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<br />The estimated market value of the derivatives covering the exchange of interest rates and/or currencies will fluctuate in time <br />and is determined by futures market price quotations for interest Yates and currencies. These values must be analyzed from the <br />standpoint of the market value of the underlying instruments, and as part of the Company's total exposure with respect to <br />fluctuations in interest rates and exchange rates. Nominal amounts of derivatives do not necessarily represent cash amounts <br />exchanged by the parties and, consequently, there is no direct measurement of the Company's exposure derived from the use <br />of these derivatives. The cash amounts exchanged are determined based on the nominal amounts and other terms specified in <br />........................... <br />the derivatives. <br />Protection against increases in the price of natural gas <br />The Company periodically uses derivatives whose underlying asset is the price of natural gas to limit costs associated with the <br />use of natural gas. At December 31, 2001, the Company has entered into the following transactions covering natural gas, <br />contracted in U.S. dollar. <br />Hedges contracted to date (Fixed price) <br />Volume Contracted Fair <br />Date Mmbtu price value Amount Variances <br />January 2002 54,000 3.502 2.555 137,970 $ (51,138) <br />January 2002 26,ooo 3.615 2.555 66,300 (27,56o) <br />February 2002 81,000 3.470 2.570 208,170 (72,900) <br />Total 16i,ooo _ S (151,598) <br />Hedges contracted to date (Tunnel price) <br />Volume Contracted price Initial Fair <br />Date Mmbtu ceiling now premium value Amount Variances <br />January 2002 62,000 4.00 3.55 0.10 -0.995 (61,69o) i (67,890) <br />January 2002 54,000 3.00 2.15 0.10 -0.100 (5,400) (10,800) <br />February 2002 49,000 3.00 2.15 0.10 -o.o69 (3,381) (8,281) <br />Total 178,000 (70,741) S (87,971) <br />(Thousands of Mexican pesos with purchasing power at December 32, 2002 and thousands of <br />D.S. dollars. except for per share values and exchange rates)