Braskem announces today the successful completion of a Receivable Fund issuance (FIDC) - in the amount of R$ 400 million, with 36-month maturity and amortization beginning on the 31st month. The rate paid by Braskem for this transaction was 103.75% of CDI (Interbank Deposit Certificate), the lowest rate ever in the Brazilian market.

"Market confidence placed in Braskem was fundamental for the Company´s ability to conclude this transaction at such competitive rate", said Paul Altit, the Vice President of Finance. Braskem´s leadership in the regional market, its consistent operating performance, its solid financial structure and the continuous investments made to raise the Company´s productivity and competitiveness were important factors that contributed to the growing positive perception in the market about Braskem.

The purpose of this transaction is to substantially reduce the Company´s financial costs, to improve its capital structure, and, as a result, to raise its competitiveness in the global market. "We have a sound financial structure, which allows us to place transactions in the market to reduce our cost of capital even further", highlights Braskem´s executive.

The FIDC transaction lead-manager was ABN AMRO and intermediary institutions included Unibanco, ItaúBBA and Santander. Bradesco will be both the custodian bank and fund manager, through BEM DTVM, a company under the Bradesco Group. Although such kind of financial transaction may be often completed in international markets, the FIDC is quite new to Brazil´s financial market. Funds raised in connection with this transaction will be added to Braskem´s accounts prior to the end of December 2005.

Historically, Braskem has successfully placed two other transactions in the receivables securitization market. In 1999, the Company raised R$ 180 million and, in 2003, it raised R$ 200 million, at declining rates, which have now reached their lowest level.