>2</FONT></TD>
    <TD align=right> <FONT size=2>495,799</FONT></TD>
    <TD align=right> <FONT size=2>8</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>r05</FONT></B></TD>
    <TD align=left> <B><FONT size=2>OPERATING INCOME</FONT></B></TD>
    <TD align=right> <B><FONT size=2>629,298</FONT></B></TD>
    <TD align=right> <B><FONT size=2>9</FONT></B></TD>
    <TD align=right> <B><FONT size=2>367,736</FONT></B></TD>
    <TD align=right> <B><FONT size=2>6</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>r08</FONT></TD>
    <TD align=left> <FONT size=2>OTHER INCOME AND (EXPENSE), NET</FONT></TD>
    <TD align=right> <FONT size=2>(9,246)</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
    <TD align=right> <FONT size=2>(46,140)</FONT></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> <FONT size=2>COMPREHENSIVE FINANCING RESULT</FONT></TD>
    <TD align=right> <FONT size=2>(87,256)</FONT></TD>
    <TD align=right> <FONT size=2>(1)</FONT></TD>
    <TD align=right> <FONT size=2>(13,965)</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
  </TR>



  <TR valign="top">

    <TD align=left>
      <div align="right"><font size=2>r12</font> </div>
    </TD>
    <TD align=left> <FONT size=2>EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES <br>
      &nbsp;&nbsp;&nbsp;AND ASSOCIATES</FONT></TD>
    <TD align=right valign="bottom"> <FONT size=2>0</FONT></TD>
    <TD align=right valign="bottom"> <FONT size=2>0</FONT></TD>
    <TD align=right valign="bottom"> <FONT size=2>0</FONT></TD>
    <TD align=right valign="bottom"> <FONT size=2>0</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>r48</FONT></TD>
    <TD align=left> <FONT size=2>NON ORDINARY ITEMS</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 valign="bottom">

    <TD align=right> <B><FONT size=2>r09</FONT></B></TD>
    <TD align=left> <B><FONT size=2>INCOME BEFORE INCOME TAXES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>532,796</FONT></B></TD>
    <TD align=right> <B><FONT size=2>7</FONT></B></TD>
    <TD align=right> <B><FONT size=2>307,631</FONT></B></TD>
    <TD align=right> <B><FONT size=2>5</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>r10</FONT></TD>
    <TD align=left> <FONT size=2>INCOME TAXES</FONT></TD>
    <TD align=right> <FONT size=2>(11,532)</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
    <TD align=right> <FONT size=2>(34,090)</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>r11</FONT></B></TD>
    <TD align=left> <B><FONT size=2>INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS</FONT></B></TD>
    <TD align=right> <B><FONT size=2>544,328</FONT></B></TD>
    <TD align=right> <B><FONT size=2>8</FONT></B></TD>
    <TD align=right> <B><FONT size=2>341,721</FONT></B></TD>
    <TD align=right> <B><FONT size=2>5</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>r14</FONT></TD>
    <TD align=left> <FONT size=2>DISCONTINUED OPERATIONS</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 valign="bottom">

    <TD align=right> <B><FONT size=2>r18</FONT></B></TD>
    <TD align=left> <B><FONT size=2>NET CONSOLIDATED INCOME</FONT></B></TD>
    <TD align=right> <B><FONT size=2>544,328</FONT></B></TD>
    <TD align=right> <B><FONT size=2>8</FONT></B></TD>
    <TD align=right> <B><FONT size=2>341,721</FONT></B></TD>
    <TD align=right> <B><FONT size=2>5</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>r19</FONT></TD>
    <TD align=left> <FONT size=2>NET INCOME OF MINORITY INTEREST</FONT></TD>
    <TD align=right> <FONT size=2>66,068</FONT></TD>
    <TD align=right> <FONT size=2>1</FONT></TD>
    <TD align=right> <FONT size=2>(50,805)</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>r20</FONT></TD>
    <TD align=left> <FONT size=2>NET INCOME OF MAJORITY INTEREST</FONT></TD>
    <TD align=right> <B><FONT size=2>478,260</FONT></B></TD>
    <TD align=right> <B><FONT size=2>7</FONT></B></TD>
    <TD align=right> <B><FONT size=2>392,526</FONT></B></TD>
    <TD align=right> <B><FONT size=2>6</FONT></B></TD>
  </TR>

</TABLE>
<BR>
<HR noshade align="center" width="100%" size="5">
<!-- *************************************************************************** -->
<div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></div>
<!-- -->
<BR>
<P style="text-align: center;"> <B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE border=0 width=100% cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">

  <TR>

    <TD width=53%></TD>
    <TD width=35%></TD>
    <TD width=11%></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT> <FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

</TABLE>

<P style="text-align: center;"> <B>QUARTERLY STATEMENTS OF INCOME</B><BR>
BREAKDOWN OF MAIN CONCEPTS<BR>
(thousands of Mexican pesos)</P>
<TABLE border=1 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" width=100% cellpadding="2">


  <TR valign="top" align="center">

    <TD> <B><FONT size=2>REF <br>
      R
      </FONT></B></TD>
    <TD style="TEXT-INDENT:29.000000px"> <B><FONT size=2>CONCEPTS</FONT></B></TD>
    <TD colspan=2> <B><FONT size=2>CURRENT YEAR</FONT></B> </TD>
    <TD colspan=2> <B><FONT size=2>PREVIOUS YEAR</FONT></B> </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left style="TEXT-INDENT:1.000000px"> <B></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>
  </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=left><b><font size=2>%</font></b> </TD>
    <TD align=right> <B><FONT size=2>AMOUNT</FONT></B></TD>
    <TD align=left><b><font size=2>%</font></b> </TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>rt01</FONT></B></TD>
    <TD align=left> <B><FONT size=2>NET SALES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>7,192,733</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
    <TD align=right> <B><FONT size=2>6,366,902</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt21</FONT></TD>
    <TD align=left> <FONT size=2>DOMESTIC</FONT></TD>
    <TD align=right> <FONT size=2>3,295,911</FONT></TD>
    <TD align=right> <FONT size=2>46</FONT></TD>
    <TD align=right> <FONT size=2>2,617,696</FONT></TD>
    <TD align=right> <FONT size=2>41</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt22</FONT></TD>
    <TD align=left> <FONT size=2>FOREIGN</FONT></TD>
    <TD align=right> <FONT size=2>3,896,822</FONT></TD>
    <TD align=right> <FONT size=2>54</FONT></TD>
    <TD align=right> <FONT size=2>3,749,206</FONT></TD>
    <TD align=right> <FONT size=2>59</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt23</FONT></TD>
    <TD align=left> <FONT size=2>TRANSLATED INTO DOLLARS (***)</FONT></TD>
    <TD align=right> <FONT size=2>329,154</FONT></TD>
    <TD align=right> <FONT size=2>5</FONT></TD>
    <TD align=right> <FONT size=2>297,383</FONT></TD>
    <TD align=right> <FONT size=2>5</FONT></TD>
  </TR>

  <TR>

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

  <TR valign="bottom">

    <TD align=right> <B><FONT size=2>rt08</FONT></B></TD>
    <TD align=left> <B><FONT size=2>OTHER INCOME AND (EXPENSE), NET</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(9,246)</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(46,140)</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt49</FONT></TD>
    <TD align=left> <FONT size=2>OTHER INCOME AND (EXPENSE), NET</FONT></TD>
    <TD align=right> <FONT size=2>(9,246)</FONT></TD>
    <TD align=right> <FONT size=2>100</FONT></TD>
    <TD align=right> <FONT size=2>(46,140)</FONT></TD>
    <TD align=right> <FONT size=2>100</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt34</FONT></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=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>rt35</FONT></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=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=right> <B><FONT size=2>rt06</FONT></B></TD>
    <TD align=left> <B><FONT size=2>COMPREHENSIVE FINANCING RESULT</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(87,256)</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(13,965)</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt24</FONT></TD>
    <TD align=left> <FONT size=2>INTEREST EXPENSE</FONT></TD>
    <TD align=right> <FONT size=2>2,200</FONT></TD>
    <TD align=right> <FONT size=2>(3)</FONT></TD>
    <TD align=right> <FONT size=2>6,096</FONT></TD>
    <TD align=right> <FONT size=2>(44)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt42</FONT></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=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>rt45</FONT></TD>
    <TD align=left> <FONT size=2>OTHER FINANCE COSTS</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 valign="bottom">

    <TD align=right> <FONT size=2>rt26</FONT></TD>
    <TD align=left> <FONT size=2>INTEREST INCOME</FONT></TD>
    <TD align=right> <FONT size=2>4,541</FONT></TD>
    <TD align=right> <FONT size=2>(5)</FONT></TD>
    <TD align=right> <FONT size=2>5,951</FONT></TD>
    <TD align=right> <FONT size=2>(43)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt46</FONT></TD>
    <TD align=left> <FONT size=2>OTHER FINANCIAL PRODUCTS</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 valign="bottom">

    <TD align=right> <FONT size=2>rt25</FONT></TD>
    <TD align=left> <FONT size=2>FOREIGN EXCHANGE GAIN (LOSS), NET</FONT></TD>
    <TD align=right> <FONT size=2>(89,597)</FONT></TD>
    <TD align=right> <FONT size=2>103</FONT></TD>
    <TD align=right> <FONT size=2>(13,820)</FONT></TD>
    <TD align=right> <FONT size=2>99</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt28</FONT></TD>
    <TD align=left> <FONT size=2>RESULT FROM MONETARY 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>
  </TR>

  <TR>

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

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt10</FONT></TD>
    <TD align=left> <FONT size=2>INCOME TAXES</FONT></TD>
    <TD align=right> <B><FONT size=2>(11,532)</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(34,090)</FONT></B></TD>
    <TD align=right> <B><FONT size=2>100</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt32</FONT></TD>
    <TD align=left> <FONT size=2>INCOME TAX</FONT></TD>
    <TD align=right> <FONT size=2>(5,421)</FONT></TD>
    <TD align=right> <FONT size=2>47</FONT></TD>
    <TD align=right> <FONT size=2>10,160</FONT></TD>
    <TD align=right> <FONT size=2>(30)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=right> <FONT size=2>rt33</FONT></TD>
    <TD align=left> <FONT size=2>DEFERRED INCOME TAX</FONT></TD>
    <TD align=right> <FONT size=2>(6,111)</FONT></TD>
    <TD align=right> <FONT size=2>53</FONT></TD>
    <TD align=right> <FONT size=2>(44,250)</FONT></TD>
    <TD align=right> <FONT size=2>130</FONT></TD>
  </TR>

</TABLE>
<BR>
<TABLE border=0 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">
<TR>
     <TD nowrap valign=top width="2%"> (***)&nbsp; &nbsp; &nbsp;        </TD>
     <TD width="98%"> THOUSANDS OF DOLLARS      </TD> </TR>
<TR>
     <TD width="100%" colspan=2>&nbsp;</TD></TR></TABLE>
<HR noshade align="center" width="100%" size="5">
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<BR>
<P style="text-align: center;"> <B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE border=0 width=100% cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">

  <TR>

    <TD width=53%></TD>
    <TD width=35%></TD>
    <TD width=11%></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT> <FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

</TABLE>

<P style="text-align: center;"> <B>QUARTERLY STATEMENTS OF INCOME</B><BR>
OTHER CONCEPTS<BR>
(thousands of Mexican pesos)</P>
<TABLE border=1 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" width=100% cellpadding="2">


  <TR valign="bottom">

    <TD align=center rowspan="2"> <B><FONT size=2>REF <br>
      RT
      </FONT></B> <B></B></TD>
    <TD align=left style="TEXT-INDENT:39.000000px" rowspan="2">
      <div align="center"><B><FONT size=2>CONCEPTS</FONT></B> </div>
    </TD>
    <TD align=center rowspan="2"> <B><FONT size=2>CURRENT</FONT></B> <B><FONT size=2><br>
      YEAR</FONT></B></TD>
    <TD align=center rowspan="2"> <B><FONT size=2>PREVIOUS</FONT></B> <B><FONT size=2><br>
      YEAR</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    </TR>

  <TR valign="bottom">

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

  <TR valign="bottom">

    <TD align=left style="TEXT-INDENT:3.000000px">
      <div align="right"><FONT size=2>rt47</FONT></div>
    </TD>
    <TD align=left> <FONT size=2>OPERATIVE DEPRECIATION AND AMORTIZATION</FONT></TD>
    <TD align=right style="TEXT-INDENT:6.000000px"> <FONT size=2>226,162</FONT></TD>
    <TD align=right style="TEXT-INDENT:7.000000px"> <FONT size=2>261,142</FONT></TD>
  </TR>

</TABLE>
<BR>
<HR noshade align="center" width="100%" size="5">
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<BR>
<P style="text-align: center;"> <B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE border=0 width=100% cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">

  <TR>

    <TD width=53%></TD>
    <TD width=35%></TD>
    <TD width=11%></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT> <FONT size=2>2 </FONT><FONT size=2>YEAR:</FONT><B><FONT size=2>20110</FONT></B></div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

</TABLE>

<P style="text-align: center;"> <B>STATE OF CASH FLOW DIRECT METHOD)</B><BR>
FROM JANUARY 1 TO JUNE 30 OF 2011 AND 2010<BR>
(thousands of pesos)</P>
<TABLE border=1 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" width=100% cellpadding="2">


  <TR valign="top">

    <TD align=center> <B><FONT size=2>REF <br>
      C
      </FONT></B></TD>
    <TD align=center> <B><FONT size=2>CONCEPTS</FONT></B></TD>
    <TD align=center> <B><FONT size=2>CURRENT YEAR</FONT></B></TD>
    <TD align=center> <B><FONT size=2>PREVIOUS YEAR</FONT></B></TD>
  </TR>


