Participations in Copesul, Triunfo Petrochemical and Paulinia Petrochemical are found in the list of assets that Petroquisa intends to integrate to Braskem.

Petroquisa nominated the assets to be integrated to Braskem in case the company decides for increasing its participation in Braskem to 30% of the voting capital according to the terms of the Second Additional to the Agreement Memorandum that celebrates Braskem Shareholders Agreement, signed in April, 29th ,2005.

In order to put the option in practice, Petroquisa will indicate its participations in Triunfo Petrochemical and Paulinia Petrochemical. According to an agreement, the final decision about the option may be made till March 31st, 2006, instead of December 31st, 2005, what will allow a more adequate deadline for studying the assets integration process.

"The decision of Petroquisa brings a positive and potential impact for all the entire Petrochemical sector and for the country, offering new perspectives for consolidating strong and competitive companies, which are prepared to compete in the international market", says José Carlos Grubisich, president of Braskem. In case the assets indication is confirmed, it will bring potential and scale gains, besides the synergies.

The Petrochemicals consolidation and integration is a global trend that aims at increasing the scale and the competitiveness of companies for creating value for all the plastic and petrochemical chain. The strategic plan of Petroquisa considers the relevant participation in the Brazilian petrochemical sector development, what includes an asset role in the management of the companies it participates.

Petroquisa is interested in exercising the option, increasing its participation up to 30% of the voting capital of Braskem and the eventual confirmation of this process might happen after the conclusion of negotiations according to shareholders. The process is being carried out at the moment in consistency with the revision of Petroquisa strategic plan. Besides, Petroquisa will preserve its autonomy to develop new projects, keep and form associations with the objective of meeting the market demands.

Till October 14th the banks that will evaluate the involved assets will be nominated. The evaluation will be based on the discounted cash flow criteria and without control prizes. If the value of actives proposed by Petroquisa represents a participation increase higher than 30% of the voting capital of Braskem, the difference will be subscribed in preferential class A shares. The total value of the new issued shares - ordinary and, if necessary, preferential class A - will result in capital raise for Braskem.

If the shares of the option are not enough for Petroquisa to reach a 30% participation of voting capital, Odebrecht, ODBPAR and Norquisa make the
commitment of seeling the necessary shares to Petroquisa, folling the same
evaluation criteria adopted for the increase of Braskem capital.

Paulinia petrochemical, one of the assets included in the list, is a joint venture
constituted on the last 16th between the partners to build and operate an industrial polypropylene unit in Paulinia, interior of São Paulo. This company creation, with a structure in which Braskem controls 60% and Petroquisa the other 40%, represented a demonstration of faith, by the partners, in the development of Brazilian economy and of Brazilian Petrochemical, a process that might be accelerated with a more noticeable participation in the sector.