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Methanex Continues to Produce Strong Financial Results

July 21, 2003

NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  METHANEX CORPORATION

TSX SYMBOL:  MX
NASDAQ SYMBOL:  MEOH

JULY 21, 2003 - 21:33 ET

Methanex Continues to Produce Strong Financial Results

VANCOUVER, BRITISH COLUMBIA--Methanex Corporation recorded net 
income of US$49.9 million (US$0.39 per share) and generated 
EBITDA(1) of US$100.6 million for the second quarter ended June 
30, 2003. The second quarter 2003 results compare to net income 
of US$75.5 million (US$0.60 per share) and EBITDA of US$125.1 
million for the first quarter 2003, and to net income of US$15.7 
million (US$0.12 per share) and EBITDA of US$52.0 million for the 
same period in 2002. 

Pierre Choquette, President and CEO of Methanex commented, "We 
are pleased to have produced another quarter of strong earnings, 
with EBITDA once again in excess of US$100 million, despite a 
dynamic and challenging cost environment. The high natural gas 
prices witnessed in North America so far this year negatively 
impact the cost structure of our Kitimat production facility, and 
in the second quarter, an unusually high proportion of our total 
sales were sourced from this high cost plant. In addition, our 
second quarter costs increased to reflect higher feedstock costs 
and substantially reduced production at our New Zealand 
facilities following the recent Maui natural gas contract 
re-determination. Our Q2 results also reflect higher losses due 
to a greater reliance on the sale of product purchased to meet 
customer commitments. Lastly, natural gas costs in Chile rose 
this quarter as they are adjusted by a formula related to the 
price of methanol."  

Mr. Choquette followed, "Our average realized methanol price for 
the second quarter 2003 was US$240 per tonne compared with US$223 
per tonne for the previous quarter and US$138 per tonne for the 
second quarter 2002. By the end of the second quarter, strong 
industry operating performance and lacklustre demand reduced some 
of the pressure on the supply/demand balance that was building 
over the last several quarters. Methanol prices are slightly 
lower as we enter the third quarter, however, pricing remains 
strong and underlying industry fundamentals are still sound with 
no new supply expected to impact the market in 2003. Currently, 
in the United States, the Methanex non-discounted reference price 
for July 2003 is US$258 per tonne (US$0.78 per gallon). In 
Europe, the third quarter contract transaction price was settled 
at EURO 225, before discounts, or approximately US$256 per tonne 
(US$0.77 per gallon)." 

Mr. Choquette continued, "We are also pleased to have been able 
to complete two major transactions during the quarter designed to 
benefit Methanex and our shareholders for many years to come. 
First, we acquired the remaining 90% interest in the low cost, 
850,000 tonne per year Titan methanol facility in Trinidad that 
we did not already own for approximately US$74 million and we 
repaid approximately US$29 million of limited recourse long-term 
debt related to the Titan plant. Secondly, our largest 
shareholder, NOVA Chemicals Corporation (NOVA), decided to sell 
its stake in Methanex. NOVA sold roughly 37.9 million Methanex 
shares through a secondary offering and subsequently, with the 
overwhelming support of our shareholders, we repurchased 9.0 
million shares from NOVA at US$9.85 per share. We believe this 
targeted buyback represents an excellent investment and a good 
use of excess cash. The secondary offering and subsequent share 
repurchase combine to not only reduce total shares outstanding, 
but we believe allow our shareholders to enjoy improved liquidity 
due to the increase in the public float." Mr. Choquette added, 
"With US$285 million of cash on hand at the end of the second 
quarter 2003 and our undrawn US$291 million credit facility, we 
continue to enjoy a strong and flexible financial position. We 
have the financial capacity to complete our capital maintenance 
spending program, fund the remaining equity contribution for 
Atlas, complete the construction of Chile IV and pursue new 
opportunities to enhance our strategic position in methanol. In 
addition, we remain committed to returning excess cash to 
shareholders." 