  <TR valign="bottom">

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

  <TR>

    <TD colspan=4>&nbsp; </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left>&nbsp; </TD>
    <TD align=left> <B><FONT size=2>ACTIVITIES OF OPERATION</FONT></B></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <B><FONT size=2>e01</FONT></B></TD>
    <TD align=left> <B><FONT size=2>INCOME (LOSS) BEFORE INCOME TAXES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>1,050,380</FONT></B></TD>
    <TD align=right> <B><FONT size=2>905,630</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e02</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) ITEMS NOT REQUIRING CASH</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=center> <FONT size=2>e03</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) ITEMS RELATED TO INVESTING ACTIVITIES</FONT></TD>
    <TD align=right> <FONT size=2>446,269</FONT></TD>
    <TD align=right> <FONT size=2>510,910</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e04</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) ITEMS RELATED TO FINANCING ACTIVITIES</FONT></TD>
    <TD align=right> <FONT size=2>(7,142)</FONT></TD>
    <TD align=right> <FONT size=2>6,096</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <B><FONT size=2>e05</FONT></B></TD>
    <TD align=left> <B><FONT size=2>CASH FLOW BEFORE INCOME TAX</FONT></B></TD>
    <TD align=right> <B><FONT size=2>1,489,507</FONT></B></TD>
    <TD align=right> <B><FONT size=2>1,422,636</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e06</FONT></TD>
    <TD align=left> <FONT size=2>CASH FLOW PROVIDED OR USED IN OPERATION</FONT></TD>
    <TD align=right> <FONT size=2>(624,583)</FONT></TD>
    <TD align=right> <FONT size=2>(189,578)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <B><FONT size=2>e07</FONT></B></TD>
    <TD align=left> <B><FONT size=2>CASH FLOW PROVIDED OF OPERATING ACTIVITIES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>864,924</FONT></B></TD>
    <TD align=right> <B><FONT size=2>1,233,058</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left>&nbsp; </TD>
    <TD align=left> <B><FONT size=2>INVESTMENT ACTIVITIES</FONT></B></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e08</FONT></TD>
    <TD align=left> <FONT size=2>NET CASH FLOW FROM INVESTING ACTIVITIES</FONT></TD>
    <TD align=right> <FONT size=2>(202,006)</FONT></TD>
    <TD align=right> <FONT size=2>(156,141)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <B><FONT size=2>e09</FONT></B></TD>
    <TD align=left> <B><FONT size=2>CASH FLOW AFTER INVESTING ACTIVITIES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>662,918</FONT></B></TD>
    <TD align=right> <B><FONT size=2>1,076,917</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left>&nbsp; </TD>
    <TD align=left> <B><FONT size=2>FINANCING ACTIVITIES</FONT></B></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e10</FONT></TD>
    <TD align=left> <FONT size=2>NET CASH FROM FINANCING ACTIVITIES</FONT></TD>
    <TD align=right> <FONT size=2>0)</FONT></TD>
    <TD align=right> <FONT size=2>(156,808)</FONT></TD>
  </TR>



  <TR valign="bottom">

    <TD align=left valign="top">
      <div align="center"><b><font size=2>e11</font></b> </div>
    </TD>
    <TD align=left valign="top"> <B><FONT size=2>NET (DECREASE) INCREASE IN CASH AND CASH<br>
      EQUIVALENTS</FONT></B></TD>
    <TD align=right> <B><FONT size=2>662,918</FONT></B></TD>
    <TD align=right> <B><FONT size=2>920,109</FONT></B></TD>
  </TR>



  <TR valign="bottom">

    <TD align=left valign="top">
      <div align="center"><b><font size=2>e12</font></b> </div>
    </TD>
    <TD align=left valign="top"> <B><FONT size=2>TRANSLATION DIFFERENCES IN CASH AND CASH<br>
      EQUIVALENTS</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(723)</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(564)</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e13</FONT></TD>
    <TD align=left> <FONT size=2>CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD</FONT></TD>
    <TD align=right> <FONT size=2>3,384,917</FONT></TD>
    <TD align=right> <FONT size=2>1,948,900</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <B><FONT size=2>e14</FONT></B></TD>
    <TD align=left> <B><FONT size=2>CASH AND CASH EQUIVALENTS AT THE END OF PERIOD</FONT></B></TD>
    <TD align=right> <B><FONT size=2>4,047,112</FONT></B></TD>
    <TD align=right> <B><FONT size=2>2,868,445</FONT></B></TD>
  </TR>

</TABLE>
<BR>
<HR noshade align="center" width="100%" size="5">
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<div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></div>
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<BR>
<P style="text-align: center;"> <B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE border=0 width=100% cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">

  <TR>

    <TD width=53%></TD>
    <TD width=35%></TD>
    <TD width=11%></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT> <FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

</TABLE>

<P style="text-align: center;"> <B>STATE OF CASH FLOW (INDIRECT METHOD)</B><BR>
BREAKDOWN OF MAIN CONCEPTS<BR>
(thousands of pesos)</P>
<TABLE border=1 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" width=100% cellpadding="2">


  <TR valign="top">

    <TD align=center>
      <div align="center"><B><FONT size=2>REF <br>
      C
      </FONT></B></div>
    </TD>
    <TD align=left style="TEXT-INDENT:29.000000px">
      <div align="center"><B><FONT size=2>CONCEPTS</FONT></B></div>
    </TD>
    <TD align=center>
      <div align="center"><B><FONT size=2>CURRENT YEAR</FONT></B></div>
    </TD>
    <TD align=center>
      <div align="center"><B><FONT size=2>PREVIOUS YEAR</FONT></B></div>
    </TD>
  </TR>



  <TR valign="bottom">

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

  <TR valign="bottom">

    <TD align=center> <B><FONT size=2>e02</FONT></B></TD>
    <TD align=left> <B><FONT size=2>+ (-) ITEMS NOT REQUIRING CASH</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=center> <FONT size=2>e15</FONT></TD>
    <TD align=left> <FONT size=2>+ ESTIMATES FOR THE PERIOD</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=center> <FONT size=2>e16</FONT></TD>
    <TD align=left> <FONT size=2>+ PROVISIONS FOR THE PERIOD</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=center> <FONT size=2>e17</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) OTHER UNREALIZED ITEMS</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
  </TR>

  <TR>

    <TD colspan=4>&nbsp; </TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <B><FONT size=2>e03</FONT></B></TD>
    <TD align=left> <B><FONT size=2>+ (-) ITEMS RELATED TO INVESTING ACTIVITIES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>446,269</FONT></B></TD>
    <TD align=right> <B><FONT size=2>510,910</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e18</FONT></TD>
    <TD align=left> <FONT size=2>+ DEPRECIATION AND AMORTIZATION FOR THE PERIOD</FONT></TD>
    <TD align=right> <FONT size=2>456,201</FONT></TD>
    <TD align=right> <FONT size=2>519,626</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e19</FONT></TD>
    <TD align=left> <FONT size=2>(-) + GAIN OR LOSS ON SALE PROPERTY, PLANT AND EQUIPMENT</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=center> <FONT size=2>e20</FONT></TD>
    <TD align=left> <FONT size=2>+ IMPAIRMENT LOSS</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=center> <FONT size=2>e21</FONT></TD>
    <TD align=left> <FONT size=2>(-) + EQUITY IN RESULTS OF ASSOCIATES AND JOINT VENTURES</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=center> <FONT size=2>e22</FONT></TD>
    <TD align=left> <FONT size=2>(-) DIVIDENDS RECEIVED</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=center> <FONT size=2>e23</FONT></TD>
    <TD align=left> <FONT size=2>(-) INTEREST INCOME</FONT></TD>
    <TD align=right> <FONT size=2>(9,920)</FONT></TD>
    <TD align=right> <FONT size=2>.(8,531)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e24</FONT></TD>
    <TD align=left> <FONT size=2>(-) + OTHER ITEMS</FONT></TD>
    <TD align=right> <FONT size=2>(12)</FONT></TD>
    <TD align=right> <FONT size=2>(185)</FONT></TD>
  </TR>

  <TR>

    <TD colspan=4>&nbsp; </TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <B><FONT size=2>e04</FONT></B></TD>
    <TD align=left> <B><FONT size=2>+ (-) ITEMS RELATED TO FINANCING ACTIVITIES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(7,142)</FONT></B></TD>
    <TD align=right> <B><FONT size=2>6,096</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e25</FONT></TD>
    <TD align=left> <FONT size=2>+ ACCRUED INTEREST</FONT></TD>
    <TD align=right> <FONT size=2>(7,142)</FONT></TD>
    <TD align=right> <FONT size=2>6,096</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e26</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) OTHER ITEMS</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
  </TR>

  <TR>

    <TD colspan=4>&nbsp; </TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <B><FONT size=2>e06</FONT></B></TD>
    <TD align=left> <B><FONT size=2>CASH FLOW PROVIDED OR USED IN OPERATION</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(624,583)</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(189,578)</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e27</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE</FONT></TD>
    <TD align=right> <FONT size=2>(848,133)</FONT></TD>
    <TD align=right> <FONT size=2>(1,198,395)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e28</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) DECREASE (INCREASE) IN INVENTORIES</FONT></TD>
    <TD align=right> <FONT size=2>(174,817)</FONT></TD>
    <TD align=right> <FONT size=2>119,260</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e29</FONT></TD>
    <TD align=left> <FONT size=2>+ (-)DECREASE (INCREASE) IN IN OTHER ACCOUNT RECEIVABLES</FONT></TD>
    <TD align=right> <FONT size=2>86,132</FONT></TD>
    <TD align=right> <FONT size=2>883,412</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e30</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) INCREASE DECREASE IN SUPPLIERS</FONT></TD>
    <TD align=right> <FONT size=2>333,720</FONT></TD>
    <TD align=right> <FONT size=2>398,802</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e31</FONT></TD>
    <TD align=left> <FONT size=2>+ (-)INCREASE DECREASE IN OTHER LIABILITIES</FONT></TD>
    <TD align=right> <FONT size=2>(21,479)</FONT></TD>
    <TD align=right> <FONT size=2>(377,980)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e32</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) INCOME TAXES PAID OR RETURNED</FONT></TD>
    <TD align=right> <FONT size=2>(6)</FONT></TD>
    <TD align=right> <FONT size=2>(14,677)</FONT></TD>
  </TR>

  <TR>

    <TD colspan=4>&nbsp; </TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <B><FONT size=2>e08</FONT></B></TD>
    <TD align=left> <B><FONT size=2>NET CASH FLOW FROM INVESTING ACTIVITIES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(202,006)</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(156,141)</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e33</FONT></TD>
    <TD align=left> <FONT size=2>(-) PERMANENT INVESTMENT IN SHARES</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=center> <FONT size=2>e34</FONT></TD>
    <TD align=left> <FONT size=2>+ DISPOSITION OF PERMANENT INVESTMENT IN SHARES</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=center> <FONT size=2>e35</FONT></TD>
    <TD align=left> <FONT size=2>(-) INVESTMENT IN PROPERTY PLANT AND EQUIPMENT</FONT></TD>
    <TD align=right> <FONT size=2>(188,346)</FONT></TD>
    <TD align=right> <FONT size=2>(164,672)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e36</FONT></TD>
    <TD align=left> <FONT size=2>+ SALE OF PROPERTY PLANT AND EQUIPMENT</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=center> <FONT size=2>e37</FONT></TD>
    <TD align=left> <FONT size=2>(-) INVESTMENT IN INTANGIBLE ASSETS</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=center> <FONT size=2>e38</FONT></TD>
    <TD align=left> <FONT size=2>+ DISPOSITION OF INTANGIBLE ASSETS</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=center> <FONT size=2>e39</FONT></TD>
    <TD align=left> <FONT size=2>+ OTHER PERMANENT INVESTMENTS</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=center> <FONT size=2>e40</FONT></TD>
    <TD align=left> <FONT size=2>+ DISPOSITION OF OTHER PERMANENT INVESTMENTS</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=center> <FONT size=2>e41</FONT></TD>
    <TD align=left> <FONT size=2>+ DIVIDEND RECEIVED</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=center> <FONT size=2>e42</FONT></TD>
    <TD align=left> <FONT size=2>+ INTEREST RECEIVED</FONT></TD>
    <TD align=right> <FONT size=2>9,920</FONT></TD>
    <TD align=right> <FONT size=2>8,531</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e43</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) DECREASE (INCREASE) ADVANCES AND LOANS TO THIRD PARTS</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=center> <FONT size=2>e44</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) OTHER ITEMS</FONT></TD>
    <TD align=right> <FONT size=2>(23,580)</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
  </TR>

  <TR>

    <TD colspan=4>&nbsp; </TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <B><FONT size=2>e10</FONT></B></TD>
    <TD align=left> <B><FONT size=2>NET CASH FRON FINANCING ACTIVITIES</FONT></B></TD>
    <TD align=right> <B><FONT size=2>0</FONT></B></TD>
    <TD align=right> <B><FONT size=2>(156,808)</FONT></B></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e45</FONT></TD>
    <TD align=left> <FONT size=2>+ BANK FINANCING</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=center> <FONT size=2>e46</FONT></TD>
    <TD align=left> <FONT size=2>+ STOCK MARKET FINANCING</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=center> <FONT size=2>e47</FONT></TD>
    <TD align=left> <FONT size=2>+ OTHER FINANCING</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
    <TD align=right> <FONT size=2>208,836</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e48</FONT></TD>
    <TD align=left> <FONT size=2>(-) BANK FINANCING AMORTIZATION</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=center> <FONT size=2>e49</FONT></TD>
    <TD align=left> <FONT size=2>(-) STOCK MARKET FINANCING AMORTIZATION</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=center> <FONT size=2>e50</FONT></TD>
    <TD align=left> <FONT size=2>(-) OTHER FINANCING AMORTIZATION</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
    <TD align=right> <FONT size=2>(359,548)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e51</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) INCREASE (DECREASE ) IN CAPITAL STOCK</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=center> <FONT size=2>e52</FONT></TD>
    <TD align=left> <FONT size=2>(-) DIVIDENS PAID</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=center> <FONT size=2>e53</FONT></TD>
    <TD align=left> <FONT size=2>+ PREMIUM ON ISSUANCE OF SHARES</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=center> <FONT size=2>e54</FONT></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=right> <FONT size=2>0</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e55</FONT></TD>
    <TD align=left> <FONT size=2>(-) INTEREST EXPENSE</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
    <TD align=right> <FONT size=2>(6,096)</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=center> <FONT size=2>e56</FONT></TD>
    <TD align=left> <FONT size=2>(-) REPURCHASE OF SHARES</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=center> <FONT size=2>e57</FONT></TD>
    <TD align=left> <FONT size=2>+ (-) OTHER ITEMS</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
    <TD align=right> <FONT size=2>0</FONT></TD>
  </TR>

</TABLE>
<BR>
<HR noshade align="center" width="100%" size="5">
<!-- *************************************************************************** -->
<div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></div>
<!-- -->
<BR>
<P style="text-align: center;"> <B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE border=0 width=100% cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">

  <TR>

    <TD width=53%></TD>
    <TD width=35%></TD>
    <TD width=11%></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT> <FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

</TABLE>

<P style="text-align: center;"> <B>DATE PER SHARE</B><BR>
CONSOLIDATED</P>
<table border=1 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" width=100% cellpadding="2">


  <tr valign="top">

    <td align=center nowrap> <b><font size=2>REF <br>
      D
      </font></b></td>
    <td align=left style="TEXT-INDENT:27.000000px"> <b><font size=2>CATEGORIES</font></b></td>
    <td align=center width="23%"> <b><font size=2>QUARTER OF PRESENT <br>
      FINANCIAL YEAR
      </font></b></td>
    <td align=center width="23%"> <b><font size=2>QUARTER OF PREVIOUS <br>
      FINANCIAL YEAR
      </font></b></td>
  </tr>


