The following terms are used in this Web page:

ACID GRADE CONCENTRATE: Concentrate of fluorite in powder form

AMERI: Asociación Mexicana de Relación con Inversionistas (Mexican Association of Investor Relations)

BMV: Bolsa Mexicana de Valores, S.A. de C.V.  (Mexican Securities Exchange)

BRINE:  Watery solution saturated with sodium chloride

CEMAI: Chemical Market Associates Inc.

CFE: Comisión Federal de Electricidad (Mexico’s Federal Electricity Commission)

CHLORINE: Green, reactive and gaseous element that pertains to the halogens.  It is used in large quantities to produce organic solvents and in the production of PVC.

CHLORINE-VINYL CHAIN: The Productive Chain integrated by the following of the Company’s  subsidiaries: Cloro de Tehuantepec, S.A. de C.V., producer of chlorine-caustic soda; Pennwalt, S.A. de C.V., specialized in chlorate products; Unión Minera del Sur, S.A. de C.V., producer of brine; Mexichem Colombia, S.A., producer of sodium hypochlorite, ferric chlorate, and other chemical specialties; Polímeros de México, S.A. de C.V., and Grupo Primex, S.A. de C.V., currently leaders in the production of PVC resins, compounds and plasticizers.  This Productive Chain comprises two processes, the Vinyl Process and the Chlorine-Soda process.

CHEMICAL SECTOR: The sector mostly focused on the manufacture of chemical products in general

CNBV: Comisión Nacional Bancaria y de Valores (Mexico’s Nacional Banking and Securities Commission)

COMPOUNDS: Raw materials derived from the PVC resin processes

CAUSTIC SODA: Commercial name of sodium hydroxide, NaOH

DELOITTE & TOUCHE: Galaz, Yamazaki, Ruíz Urquiza, S.C., member firm of Deloitte Touche Toahmatsu, Independent Public Accountants

DERMET: Dermet de México, S.A. de C.V.

DIVISIONS: Until fiscal year 2003, the main business areas in which MEXICHEM, as holding company of stocks in different sectors of the economy, comprised in its subsidiary companies, and as of fiscal year 2004 gave way to a grouping by Productive Chains, according to the new strategic guidelines defined by the Issuer

EBITDA:  Earnings Before other expenses and revenues, Interest, Taxes, Depreciation, and Amortization of the accounting period analyzed

EXPLORATION: The land exploration and work carried out for the purpose of identifying mineral deposits, as well as to determine and evaluate the economically viable reserves they contain

EXPLOITATION: The work involved in the preparation and development of the area comprising a mineral deposit, as well as the work involved in extracting the minerals existing in the deposit

FLUORINE CHAIN: The Productive Chain integrated by the Company’s following subsidiaries:  Minera las Cuevas, S.A. de C.V., the largest producer in the world of fluorite; and, Química Flúor, S.A. de C.V., producer of hydrofluoric acid.  This Productive Chain comprises the Fluorite and Hydrofluoric Acid processes.

FLUORITE: The commercial name for Calcium Fluoride

GENERAL DISPOSITIONS: Dispositions of a general nature applicable to the issuers of securities and to other securities market participants, published in the Diario Oficial de la Federación (Mexico’s Official Daily Gazette) on March 19, 2003

HF: Hydrofluoric Acid

HYDROCHLORIC ACID: Fume emitting colorless liquid compound that is prepared by adding hydrogen chloride to water.  It is used in the manufacture of tinctures, medicines, photographic materials, and to clean surfaces before electroplasty.

INITIAL PUBLIC OFFERING (IPO): Initial public offering of securities for purchase

INPC: Índice Nacional de Precios al Consumidor (National Consumer Price Index)  

ISSUER: Mexichem, S.A. de C.V.

LMV: Ley del Mercado de Valores (Mexico’s Securities Market Law)

METAL GRADE: Fluorite mineral in the state of extraction.

MEXICHEM, THE FIRM, THE ISSUER, THE GROUP, THE COMPANY: Mexichem, S.A. de C.V. (formerly Grupo Industrial Camesa, S.A. de C.V.)

MMBTU: Million British Thermal Energy Units (used to measure natural gas)

OTHER ASSETS: Investments in the preparation and development of a mine, such as: in excavation, the removal of excess earth, construction of roads, wages, and depreciation, necessary for the exploitation of new levels of the mine

PCGA: Principios de Contabilidad Generalmente Aceptados in Mexico (Accounting Principles Generally Accepted in Mexico)

PEMEX: Petróleos Mexicanos (Pajaritos Petrochemical).

PESOS, PESO or “$”: Legal tender in Mexico

POTASSIUM CHLORATE: Solid, white soluble compound that is prepared for electrolysis from a concentrated solution of potassium chlorate.  It is a strong oxidant agent and is used in explosives, matches, weed killers, fireworks, and as a disinfectant.

POLYSTYRENE: Synthetic polymer made from ethylene, which extended is rigid foam used for packaging and insulating materials.

PRODUCTIVE CHAIN: Groups of the Company’s subsidiary companies joined by products and markets and integrating raw material and common processes that increase the synergy of businesses according to the strategy defined by MEXICHEM as of fiscal year 2004

PVC or POLYCHLORO-ETHYLENE or POLYVINYL CHLORIDE:  Synthetic polymer made from chlorethylene, which by nature is a strong material with a wide range of uses.  It is the most widely used thermoplastic.

QUÍMICA FLUOR, QF: The company Química Flúor, S.A. de C.V.

RNV: Registro Nacional de Valores (Mexico’s National Securities Registry)

SALE OF SHARES PLAN: Trust established by the Issuer for its main executives for the acquisition of shares representative of the capital stock of MEXICHEM.     

SMELTING: Comprises the procedures for the preparation, treatment, first-hand smelting and refining of mineral products, in any of these phases, for the purpose of recovering and obtaining minerals or substances, as well as to raise the concentration and purity of their contents

SODIUM HYPOCHLORITE: Watery, clear, slightly yellow (amber) solution with its characteristically penetrating and irritating odor; contains sodium hydroxide and sodium carbonate.

SOFOLES: Sociedades Financieras de Objeto Limitado (Financial Companies of Limited Objective)

STOCKS: Ordinary, nominative, without expression of nominative value, of one sole series, of both non-subscribed Class II (primary offering), and Class I (secondary offering), representative of the variable and fixed parts without right of withdrawal, respectively, of the capital stock of MEXICHEM.

TAAC (CARG):  Cumulative Annual Rate of Growth

TPY: Tons per Year.

U.S.A.: United Status of America

VCM: Vinyl Chloride

WORKING DAY: Any day that Mexico’s credit institutions are open for operations to the public according to the calendar published by the CNBV