Braskem's EBITDA reaches R$ 1.1 billion in 1H04; 2Q04 EBITDA of R$ 615 million is a record for Braskem

Business Wire, July 29, 2004

SAO PAULO -- BRASKEM S.A. (NYSE:BAK) (BOVESPA:BRKM5) (LATIBEX:XBRK), leader in the thermoplastic resins segment in Latin America and one of the five largest Brazilian privately-owned industrial companies, announced today its results for the second quarter of 2004.

HIGHLIGHTS

Braskem's maintained its upward trajectory in relation to operating performance reaching a record EBITDA of R$ 615 million in 2Q04. Accumulated EBITDA for the year already amounts to R$ 1.1 billion. In addition to the EBITDA performance, the quality of the operating performance of Braskem is evidenced by an increase in sales volume in the domestic market, combined with the maintenance of the export levels which accumulated US$ 353 million by the end of the 1st half of 2004. The capacity utilization rates kept their upward trend, confirming the improvement in the petrochemical industry scenario, particularly in Brazil.

As commented by Jose Carlos Grubisich, Braskem's CEO:

"it is important to highlight the consistence and quality of the operational result reported by Braskem. In the last twelve months, the Company's accumulated gross revenue exceeded R$ 12 billion and the EBITDA accumulated in the same period was above R$ 2 billion. The higher demand for thermoplastic resins in the domestic market had already been foreseen by Braskem. The market for our strategic products -- Polyethylene (PE), Polypropylene (PP) and PVC -- grew by 10% in the first half 2004 in relation to the same period of the previous year, reflecting the recovery of the Brazilian economy. The margins provided by our products increased even in a challenging environment as far as naphtha prices and the exchange rate unfavorable trend are concerned. Also, the announced capacity increases for PP, PVC and, more recently, the additional 30 thousand tons of Polyethylene in Camacari unit in Bahia, reassure Braskem's competitive advantage to face the growing demand for its products through globally competitive investments and confirm our leadership position in the region."

According to Paul Altit, Braskem's CFO: "Braskem has maintained its focus on debt management and continued with its strategy of prioritizing the use of operational cash flow to amortize short-term debt, mainly the dollar-denominated portion of the debt not associated to trade finance lines. At the same time, the Company concentrated efforts to extend the maturities of its financial liabilities and to increase liquidity levels, improving, then, the Company's strategic, financial and operational flexibility levels, while continuing the reduction process of its capital cost".

Braskem in Figures
R$ million
 except where otherwise  2Q04   2Q03   Chg.%   1H04   1H03   Chg.%
 indicated                (A)    (B)  (A)/(B)   (C)    (D)  (C)/(D)
----------------------------------------------------------------------
Gross Revenues           3,502  2,651    32    6,260  5,537    13
Net Revenues             2,742  2,155    27    4,883  4,447    10
Gross Profit               628    420    50    1,185    889    33
Gross margin (%)          22.9   19.5  3 p.p.   24.3   20.0  4 p.p
EBITDA*                    615    405    52    1,144    855    34
EBITDA margin (%)         22.4   18.8  4 p.p.   23.4   19.2  4 p.p.
Net Income (loss)         (302)   338    na     (292)   468    na

Braskem in Figures
R$ million
 except where otherwise   1H04   1Q04   2003   Chg.%   Chg.%   Chg.%
 indicated                 (A)    (B)    (C)  (A)/(B) (A)/(C) (B)/(C)
----------------------------------------------------------------------
Net Debt in US$ million  2,178  2,183 2,166      0        1      1
Net Debt                 6,768  6,351 6,258      7        8      1
Net Debt/EBITDA - LTM**  3.28x  3.42x 3.52x     (4)      (7)    (3)

* EBITDA = Earnings before interest, taxes, depreciation and
  amortization / **LTM = last twelve month

Full earnings release and financial statements in Brazilian Corporate Law can be accessed at the Braskem's website: http://www.braskem.com.br

Conference Calls and Webcast:

Portuguese: Tuesday, August 3, 2004
            9:00 a.m. US EST
            10:00 a.m. Sao Paulo Time
            Tel:  55 (11) 4613-0500
            ID: 903

English: Tuesday, August 3, 2004
         11:00 a.m. US EST
         12:00 p.m. Sao Paulo Time
         Tel:  1 (412) 858-4600
         ID: 101

Meetings with Investors and Analysts: Sao Paulo (Aug 5), Rio de Janeiro (Aug 6), Porto Alegre (Aug 11) Minas Gerais (Aug 18) and Brasilia (Aug 19).