Mr. Choquette concluded, "We are very optimistic about our 
potential to generate substantial cash over the coming years. 
Over the next eighteen months, with the addition of the 1.7 
million tonne per year Atlas methanol facility in Trinidad and 
completion of our 840,000 tonne per year Chile IV project, a 
significantly larger portion of our sales will be satisfied by 
our own low cost production." 

A conference call is scheduled for Tuesday, July 22 at 11:00 am 
EDT (8:00 am PDT) to review these second quarter results. To 
access the call, dial the Telus Conferencing operator ten minutes 
prior to the start of the call at (416) 883-0139, or toll free at 
(888) 458-1598. The security passcode for the call is 75577. A 
playback version of the conference call will be available for 
seven days at (877) 653-0545. The reservation number for the 
playback version is 167821. There will be a simultaneous 
audio-only webcast of the conference call, which can be accessed 
from our website at www.methanex.com. 

Methanex is a Vancouver based, publicly-traded company engaged in 
the worldwide production and marketing of methanol. Methanex 
shares are listed for trading on the Toronto Stock Exchange in 
Canada under the trading symbol "MX" and on the Nasdaq National 
Market in the United States under the trading symbol "MEOH." 

(1) For a definition of EBITDA, please refer to "Additional 
Information - Supplemental Non-GAAP Measures" at the end of this 
Interim Report. 

Information in this news release and the attached management's 
discussion and analysis may contain forward-looking statements.  
By their nature, such forward-looking statements involve risks 
and uncertainties that could cause actual results to differ 
materially from those contemplated by the forward-looking 
statements. They include world-wide economic conditions, the 
availability and cost of gas feedstock, the ability to implement 
business strategies and pursue business opportunities, conditions 
in the methanol and other industries including the supply and 
demand for methanol and the risks attendant with producing and 
marketing methanol, integrating acquisitions and realizing 
anticipated synergies and carrying out major capital expenditure 
projects.  Please also refer to page 40 of our 2002 Annual Report 
for more information on forward-looking statements. 


/T/

Interim Report
For the six months ended June 30, 2003

At June 30, 2003, the number of common shares outstanding was 
119,111,817.

Contact Information
Methanex Investor Relations
1800 - 200 Burrard Street
Vancouver, BC Canada V6C 3M1

Share Information

Methanex Corporation's common shares are listed for trading on the 
Toronto exchange under the symbol MX and on The Nasdaq Stock Market 
under the symbol MEOH.

Transfer Agents & Registrars

CIBC Mellon Trust Company
393 University Avenue, 5th Floor
Toronto, Ontario, Canada M5G 2M7
Toll free in North America:
1-800-387-0825

Investor Information

All financial reports, news releases and corporate information can be 
accessed on our web site at www.methanex.com. 

E-mail:
invest@methanex.com

Methanex Toll-Free:
1-800-661-8851

/T/

Management's Discussion and Analysis 

Except where otherwise noted, all currency amounts are stated in 
United States dollars. 

This second quarter 2003 Management's Discussion and Analysis 
should be read in conjunction with the annual consolidated 
financial statements and the Management's Discussion and Analysis 
included in the 2002 Annual Report. 


/T/

--------------------------------------------------------------------
                               2003                         2002    
                    Three      Three        Six      Three       Six
($ millions,       months     months     months     months    months
 except             ended      ended      ended      ended     ended
 where noted)     June 30   March 31    June 30    June 30   June 30
--------------------------------------------------------------------
Sales volumes
 (thousands of
 tonnes) 
Company
 produced 1         1,211      1,194      2,405      1,489     2,920
Purchased and
 commission           387        510        897        312       664
--------------------------------------------------------------------
                    1,598      1,704      3,302      1,801     3,584
Average
 realized
 methanol price
 ($ per tonne)    $   240    $   223    $   232    $   138   $   125
Net income
 (loss)           $  49.9    $  75.5    $ 125.4    $  15.7   $  (1.7)
Operating
 income           $  79.3    $ 102.3    $ 181.6    $  23.1   $   5.6
EBITDA 2          $ 100.6    $ 125.1    $ 225.7    $  52.0   $  62.6
Cash flows
 from operating
 activities 3     $  86.6    $ 111.5    $ 198.1    $  46.5   $  56.5
Basic net
 income (loss)
 per share        $  0.39    $  0.60    $  0.99    $  0.12   $ (0.01)
Number of
 common shares
 outstanding
 (millions of
 shares)            119.1      126.5      119.1      125.7     125.7
Weighted
 average number
 of common
 shares
 outstanding
 (millions of
 shares)            127.1      125.9      126.5      127.0     128.3
--------------------------------------------------------------------

