Braskem announces that it has acquired Politeno in a move which represents an important step forward in the implementation of Braskem´s growth strategy, value creation and the consolidation of its integrated business model. The aquisition was completed through an agreement in which Braskem will purchase all of the total and voting share capital owned by Suzano Petroquímica S.A., Sumitomo Chemical Co. and Itochu Corporation in Politeno.

Upon completion of this acquisition, Braskem will own 100% of the voting share capital and 96.15% of the total share capital of Politeno. "The acquisition of Politeno by Braskem represents another significant step in the consolidation of the Brazilian petrochemical sector, which is intended to ensure the conditions that will favor growth and to increase competitiveness of the entire petrochemical production chain to meet the challenges posed by globalization of markets," said José Carlos Grubisich, CEO of Braskem. "At the same time, Politeno brings to our company a complementary portfolio of products and competencies and a very successful management record with a focus on quality and efficiency that earned it the  National Quality Award in 2002," added Mr. Grubisich.

Politeno"s average annual production capacity of polyethylene for the last three years was 320,000 tons. Braskem intends to operate the plant at the limit of its annual production capacity and plans to increase Politeno"s annual production capacity to 400,000 tons of polyethylene in 2007, with an estimated investment of US$10.0 million.

Braskem will make an initial payment in an aggregate amount of US$111.3 million (US$60.6 million to Suzano Petroquímica and US$50.7 million to Sumitomo and Itochu). The final value of Politeno will be calculated based upon Politeno"s operating performance during the next 18 months, as measured by variations in polyethylene and ethylene margins in the Brazilian petrochemical market.

"This investment is very attractive to Braskem and will permit it to realize  stimated synergies of US$110 million, based on net present value, as calculated in an analysis supported by the international consulting firm, Monitor, and we expect it to create significant value for all shareholders," stated Paul Altit, CFO and Director of Investor Relations. The amount of these synergies include the exchange of good corporate governance practices and technological innovation.

The acquisition of Politeno has been approved by the Boards of Directors of the companies involved in the transaction and will be communicated to CADE, the Brazilian Antitrust Authority. With the acquisition, Braskem further increases its portfolio of products, which is already the most extensive in the regional market, to include a new grade of thermoplastic resins - medium density polyethylene, in addition to EVA (used in shoes and educational toys). The transaction will also allow Braskem to gain access to an important client portfolio, with leading presence in the region.

"The acquisition of Politeno by Braskem represents another significant step in the consolidation of the Brazilian petrochemical sector, which is intended to ensure the conditions that will favor growth and to increase competitiveness of the entire petrochemical production chain to meet the challenges posed by globalization of markets," said José Carlos Grubisich, CEO of Braskem.