Braskem Announces Important Measures to Increase the Liquidity of Its Shares and ADSs.

SAO PAULO, Brazil -- Braskem S.A. (NYSE:BAK) (BOVESPA:BRKM5) (LATIBEX:XBRK), leader in the thermoplastic resins segment in Latin America and one of the three largest Brazilian privately-owned industrial companies, in accordance with its long term strategic commitment to the domestic and international capital markets, announces today that its Board of Directors, in a meeting held on March 14, 2005, resolved to submit to the Extraordinary General Shareholders' Meeting to be held on March 31, 2005, a proposal to effect a reverse stock split in respect of its outstanding share capital, together with a split of its American Depositary Shares ("ADSs") traded on the New York Stock Exchange ("NYSE"), as follows:

1. Objective

In accordance with the recommendations and guidelines of the Sao Paulo
Stock Exchange ("Bovespa"), the reverse stock split of Braskem's share
capital is intended to facilitate the trading of Braskem's shares on
the Bovespa, resulting in increased liquidity through (i) a reduction
in the number of shares that are quoted as a round lot on the Bovespa,
from the current round lot of 1,000 shares to a round lot of one
share, (ii) an adjustment in Braskem's share price to a more
accessible level, enabling a larger number of investors, particularly
individual investors, to purchase Braskem's shares, and (iii) a
reduction in the minimum number of Braskem's shares for trading on the
Bovespa from 100,000 to 100 shares, thus lowering the minimum
investment required to purchase shares of Braskem.

2. Proportion of the Reverse Stock Split


Braskem will effect a reverse split of its share capital in the
proportion of 250 (two hundred and fifty) shares of each type and
class to 01 (one) share.

3. Split of the ADSs

In order to align the trading price of the ADSs representing Braskem's
class A preferred shares on the NYSE with the average trading price of
ADSs of other Brazilian issuers, Braskem's ADSs will be split, in the
proportion of 02 (two) ADSs for each ADS outstanding. Following the
reverse stock split in Brazil and the split of the ADSs, each ADS
(which currently represents 1,000 (one thousand) class A preferred
shares), will represent 02 (two) class A preferred shares, thus
attaining the established objectives.

4. Position Adjustment

If this proposal is approved by Braskem's shareholders in the
Extraordinary General Meeting, Braskem will publish a Notice to its
Shareholders establishing a period of 30 (thirty) days from the date
of publication for shareholders, in their discretion, to adjust their
respective shareholding positions through private sale or trading on
the Bovespa, to lots of multiples of 250 (two hundred and fifty)
shares, by each type and class, so that they will not hold any
fractional shares after consummation of the reverse stock split.

5. Auction and Complementary Information

After the 30 (thirty) day adjustment period has expired, any
fractional shares resulting from the reverse stock split will be
separated and consolidated into whole shares to be sold on the
Bovespa. The proceeds of the sales of these shares will be deposited
on a pro rata basis in the accounts of the holders of any fractional
shares.

Braskem's shares will begin to be sold taking into account the reverse
stock split following the seventh business day after the expiration of
the 30-day adjustment period referred to above. Documents related to
the proposal of the Board of Directors described in this release will
be available at Braskem's headquarters, as well as on the websites of
the Bovespa and of the Brazilian Securities Commission (Comissao de
Valores Mobiliarios).