  <tr>

    <td colspan=4>&nbsp; </td>
  </tr>

  <tr>

    <td colspan=4>&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=center style="TEXT-INDENT:9.000000px"> <font size=2>&#36;&nbsp;&nbsp;1.81</font></td>
    <td align=center> <font size=2>&#36; (0.37)</font></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=center style="TEXT-INDENT:9.000000px"> <font size=2>&#36;&nbsp;&nbsp;0.00</font></td>
    <td align=center style="TEXT-INDENT:10.000000px"> <font size=2>&#36;&nbsp;&nbsp;&nbsp;0.00</font></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=center style="TEXT-INDENT:9.000000px"> <font size=2>&#36;&nbsp;&nbsp;0.00</font></td>
    <td align=center style="TEXT-INDENT:10.000000px"> <font size=2>&#36;&nbsp;&nbsp;&nbsp;0.00</font></td>
  </tr>



  <tr valign="bottom">

    <td align=left valign="top">
      <div align="center"><font size=2>d04</font> </div>
    </td>
    <td align=left> <font size=2>EARNINGS (LOSS) BEFORE DISCONTINUED OPERATIONS PER
      COMMON SHARE (**)</font></td>
    <td align=center> <font size=2>&#36;&nbsp;&nbsp;1.81</font></td>
    <td align=center> <font size=2>&#36;(0.37)</font></td>
  </tr>



  <tr valign="bottom">

    <td align=left valign="top">
      <div align="center"><font size=2>d05</font> </div>
    </td>
    <td align=left> <font size=2>DISCONTINUED OPERATIONS EFFECT ON EARNING (LOSS) PER
      SHARE (**)</font></td>
    <td align=center style="TEXT-INDENT:9.000000px"> <font size=2>&#36;&nbsp;&nbsp;0.00</font></td>
    <td align=center style="TEXT-INDENT:10.000000px"> <font size=2>&#36;&nbsp;&nbsp;0.00</font></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=center style="TEXT-INDENT:9.000000px"> <font size=2>&#36;39.40</font></td>
    <td align=center style="TEXT-INDENT:10.000000px"> <font size=2>&#36;37.61</font></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=center style="TEXT-INDENT:9.000000px"> <font size=2>&#36;&nbsp;&nbsp;0.00</font></td>
    <td align=center style="TEXT-INDENT:10.000000px"> <font size=2>&#36;&nbsp;&nbsp;0.00</font></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=center style="TEXT-INDENT:12.000000px"> <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.00 shares</font></td>
    <td align=center style="TEXT-INDENT:13.000000px"> <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.00 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=center style="TEXT-INDENT:12.000000px"> <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.68 times</font></td>
    <td align=center style="TEXT-INDENT:13.000000px"> <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.81 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=center style="TEXT-INDENT:10.000000px"> <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.28 times</font></td>
    <td align=center style="TEXT-INDENT:10.000000px"> <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(82.92) times</font></td>
  </tr>

  <tr valign="top">

    <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=center style="TEXT-INDENT:11.000000px"> <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.00 times</font></td>
    <td align=center style="TEXT-INDENT:12.000000px"> <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.00 times</font></td>
  </tr>

</table>
<BR>
<TABLE border=0 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">
<TR>
     <TD nowrap valign=top width="2%"> (**)&nbsp; &nbsp; &nbsp;         </TD>
     <TD width="98%"> TO CALCULATE THE DATE PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS.    </TD> </TR>
<TR>
     <TD width="100%" colspan=2>&nbsp;</TD></TR></TABLE>
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<BR>
<P style="text-align: center;"> <B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE border=0 width=100% cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">

  <TR>

    <TD width=53%></TD>
    <TD width=35%></TD>
    <TD width=11%></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: </FONT> <FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

</TABLE>

<P style="text-align: center;"> <B>RATIOS</B><BR>
CONSOLIDATED</P>
<table border=1 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" width=100% cellpadding="2">


  <tr valign="bottom">

    <td align=center nowrap> <b><font size=2>REF <br>
      P
      </font></b></td>
    <td align=left style="TEXT-INDENT:27.000000px"> <b><font size=2>CATEGORIES</font></b></td>
    <td align=center nowrap> <b><font size=2>QUARTER OF PRESENT <br>
      FINANCIAL YEAR
      </font></b></td>
    <td align=center nowrap> <b><font size=2>QUARTER OF PREVIOUS <br>
      FINANCIAL YEAR
      </font></b></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="top">

    <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>7.80%</font></td>
    <td align=center> <font size=2>7.20%</font></td>
  </tr>

  <tr valign="top">

    <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>3.55%</font></td>
    <td align=center> <font size=2>(0.87%)</font></td>
  </tr>

  <tr valign="top">

    <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>2.71%</font></td>
    <td align=center> <font size=2>(0.66%)</font></td>
  </tr>

  <tr valign="top">

    <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="top">

    <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>0.00%</font></td>
  </tr>

  <tr valign="top">

    <td colspan=4>&nbsp; </td>
  </tr>

  <tr valign="top">

    <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="top">

    <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>0.91 times</font></td>
    <td align=center> <font size=2>0.83 times</font></td>
  </tr>

  <tr valign="top">

    <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>2.77 times</font></td>
    <td align=center> <font size=2>2.38 times</font></td>
  </tr>

  <tr valign="top">

    <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>2.33 times</font></td>
    <td align=center> <font size=2>2.14 times</font></td>
  </tr>

  <tr valign="top">

    <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>37 days</font></td>
    <td align=center> <font size=2>39 days</font></td>
  </tr>

  <tr valign="top">

    <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>0.85%</font></td>
    <td align=center> <font size=2>4.25%</font></td>
  </tr>

  <tr valign="top">

    <td colspan=4>&nbsp; </td>
  </tr>

  <tr valign="top">

    <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="top">

    <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>23.65%</font></td>
    <td align=center> <font size=2>24.18%</font></td>
  </tr>

  <tr valign="top">

    <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>0.31 times</font></td>
    <td align=center> <font size=2>0.32 times</font></td>
  </tr>

  <tr valign="top">

    <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>42.66%</font></td>
    <td align=center> <font size=2>37.73%</font></td>
  </tr>

  <tr valign="top">

    <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="top">

    <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>227.44 times</font></td>
    <td align=center> <font size=2>160.74 times</font></td>
  </tr>

  <tr valign="top">

    <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>3.85 times</font></td>
    <td align=center> <font size=2>3.43 times</font></td>
  </tr>

  <tr valign="top">

    <td colspan=4>&nbsp; </td>
  </tr>

  <tr valign="top">

    <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="top">

    <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>3.40 times</font></td>
    <td align=center> <font size=2>3.10 times</font></td>
  </tr>

  <tr valign="top">

    <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>2.07 times</font></td>
    <td align=center> <font size=2>1.79 times</font></td>
  </tr>

  <tr valign="top">

    <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>2.01 times</font></td>
    <td align=center> <font size=2>1.80 times</font></td>
  </tr>

  <tr valign="top">

    <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>103.20%</font></td>
    <td align=center> <font size=2>74.68%</font></td>
  </tr>

</table>
<BR>
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<BR>
<P style="text-align: center;"> <B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE border=0 width=100% cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;">

  <TR>

    <TD width=53%></TD>
    <TD width=31%></TD>
    <TD width=15%></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: 2 </FONT> <FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>

</TABLE>

<P style="text-align: center;"> <B><font size="3">DIRECTOR REPORT</font></B></P>
<P style="text-align: left;"> <B>Comparative first six months of 2011 vs. first six months of 2010</B></P>
<P style="text-align: left;"> <B><I>Net Sales</I></B></P>
<P style="text-align: left;"> Net sales of the Company increased 8% from Ps. 12,760 million in the first half of 2010 compared to Ps. 13,758 million in the same period of 2011. Shipments of finished steel products decreased 2% from 1,162 thousand tons in the first half of 2010 compared to 1,139 thousand tons in the same period of 2011. Total sales outside of Mexico in the first half of 2011 increased 6% to Ps. 7,575 million compared to Ps. 7,129 million in the same period of 2010, while total Mexican sales increased 10% from Ps. 5,631 million in the first half of 2010 to Ps. 6,183 million in the same period of 2011. The increase in sales for the first six months of 2011 compared to the first six months of 2010, is due to increase in the average sales price, better bland of steel shipment, and the increase in the sales price from the other steel products, while the volume of shipments decrease approximately 23 thousands a fall of 2%.</P>
<P style="text-align: left;"> <B><I>Cost of Sales</I></B></P>
<P style="text-align: left;"> Cost of sales increased 9% from Ps.11,095 million in the first six months of 2010, to Ps. 12,075 million in the same period of 2011.Cost of sales as a percentage of net sales represented 88% in the first half of 2011 compared to 87% in the same period of 2010. The increase in cost of sales is due to the bland of steel shipments, while the cost of certain raw materials reflect mixed results and the net of this main consumption, reflect a low decrease.</P>
<P style="text-align: left;"> <B><I>Gross Profit</I></B></P>
<P style="text-align: left;"> Gross profit of the Company for the first half of 2011 increased 1% from Ps. 1,665 million in the first half of 2010, to Ps. 1,683 million in the same period of 2011. Marginal profit as percentage of net sales in the first half of 2011 was of 12% while to the same period of 2010 was of 13%. The gross profit is similar in both periods, reflected by the increase in the shipments of special bar quality (SBQ), which sales and cost are higher than commercial products.</P>
<P style="text-align: left;"> <B><I>Operating Expenses</I></B></P>
<P style="text-align: left;"> Selling, general and administrative expense decrease 29%, or Ps. 638 million in the first six months of 2010 to Ps. 453 million in the same period 2011, selling, general and administrative expense represented 5% of the net sales of the first six months of 2010 and 3% of net sales in the first half of 2011.</P>
<P style="text-align: left;"> <B><I>Operating Income</I></B></P>
<P style="text-align: left;"> Operating income increased 20% from Ps. 1,027 million for the first six months of 2010 compared to Ps. 1,230 million in the same period of 2011. Operating income as percentage of net sales was 9% in the first half of 2011 compared to 8% in the same period of 2010, respectively. The increase in operating income is due to a better bland of shipments and the reduction in the selling, general and administrative expense.</P>
<P style="text-align: left;"> <B><I>Ebitda</I></B></P>
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<P style="text-align: left;"> <I>The ebitda of the first six months of 2011, increase Ps 139 million or 9% this is due to a better bland of steel products shipments and the reduction of selling, general and administrative expense compared to ebitda of Ps.1,547 million of the first half of 2010,and Ps. 1,686 million in the first half of 2011</I></P>
<P style="text-align: left;"> <B><I>Comprehensive Financial Cost</I></B></P>
<P style="text-align: left;"> Comprehensive financial cost for the first half of 2011 represented an expense of Ps.172 million compared with an expense of Ps. 38 million for the first six months of 2010. The comprehensive financial cost is comprised by the exchange loss of Ps.177 million in the first half of 2011 compared with an exchange loss of Ps. 41 million in the first half of 2010.Also recorded an income interest net of Ps. 5 million and Ps. 3 million in 2011 and 2010 respectively. As of June 30, 2011 the mexican peso record an revaluation of 4% versus dollar compared the exchange rate of Mexican peso to dollar as of December 31, 2010.</P>
<P style="text-align: left;"> <B><I>Other Expenses (Income) net</I></B></P>
<P style="text-align: left;"> The Company recorded other expense net of Ps. 36 million in the first half of 2010 while in the same period of 2011 the other expense reflected an expense net of Ps. 8 million.</P>
<P style="text-align: left;"> <B><I>Income Taxes</I></B></P>
<P style="text-align: left;"> The Company recorded an income tax of Ps. 14 million in the first half of 2010 compared to Ps. 23 million of income tax in the same period of 2011.</P>
<P style="text-align: left;"> <B><I>Net Income</I></B></P>
<P style="text-align: left;"> As a result of the foregoing, the Company record a decrease in net income of 5% from Ps.1,010 million in the first half of 2010 to Ps. 961 million in the same period of 2011.</P>
<P style="text-align: left;"> <B>Comparative second quarter of 2011 vs. first quarter of 2011</B></P>
<P style="text-align: left;"> <B><I>Net Sales</I></B></P>
<P style="text-align: left;"> Net sales of the Company increase 10% in the second quarter of 2011 compared to the first quarter of the same period of the year, from Ps. 6,565 million in the first quarter of 2011 compared to Ps. 7,193 million in the second quarter of 2011. Shipments of finished steel products increased 12% from 538 thousand tons in the first quarter of 2011 to 601 thousand tons in the second quarter of 2011. Total sales outside of Mexico in the second quarter of 2011 increased 6% to rose to Ps. 3,897 million compared to Ps. 3,678 million in the first quarter of 2011.
Total Mexican sales also show the same trend of growth, 14% from Ps. 2,887 million in the first quarter of 2011 to Ps. 3,296 million in the second quarter of 2011. The increase in sales of the second quarter is due to a; better bland of steel products shipments, increase in volume of shipments and a decrease in the average sales price compared to the first quarter of the same year, the volume shipment was better in 63
thousand ton, compared to the first quarter of 2011.</P>
<P style="text-align: left;"> <B><I>Cost of Sales</I></B></P>
<P style="text-align: left;"> Cost of sales increased 13% from Ps. 5,682 million in the first quarter of 2011 to Ps. 6,393 million in the second quarter of 2011. Cost of sales as a percentage of net sales represented 89% in the second quarter of 2011 while in the first quarter of the same year represented 87%, the average cost of sales by ton record an increase between the two quarter of 1%.The increase in the cost of sales is due to a better bland of steel shipments which cost is higher and an increase in volume of products shipments.</P>
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<P style="text-align: left;"> <B><I>Gross Profit</I></B></P>
<P style="text-align: left;"> Gross profit of the Company for the second quarter of 2011 decreased 9% to Ps. 883 million in the first quarter to Ps. 800 million in the second quarter of 2011. Gross profit as a percentage of net sales in the second quarter of 2011 was 11% compared to 13% in the first quarter 2011. The decreased in the gross profit in the second quarter of 2011 is due for the bland of steel shipments and the fall in the average sales price in 2%.</P>
<P style="text-align: left;"> <B><I>Operating Expenses</I></B></P>
<P style="text-align: left;"> Selling, general and administrative expense fell 39% from Ps. 282 million in the first quarter of 2011 to Ps. 171 million in the second quarter of 2011, and represented 4% and 2% of net sales in the first and second quarter of 2011 respectively.</P>
<P style="text-align: left;"> <B><I>Operating Income</I></B></P>
<P style="text-align: left;"> Operating income increased 5%, to Ps. 629 million in the second quarter of 2011 compared to Ps. 601 million in the first quarter of 2011. Operating income as percentage of net sales was 9% in the first and second quarter of 2011respectively. The increase in operating income is due to a better bland of steel products shipments, volume and reduction in selling, general and administrative expense.</P>
<P style="text-align: left;"> <B><I>Ebitda</I></B></P>
<P style="text-align: left;"> <I>The ebitda in the second quarter of 2011 recorded an increase of 3% compared to the first quarter of the same year, this is due to volume and bland of steel products shipment, and a reduction in the selling, general and administrative expense compared to the first quarter from Ps 831 million in the first quarter to Ps 855 million in the second quarter of 2011.</I></P>
<P style="text-align: left;"> <B><I>Comprehensive Financial Cost</I></B></P>
<P style="text-align: left;"> Comprehensive financial cost of the Company in the first quarter of 2011 represented an expense of Ps. 84 million compared with an expense of Ps. 87 million for the second quarter of 2011.The comprehensive financial cost is comprised for: the interest expense net, represented an income interest net of Ps. 3 million in the second quarter of 2011, while in the first quarter of 2011 we had an income interest net of Ps. 2 million. Also we record an exchange loss net of Ps. 90 million in the second quarter of 2011 compared an exchange loss net of Ps. 86 million in the first quarter of the same year.</P>
<P style="text-align: left;"> <B><I>Other Expenses (Income) net</I></B></P>
<P style="text-align: left;"> The Company recorded other expense net of Ps. 9 million in the second quarter of 2011 compared to other income net of Ps. 1 million in the first quarter of 2011.</P>
<P style="text-align: left;"> <B><I>Income Taxes</I></B></P>
<P style="text-align: left;"> The Company recorded an income tax of Ps. 11 million in the second quarter of 2011 compared to an income tax of Ps. 11 million in the first quarter of the same year.</P>
<P style="text-align: left;"> <B><I>Net Income</I></B></P>
<P style="text-align: left;"> As a result of the foregoing, the Company record a net income fell of 1% from a net income of Ps. 483 million in the first quarter of 2011 compared to a net income of Ps. 478 million in the second quarter of 2011.</P>
<P style="text-align: center;"> <B><I>Liquidity and Capital Resources</I></B></P>
<P style="text-align: left;"> As of June 30, 2011, Simec&#146;s total consolidated debt consisted of U.S. &#36;302,000 of 8 7/8% medium-term notes (&#147;MTN's&#148;) due 1998, or Ps. 3.6 million (accrued interest on June 30, 2011 was U.S. &#36;459,000, or Ps. 5.4 million). As of December 31, 2010, Simec&#146;s total consolidated debt consisted of U.S. &#36;302,000 of 8 7/8% medium-term notes (&#147;MTN's&#148;) due 1998, or Ps. 3.7 million (accrued interest on December 31, 2010 was U.S. &#36;445,000, or Ps. 5.5 million).</P>
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<P style="text-align: left;"> <B>Comparative second quarter of 2011 vs second quarter of 2010</B></P>
<P style="text-align: left;"> <B><I>Net Sales</I></B></P>
<P style="text-align: left;"> Net sales of the Company increased 13% from Ps. 6,367 million in the second quarter of 2010 to Ps. 7,193 million in the second quarter of 2011. Sales in tons of finished steel increased 8% to 558 thousand tons in the second quarter of 2010 compared with 601thousand tons in the second quarter of 2011. The total sales outside of Mexico for the second quarter of 2011 increased 4% from Ps. 3,749 million to Ps. 3,897 million for the second quarter of 2011. Total Mexican sales increase 26% from Ps. 2,618 million in the second quarter of 2010 to Ps. 3,296 million in the second quarter of 2011. Prices of finished products sold in the second quarter of 2011 increased 5% compared to the second quarter of 2010.</P>
<P style="text-align: left;"> <B><I>Cost of Sales</I></B></P>
<P style="text-align: left;"> Cost of sales increased 12% in the second quarter of 2011 compared to same period of 2010, from Ps. 5,704 million in the second quarter of 2010 to Ps. 6,393 million in the second quarter of 2011. With respect to sales, in the second quarter of 2010, the direct cost of sales represent 90% compared to 89% for the second quarter of 2011. The average cost of raw materials used to produce steel products increased 4% in the second quarter of 2011 versus the second quarter of 2010, primarily as a result of better bland of steel products shipments.</P>
<P style="text-align: left;"> <B><I>Gross (Loss) Profit</I></B></P>
<P style="text-align: left;"> Gross profit of the Company for the second quarter of 2011 rose to Ps. 800 million compared to Ps.663 million in the second quarter of 2010, this represented an increase of 21%. The gross profit as a percentage of net sales for the second quarter of 2011 was 11% compared to 10% for the second quarter of 2010. The increase in gross profit is due to the increase in volume, bland of steel products shipments and the average sales price.</P>
<P style="text-align: left;"> <B><I>Operating Expenses</I></B></P>
<P style="text-align: left;"> The selling, general and administrative expense decreased 31% in the second quarter of 2011 from Ps. 248 million in the second quarter of 2010 to Ps. 171 million in the second quarter of 2011.The selling, general and administrative expense as a percentage of net sales represented 2% during the second quarter of 2011 and 4% the second quarter of 2010.</P>
<P style="text-align: left;"> <B><I>Operating (Loss) Income</I></B></P>
<P style="text-align: left;"> Operating income rose to Ps. 629 million in the second quarter 2011 compared to Ps. 415 million in the second quarter of 2010, this represented the 52% of increase. The operating income as a percentage of net sales in the second quarter of 2010 was 6% compared to 9% in the second quarter of 2011. The increase in the operating income is due to better bland of steel products shipments, volume, average sales price and reduction in selling, general and administrative expense.</P>
<P style="text-align: left;"> Ebitda</P>
<P style="text-align: left;"> The ebitda of the second quarter of 2011increase compared to 2010 in 26% from Ps 676 million in the second quarter of 2010compared to Ps.855 million of the same period of 2011,this is due to the above explained in the operating income.</P>
<P style="text-align: left;"> <B><I>Comprehensive Financial Cost</I></B></P>
<P style="text-align: left;"> Comprehensive financial cost of the Company for the second quarter of 2011 represented an expense of Ps. 87 million compared with an expense of Ps. 14 million for the second quarter of 2010. The comprehensive financial cost is comprised for: The interest cost recorded was an income net of Ps. 3 million in the second quarter of 2011, compared to an income net of Ps. zero. for the same period of 2010. Also recorded an exchange loss of Ps. 90 million in the second quarter of 2011 and Ps.14 million in the second quarter of 2010.</P>
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<P style="TEXT-ALIGN: left"><B><I>Other Expenses (Income) net</I></B></P>
<P style="TEXT-ALIGN: left">The company recorded other expense net of Ps. 9 million in the second quarter of 2011 compared with other expense net of Ps.46 million for the second quarter of 2010.</P>
<P style="TEXT-ALIGN: left"><B><I>Income Taxes</I></B></P>
<P style="TEXT-ALIGN: left">The company record an income tax for Ps. 11 million in the second quarter of 2011 compared to Ps. 33 million of income for income tax for the second quarter of 2010.</P>
<P style="TEXT-ALIGN: left"><B><I>Net Income (Loss)</I></B></P>
<P style="TEXT-ALIGN: left">As a result of the foregoing, the Company net income was of Ps. 478 million in the second quarter of 2011 compared to Ps.439 million for the second quarter of 2010.</P>
<P style="TEXT-ALIGN: left">Note. In accordance with Mexican Financial Reporting Standards (MFRS), from 2011, only allowed the valuation of inventory through the system absorbing cost, and some figures have been adjusted in the income statement of 2010 for purposes of comparisons.</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="700" cellpadding="2">


