-- Strong Domestic Economy Drives Market Share for Resins -- Records Net Revenue of R$ 4.4 Billion and EBITDA of R$ 519 Million -- Posts Net Income of R$ 383 million -- Profitability Impacted by Raw Material Costs -- Cost Reduction Efforts Continue

SAO PAULO, Brazil, Aug. 6 /PRNewswire-FirstCall/ -- BRASKEM S.A. (BOVESPA: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK), the leading company in the thermoplastic resins industry in Latin America and third-largest resin producer in the Americas, announced today its results for the second quarter of 2008 (2Q08). The following financial and operating information, unless otherwise indicated, was prepared and presented in accordance to Brazilian GAAP (BR GAAP) and in Brazilian Reais (R$). Additionally, financial statements and operating information consolidate the numbers for Braskem and its subsidiaries. A more detailed review of second quarter results has been filed with the Brazilian Comissao de Valores Mobiliarios ('CVM') and at U.S. Securities and Exchange Commission ('SEC') and can be viewed at Braskem's website www.braskem.com.br.

'The approval of the acquisition of the petrochemical assets of the Ipiranga Group and the consolidation of the outstanding minority interest of a number of important assets previously owned by PETROBRAS allowed Braskem to reinforce its leadership position in the Brazilian petrochemical industry,' commented Bernardo Gradin, Chief Executive Officer of Braskem. 'Domestic demand, fueled by construction and consumer-driven industries, remained strong. However, oil and naphtha price increases in the quarter put pressure on operational margins, leading Braskem to promptly realign its prices and leverage its position in the domestic market. Despite the scheduled maintenance stoppages at the Basic Petrochemicals unit, we delivered results above our internal expectations. As well, we still have teams actively working to capture additional gains related to integration synergies as well as initiatives to control costs in an ongoing effort to improve operational results.'

Financial Highlights

Net revenue in the second quarter was R$ 4.4 billion, declining 11% on a year-over-year basis and flat sequentially with the first quarter of 2008. The decline in net revenue was due to a drop in aromatics sales as well as lower sales volumes for ethylene and propylene due to scheduled maintenance stoppages at the Company's crackers in the Northeastern and Southern petrochemical complexes. The decline was partially offset by an increase in domestic sales volume and improvement in pricing.

Braskem recorded EBITDA of R$ 519 million in 2Q08 and EBITDA margin of 11.8%. Despite the strong sales volume of resins in the domestic market, which grew by 18%, high naphtha costs combined with a decline in sales volume of basic petrochemicals negatively impacted EBITDA. It is expected that Braskem will benefit in the second half of the year from both the realignment of domestic prices with international reference prices and increased sales volumes of basic petrochemicals following the completion of scheduled maintenance stoppages.

As part of Braskem's commitment to improve its competitiveness, in 4Q07 the Company launched a program to reduce fixed costs and expenses, the results of which are being captured in 2008. In 2Q08, selling, general and administrative expenses (SG&A) were R$ 298 million, down R$ 35 million in relation to 2Q07. In the first half of 2008, SG&A expenses were R$ 559 million, contracting by R$ 118 million in relation to 1H07, demonstrating the positive results of this program.

Braskem net income was R$ 383 million in 2Q08, a 36% increase on a year-over-year basis and a 362% sequential increase over 1Q08, driven primarily by the positive impact from foreign exchange variation.

Outlook

The global macroeconomic scenario continues to be positively influenced by emerging economies, yet the expectation of a slowdown of the U.S. economy, which has been showing signs of slowdown, has increased. These factors combined are expected to result in global economic growth of approximately 4% in 2008. In this context, Braskem believes that new capacity globally will come on line at a more gradual pace than previously estimated by the market, allowing the spread between resin and naphtha prices to remain high through 2008.

Braskem expects Brazilian GDP to grow by 4.5% in 2008 driven by stronger domestic demand for goods and services as a result of the higher disposable income and the greater availability of credit at longer terms. Under these assumptions, and in view of the growth observed in 1Q08, the Brazilian market for thermoplastics resins should grow between 10% and 12% in 2008.

Braskem intends to advance in its growth with value creation strategy. Its priorities are the capture of synergies through consolidation of Brazil's petrochemical industry, diversification of the energy matrix through access to competitive raw materials, and innovation, by advancing the project for green polymers made from renewable raw materials as well as other initiatives. The Company has made important steps in the second quarter towards meeting these objectives and expects to make further progress in the second half of the year.

Among the expansion projects designed to increase competitiveness by gaining access to competitive raw materials are two joint ventures with Pequiven in Venezuela.