Braskem Records Net Income Of R$ 496 Million In 3Q04; EBITDA for 3Q04 Reaches R$ 744 Million, A New Record That Reinforces the Excellence of Braskem's Operating Result.

SAO PAULO, Brazil -- Braskem S.A. (NYSE:BAK)(BOVESPA:BRKM5) (LATIBEX:XBRK), the leader in the thermoplastic resins segment in Latin America and one of the three largest Brazilian privately-owned industrial companies, announced today its results for the third quarter of 2004.

HIGHLIGHTS

--  In order to meet the consistently growing demand in the domestic
    market, all of Braskem's business units operated at utilization
    rates higher than 95%, resulting in the production of 450 thousand
    tons of thermoplastic resins in the third quarter of 2004, a 5.9%
    growth over the third quarter in 2003. Following the same positive
    trend, the production of ethylene and propylene increased by 7% in
    the third quarter of 2004, reaching 453 thousand tons.

--  The commercial performance also posted an important improvement.
    In the domestic market, the volume of thermoplastics resins sold
    by Braskem in the third quarter of 2004 amounted to 390 thousand
    tons, 21% higher than the volume sold in the same period last
    year. In the nine-month period ended September 30, 2004, the
    growth in the volume of resins sold to the domestic market reached
    22%, increasing from 878 thousand in the nine-month period ended
    September 30, 2003 to 1.08 million tons in the nine-month period
    ended September 30, 2004, confirming the elasticity of the demand
    for and consumption of thermoplastic resins in relation to the
    Brazilian GDP and reinforcing Braskem's leadership.

--  Braskem's total net revenues in the third quarter of 2004 grew by
    53%, from R$2.2 billion in the third quarter of 2003 to R$ 3.4
    billion in the third quarter of 2004. Gross revenues increased by
    61%, reaching R$4.3 billion in the third quarter of 2004. In the
    nine-month period ended September 30, 2004, net revenues amounted
    to R$8.2 billion, 24% higher when compared to the nine-month
    period ended September 30, 2003. Similarly, gross revenues
    increased by 29%, reaching R$10.6 billion in the nine-month period
    ended September 30, 2004.

--  Complying with its strategic goal of maintaining a structural
    presence in the external market, Braskem exported US$259 million
    in the third quarter of 2004, a 46% increase over the same period
    in 2003. In the nine-month period ended September 30, 2004, export
    revenues increased by 24%, amounting to US$612 million.

--  The record EBITDA of R$744 million reported by Braskem in the
    third quarter of 2004 corresponds to a 61% increase over the same
    period in 2003 and confirms the Company's growing cash generation
    capacity. In the nine-month period ended September 30, 2004,
    EBITDA increased by 44%, amounting to R$1.89 billion, which is
    higher than EBITDA recorded during the entire year of 2003. The
    EBITDA margin, which demonstrates the Company's solid
    profitability, was 22.1% in the third quarter of 2004, compared to
    a 20.9% margin reported during the same period in 2003. This
    strong performance was possible even in a challenging scenario in
    which naphtha prices, which accounts for most of the Company's
    cost of goods sold, reached high levels during the third quarter
    of 2004.

--  Braskem's distinguished operating performance combined with the
    appreciation of the value of the real against the U.S. dollar
    during the third quarter of 2004 and the reduction in interest and
    vendor expenses resulted in net income of R$ 496 million,
    reversing a net loss of R$58 million in the third quarter of 2003.

--  Braskem maintained its focus on reducing and extending its debt
    profile, as well as, on reducing its cost of capital. In the
    twelve-month period ended September 30, 2004, the level of
    Braskem's financial leverage, as measured by its net debt/EBITDA
    ratio, was 2.0x, anticipating a target established for the end of
    2004. Additionally, by September 30, 2004, Braskem's level of cash
    and cash equivalents was above R$3 billion.

--  In the twelve-month period ended Sept, 04, net revenues reached R$
    10.8 billion and EBITDA amounted to R$ 2.35 billion.

Braskem in Figures        3Q04   3Q03  % Chg.   9M04    9M03   % Chg.
                          (A)    (B)   (A)/(B)   (C)     (D)   (C)/(D)
R$ million, except when
 otherwise indicated
------------------------ ------ ------ ------- ------- ------- -------
Gross Revenues           4,335  2,688      61  10,595   8,225      29
------------------------ ------ ------ ------- ------- ------- -------
Net Revenues             3,362  2,203      53   8,246   6,649      24
------------------------ ------ ------ ------- ------- ------- -------
Gross Profit               764    475      61   1,949   1,364      43
------------------------ ------ ------ ------- ------- ------- -------
Gross Margin (%)          22.7   21.6  1 p.p.    23.6    20.5  3 p.p.
------------------------ ------ ------ ------- ------- ------- -------
EBITDA(a)                  744    461      61   1,888   1,315      44
------------------------ ------ ------ ------- ------- ------- -------
EBITDA Margin(%)          22.1   20.9  1 p.p.    22.9    19.8  3 p.p.
------------------------ ------ ------ ------- ------- ------- -------
Net Income (Loss)          496    (58)   na       204     411    na
------------------------ ------ ------ ------- ------- ------- -------

(a) EBITDA = Earnings before interest, taxes, depreciation and
    amortization

Degree of Leverage        3Q04   2Q04   1Q04   % Chg.  % Chg.  % Chg.
                          (A)    (B)     (C)   (A)/(B) (A)/(C) (B)/(C)

------------------------ ------ ------ ------- ------- ------- -------
Net Debt in US$ million  1,665  2,178   2,183      24     (24)     (0)
------------------------ ------ ------ ------- ------- ------- -------
Net Debt in R$ million   4,759  6,768   6,351     (30)    (25)      7
------------------------ ------ ------ ------- ------- ------- -------
Net Debt/EBITDA - LTM(b) 2.03 x 3.28 x 3.42 x     (38)    (41)     (4)
------------------------ ------ ------ ------- ------- ------- -------

(b) LTM = last 12 months

Full earnings release and financial statements in Brazilian Corporate Law can be accessed at the Braskem's website: http://www.braskem.com.br.

Conference Calls and Webcast:

English:    Monday, November 8, 2004
            09:00 a.m. US EST
            12:00 p.m. Brasilia Time
            Tel: [phone] (participants from the USA)
            Tel: [phone] (participants from Brazil)
            Tel: [phone] (participants from other countries)
            ID: 444

Portuguese: Monday, November 8, 2004
            07:00 a.m. US EST
            10:00 a.m. Brasilia Time
            Tel: [phone] (participants from Brazil)
            Tel: [phone] (participants from other
                                     countries)
            ID: 214

Meetings with Investors and Analysts: Sao Paulo (November 10) and Rio de Janeiro (November 12).

For additional information, please contact the Investor Relations Area: Jose Marcos Treiger ([phone], [e-mail]), Luiz Henrique Valverde ([phone], [e-mail]), Vasco Barcellos ([phone], [e-mail]) www.braskem.com.br.