  <TR vAlign=bottom>

    <TD align=center bgColor=#000080 rowspan="2"><B><FONT color=#ffffff size=2>(millon of pesos)</FONT></B></TD>
    <TD align=center bgColor=#000080 rowspan="2"><B><FONT color=#ffffff size=2>1H &#145;11</FONT></B></TD>
    <TD align=center bgColor=#000080 rowspan="2"><B><FONT color=#ffffff size=2>1H &#145;10</FONT></B></TD>
    <TD align=center bgColor=#000080 rowspan="2"><B><FONT color=#ffffff size=2>Year 11 vs <br>
      </FONT></B><B><FONT color=#ffffff size=2>'10</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Sales</FONT></TD>
    <TD align=right><FONT size=2>13,758</FONT></TD>
    <TD align=right><FONT size=2>12,760</FONT></TD>
    <TD align=center><FONT size=2>8%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Cost of Sales</FONT></TD>
    <TD align=right><FONT size=2>12,075</FONT></TD>
    <TD align=right><FONT size=2>11,095</FONT></TD>
    <TD align=center><FONT size=2>9%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Gross Profit</FONT></TD>
    <TD align=right><FONT size=2>1,683</FONT></TD>
    <TD align=right><FONT size=2>1,665</FONT></TD>
    <TD align=center><FONT size=2>1%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Operating Expenses</FONT></TD>
    <TD align=right><FONT size=2>453</FONT></TD>
    <TD align=right><FONT size=2>638</FONT></TD>
    <TD align=center><FONT size=2>-29%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Operating Profit</FONT></TD>
    <TD align=right><FONT size=2>1,230</FONT></TD>
    <TD align=right><FONT size=2>1,027</FONT></TD>
    <TD align=center><FONT size=2>20%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>EBITDA</FONT></TD>
    <TD align=right><FONT size=2>1,686</FONT></TD>
    <TD align=right><FONT size=2>1,547</FONT></TD>
    <TD align=center><FONT size=2>9%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Net income before Minoritary</FONT></TD>
    <TD align=right><FONT size=2>1,073</FONT></TD>
    <TD align=right><FONT size=2>967</FONT></TD>
    <TD align=center><FONT size=2>11%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Sales Outside Mexico</FONT></TD>
    <TD align=right><FONT size=2>7,575</FONT></TD>
    <TD align=right><FONT size=2>7,129</FONT></TD>
    <TD align=center><FONT size=2>6%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Sales in Mexico</FONT></TD>
    <TD align=right><FONT size=2>6,183</FONT></TD>
    <TD align=right><FONT size=2>5,631</FONT></TD>
    <TD align=center><FONT size=2>10%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Total Sales (Tons)</FONT></TD>
    <TD align=right><FONT size=2>1,139</FONT></TD>
    <TD align=right><FONT size=2>1162</FONT></TD>
    <TD align=center><FONT size=2>-2%</FONT></TD>
  </TR>
</TABLE>
<BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="700" cellpadding="2">


  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>Quarter</FONT></B></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=center bgColor=#000080><B><FONT color=#ffffff size=2>(millones of pesos)</FONT></B></TD>
    <TD align=center bgColor=#000080><B><FONT color=#ffffff size=2>2Q&#145;11</FONT></B></TD>
    <TD align=center bgColor=#000080><B><FONT color=#ffffff size=2>1Q &#145;11</FONT></B></TD>
    <TD align=center bgColor=#000080><B><FONT color=#ffffff size=2>2Q &#145;10</FONT></B></TD>
    <TD align=center bgColor=#000080><font color="#ffffff"><B><FONT size=2>2Q&#180;11vs</FONT></B><BR>

<B><FONT size=2>1Q&#180;11</FONT></B></font></TD>
    <TD align=center bgColor=#000080><font color="#ffffff"><B><FONT size=2>2Q&#180;11 vs</FONT></B><BR>

<B><FONT size=2>2Q '10</FONT></B></font></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Sales</FONT></TD>
    <TD align=right><FONT size=2>7,193</FONT></TD>
    <TD align=right><FONT size=2>6,565</FONT></TD>
    <TD align=right><FONT size=2>6,367</FONT></TD>
    <TD align=center><FONT size=2>10%</FONT></TD>
    <TD align=center><FONT size=2>13%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Cost of Sales</FONT></TD>
    <TD align=right><FONT size=2>6,393</FONT></TD>
    <TD align=right><FONT size=2>5,682</FONT></TD>
    <TD align=right><FONT size=2>5,704</FONT></TD>
    <TD align=center><FONT size=2>13%</FONT></TD>
    <TD align=center><FONT size=2>12%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Gross Profit</FONT></TD>
    <TD align=right><FONT size=2>800</FONT></TD>
    <TD align=right><FONT size=2>883</FONT></TD>
    <TD align=right><FONT size=2>663</FONT></TD>
    <TD align=center><FONT size=2>-9%</FONT></TD>
    <TD align=center><FONT size=2>21%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Operating Expenses</FONT></TD>
    <TD align=right><FONT size=2>171</FONT></TD>
    <TD align=right><FONT size=2>282</FONT></TD>
    <TD align=right><FONT size=2>248</FONT></TD>
    <TD align=center><FONT size=2>-39%</FONT></TD>
    <TD align=center><FONT size=2>-31%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Operating Profit</FONT></TD>
    <TD align=right><FONT size=2>629</FONT></TD>
    <TD align=right><FONT size=2>601</FONT></TD>
    <TD align=right><FONT size=2>415</FONT></TD>
    <TD align=center><FONT size=2>5%</FONT></TD>
    <TD align=center><FONT size=2>52%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>EBITDA</FONT></TD>
    <TD align=right><FONT size=2>855</FONT></TD>
    <TD align=right><FONT size=2>831</FONT></TD>
    <TD align=right><FONT size=2>676</FONT></TD>
    <TD align=center><FONT size=2>3%</FONT></TD>
    <TD align=center><FONT size=2>26%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Net Income before Minoritary</FONT></TD>
    <TD align=right><FONT size=2>544</FONT></TD>
    <TD align=right><FONT size=2>529</FONT></TD>
    <TD align=right><FONT size=2>388</FONT></TD>
    <TD align=center><FONT size=2>3%</FONT></TD>
    <TD align=center><FONT size=2>40%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Sales Outside Mexico</FONT></TD>
    <TD align=right><FONT size=2>3,897</FONT></TD>
    <TD align=right><FONT size=2>3,678</FONT></TD>
    <TD align=right><FONT size=2>3,749</FONT></TD>
    <TD align=center><FONT size=2>6%</FONT></TD>
    <TD align=center><FONT size=2>4%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Sales in Mexico</FONT></TD>
    <TD align=right><FONT size=2>3,296</FONT></TD>
    <TD align=right><FONT size=2>2,887</FONT></TD>
    <TD align=right><FONT size=2>2,618</FONT></TD>
    <TD align=center><FONT size=2>14%</FONT></TD>
    <TD align=center><FONT size=2>26%</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Total Sales (Tons)</FONT></TD>
    <TD align=right><FONT size=2>601</FONT></TD>
    <TD align=right><FONT size=2>538</FONT></TD>
    <TD align=right><FONT size=2>558</FONT></TD>
    <TD align=center><FONT size=2>12%</FONT></TD>
    <TD align=center><FONT size=2>8%</FONT></TD>
  </TR>
</TABLE>
<BR>
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<BR>

<table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellspacing=0 border=1 width="100%" cellpadding="2">



  <tr valign=bottom>

    <td align=center rowspan="5" width="14%"><b><font size=2>Product</font></b></td>
    <td align=center rowspan="5" width="12%"><b><font size=2>Thousand of</font></b><br>

<b><font size=2>Tons</font></b><br>

<b><font size=2>Jan-Jun 2011</font></b></td>
    <td align=center rowspan="5" width="9%"><b><font size=2>Million of</font></b><br>

