On April 2006, after the success reached with the first bonds issued by La Fabril in April of 2003, the Ordinary General Meeting of Shareholders of La Fabril S.A. approved a Second Issue of Corporate Bonds for an amount of US$ 10.000.000,00 (ten million dollars) to be placed through the Ecuadorian stock market.

“Humphreys S.A. Calificadora de Riesgo”, an international credit rating agency affiliated to Moody’s Investors Service, gave AA rating to the present issue, providing investors with a highly rated investing opportunity in Ecuador.

To calculate the interest generated by the investment, the “Tasa Pasiva Referencial” will be used. This is a competitive investment rate published weekly by the Central Bank of Ecuador. The bonds will bear a margin of three hundred basis points (300 bps) over the mentioned investment rate since the date titles are placed in circulation. Interest will be paid and readjusted every ninety days.

Coupons will make the bond’s principal payments payable to the carrier of the document. Principal payment will be done previous presentation of the respective coupons every ninety (90) days, after the elapsed period of 270 days from the date bond stock was circulated. The maturity term is 1080 days.

General Guarantee is granted to insure the bonds issued according to the Stock Exchange Market Law of Ecuador.

“Casa de Valores Multivalores BG S.A.” was chosen as advisory agent and stockbroker and Banco de Guayaquil S.A. will be the paying agent thru its main office in Guayaquil, and thru the branch offices in the cities of Quito, Cuenca and Manta.

The Representative of the Investors is the Law Firm “Estudio Jurídico Pandzic & Asociados S.A.” based in the city of Guayaquil.

The external auditing firm of La Fabril S.A. is Deloitte & Touche.

The Issue of Corporate Bonds was available for negotiation in the stock market of Ecuador starting June 29 of the 2006 and it was fully sold to investors in the first week.