FERNANDO RAUL MIELI Tel 55 11 4478 1646

FERNANDO RAUL MIELI Tel: 55. 11. 4478 -1646 Fax: 55. 11. 4478 -1500 E-mail: fernandomieli@pqu. com. br http// www. pqu. com. br PETROQUÍMICA UNIÃO S. A. MAY/2002

SELECTED LATIN AMERICAN ECONOMIES BY SIZE Sources: IMF, World Bank, Quimax Analysis According to latest reports form the International Monetary Fund (IMF), Latin America’s GDP reached US$ 1, 9 trillion in 2001. MAY/2001

ECONOMIC INDICATORS ECONOMY MARKET WATCH Source: Quimax Analysis MAY/2001

PQU is one of three basic petrochemical producers in Brazil and is located. . . MAY/2001

BRAZIL PQU 2003 MAY/2002

THE BRAZILIAN PETROCHEMICAL CAPACITY (KMT / year of ethylene) MAY/2001

Plastics per Capita (kg/hab) EUA TAIWAN JAPAN SOUTH KOREA CANADA WEST EUROPE ARGENTINA MEXICO BRAZIL EAST EUROPE CHINA 0 20 40 60 80 100 120 140 MAY/2001

THE BRAZILIAN NAPHTHA BRAZIL 19% 2% BRASKEN 22% (COPENE) PQU COPESUL 56% 59% Local Supplying 5% 95% Domestic Supplying 42% Foreign Supplying MAY/2001

SÃO PAULO PETROCHEMICAL COMPLEX GRANDE ABC W. M. UNIPAR PQU OXICAP POLIBRASIL CHEVRON OXITENO CABOT VITOPEL PEU UNIPAR RECAP / PETROBRAS PISCINÃO COPAS PHILIPS CIAS DE GÁS MAY/2001

SÃO PAULO COMPLEX PQU has a secure supply of 4, 600, 000 tons/year of naphtha, while consuming 1, 800, 000 tons/year. São José dos Paulínia REPLAN Campos São Paulo Metropolitan Region • Polibutenos São Paulo Capuava Cubatão • CBE Naphtha Pipelines • DOW (Union Carbide) Ports • Carbocloro • Oxiteno • Polietilenos União RECAP Mauá • Unipar Div. Química Petroquímica União Ethylene Pipelines • Cabot • Polibrasil Resinas Santo André Petrobras Refineries REVAP RPBC 55 km TEBAR • Solvay Polietileno • Solvay Indupa do Brasil SEBAT Santos São Sebastião MAY/2002

THE BRAZILIAN PETROCHEMICAL INDUSTRY Ø The investments were promoted by government in the 70’s; Ø Three plants basic petrochemical producers were respectively: PQU, COPENE (Braskem), COPESUL; Ø Second generation (composed by the those who transform the raw materials - e. g. polymers producers); Ø Third generation (transformers-final products to the market). Ø PQU was the first petrochemical raw materials cracker plant in Brazil. Ø Now there are three major producers located in the South (the Southern Complex), the Southeast (the PQU Complex), and the Northeast (the Northeastern Complex). MAY/2002

PQU is located in the richest and most industrialized region in Brazil, accounting for 65% of the country’s GDP (Gross Domestic Product) of US$ 500 billion. ÖThe Region accounts for the consumption of 75% of petrochemicals. MINAS GERAIS BELO HORIZONTE ESPÍRITO SANTO VITÓRIA SÃO PAULO RIO DE JANEIRO ÖPQU supplies around 30% of the region’s petrochemicals demand. ÖThe total market net sales = US$ 18, 7 billion (source: ABIQUIM/2002). ÖThe region’s market net sales = US$ 14, 7 billion. MAY/2002

PQU CAPACITY PRODUCTS ETHYLENE PROPYLENE BUTADIENE BENZENE CARBON BLACK FEED STOCK SOLVENTS GASOLINE OTHER TOTAL PQU CAPACITY ( kt / yr) 500 250 80 200 120 180 20 170 1, 520 MAY/2001

PETROQUÍMICA UNIÃO S. A. UNITS Raw Materials Products Processing Butadiene Extraction Naphtha Pyrolysis Hydrocarbon Resins NAPHTHA Hydrotreatment and Catalytic Reforming Aromatics Extraction Naphtha Fractionation Xylenes Isomeratizion Heavy Alkylate PIB Pyrolysis Gasoline Hydrogenation Hydrodealkilation Aromatics Fractionation Aromatics Solvents • Butadiene • Raffinate I • Polyisobutylene • Raffinate II • “Unilene” Resins • • • Ethylene Propylene Chemical Grade Propylene Polymer Grade Carbon Black Feedstock Hydrogen • C 5 • C 9 + • Benzene • • Benzene Toluene Xylenes (mix) Ortho Xylene • C 9 Solvents • C 10 Solvents • C 11 Solvents • Light Residue MAY/2001

