Braskem launched Medium-Term Notes Program

In July 16, 2003, Braskem S.A. launched a US$ 500 million Medium-Term Notes Program.

From July 16, 2003 until October 23, Braskem issued its first tranche of MTNs in the aggregate principal amount of US$121 million with a 10.50% cupom and final maturity in 2004.

In October 28, 2003, Braskem issued the second tranche in the aggregate principal amount of US$65 million with a 9.25% cupom and final maturity in 2005.

In November 5, 2003, Braskem issued a high-yield tranche in the aggregate principal amount of US$200 million with 12.50% and final maturity in 2008.

The value of the Program is up to US$500 million. Already issued: US$386 million.

Pinheiro Neto Advogados acted as Company?s counsel to Brazilian law (partner Fernando Alves Meira, associate Daniel Pita and assistant Lucas Marques Pessoa) According to Daniel Pita, ?When the MTNs program was originally launched in July 2003, the international markets were still restrictive for Brazilian bonds, so the initial tranche was placed through smaller sub-tranches. In October, markets start to be more receptive and Braskem was able to place approximately US$ 300 million. Braskem has been very successful in implementing its consolidation plan, as well as its plan to extend the average life of a significant part of its financial debt. The success of its MTN program is clear evidence that the company is in the right track.?

The main agent for the Program was Credit Suisse First Boston LLC.

As regards each tranche, CSFB acted solely in some sub-tranches of the first tranche . Unibanco Securities Ltd. and Pactual Overseas Corporation participated in one sub-tranche (US$75MM) as agents. For the second tranche UBS Securities LLC was the sole agent. In the third tranche, CSFB appears as Sole-bookrunner while UBS as Co-Manager.

Simpson Thacher & Bartlett LLP (partner Glenn M. Reiter and associates John Ericson and Selina W. Tay) acted as Agents? counsel to US law.

White & Case LLP (partner Donald Baker and associates Miguel Lawson and Fernando de la Hoz) acted as Company?s counsel to US law.

Rodrigo Salles and Susan Barrio were the in-house lawyers working on the transaction.