Braskem, leader in thermoplastic resins in Latin America and third biggest producer of resins in the Americas, informs that its Management Board decided in favor of the proposal to cancel all treasury stocks. This proposal is subject to approval of the Extraordinary General Meeting to be held in December 22, 2008, according to RFP filed in December 4, 2008.

Braskem has on this date 16,850,657 treasury stocks, of which 6,251,744 were Ordinary stocks, 10,389,665 were class "A" Preferred Stocks and 209,248 were class "B" Preferred Stocks. Out of this amount, (i) 10,099,500 class "A" preferred stocks were purchased in the 2nd Stock Repurchase Program, begun in March 6, 2008; (ii) 580,331 common stocks and 290,165 class "A" preferred stocks result from the capital reduction of its subsidiary Braskem Participações S/A; (iii) 2,108,823 common stocks and 209,048 class "B" preferred stocks result form the exercise of right to recess during purchase of petrochemical assets by Grupo Ipiranga; and (iv) 3,562,590 common stocks and 200 class "B" preferred stocks result from the exercise of right to recess during the incorporation of stocks from Grust Holdings S/A.

With approval of cancellation, Braskem’s capital stock will remain unchanged, and the total number of stocks will become 507,540,997 stocks, of which 190,462,446 are common stocks, 316,484,733 class "A" preferred stocks and 593,818 class "B" preferred stocks.