THE SÃO PAULO PETROCHEMICAL MARKET PETROBRAS - RPBC / REPLAN / REVAP / RECAP NAPHTHA PETROQUÍMICA UNIÃO S. A. ETHYLENE 500, 000 tpy DOW(UNION CARBIDE) LDPE C 4 STREAM 99, 000 tpy PROPYLENE 250, 000 tpy POLIBRASIL RESINAS POLIBUTENOS UNIPAR DIV. QUÍMICA LDPE EVA NONENE /TETRAMER CUMENE OXITENO ETHYLENE OXIDE ETHYLENEGLYCOLS BENZENE 200, 000 tpy PETROFLEX SBR LÁTEX PP PIB POLIETILENOS UNIÃO BUTADIENE 80, 000 tpy ELEKEIROZ MALEIC ANHYDRIDE DOW LATEX PS exp IQT PHENOL / BPA NYLON BAYER LÁTEX ANILINE NITRIFLEX CABOT PHTHALATES TOLUENE 75, 000 tpy XILENES 80, 000 tpy C 9/10/11 20, 000 tpy STYRENE MONOMER SOLVENTS AND SULFONATION BASF RESINOR VCM SOLVAY INDUPA (ARG) PS exp LATEX TRIKEM - SP PVC VCM PS GASOLINE 180, 000 tpy DISTRIBUTION GLP 50, 000 tpy PET UNILENE RESINS 12, 000 tpy RHODIACO PTA TR SM TRIKEM- (AL) COLUMBIAN RHODIA-STER KRATON SOLVAY POLIETILENO CARBON BLACK NBR LÁTEX CBE HDPE PHTHALIC ANHYDRIDE CARBON BLACK PHTHALIC ANHYDRIDE RHODIA EDC VCM PVC PETROM LATEX CARBOCLORO SOLVAY INDUPA CARBON BLACK FEEDSTOCK 120, 000 tpy O-XYLENE 50, 000 tpy EDN (BA) EDN-SUL PS PAINTING INKS, ADHESIVES, RUBBER P-XYLENE MAY/2002 COPENE (BA)

MARKET OF PQU’s PRODUCTS Paint and Vernishes 0, 9% Plasticizers 3, 1% Solvents 4, 4% Adhesives 0, 2% Others 13, 6% Plastics 39, 3% Rubbers 4, 2% Sinthetic fibers 8, 4% Intermediate chemicals 25, 8% MAY/2001

BRAZILIAN MARKET-SHARE 2002 MAY/2002

PQU Composed by Shareholders MAY/2002

PQU Personnel/million ton of chemicals produced Source: Solomon Associates MAY/2002

PQU Total Sales MAY/2001

PQU Business Opportunities Ö The production capacity Ö Infra-structure üNew water supply system üPower Generation Ö Integration Upstream and Downstream MAY/2002

PQU PROJECT NATURAL GAS 301 KTA 1. 280. 000 m 3/day NATURAL GAS 56 KTA 240. 000 m 3/day REVAP RECAP FCC OFF GAS 353 KTA ETHYLENE 200 KTA BYPRODUCTS 191 KTA PETROQUIMICA UNIAO IMPORTED NAPHTHA 208 KTA • Natural Gas consumption in Refineries: 357 KTA or 1. 520. 000 m 3/day • Natural Gas substitution at PQU: 61 KTA or 375. 000 m 3/day • Natural Gas additional consumption (from BOLIVIA): 296 KTA or 1. 145. 000 m 3/day. MAY/2001

PROJECT INVESTMENT PETROBRAS/REVAP Pre-treatment + Compression TOTAL 16 16 PETROQUIMICA UNIÃO Modifications in Olefins Unit 35 FCC Off Gas Treatment Unit 53 105 Km pipe from REVAP to PQU 20 Modifications in Aromatics Unit 10 Modifications in Utilities Unit Contingencies: 10% + Working Capital TOTAL INVESTMENT PREDICTED 144 5 21 160 Values in millions of dollars MAY/2001

PQU PROJECT SCHEDULE 1. Comercial Negotiations: end of 2003 2. Basic Engineering: feb/2004 3. EPC Contract: may/2004 4. Previous Enviromental License: jul/2004 5. Construction start: nov/2004 6. Plant Start up: jun/2007 MAY/2001

PQU BALANCE SHEETS AS OF DECEMBER 31, 1999, 2000, 2001, 2002 and Sept/2003 In thousands of reais - R$ MAY/2001

PQU BALANCE SHEETS AS OF DECEMBER 31, 1999, 2000, 2001, 2002 and Sept/2003 In thousands of reais - R$ MAY/2001

PQU Financial MAY/2001

PQU PROFITABILITY EVOLUTION MAY/2001

PQU Index MAY/2001

PQU P&L STATEMENTS For the years ended DECEMBER 31, 1999, 2000, 2001, 2002 and Jan/Sept. 2003 In thousands of reais - R$ MAY/2001

PQU Sales and Profits R$ million MAY/2001

PQU EBITDA MAY/2001

PQU EBITDA/Net Sales MAY/2001

PQU ADDED VALUE MAY/2001

PQU VALUE ADDED – APROPRIATION R$ million MAY/2002

PQU considers environmental protection a priority F F F PQU is a sponsor of the Responsible Care Program. The Company made substantial investments, around US$ 56 million, to keep its plant and operations in compliance with environmental laws and regulations. The Company now is fully compliant with the State of São Paulo’s Environment Protection Authority. MAY/2002

PQU PETROQUÍMICA UNIÃO S. A. Av. Presidente Costa e Silva, 1178 09270 -901 Santo André - São Paulo - Brazil Tel: 55. 11. 4478 -1515 Fax: 55. 11. 4478 -1500 E-mail: pqu@pqu. com. br http// www. pqu. com. br MAY/2001