US EX IM BANK Medium-Term Guarantee Program Enrique Nieto Investment Projects Director Nafinsa December 2006

Nacional Financiera, S.N.C. Development Banking Institution Nacional Financiera, (Nafinsa) is a Development Banking Institution that operates in accordance with the Law of Credit Institutions, and rules by the National Banking Securities (NBSC). Objectives: promote the development and modernization of the industrial sector; stimulate the development of financial markets and act as financial agent of the Federal Government in securing credits from abroad. Main sources of resources: loans from international development institutions such as the International Bank for Reconstruction and Development (IBRD) and the Inter-American Development Bank (IDB), lines of credit from foreign banks and the placement of securities in the international and domestic markets. Nafinsa’s Organic Law establishes that the Mexican Nation will respond at all times for the transactions carried out by them with the guarantee of the Federal Government, for transactions with foreign institutions and for the deposits received in terms of such Law.

NAFINSA-Ex Im Bank Nafinsa and Ex Im Bank’s Medium-Term Guarantee Program

Financiamiento Estructurado US EX IM BANK Medium-Term Guarantee Program Program’s objective Based on the Guarantee issued by EX IM BANK, NAFIN will provide a credit to the SME’s Ex-Im Bank cover is for the lesser of 85% of the net contract price or 100% of the U.S. Content Elegibility criteria: credit / commercial Risk mitigation Financing elegible companies US imports What? How ? What for?

Financiamiento Estructurado Current financial statements of the company and audited financial statements for the past three years Credit analysis based on US EX IM BANK elegibility criteria. Information of the supplier and information of the commercial transaction Required information from buyer US EX IM BANK Medium-Term Guarantee Program

Listed Performance Criteria is met: A.Positive operating profit and net income in the last 2 years. B. Positive cash from operations last year. C. EBITDA/debt service is at least 1.5 for last year. (including Ex-Im Bank debt if more than 25% of total debt) D. Total liabilities (w/o/ Ex-Im Bank debt) do not exceed 1.75 times tangible net worth at end of last year. E. Ex-Im Bank exposure does not exceed 40% of tangible net worth at end of last year. F. Interim statements disclose no significant adverse change in financial position. EXIMBANK Elegibilty criteria US EX IM BANK Medium-Term Guarantee Program

Evidence of the 15% down payment Formalization of the Letter of Credit or reimbursement request. Copy of the invoice issued by the US supplier. Copy of the Bill of Lading. Original of the Exporter’s Certificate, according to the Ex Im Bank format Provisory Note according to the Us Ex Im Bank format. Credit agreement between SME and NAFINSA EX IM BANK Disbursement/ Guarantee US EX IM BANK Medium-Term Guarantees Program

What is expected from: - AMT Member – Start thinking of the financing process early. Issue financial proposal with quote. -Customer – Supply credit information on a timely basis. -Customer’s Local Bank (limited involvement) – Formal letter detailing customer’s credit history and financial performance with the institution. (Good bank references). -Nafinsa – Perform the risk assessment, provide funds, and manage de financing process with the Exim Bank to expedite approval on a case by case basis -Exim Bank – Issue loan guarantee and credit insurance

Enrique Nieto Phone: Nafinsa Mexico City