<b><font size=2>Pesos</font></b><br>

<b><font size=2>Jan-Jun</font></b><br>

<b><font size=2>2011</font></b></td>
    <td align=center rowspan=5 width="9%"><b><font size=2>Average</font></b><br>

<b><font size=2>Price per</font></b><br>

<b><font size=2>Ton</font></b><br>

<b><font size=2>Jan-Jun</font></b><br>

<b><font size=2>2011</font></b></td>
    <td align=center rowspan="5" width="10%"><b><font size=2>Thousand</font></b><br>

<b><font size=2>of Tons</font></b><br>

<b><font size=2>Jan &#150; Jun</font></b><br>

<b><font size=2>2010</font></b></td>
    <td align=center rowspan="5" width="9%"><b><font size=2>Million of</font></b><br>

<b><font size=2>Pesos</font></b><br>

<b><font size=2>Jan- Jun</font></b><br>

<b><font size=2>2010</font></b></td>
    <td align=center rowspan=5 width="9%"><b><font size=2>Average</font></b><br>

<b><font size=2>Price per</font></b><br>

<b><font size=2>Ton</font></b><br>

<b><font size=2>Jan-Jun</font></b><br>

<b><font size=2>2010</font></b></td>
    <td align=center rowspan="5" width="9%">&nbsp;&nbsp;&nbsp;</td>
    <td align=center rowspan="5" width="10%">&nbsp;&nbsp;&nbsp;</td>
    <td align=center rowspan="5" width="9%">&nbsp;&nbsp;&nbsp;</td>
  </tr>

  <tr valign=bottom>

    </tr>

  <tr valign=bottom>

    </tr>

  <tr valign=bottom>

    </tr>

  <tr valign=bottom>

    </tr>



  <tr valign=bottom>

    <td align=left width="14%"><b><font size=2>Commercial <br>
      Profiles</font></b></td>
    <td align=right width="12%"><font size=2>419</font></td>
    <td align=right width="9%"><font size=2>4,148</font></td>
    <td align=right width="9%"><font size=2>9,900</font></td>
    <td align=right width="10%"><font size=2>542</font></td>
    <td align=right width="9%"><font size=2>4,810</font></td>
    <td align=right width="9%"><font size=2>8,874</font></td>
    <td align=left width="9%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
  </tr>

  <tr valign=bottom>

    <td align=left width="14%"><b><font size=2>Special Profiles</font></b></td>
    <td align=right width="12%"><font size=2>720</font></td>
    <td align=right width="9%"><font size=2>9,610</font></td>
    <td style="TEXT-INDENT: 2px" align=right width="9%"><font size=2>13,347</font></td>
    <td align=right width="10%"><font size=2>620</font></td>
    <td align=right width="9%"><font size=2>7,950</font></td>
    <td style="TEXT-INDENT: 2px" align=right width="9%"><font size=2>12,823</font></td>
    <td align=left width="9%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
  </tr>

  <tr>

    <td width="14%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
  </tr>

  <tr>

    <td width="14%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
  </tr>

  <tr>

    <td width="14%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
  </tr>



  <tr valign=bottom>

    <td align=left width="14%"><b><font size=2>Total</font></b></td>
    <td align=right width="12%"><font size=2>1,139</font></td>
    <td align=right width="9%"><font size=2>13,758</font></td>
    <td style="TEXT-INDENT: 2px" align=right width="9%"><font size=2>12,079</font></td>
    <td align=right width="10%"><font size=2>1,162</font></td>
    <td align=right width="9%"><font size=2>12,760</font></td>
    <td style="TEXT-INDENT: 2px" align=right width="9%"><font size=2>10,981</font></td>
    <td align=left width="9%">&nbsp;</td>
    <td align=left width="10%">&nbsp;</td>
    <td align=left width="9%">&nbsp;</td>
  </tr>

  <tr>

    <td width="14%">&nbsp;</td>
    <td width="12%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="9%">&nbsp;</td>
  </tr>


































</table>
<br>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">












  <tr valign=bottom>

    <td align=center rowspan="5"><b><font size=2>Product</font></b></td>
    <td align=center rowspan="5"><b><font size=2>Thousand of</font></b><b><font size=2> <br>
      Tons <br>
      </font></b><b><font size=2>Apr-Jun 2011</font></b></td>
    <td align=center rowspan="5"><b><font size=2>Million of <br>
      </font></b><b><font size=2>Pesos</font></b><b><font size=2> <br>
      Apr-Jun <br>
      </font></b><b><font size=2>2011</font></b></td>
    <td align=center rowspan="5"><b><font size=2>Average</font></b><b><font size=2> <br>
      Price per <br>
      </font></b><b><font size=2>Ton</font></b><b><font size=2> <br>
      Apr-Jun <br>
      </font></b><b><font size=2>2011</font></b></td>
    <td align=center rowspan="5"><b><font size=2>Thousand <br>
      </font></b><b><font size=2>of  Tons <br>
      </font></b><b><font size=2>Jan &#150; Mar <br>
      </font></b><b><font size=2>2011</font></b></td>
    <td align=center rowspan="5"><b><font size=2>Million of </font></b><b><font size=2><br>
      Pesos </font></b><b><font size=2><br>
      Jan- Mar </font></b><b><font size=2><br>
      2011</font></b></td>
    <td align=center rowspan="5"><b><font size=2>Average </font></b><b><font size=2><br>
      Price per </font></b><b><font size=2><br>
      Ton </font></b><b><font size=2><br>
      Jan-Mar </font></b><b><font size=2><br>
      2011</font></b></td>
    <td align=center rowspan="5"><b><font size=2>Thousand </font></b><b><font size=2> <br>
      of Tons </font></b><b><font size=2><br>
      Apr-Jun </font></b><b><font size=2><br>
      2010</font></b></td>
    <td align=center rowspan="5"><b><font size=2>Million of </font></b><b><font size=2><br>
      Pesos </font></b><b><font size=2><br>
      Apr-Jun </font></b><b><font size=2><br>
      2010</font></b></td>
    <td align=center rowspan="5"><b><font size=2>Average </font></b><b><font size=2><br>
      Price per </font></b><b><font size=2><br>
      Ton </font></b><b><font size=2><br>
      Apr-Jun </font></b><b><font size=2><br>
      2010</font></b></td>
  </tr>
  <tr valign=bottom>

    </tr>
  <tr valign=bottom>

    </tr>
  <tr valign=bottom>

    </tr>
  <tr valign=bottom>

    </tr>













  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>Commercial <br>
      Profiles</FONT></B></TD>
    <TD align=right><FONT size=2>222</FONT></TD>
    <TD align=right><FONT size=2>2,163</FONT></TD>
    <TD align=right><FONT size=2>9,746</FONT></TD>
    <TD align=right><FONT size=2>197</FONT></TD>
    <TD align=right><FONT size=2>1,984</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=right><FONT size=2>10,073</FONT></TD>
    <TD align=right><FONT size=2>250</FONT></TD>
    <TD align=right><FONT size=2>2,277</FONT></TD>
    <TD align=right><FONT size=2>9,108</FONT></TD>
  </TR>

  <TR>

    <TD colSpan=10>&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>Special Profiles</FONT></B></TD>
    <TD align=right><FONT size=2>379</FONT></TD>
    <TD align=right><FONT size=2>5,029</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=right><FONT size=2>13,269</FONT></TD>
    <TD align=right><FONT size=2>341</FONT></TD>
    <TD align=right><FONT size=2>4,581</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=right><FONT size=2>13,434</FONT></TD>
    <TD align=right><FONT size=2>308</FONT></TD>
    <TD align=right><FONT size=2>4,090</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=right><FONT size=2>13,279</FONT></TD>
  </TR>

  <TR>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <tr>

    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>

    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>







  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>Total</FONT></B></TD>
    <TD align=right><FONT size=2>601</FONT></TD>
    <TD align=right><FONT size=2>7,193</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=right><FONT size=2>11,968</FONT></TD>
    <TD align=right><FONT size=2>538</FONT></TD>
    <TD align=right><FONT size=2>6,565</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=right><FONT size=2>12,203</FONT></TD>
    <TD align=right><FONT size=2>558</FONT></TD>
    <TD align=right><FONT size=2>6,367</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=right><FONT size=2>11,410</FONT></TD>
  </TR>
  <tr>

    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>

</TABLE>
<P style="TEXT-ALIGN: left"><I>Any forward-looking information contained herein is inherently subject to various risks, uncertainties and assumptions which, if incorrect, may cause actual results to vary materially from those anticipated, expected or estimated. The company assumes no obligation to update any forward-looking information contained herein.</I></P>
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<P style="TEXT-ALIGN: left"><B><font size="3">MEXICAN STOCK EXCHANGE</font></B></P>
<P style="TEXT-ALIGN: center"><font size="3"><B>SIFIC / ICS</B></font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 width="100%" border=0>

  <TR>

    <TD width="53%"></TD>
    <TD width="31%"></TD>
    <TD width="15%"></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="2">
      <div align="right"><FONT size=2>QUARTER: 2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>FINANCIAL STATEMENT NOTES</B></P>
<P style="TEXT-ALIGN: right">CONSOLIDATED</P>
<P style="TEXT-ALIGN: left"><B>(1) Operations preparation bases and summary of significant accounting policies:</B></P>
<P style="TEXT-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 style="TEXT-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 style="TEXT-ALIGN: left"><B>a. Financial statement presentation </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&#243;n y Desarrollo de Normas de Informaci&#243;n Financiera, A.C. (CINIF)</P>
<P style="TEXT-ALIGN: left"><B>b. </B>All significant intercompany balances and transactions have been eliminated in consolidation.</P>
<P style="TEXT-ALIGN: left"><B>c. Cash and cash equivalents - </B>The Company considers short-term investments with original maturities not greater than three months to be cash equivalent. Cash equivalents include temporary investments and Mexican Government Treasury Bonds, and are stated at market value, which approximates cost plus earned interest. Any increase in market value is credited to operations for the period.</P>
<P style="TEXT-ALIGN: left"><B>d. Inventories &#150; </B>Are valued to the full cost average by Domestic subsidiaries, and the foreing subsidiaries are valued on a last-in, first-out(LIFO). For translation effects into MFRS the inventories have been adjusted from LIFO to average full cost system.</P>
<P style="TEXT-ALIGN: left">Billet finished goods and work in process, have been valued to the full cost. <br>
  Raw materials, materials, supplies and rollers, at the average cost.</P>
<P style="TEXT-ALIGN: left">The Company presents as non-current inventories certains raw materials (Coke) rollers and spare parts, which according to historical data and production trends will not be used within a one-year period.</P>
<P style="TEXT-ALIGN: left"><B>e.- Derivative financial instruments</B>-- During 2010, 2009 and 2008 the Company used derivative financial instruments for hedging risks associated with natural gas prices for which it conducted studies on historical consumption, future requirement and commitments acquired, thus diminishing its exposure to risks other than its normal operating risks.</P>
<P style="TEXT-ALIGN: left">To mitigate the risks associated with changes in natural gas prices occurring naturally as a result of the supply and demand on international markets, the Company uses natural gas cash-flow exchange contracts or natural gas swaps to offset fluctuations in the price of natural gas, whereby the Company receives a floating price and pays fixed price. Fluctuations in natural gas prices from volumes consumed are recognized as part of the Company&#146;s operating cost.</P>
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<P style="TEXT-ALIGN: left">The fair value of these assets or liabilities is restated at the end of each month based on the new estimate. The Company periodically evaluates the changes in cash flows of the derivative instrument to analyze if the swaps are highly effective for mitigating the exposure to natural gas price fluctuations. A hedge instrument is considered to be highly effective when changes in its fair value or cash flows of the primary position are compensated on a regular or cumulatively basis, by changes in fair value or cash flows of the hedging instrument in a range between 80% and 125%. In 2010, 2009 and 2008 the fair value of derivatives
that did not qualify for hedge accounting was adjusted through Statement of Income. For the derivatives that qualified for hedge accounting their fair value was adjusted through the Stockholders&#146; equity in the caption Fair value of derivative financial instruments until such time as the related item the derivative hedges is recognized in income.
At that time, the fair value included in Stockholders&#146; equity is also recognized in income. 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 style="TEXT-ALIGN: left"><B>f. Property, plant and equipment - </B>Property, plant and equipment of domestic origin are restated by using factors derived from The National Consumer Price Index (&#147;NCPI&#148;) from the date of their acquisition, and imported machinery and equipment are restated by applying devaluation and inflation factors of the country of origin, 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 December 31, 2010 are as follows:</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0 width="600" align="center">

<TR>

    <TD></TD>

    <TD></TD>
  </TR>
<TR vAlign=bottom>

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

    <TD 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=center><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=center><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=center>&nbsp;10 to 25</TD>
  </TR>
<TR vAlign=bottom>

    <TD align=left><FONT size=2>Land improvements (Republic)</FONT></TD>

    <TD align=center><FONT size=2>&nbsp;&nbsp;5 to 25</FONT></TD>
  </TR>
<TR vAlign=bottom>

    <TD align=left><FONT size=2>Machinery and equipment (Republic)</FONT></TD>

    <TD align=center><FONT size=2>&nbsp;&nbsp;5 to 20</FONT></TD>
  </TR></TABLE><BR>
<P style="TEXT-ALIGN: left"><B>g. Other assets - </B>Organization and pre-operating expenses are capitalized and their amortization is calculated by the straight-line method over a period of 20 years.</P>
<P style="TEXT-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 style="TEXT-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 style="TEXT-ALIGN: left"><B>i. Pension plan - </B>Until 1995, the Company provided pension benefits for all personnel with a minimum of 10 years of service and 35 years of age. The Company had established an irrevocable trust for its contributions, which were based on actuarial calculations. In December 1995, the board of directors of the Company, in agreement with the trade union, discontinued these benefits and related contributions to the trust fund. This decision was made because of the new Mexican pension fund system, Administradoras de Fondos para el Retiro, which establishes similar benefits for the employees. The balance of the trust fund will be applied to the retirement benefits of qualifying employees until the fund is exhausted due to the irrevocable status of the fund.</P>
<P style="TEXT-ALIGN: left">The Company does not have any contractual obligation regarding the payment of pensions of retirements.</P>
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<P style="text-align: left;"> <B>j. Income taxes - </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 style="text-align: left;"> The Company and its subsidiaries are included in the consolidated tax returns of the company's parent.</P>
<P style="text-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 style="text-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 style="text-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 style="text-align: left;"> - Applying the prevailing exchange rate at the consolidated balance date for monetary assets and liabilities.</P>
<P style="text-align: left;"> - Applying the prevailing historical exchange rate for nonmonetary assets and liabilities and for stockholders&#146; equity accounts.</P>
<P style="text-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 style="text-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>
<P style="text-align: left;"> <B>l. Geographic concentration of credit risk - </B>The Company sells its products primarily to distributors for the construction industry with no specific geographic concentration. Additionally, no single customer accounted for a significant amount of the Company's sales, and there were no significant accounts receivable from a single customer or affiliate at June 30, 2011 sales of ten customers accounted for approximately 39.6% of the Republic&#146;s sales. The Company performs evaluations of its customers' credit histories and establishes and allowance for doubtful accounts based upon the credit risk of specific customers and historical trends.</P>
<P style="text-align: left;"> <B>m. Other income (expenses) - </B>Other income (expenses) shown in the consolidated statements of operations primarily includes other financial operations.</P>
<P style="text-align: left;"> <B>(2) Financial Debt:</B></P>
<P style="text-align: left;"> As of June 30, 2011, Simec&#146;s total consolidated debt consisted of U.S. &#36;302,000 of 8 7/8% medium-term notes (&#147;MTN's&#148;) due 1998, or Ps. 3.6 million (accrued interest on March 31, 2011 was U.S. &#36;452,297, or Ps. 3.7 million). As of December 31, 2010, Simec&#146;s total consolidated debt consisted of U.S. &#36;302,000 of 8 7/8% medium-term notes (&#147;MTN's&#148;) due 1998 (accrued interest on December 31, 2010 was U.S. &#36;445,314).</P>
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<P style="text-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. 5,077 (U.S. &#36;424,207) at June 30, 2011, (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 style="text-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 style="TEXT-ALIGN: center"><B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 width="100%" border=0>