1 Company produced product sales volume includes approximately 90,000
  tonnes of product purchased with the May 1, 2003 acquisition of the
  Titan Methanol Company.

2 EBITDA differs from the most comparable GAAP measure, cash flows
  from operating activities, primarily because it does not include
  changes in non-cash working capital and the utilization of prepaid
  natural gas, cash flows from interest, income taxes, asset
  restructuring charges and other unusual items. For a reconciliation
  of cash flows from operating activities to EBITDA, refer to
  "Additional Information Supplemental Non-GAAP Measures" at the end
  of this Interim Report.

3 Before changes in non-cash working capital and the utilization of
  prepaid natural gas. 
--------------------------------------------------------------------

/T/

Continued Strong Financial Results 

For the second quarter ended June 30, 2003, we recorded net 
income of $49.9 million ($0.39 per share) and EBITDA of $100.6 
million. This compares to net income of $75.5 million ($0.60 per 
share) and EBITDA of $125.1 million for the first quarter ended 
March 31, 2003 and net income of $15.7 million ($0.12 per share) 
and EBITDA of $52.0 million for the second quarter ended June 30, 
2002. For the six-month period ended June 30, 2003, we recorded 
net income of $125.4 million ($0.99 per share) and EBITDA of 
$225.7 million compared with a net loss of $1.7 million and 
EBITDA of $62.6 million for the same period in 2002. 

During the second quarter of 2003, we acquired the remaining 90% 
interest in the 850,000 tonne per year Titan Methanol Company 
facility in Trinidad ("Titan") for $74 million. Previously, we 
had a 10% interest in Titan and marketed its entire production on 
a commission basis. Effective May 1, 2003, we are consolidating 
the results of Titan. During the second quarter of 2003, sales of 
approximately 100,000 tonnes of Titan product, primarily product 
acquired at an assigned fair value upon acquistion, contributed 
approximately $7 million in EBITDA. The full impact from the 
production and sale of Titan product will be reflected in our 
third quarter results. 

EBITDA 

The change in EBITDA resulted from: 


/T/

                            Q2-2003         Q2-2003      YTD Q2-2003
                      compared with   compared with    compared with
($ millions)                Q1-2003         Q2-2002      YTD Q2-2002
--------------------------------------------------------------------
Higher realized price of
 produced methanol               19             125              262
Higher cash cost                (39)            (49)             (62)
Higher (lower) sales volume
 of produced methanol             1             (15)             (20)
Lower margin on the sale of
 purchased methanol              (6)            (12)             (17)
--------------------------------------------------------------------
Increase (decrease) in
 EBITDA                         (25)             49              163
--------------------------------------------------------------------

/T/

Higher realized price of produced methanol - Methanol prices are 
characterized by volatility and are affected by the methanol 
supply/demand balance, which is influenced by global industry 
capacity, industry operating rates and the strength of demand. 
Methanol prices are also underpinned by North American natural 
gas prices. 

Tight market conditions combined with high North American natural 
gas prices resulted in higher prices during the second quarter of 
2003 compared with the previous quarter. Our average realized 
price for the second quarter of 2003 was $240 per tonne compared 
with $223 per tonne for the first quarter of 2003 and $138 per 
tonne for the second quarter of 2002. The higher average realized 
price for produced methanol increased EBITDA by $19 million in 
comparison with the first quarter of 2003 and increased EBITDA by 
$125 million in comparison with the second quarter of 2002. The 
average realized price for the six-month period ended June 30, 
2003, was $232 per tonne compared with $125 per tonne for the 
same period in 2002 and this increased EBITDA by $262 million. 

