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Grupo Simec to Acquire
Grupo Sidenor Facilities

May 24, 2004 — Grupo Simec, SA de CV announced that Industrias CH, SA de CV (ICH) will acquire the Mexican steelmaking facilities of Industrias Ferricas del Norte, SA (Grupo Sidenor).

Based on the potential synergy and economies of scale between the plants of Simec in Mexicali and Guadalajara and the plants that Grupo Sidenor owns in Apizaco, Tlaxcala and Cholula, Puebla, ICH currently intends that the acquisition would be made by its Simec subsidiary.

The acquisition would allow Simec to increase its installed capacity by approximately 40%, sales by approximately 45% and number of employees by approximately 800 persons. The acquisition is expected to be financed with internally generated resources of ICH and Simec.

The deal is subject to approval of the Mexican Comision Federal de Competencia (Federal Commission of Competition).

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