  <TR>

    <TD width="53%"></TD>
    <TD width="35%"></TD>
    <TD width="2%"></TD>
    <TD width="9%"></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="3">
      <div align="right"><FONT size=2>QUARTER: </FONT><FONT size=2>2</FONT><FONT size=2> YEAR:</FONT><B><FONT size=2> 2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>RELATIONS OF SHARES INVESTMENTS</B></P>
<P style="TEXT-ALIGN: right">CONSOLIDATED</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">


  <TR vAlign=top>

    <TD style="TEXT-INDENT: 18px" align=center><FONT size=2>COMPANY NAME</FONT></TD>
    <TD align=center><FONT size=2>MAIN ACTIVITIES</FONT></TD>
    <TD align=center><FONT size=2>NUMBER OF</FONT><BR>

<FONT size=2>SHARES</FONT></TD>
    <TD align=center><FONT size=2>OWNERSHIP</FONT></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 Siderurgica de Guadalajara</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>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>Undershaft</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 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 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 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 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>Republic Engineered Products</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 Productos 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 vAlign=bottom>

    <TD align=left><FONT size=2>Corporaci&#243;n Aceros DM</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>Productos Siderurgicos 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>100.00</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Comercializadora MSAN</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>100.00</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Comercializadora Aceros DM</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>100.00</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Promotora de Aceros San Luis</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>100.00</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Corporativos G&amp;DL</FONT></TD>
    <TD align=center><FONT size=2>Administrative services</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><FONT size=2>85.00</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Procesadora Industrial</FONT></TD>
    <TD align=center><FONT size=2>Administrative services</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>Acero Transporte San</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>Simec International 2</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>Simec International 3</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>Simec International 4</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>Simec International 5</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>Simec International 6</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>Simec International 7</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>Corporaci&#243;n ASL</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>Simec Acero</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>100.00</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Simec USA</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>100.00</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Simec Steel</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>100.00</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>Pacific Steel Projects</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>

    <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 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 style="TEXT-ALIGN: left">NOTES</P>
<HR align=center width="100%" noshade SIZE=5>
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<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
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<BR>
<P style="TEXT-ALIGN: center"><B><font size="3">MEXICAN STOCK EXCHANGE</font></B><font size="3"><BR>

<B>SIFIC / ICS</B></font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 width="100%" border=0>

  <TR>

    <TD width="53%"></TD>
    <TD width="35%"></TD>
    <TD width="2%"></TD>
    <TD width="9%"></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE</FONT><B><FONT size=2>: SIMEC</FONT></B></TD>
    <TD align=left colspan="3">
      <div align="right"><FONT size=2>QUARTER:</FONT><FONT size=2> 2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B><font size="3">CREDITS BREAK DOWN</font></B><font size="3"><BR>

<B>(THOUSANDS OF MEXICAN PESOS)</B></font></P>
<P style="TEXT-ALIGN: right">CONSOLIDATED</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 cellpadding="0" width="100%">






  <TR vAlign=bottom>

    <TD align=center rowspan="2"><font size="1"><B>&nbsp;&nbsp;&nbsp;</B></font><font size="1"><b>Credit Type / <br>
      Institution </b></font></TD>
    <TD align=center><font size="1"><B>Amortization </B></font></TD>
    <TD align=center><font size="1"><B>Rate of </B></font></TD>
    <TD align=center colspan="6"><font size="1"><b>Denominated in Pesos (Thousands of Pesos)</b></font></TD>
    <TD align=center colspan="6"><font size="1"><b>Denominated in Foreign Currency (Thousands of Pesos)</b></font></TD>
  </TR>

  <TR vAlign=bottom>
    <TD align=center><font size="1"><b>Date</b></font></TD>
    <TD align=center><font size="1"><b>Interest</b></font></TD>
    <TD align=center colspan="6"><font size="1"><B>Time Interval</B></font></TD>
    <TD align=center colspan="6"><font size="1"><B>Time Interval</B></font></TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center><font size="1"><B>Current</B></font></TD>
    <TD align=center><font size="1"><b> Until <br>
      1</b></font></TD>
    <TD align=center><font size="1"><B>Until <br>
      2</B></font></TD>
    <TD align=center><font size="1"><B>Until <br>
      3</B></font></TD>
    <TD align=center><font size="1"><B>Until <br>
      4</B></font></TD>
    <TD align=center><font size="1"><B>Until <br>
      5</B></font></TD>
    <TD align=center><font size="1"><B>Current</B></font></TD>
    <TD align=center><font size="1"><B>Until <br>
      1</B></font></TD>
    <TD align=center><font size="1"><B>Until <br>
      2</B></font></TD>
    <TD align=center><font size="1"><B>Until <br>
      3</B></font></TD>
    <TD align=center><font size="1"><B>Until <br>
      4</B></font></TD>
    <TD align=center><font size="1"><B>Until <br>
      5</B></font></TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center><font size="1"><B>Year</B></font></TD>
    <TD align=center><font size="1"><B>Year</B></font></TD>
    <TD align=center><font size="1"><B>Years</B></font></TD>
    <TD align=center><font size="1"><B>Years</B></font></TD>
    <TD align=center><font size="1"><B>Years</B></font></TD>
    <TD align=center><font size="1"><B>Years or</B></font></TD>
    <TD align=center><font size="1"><B>Year</B></font></TD>
    <TD align=center><font size="1"><B>Year</B></font></TD>
    <TD align=center><font size="1"><B>Years</B></font></TD>
    <TD align=center><font size="1"><B>Years</B></font></TD>
    <TD align=center><font size="1"><B>Years</B></font></TD>
    <TD align=center><font size="1"><B>Years or</B></font></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left>&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>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><font size="1"><B>More</B></font></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><font size="1"><B>More</B></font></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><font size="1"><B>BANKS</B></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>
    <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>
    <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="1">0</font></TD>
    <TD style="TEXT-INDENT: 5px" align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD style="TEXT-INDENT: 7px" align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD style="TEXT-INDENT: 7px" align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
  </TR>

  <TR>

    <TD colSpan=15>&nbsp;</TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=left><font size="1"><B>TOTAL <br>
      BANKS</B></font></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><font size="1">0</font></TD>
    <TD style="TEXT-INDENT: 5px" align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD style="TEXT-INDENT: 7px" align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
  </TR>

  <TR>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>

  <TR>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>

  <TR>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=left rowspan="4"><font size="1"><B>LISTED IN <br>
      THE <br>
      STOCK <br>
      EXCHANGE</B></font></TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
    <TD align=left rowspan="4">&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    </TR>

  <TR vAlign=bottom>

    </TR>

  <TR vAlign=bottom>

    </TR>





  <TR vAlign=bottom>

    <TD align=left><font size="1"><B>UNSECURED <br>
      DEBT</B></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>
    <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>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>





  <TR vAlign=bottom>

    <TD align=left><font size="1">Medium Term <br>
      Notes</font></TD>
    <TD align=right><font size="1">15/12/1998</font></TD>
    <TD style="TEXT-INDENT: 5px" align=right><font size="1">9.33</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD style="TEXT-INDENT: 5px" align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">3,575</font></TD>
    <TD style="TEXT-INDENT: 7px" align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
  </TR>

  <TR>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>

  <TR>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left rowspan="3"><font size="1"><B>TOTAL <br>
      STOCK <br>
      EXCHANGE</B></font></TD>
    <TD align=left rowspan="3">&nbsp;</TD>
    <TD align=right rowspan="3">&nbsp;</TD>
    <TD align=right rowspan="3"><font size="1">0</font></TD>
    <TD align=right rowspan="3"><font size="1">0</font></TD>
    <TD align=right rowspan="3"><font size="1">0</font></TD>
    <TD align=right rowspan="3"><font size="1">0</font></TD>
    <TD align=right rowspan="3"><font size="1">0</font></TD>
    <TD align=right rowspan="3"><font size="1">0</font></TD>
    <TD align=right rowspan="3"><font size="1">3,575</font></TD>
    <TD align=right rowspan="3"><font size="1">0</font></TD>
    <TD align=right rowspan="3"><font size="1">0</font></TD>
    <TD align=right rowspan="3"><font size="1">0</font></TD>
    <TD align=right rowspan="3"><font size="1">0</font></TD>
    <TD align=right rowspan="3"><font size="1">0</font></TD>
  </TR>

  <TR vAlign=bottom>

    </TR>

  <TR vAlign=bottom>

    </TR>
  <tr>

    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>

    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>

    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>









  <TR vAlign=bottom>

    <TD align=left><font size="1"><B>SUPPLIERS</B></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>
    <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>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>




  <TR vAlign=bottom>

    <TD align=left><font size="1">Various</font></TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><font size="1">600,885</font></TD>
    <TD style="TEXT-INDENT: 5px" align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">1,828,289</font></TD>
    <TD style="TEXT-INDENT: 7px" align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
  </TR>
  <tr>

    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>





  <TR vAlign=bottom>

    <TD align=left><font size="1"><B>TOTAL <br>
      SUPPLIERS</B></font></TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><font size="1">600,885</font></TD>
    <TD style="TEXT-INDENT: 5px" align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">1,828,289</font></TD>
    <TD style="TEXT-INDENT: 7px" align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
    <TD align=right><font size="1">0</font></TD>
  </TR>







  <TR vAlign=bottom>

    <TD align=left><font size="1"><B>OTHER <br>
      LOANS WITH <br>
      COST</B></font></TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><font size="1">0.25</font></TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><font size="1">633,838</font></TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
  </TR>










</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
<!-- *************************************************************************** -->
<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
<!-- -->
<BR>
<TABLE border=1 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" cellpadding="2" width=100%>

  <TR valign="bottom">
    <TD align=left height="2" width="13%"><font size="1"><b>TOTAL</b></font></TD>
    <TD align=left height="2" width="11%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=left height="2" width="7%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=right height="2" width="6%"><font size="1">0</font></TD>
    <TD align=right height="2" width="6%"><font size="1">0</font></TD>
    <TD align=right height="2" width="5%"><font size="1">0</font></TD>
    <TD align=right height="2" width="5%"><font size="1">0</font></TD>
    <TD align=right height="2" width="5%"><font size="1">0</font></TD>
    <TD align=right height="2" width="6%"><font size="1">0</font></TD>
    <TD align=right height="2" width="8%"><font size="1">0</font></TD>
    <TD align=right height="2" width="5%"><font size="1">0</font></TD>
    <TD align=right height="2" width="5%"><font size="1">0</font></TD>
    <TD align=right height="2" width="5%"><font size="1">0</font></TD>
    <TD align=right height="2" width="5%"><font size="1">0</font></TD>
    <TD align=right height="2" width="8%"><font size="1">0</font></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left width="13%"> <font size="1"><B>OTHER <br>
      CURRENT <br>
      LIABILITIES <br>
      WITHOUT<br>
      COST
      </B></font></TD>
    <TD align=left width="11%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=left width="7%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=left width="6%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=left width="6%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=left width="5%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=left width="5%"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></TD>
    <TD align=left width="5%"><font size="1">&nbsp;&nbsp;</font> </TD>
    <TD align=right width="6%"><font size="1">&nbsp;&nbsp;</font> </TD>
    <TD align=right width="8%"><font size="1">&nbsp;&nbsp;</font> </TD>
    <TD align=right width="5%"><font size="1">&nbsp;&nbsp;</font> </TD>
    <TD align=right width="5%"><font size="1">&nbsp;&nbsp;</font> </TD>
    <TD align=right width="5%"><font size="1">&nbsp;&nbsp;</font> </TD>
    <TD align=right width="5%"><font size="1">&nbsp;&nbsp;</font> </TD>
    <TD align=right width="8%"><font size="1">&nbsp;&nbsp;</font> </TD>
  </TR>









  <TR valign="bottom">

    <TD align=left width="13%"> <font size="1">Various</font></TD>
    <TD align=left width="11%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=left width="7%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=right width="6%"><font size="1">122,091</font></TD>
    <TD align=right width="6%"><font size="1">0</font></TD>
    <TD align=right width="5%"><font size="1">0</font></TD>
    <TD align=right width="5%"><font size="1">0</font></TD>
    <TD align=right width="5%"><font size="1">0</font> </TD>
    <TD align=right width="6%"> <font size="1">0 </font></TD>
    <TD align=right width="8%"><font size="1">365,742</font> </TD>
    <TD align=right width="5%"> <font size="1">0 </font></TD>
    <TD align=right width="5%"><font size="1">0</font> </TD>
    <TD align=right width="5%"> <font size="1">0 </font></TD>
    <TD align=right width="5%"><font size="1">0</font> </TD>
    <TD align=right width="8%"> <font size="1"> 0</font></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left width="13%"> <font size="1"><B>TOTAL</B></font></TD>
    <TD align=left width="11%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=left width="7%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=right width="6%"><font size="1">122,091</font></TD>
    <TD align=right width="6%"><font size="1">0</font></TD>
    <TD align=right width="5%"><font size="1">0</font></TD>
    <TD align=right width="5%"><font size="1">0</font></TD>
    <TD align=right width="5%"><font size="1">0</font> </TD>
    <TD align=right width="6%"> <font size="1">0 </font></TD>
    <TD align=right width="8%"><font size="1">365,742</font> </TD>
    <TD align=right width="5%"> <font size="1">0 </font></TD>
    <TD align=right width="5%"><font size="1">0</font> </TD>
    <TD align=right width="5%"> <font size="1"> 0</font></TD>
    <TD align=right width="5%"> <font size="1">0</font></TD>
    <TD align=right width="8%"> <font size="1"> 0</font></TD>
  </TR>