Higher cash cost - The most significant components of our cash 
costs are natural gas and distribution costs associated with 
delivering methanol to customers from our production facilities. 
We purchase natural gas for our Kitimat facility on a short-term 
basis and the purchase price is set in a competitive market that 
can fluctuate widely. Natural gas costs for our Chilean facility 
are adjusted by a formula related to methanol prices on a 
twelve-month trailing average basis. We purchase natural gas in 
New Zealand through a combination of take-or-pay supply contracts 
and other purchase contracts. In Trinidad, we purchase natural 
gas through a take-or-pay supply contract and prices are adjusted 
by a formula related to methanol prices on a quarterly basis. 

Our cash costs for the second quarter of 2003 increased by $39 
million compared with the first quarter of 2003. Approximately 
half of the increase in cash costs is related to higher natural 
gas costs in Chile, North America and New Zealand. The remaining 
increase in cash costs is due primarily to higher sales volumes 
of production from our high cost Kitimat facility during the 
quarter, increasing our average cost per tonne, and other costs 
impacted by methanol prices. 

Our cash costs for the second quarter of 2003 increased by $49 
million compared with the second quarter of 2002 and increased by 
$62 million for the six-month period ended June 30, 2003 compared 
with the same period in 2002. Approximately half the increase for 
both periods is due to higher natural gas costs in Chile, New 
Zealand and North America. The remaining increase is primarily 
due to higher import duties and other costs impacted by methanol 
prices and increased ocean freight costs as a result of higher 
fuel costs. 

Higher (lower) sales volume of produced methanol - Our sales 
volume of produced methanol in 2003 has been impacted by lower 
production from our facilities in New Zealand. The acquisition of 
Titan, effective May 1, 2003, has now provided us with an 
additional source of produced product. After taking into account 
the Titan acquisition, higher sales volume of produced methanol 
increased EBITDA for the second quarter of 2003 by $1 million 
compared with the first quarter of 2003. Lower sales volume of 
produced methanol decreased EBITDA for the second quarter of 2003 
by $15 million compared with the second quarter of 2002 and 
decreased EBITDA by $20 million for the six-month period ended 
June 30, 2003 compared with the same period in 2002.  

Lower margin on the sale of purchased methanol - We incurred a 
loss of $10 million on the sale of approximately 332,000 tonnes 
of purchased methanol in the second quarter of 2003 compared with 
a loss of $4 million in the first quarter of 2003 and income of 
$2 million in the second quarter of 2002. For the six-month 
period ended June 30, 2003, we incurred a loss of $14 million on 
the sale of approximately 643,000 tonnes of purchased methanol 
compared with income of $3 million for the same period in 2002. 

Depreciation and Amortization 

Depreciation and amortization expense for the second quarter of 
2003 was $21 million compared with $29 million for the same 
period in 2002. For the six-month period ended June 30, 2003, 
depreciation and amortization expense was $44 million compared 
with $57 million for the same period in 2002. Depreciation 
expense was lower due primarily to reduced sales volume of 
produced product. In addition, we wrote-off our Fortier facility 
during the fourth quarter of 2002 and this has resulted in lower 
depreciation expense for 2003. 

Interest Expense and Interest and Other Income 


/T/

                           Three       Three         Six         Six
                          months      months      months      months
                           ended       ended       ended       ended
Interest expense         June 30,    June 30,    June 30,    June 30,
($ millions)                2003        2002        2003        2002
--------------------------------------------------------------------
Interest expense before
 capitalized interest     $   14      $    9     $    25      $   17
Less: capitalized
 interest                     (4)         (2)         (8)         (4)
--------------------------------------------------------------------
Interest expense          $   10      $    7     $    17      $   13
--------------------------------------------------------------------

/T/

The increase in interest expense, net of capitalized interest, 
relates primarily to an increase in the level of long-term debt. 

Interest and other income - Interest and other income for the 
second quarter of 2003 was $4 million compared with $4 million 
for the same period in 2002. For the six-month period ended June 
30, 2003, interest and other income was $8 million compared with 
$6 million for the same period in 2002.  