  <TR>

    <TD width="13%"><font size="1">&nbsp;&nbsp;</font> </TD>
    <td align=left width="11%" valign="bottom"><font size="1">&nbsp;&nbsp;</font></td>
    <td align=left width="7%" valign="bottom"><font size="1">&nbsp;&nbsp;</font></td>
    <td align=left width="6%" valign="bottom"><font size="1">&nbsp;&nbsp;</font></td>
    <td align=left width="6%" valign="bottom"><font size="1">&nbsp;&nbsp;</font></td>
    <td align=left width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font></td>
    <td align=left width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="6%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="8%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="8%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
  </TR>

  <TR>

    <TD width="13%"><font size="1">&nbsp;&nbsp;</font> </TD>
    <td align=left width="11%" valign="bottom"><font size="1">&nbsp;&nbsp;</font></td>
    <td align=left width="7%" valign="bottom"><font size="1">&nbsp;&nbsp;</font></td>
    <td align=left width="6%" valign="bottom"><font size="1">&nbsp;&nbsp;</font></td>
    <td align=left width="6%" valign="bottom"><font size="1">&nbsp;&nbsp;</font></td>
    <td align=left width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font></td>
    <td align=left width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=left width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="6%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="8%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="5%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
    <td align=right width="8%" valign="bottom"><font size="1">&nbsp;&nbsp;</font> </td>
  </TR>

  <TR valign="bottom">

    <TD align=left width="13%"> <font size="1"><B>TOTAL</B></font></TD>
    <TD align=left width="11%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=left width="7%"><font size="1">&nbsp;&nbsp;</font></TD>
    <TD align=right width="6%"><font size="1">722,976</font></TD>
    <TD align=right width="6%"><font size="1">0</font></TD>
    <TD align=right width="5%"><font size="1">0</font></TD>
    <TD align=right width="5%"><font size="1">0</font></TD>
    <TD align=right width="5%"><font size="1">0</font> </TD>
    <TD align=right width="6%"> <font size="1">0 </font></TD>
    <TD align=right width="8%"><font size="1">2,831,444</font> </TD>
    <TD align=right width="5%"> <font size="1">0 </font></TD>
    <TD align=right width="5%">&nbsp; </TD>
    <TD align=right width="5%"> <font size="1">0</font></TD>
    <TD align=right width="5%"> <font size="1">0</font></TD>
    <TD align=right width="8%"> <font size="1"> 0</font></TD>
  </TR>

</TABLE>

<P style="text-align: left;"> <B>NOTES: </B>The exchange rate of the peso to the U.S. Dollar at June 30, 2011 was Ps. 11.8389</P>
<HR noshade align="center" width="100%" size="5">
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<div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></div>
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<BR>
<P style="TEXT-ALIGN: center"><font size="3">MEXICAN STOCK EXCHANGE<BR>

SIFIC / ICS</font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 width="100%" border=0>

  <TR>

    <TD width="41%"></TD>
    <TD width="23%"></TD>
    <TD width="12%"></TD>
    <TD width="7%"></TD>
    <TD width="9%"></TD>
    <TD width="4%"></TD>
  </TR>

  <TR vAlign=top>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE: <b><font size=2>SIMEC <br>
      GRUPO SIMEC, S.A.B. DE C.V.
      </font></b></FONT></TD>
    <TD align=left colspan="5">
      <div align="right"><B></B><FONT size=2>QUARTER: </FONT><FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>


</TABLE>

<P style="TEXT-ALIGN: center"><B>MONETARY FOREIGN CURRENCY POSITION</B><BR>
<B>(Thousands of Mexican Pesos)</B></P>
<P style="TEXT-ALIGN: right"><B>CONSOLIDATED</B></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">

  <TR vAlign=bottom>

    <TD align=center valign="top">&nbsp;</TD>
    <TD align=center colSpan=2 valign="top"><B><FONT size=2>DOLLARS</FONT></B></TD>
    <TD style="TEXT-INDENT: 5px" align=center colSpan=2 valign="top"><B><FONT size=2>OTHER CURRENCIES</FONT></B></TD>
    <TD align=center valign="top"><B><FONT size=2>TOTAL</FONT></B> </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center valign="top"><B><FONT size=2>FOREING CURRENCY POSITION</FONT></B></TD>
    <TD align=center valign="top"><B><FONT size=2>THOUSANDS</FONT></B><BR>

<B><FONT size=2>OF DOLLARS</FONT></B></TD>
    <TD align=center valign="top"><B><FONT size=2>THOUSANDS</FONT></B><BR>

<B><FONT size=2>OF PESOS</FONT></B></TD>
    <TD align=center valign="top"><B><FONT size=2>THOUSANDS</FONT></B><BR>

<B><FONT size=2>OF DOLLARS</FONT></B></TD>
    <TD align=center valign="top"><B><FONT size=2>THOUSANDS</FONT></B><BR>

<B><FONT size=2>OF PESOS</FONT></B></TD>
    <TD align=center valign="top"><b><font size=2>THOUSANDS</font></b><br>

<b><font size=2>OF PESOS</font></b></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&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>467,138</FONT></B></TD>
    <TD align=right><B><FONT size=2>5,530,397</FONT></B></TD>
    <TD align=right><B><FONT size=2>00</FONT></B></TD>
    <td align=right><b><font size=2>0</font></b></td>
    <TD align=right><B><FONT size=2>5,530,397</FONT></B></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <td align=right>&nbsp;</td>
    <TD align=right>&nbsp;</TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>LIABILITIES POSITION</FONT></B></TD>
    <TD align=right><B><FONT size=2>243,686</FONT></B></TD>
    <TD align=right><B><FONT size=2>2,884,976</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>
    <TD align=right><B><FONT size=2>2,884,976</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>SHORT TERM LIABILITIES POSITION</FONT></TD>
    <TD align=right><FONT size=2>239,164</FONT></TD>
    <TD align=right><FONT size=2>2,831,444</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>2,831,444</FONT></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>LONG TERM LIABILITIES POSITION</FONT></TD>
    <TD align=right><FONT size=2>4,522</FONT></TD>
    <TD align=right><FONT size=2>53,532</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>53,532</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <td align=right>&nbsp;</td>
    <TD align=right>&nbsp;</TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>NET BALANCE</FONT></B></TD>
    <TD align=right><B><FONT size=2>223,452</FONT></B></TD>
    <TD align=right><B><FONT size=2>2,645,421</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>
    <TD align=right><B><FONT size=2>2,645,421</FONT></B></TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: left"><B>NOTES <br>
  </B>THE EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT JUNE 30, 2011 WAS PS. 11.8389</P>
<HR align=center width="100%" noshade SIZE=5>
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<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
<!-- -->
<BR>
<P style="TEXT-ALIGN: center">MEXICAN STOCK EXCHANGE<BR>
SIFIC / ICS</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0 cellpadding="0" width="100%">

  <TR>

    <TD></TD>
    <TD></TD>
  </TR>

  <TR vAlign=top>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE: <b><font size=2>SIMEC <br>
      GRUPO SIMEC, S.A.B. DE C.V.
 </font></b></FONT></TD>
    <TD align=left>
      <div align="right"><FONT size=2>QUARTER: 2 YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>


</TABLE>

<P style="TEXT-ALIGN: center"><B>DEBT INSTRUMENTS</B></P>
<P style="TEXT-ALIGN: right"><B>CONSOLIDATED</B></P>
<P style="TEXT-ALIGN: left"><B>FINANCIAL LIMITED BASED IN ISSUED DEED AND/OR TITLE</B></P>
<P style="TEXT-ALIGN: center"><B>MEDIUM TERM NOTES</B></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0 cellpadding="0" width="100%">

  <TR>
    <TD vAlign=top width="5%">&nbsp; &nbsp; &nbsp; </TD>
    <TD vAlign=top width="5%">A)&nbsp; &nbsp; &nbsp; </TD>
    <TD>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>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>Operating income plus items added to income which do not require using cash must be 2.0 times or more. </TD>
  </TR>
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top colspan="2">This notes was offered in the international market.</TD>
  </TR>

</TABLE>
<P style="TEXT-ALIGN: center"><B>ACTUAL SITUATION OF FINANCIAL LIMITED</B></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0 cellpadding="0" width="100%">
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top nowrap colspan="2">MEDIUM TERM NOTES</TD>
  </TR>
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>

  <TR>
    <TD vAlign=top width="5%">&nbsp; &nbsp; &nbsp; </TD>
    <TD vAlign=top width="5%">A)&nbsp; &nbsp; &nbsp; </TD>
    <TD>Accomplished the actual situation is 3.40 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>Accomplished the actual situation is 0.31 </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>Accomplished the actual situation is 331.5 </TD>
  </TR>
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top colspan="2">As of June 30, 2011, the remaining balance of the MTNs not exchanged amounts to Ps. 3,575 ($302,000 dollars).</TD>
  </TR>
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top colspan="2">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top nowrap>&nbsp;</TD>
    <TD vAlign=top colspan="2">C.P. Adolfo Luna Luna<br>

Chief Financial Officer</TD>
  </TR>


</TABLE>
<P style="TEXT-ALIGN: center"><B>BONDS AND/OR MEDIUM TERM NOTES CERTIFICATE</B></P>
<HR align=center width="100%" noshade SIZE=5>
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<font size="3"><BR>

</font>
<P style="TEXT-ALIGN: center"><font size="3">MEXICAN STOCK EXCHANGE<BR>

SIFIC / ICS</font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0 width="100%" cellpadding="0">

  <TR>

    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE: <b><font size=2>SIMEC</font></b></FONT></TD>
    <TD align=left colspan="4">
      <div align="right"><FONT size=2>QUARTER: </FONT><FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></B></TD>
    <TD align=left colspan="4">&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS</B></P>
<P style="TEXT-ALIGN: right"><B>CONSOLIDATED</B></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 15px" align=center><B><FONT size=2>PLANT OR CENTER</FONT></B></TD>
    <TD style="TEXT-INDENT: 10px" align=center><B><FONT size=2>ECONOMIC ACTIVITY</FONT></B></TD>
    <TD align=center><B><FONT size=2>PLANT</FONT></B><BR>

<B><FONT size=2>CAPACITY</FONT></B></TD>
    <TD align=center><B><FONT size=2>UTILIZATION (%)</FONT></B></TD>
  </TR>




  <TR vAlign=top>

    <TD align=left><font size=2>GUADALAJARA MINI MILL</font></TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL<br>
      PRODUCTS</FONT></TD>
    <TD align=center><FONT size=2>480</FONT></TD>
    <TD align=center><FONT size=2>74.70</FONT></TD>
  </TR>



  <TR vAlign=top>

    <TD align=left><font size=2>MEXICALI MINI MILL</font></TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL<br>
      PRODUCTS</FONT></TD>
    <TD align=center><FONT size=2>250</FONT></TD>
    <TD align=center><FONT size=2>59.20</FONT></TD>
  </TR>



  <TR vAlign=top>

    <TD align=left><font size=2>APIZACO AND CHOLULA PLANTS</font></TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL<br>
      PRODUCTS</FONT></TD>
    <TD align=center><FONT size=2>460</FONT></TD>
    <TD align=center><FONT size=2>90.80</FONT></TD>
  </TR>

  <TR vAlign=top>

    <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>74.20</FONT></TD>
  </TR>

  <TR vAlign=top>

    <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>0.00</FONT></TD>
  </TR>



  <TR vAlign=top>

    <TD align=left><font size=2>LORAIN HOT-ROLLING MILL</font></TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL<br>
      PRODUCTS</FONT></TD>
    <TD align=center><FONT size=2>840</FONT></TD>
    <TD align=center><FONT size=2>50.40</FONT></TD>
  </TR>



  <TR vAlign=top>

    <TD align=left><font size=2>LACKAWANNA HOT-ROLLING MILL</font></TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL<br>
      PRODUCTS</FONT></TD>
    <TD align=center><FONT size=2>600</FONT></TD>
    <TD align=center><FONT size=2>72.30</FONT></TD>
  </TR>



  <TR vAlign=top>

    <TD align=left><font size=2>MASSILLON COLD-FINISH FACILITY</font></TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL <br>
      PRODUCTS</FONT></TD>
    <TD align=center><FONT size=2>125</FONT></TD>
    <TD align=center><FONT size=2>60.10</FONT></TD>
  </TR>



  <TR vAlign=top>

    <TD align=left><font size=2>GARY COLD-FINISH FACILITY</font></TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL<br>
      PRODUCTS</FONT></TD>
    <TD align=center><FONT size=2>70</FONT></TD>
    <TD align=center><FONT size=2>51.50</FONT></TD>
  </TR>



  <TR vAlign=top>

    <TD align=left><font size=2>ONTARIO COLD-FINISH FACILITY</font></TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL <br>
      PRODUCTS</FONT></TD>
    <TD align=center><FONT size=2>60</FONT></TD>
    <TD align=center><FONT size=2>50.30</FONT></TD>
  </TR>



  <TR vAlign=top>

    <TD align=left><font size=2>SAN LUIS POTOSI COLD-FINISH FACILITY</font></TD>
    <TD align=left><FONT size=2>PRODUCTION AND SALES OF STEEL <br>
      PRODUCTS</FONT></TD>
    <TD align=center><FONT size=2>600</FONT></TD>
    <TD align=center><FONT size=2>72.30</FONT></TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
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<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
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<BR>
<P style="TEXT-ALIGN: center">MEXICAN STOCK EXCHANGE<BR>
SIFIC / ICS</P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0 width="100%" cellpadding="0">

  <TR>

    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE: <b><font size=2>SIMEC</font></b></FONT></TD>
    <TD align=right colspan="5"><B></B><FONT size=2>QUARTER: </FONT><FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></B></TD>
    <TD align=left colspan="5">&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>MAIN RAW MATERIALS</B></P>
<P style="TEXT-ALIGN: right"><B>CONSOLIDATED</B></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">


  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 4px" align=center><B><FONT size=2>DOMESTIC</FONT></B></TD>
    <TD style="TEXT-INDENT: 1px" align=center><B><FONT size=2>MAIN SUPPLIERS</FONT></B></TD>
    <TD align=center><B><FONT size=2>FOREIGN</FONT></B></TD>
    <TD style="TEXT-INDENT: 1px" align=center><B><FONT size=2>MAIN SUPPLIERS</FONT></B></TD>
    <TD align=center><B><FONT size=2>DOMESTIC</FONT></B><BR>

<B><FONT size=2>SUBSTITUTION</FONT></B></TD>
    <TD align=center><B><FONT size=2>COST</FONT></B><BR>

<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>47.15</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>55.94</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>6.74</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>13.44</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>1.93</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>1.99</FONT></TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
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<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
<!-- -->
<BR>
<P style="TEXT-ALIGN: center"><font size="3">MEXICAN STOCK EXCHANGE<BR>

SIFIC / ICS</font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0 width="100%" cellpadding="0">