Income Taxes 

The effective income tax rate for the second quarter ended June 
30, 2003 was 33% compared with 24% for the same period in 2002. 
The proportion of income earned in regions where we record 
accounting income taxes impacts our effective income tax rate. 
During the second quarter of 2003 we earned a higher proportion 
of our earnings from product produced in Chile, where we record 
accounting income taxes, and this resulted in a higher effective 
tax rate compared with 2002. 


/T/

Operating Performance

(thousands     Quarterly
 of tonnes,    Operating     Q2-2003      % of     Q1-2003      % of
 except         Capacity  Production  Capacity  Production  Capacity
 percentages)  
--------------------------------------------------------------------
Titan 1              142         153       108%          -       n/a
Chile                750         732        98%        708        94%
New Zealand          608         225        37%        356        59%
Kitimat              125         122        98%        127       102%
--------------------------------------------------------------------
                   1,625       1,232        76%      1,191        80%
--------------------------------------------------------------------

1 Prorated quarterly production capacity from May 1, 2003. Annual
  operating capacity for Titan is 850,000 tonnes.

/T/

We continue to achieve excellent operating performance at our 
facilities. For the second quarter of 2003 we operated our 
Kitimat, Chilean and Trinidad facilities at 99% of their combined 
capacity compared with 95% during the first quarter of 2003. 
Production from our New Zealand facilities was reduced to 37% of 
capacity for the second quarter due to gas supply constraints. 

The Maui natural gas field has been the primary source of natural 
gas for our New Zealand facilities. A contractual process was 
initiated in December 2001 to re-determine the economically 
recoverable reserves in the Maui field. On February 6, 2003, a 
final determination report of the economically recoverable 
reserves in the Maui field was released and based on this report 
we have lost substantially all of our remaining contractual 
entitlements from this field. Natural gas exploration in New 
Zealand is ongoing and we are continuing to pursue acquisitions 
of additional gas to supplement contracted gas. However, there 
can be no assurance that we will be able to secure additional gas 
on commercially acceptable terms. Based on currently contracted 
gas, we estimate that the New Zealand facilities will produce 
approximately 0.4 million tonnes during the remainder of 2003. 

Supply/Demand Fundamentals  

Supply disruptions during 2002 resulted in tight market 
conditions and increased prices leading into 2003. Industry 
supply constraints have sustained this favourable methanol 
pricing environment during the first half of 2003 despite weak 
global demand. Strong industry operating performance, reduced 
demand as a result of the phase-out of MTBE by California 
gasoline producers, and a weak global economy, particularly in 
Asia, has resulted in slightly lower methanol prices as we enter 
the third quarter of 2003. However, methanol prices remain strong 
and underlying industry fundamentals remain sound with no new 
supply expected to impact the market in 2003. We believe that any 
significant improvement in global economic activity or supply 
disruptions could result in extremely tight methanol market 
conditions. 

The Methanex non-discounted U.S. reference price for July 2003 is 
$258 per tonne ($0.78 per gallon) a decrease of $15 per tonne 
($0.045 per gallon) over April 2003. In Europe, the third quarter 
contract transaction price was settled at EURO 225 before 
discounts (US$256 per tonne at the time of settlement), a 
decrease of EURO 35 per tonne compared with second quarter. 
Currently, spot prices in the United States are approximately 
$213-216 per tonne ($0.64-0.65 per gallon). Prices in Asia are 
currently between $223 and $237 per tonne. 

We expect that the 1.7 million tonne Atlas methanol facility, a 
joint venture with BP in which we have a 63.1% interest, will be 
the first increment of new capacity in 2004. Atlas will provide 
us with production capacity to replace lost production from our 
New Zealand facilities. We also continue to expect higher-cost 
North American capacity to shut down. During 2004, we will have 
certain production rights to Lyondell's 750,000 tonne per year 
methanol facility in Texas. NPC in Iran is also planning for new 
capacity in 2004. 