  <TR>

    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE: <b><font size=2>SIMEC</font></b></FONT></TD>
    <TD align=right colspan="5"><B></B><FONT size=2>QUARTER: 2 YEAR: </FONT><B><FONT size=2>2011</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></B></TD>
    <TD align=left colspan="5">&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>SELLS DISTRIBUTION BY PRODUCT</B></P>
<P style="TEXT-ALIGN: right"><B>CONSOLIDATED</B></P>
<P style="TEXT-ALIGN: center"><B>DOMESTIC SALES</B></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 17px" align=center><B><FONT size=2>MAIN PRODUCTS</FONT></B></TD>
    <TD style="TEXT-INDENT: 10px" align=center colSpan=2><B><FONT size=2>NET SALES</FONT></B></TD>
    <TD style="TEXT-INDENT: 9px" align=center colSpan=2><B><FONT size=2>MAIN DESTINATION</FONT></B></TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=center>&nbsp;</TD>
    <TD align=center><B><FONT size=2>VOLUME</FONT></B></TD>
    <TD align=center><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>CUSTOMERS</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>COMMERCIAL PROFILES</FONT></TD>
    <TD style="TEXT-INDENT: 7px" align=right><FONT size=2>467</FONT></TD>
    <TD align=right><FONT size=2>4,524,700</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>SPECIAL PROFILES</FONT></TD>
    <TD style="TEXT-INDENT: 7px" align=right><FONT size=2>237</FONT></TD>
    <TD align=right><FONT size=2>2,589,616</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>OTHERS</FONT></TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><FONT size=2>79,913</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>T O T A L</FONT></B></TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><B><FONT size=2>7,194,229</FONT></B></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp;</TD>
    <TD style="TEXT-INDENT: 7px" align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>


  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>FOREIGN SALES</FONT></B></TD>
    <TD style="TEXT-INDENT: 7px" align=right><FONT size=2>435</FONT></TD>
    <TD align=right><B><FONT size=2>6,563,955</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=right>&nbsp;</TD>
    <TD align=right><B><FONT size=2>13,758,184</FONT></B></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
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<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
<!-- -->
<BR>
<P style="TEXT-ALIGN: center"><font size="3">MEXICAN STOCK EXCHANGE<BR>

SIFIC / ICS</font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0 width="100%" cellpadding="0">

  <TR>

    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE: <b><font size=2>SIMEC</font></b></FONT></TD>
    <TD align=left colspan="5">
      <div align="right"><B></B><FONT size=2>QUARTER: </FONT><FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></B></TD>
    <TD align=left colspan="5">&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>SELLS DISTRIBUTION BY PRODUCT</B></P>
<P style="TEXT-ALIGN: right"><B>CONSOLIDATED</B></P>
<P style="TEXT-ALIGN: center"><B>FOREIGN SALES</B></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">

  <TR vAlign=bottom>

    <TD style="TEXT-INDENT: 12px" align=center><B><FONT size=2>MAIN PRODUCTS</FONT></B></TD>
    <TD align=center colspan="2"><B><FONT size=2>NET SELLS</FONT></B></TD>
    <TD align=center colspan="2"><B><FONT size=2>MAIN</FONT></B></TD>
  </TR>



  <TR vAlign=bottom>

    <TD align=center>&nbsp;</TD>
    <TD align=center><B><FONT size=2>VOLUME</FONT></B></TD>
    <TD align=center><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>CUSTOMERS</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>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>COMMERCIAL PROFILES</FONT></TD>
    <td align=right><font size=2>83</font></td>
    <TD align=right><FONT size=2>892,693</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>SPECIAL PROFILES</FONT></TD>
    <td align=right><font size=2>7</font></td>
    <TD align=right><FONT size=2>70,695</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>OTHERS</FONT></TD>
    <td align=right><font size=2>0</font></td>
    <TD align=right><FONT size=2>47,972</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&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>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>SPECIAL PROFILES</FONT></TD>
    <td align=right><font size=2>435</font></td>
    <TD align=right><FONT size=2>6,563,955</FONT></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=right>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>


  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>T O T A L</FONT></B></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B><FONT size=2>7,575,315</FONT></B></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<HR align=center width="100%" noshade SIZE=5>
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<DIV title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px"></DIV>
<!-- -->
<BR>
<P style="text-align: center;"> <font size="3">MEXICAN STOCK EXCHANGE<BR>

SIFIC / ICS</font></P>
<TABLE border=0 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" width=100% cellpadding="0">

  <TR>

    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left height="15"> <FONT size=2>STOCK EXCHANGE CODE: <b><font size=2>SIMEC </font></b></FONT></TD>
    <TD align=left height="15" colspan="5">
      <div align="right"><B></B> <FONT size=2>QUARTER: </FONT> <FONT size=2>2 </FONT> <FONT size=2>YEAR: </FONT> <B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <B><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></B></TD>
    <TD align=left colspan="5">&nbsp;     </TD>
  </TR>

</TABLE>

<P style="text-align: center;"> <B>CONSTRUCTION IN PROGRESS</B></P>
<P style="text-align: right;"> <B>CONSOLIDATED</B></P>
<P style="text-align: left;"> THE PROJECTS IN PROGRESS AT JUNE 30, 2011, ARE:</P>
<TABLE border=0 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" width=600 cellpadding="0">

  <TR>

    <TD></TD>
    <TD></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left style="TEXT-INDENT:7.000000px"> <FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PROJECTS IN PROGRESS</FONT></TD>
    <TD align=right> <FONT size=2>TOTAL 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>70,313</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>PROJECTS IN MEXICALI</FONT></TD>
    <TD align=right> <FONT size=2>4,867</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>PROJECTS IN TLAXCALA</FONT></TD>
    <TD align=right> <FONT size=2>337,343</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>PROJECTS IN GUADALAJARA</FONT></TD>
    <TD align=right> <FONT size=2>9,678</FONT></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>PROJECTS IN SAN LUIS POTOSI</FONT></TD>
    <TD align=right> <FONT size=2>4,036</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>JUNE 30, 2011</FONT></B></TD>
    <TD align=right> <B><FONT size=2>426,237</FONT></B></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=right>
      <hr size="2" noshade width="30%" align="right">
    </TD>
  </TR>

</TABLE>
<BR>
<HR noshade align="center" width="100%" size="5">
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<BR>
<P style="TEXT-ALIGN: center"><font size="3">MEXICAN STOCK EXCHANGE<BR>

SIFIC / ICS</font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0 width="100%" cellpadding="0">

  <TR>

    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE:  <b><font size=2>SIMEC</font></b></FONT></TD>
    <TD align=left colspan="5">
      <div align="right"><B></B><FONT size=2>QUARTER: </FONT><FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></B></TD>
    <TD align=left colspan="5">&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: center"><B>TRANSACTIONS IN FOREIGN CURRENCY AND CONVERSION OF FINANCIAL STATEMENTS OF FOREIGN OPERATIONS</B><BR>
<B>INFORMATION RELATED TO BULLETIN B-15</B></P>
<P style="TEXT-ALIGN: right"><B>CONSOLIDATED</B></P>
<P style="TEXT-ALIGN: left"><B>Foreign currency transactions and exchange differences &#150; </B>Transactions in foreign currencies are recorded at the exchange rates prevailing at the celebration and liquidation dates. The assets and liabilities in foreign currencies are translated at the exchange rates prevailing at the date of the consolidated balance sheet. The exchange gains or losses incurred in connection with those assets or liabilities are included in the Statement of income, as part of the comprehensive financing cost. Note 3 presents the consolidated position in foreign currencies at the end of each year and the exchange rates used in the translation.</P>
<P style="TEXT-ALIGN: left">The functional and reporting currency of the Company is the Mexican peso. The financial statements of foreign subsidiaries were translated to Mexican pesos in accordance with the New Mexican Financial Reporting Standard MFRS B-15 "Conversion of foreign currencies&#148; that came into effect on January 1, 2008. Under this Standard, the first step to convert financial information from operations abroad is the determination of the functional currency. The functional currency is the currency of the primary economic environment of the foreign operation or, if different, the currency that mainly impacts its cash flows. The new rule incorporates the concepts of recording currency that is the currency in which the entity maintains its accounting records, whether for legal or information purposes and the reporting currency, which is the currency chosen by the Company to report its financial information.</P>
<P style="TEXT-ALIGN: left">The U.S. dollar was considered as the functional currency of the subsidiary SimRep, therefore the financial statements of this subsidiary were translated into Mexican pesos by applying: i) the exchange rates at the balance sheet date to all assets and liabilities and (ii) the historical exchange rate at stockholders&#146; equity accounts and revenues, costs and expenses. The difference resulting from the translation or consolidation processes or from applying the equity method, is recognized as a cumulative translation adjustment as part of Translation effect in foreign subsidiaries in Stockholders&#146; equity.</P>
<P style="TEXT-ALIGN: left">The Mexican Peso was considered the functional currency of the subsidiary Pacific Steel and the U.S. dollar as its recording currency; therefore the financial statements were translated to Mexican pesos as follows: i) monetary assets and liabilities by applying the exchange rates at the balance sheet date; ii) non-monetary assets and liabilities, as well as stockholders&#146; equity accounts, at the historical exchange rate; and iii) revenues, costs and expenses at the historical exchange rate. Translation differences were carried directly to the income statement under the caption Foreign exchange loss, net.</P>
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<BR>
<P style="TEXT-ALIGN: center"><font size="3">MEXICAN STOCK EXCHANGE<BR>

SIFIC / ICS</font></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=0 width="100%" cellpadding="0">

  <TR>

    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><FONT size=2>STOCK EXCHANGE CODE: <b><font size=2>SIMEC</font></b></FONT></TD>
    <TD align=left colspan="5">
      <div align="right"><B></B><FONT size=2>QUARTER: </FONT><FONT size=2>2 </FONT><FONT size=2>YEAR: </FONT><B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=left><B><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></B></TD>
    <TD align=left colspan="5">&nbsp;</TD>
  </TR>
</TABLE>

<P style="TEXT-ALIGN: right"><B>CONSOLIDATED</B></P>
<P style="TEXT-ALIGN: center"><B>INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK</B><BR>
<B>CHARACTERISTICS OF THE SHARES</B></P>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">

  <TR vAlign=bottom align="center">

    <TD><B><FONT size=2>SERIES</FONT></B></TD>
    <TD><B><FONT size=2>NOMINAL</FONT></B><BR>

<B><FONT size=2>VALUE</FONT></B></TD>
    <TD><B><FONT size=2>VALID</FONT></B><BR>

<B><FONT size=2>COUPON</FONT></B></TD>
    <TD colspan="4"><B><FONT size=2>NUMBER OF SHARES</FONT></B></TD>
    <TD style="TEXT-INDENT: 2px" colSpan=2><B><FONT size=2>CAPITAL STOCK</FONT></B><BR>

<B><FONT size=2>(Thousands of Pesos)</FONT></B></TD>
  </TR>




  <TR vAlign=bottom align="center">

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><B><FONT size=2>FIXED <br>
      PORTION </FONT></B></TD>
    <TD><B><FONT size=2>VARIABLE  <br>
      PORTION </FONT></B></TD>
    <TD><B><FONT size=2>MEXICAN</FONT></B></TD>
    <TD><B><FONT size=2>FREE <br>
      SUBSCRIPTION </FONT></B></TD>
    <TD style="TEXT-INDENT: 1px"><B><FONT size=2>FIXED</FONT></B></TD>
    <TD><B><FONT size=2>VARIABLE</FONT></B></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><FONT size=2>B</FONT></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="TEXT-INDENT: 2px" align=right><FONT size=2>90,850,050</FONT></TD>
    <TD style="TEXT-INDENT: 1px" align=right><FONT size=2>406,859,164</FONT></TD>
    <TD align=right><font size=2>0</font></TD>
    <TD align=right><FONT size=2> 497,709,214</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=right><FONT size=2>441,786 </FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=right><font size=2>1,978,444</font></TD>
  </TR>

  <TR vAlign=bottom>

    <TD align=center><B><FONT size=2>TOTAL</FONT></B></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="TEXT-INDENT: 2px" align=right><B><FONT size=2>90,850,050</FONT></B></TD>
    <TD style="TEXT-INDENT: 1px" align=right><B><FONT size=2>406,859,164</FONT></B></TD>
    <TD align=right><b><font size=2>0</font></b></TD>
    <TD align=right><B><FONT size=2> </FONT></B><FONT size=2>497,709,214</FONT></TD>
    <TD style="TEXT-INDENT: 2px" align=right><B><FONT size=2>441,786 </FONT></B></TD>
    <TD style="TEXT-INDENT: 2px" align=right><b><font size=2>1,978,444</font></b></TD>
  </TR>
</TABLE>
<BR>
<TABLE style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" cellSpacing=0 border=1 width="100%" cellpadding="2">

  <TR vAlign=bottom>

    <TD align=left colspan="2"><B><FONT size=2>TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL
       STOCK ON THE DATE OF SENDING THE INFORMATION:</FONT></B><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font size=2>497,709,214</font></TD>
  </TR>
</TABLE>

<HR align=center width="100%" noshade SIZE=5>
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<BR>
<P style="text-align: center;"> MEXICAN STOCK EXCHANGE<BR>
SIFIC / ICS</P>
<TABLE border=0 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" width=100% cellpadding="0">

  <TR>

    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <FONT size=2>STOCK EXCHANGE CODE: <b><font size=2>SIMEC</font></b></FONT></TD>
    <TD align=left colspan="5">
      <div align="right"><B></B> <FONT size=2>QUARTER: </FONT> <FONT size=2>2 </FONT> <FONT size=2>YEAR: </FONT> <B><FONT size=2>2011</FONT></B></div>
    </TD>
  </TR>

  <TR valign="bottom">

    <TD align=left> <B><FONT size=2>GRUPO SIMEC, S.A.B. DE C.V.</FONT></B></TD>
    <TD align=left colspan="5">&nbsp;     </TD>
  </TR>

</TABLE>

<P style="text-align: right;"> <B>CONSOLIDATED</B></P>
<P style="text-align: left;"> <B>DECLARATION OF THE COMPANY OFFICIALS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THIS REPORT.</B></P>
<P style="text-align: left;"> LUIS GARCIA LIMON AND ADOLFO LUNA LUNA 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 SECOND QUARTER REPORT.</P>
<TABLE border=0 cellspacing=0 style="font-family: 'Times New Roman';font-size: 10pt;" width=740 cellpadding="0" align="center">

<TR>

    <TD></TD>

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

    <TD> <B><FONT size=2>ING LUIS GARCIA LIMON</FONT></B></TD>

    <TD> <B><FONT size=2>C.P. ADOLFO LUNA LUNA</FONT></B></TD>
  </TR>
  <TR valign="bottom" align="center">

    <TD> <B><FONT size=2>CHIEF EXECUTIVE OFFICER</FONT></B></TD>

    <TD> <B><FONT size=2>CHIEF FINANCIAL OFFICER</FONT></B></TD>
  </TR> </TABLE>

<P style="text-align: center;"> <B>GUADALAJARA, JAL, AT JUL 27 OF 2011.</B></P>
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