Low-cost Methanol Capacity Under Development 

Low-cost methanol production capacity - Construction of Atlas is 
continuing and we expect this facility to start production during 
the first part of 2004. With the acquisition of Titan, which is 
adjacent to Atlas, we have established a Trinidad production hub 
underpinned by long-term natural gas contracts. These facilities 
will provide us with low cost, duty-free supply to North America 
and Western Europe.  

Chile IV, an 840,000 tonne per year expansion to our low-cost 
Chilean methanol production facility, is progressing and we 
expect to complete construction in early 2005.  

Earlier in the year we announced that we were re-examining our 
proposed 2.0 million tonne per year methanol project in Northwest 
Australia. Northwest Australia remains an attractive location to 
build a methanol plant and we are continuing to evaluate several 
alternatives for a methanol plant in Northwest Australia, 
including installing capacity in smaller increments over time.  

Other Strategic Initiatives 

In late 2002, we entered into an agreement to acquire Lyondell's 
customer list and a number of customer contracts in North 
America. During the second quarter of 2003, in accordance with 
the agreement, we paid $10 million for these assets. In a 
separate transaction we also acquired the North American methanol 
marketing business and customer list of Solvadis Chemag AG, for 
$5 million. 

On July 1, 2003, we acquired the Kitimat, British Columbia 
ammonia production assets of Pacific Ammonia Inc. (PAI) for $20 
million. This consideration will be paid in installments over the 
period to December 31, 2005. Under the previous ownership 
structure, we had an obligation to supply by-product hydrogen 
from the methanol production process to PAI for the production of 
ammonia. The purchase of the ammonia production assets of PAI 
provides us with future operating flexibility at our Kitimat 
plant. As part of the acquisition we entered into an agreement to 
supply Mitsui & Co., Ltd. with 100% of the ammonia produced 
through the end of 2005, during which time Methanex is not 
subject to cost or market risk. 

Liquidity and Capital Projects 

Cash flows from operating activities before changes in non-cash 
working capital and the utilization of prepaid natural gas in the 
second quarter of 2003 were $87 million compared with $46 million 
for the same period in 2002. 

During the second quarter of 2003, NOVA Chemicals sold its 
ownership interest in Methanex at a price of $9.85 per share. The 
sale was completed in part through a secondary offering of 37.9 
million shares and in part through a share repurchase by Methanex 
of the remaining 9.0 million shares, for a cost of $89 million. 
We believe that this targeted buyback was an excellent investment 
and a good use of excess cash. These transactions benefit our 
shareholders by reducing the number of common shares outstanding 
and improving the liquidity of our stock.  

We acquired Titan in May 2003 for $74 million. We also repaid $29 
million of Titan's limited recourse long-term debt. Total limited 
recourse long-term debt of Titan at June 30, 2003 was $194 
million, including $19 million in principal due over the next 12 
months. 

Our proportionate share of capital expenditures during the second 
quarter of 2003 for the Atlas methanol project, was $15 million. 
Our share of the amount drawn on the Atlas joint venture debt 
facilities during the second quarter was $6 million and our 
estimated remaining equity contribution to complete the 
construction of Atlas and fund other related commitments is 
approximately $37 million. 

Capital expenditures for Chile IV during the second quarter of 
2003 were $36 million. The total project is estimated to cost 
$275 million, including $25 million of capitalized interest. 
Total capital expenditures to June 30, 2003 were $74 million. 

During the second quarter of 2003 we paid a quarterly dividend of 
$0.05 per share, or approximately $6 million. 

We have excellent financial capacity and flexibility. Our cash 
balance at June 30, 2003 was $285 million and we have an undrawn 
$291 million credit facility. The planned capital maintenance 
expenditure program directed towards major maintenance, 
turnarounds and catalyst changes is estimated to total 
approximately $80 million for the period to the end of 2005. We 
have the financial capacity to complete the capital maintenance 
spending program, fund the remaining equity contribution for 
Atlas and complete the construction of Chile IV. We also have the 
capacity to pursue new opportunities to enhance our strategic 
position in methanol. 

Short-term Outlook 

Methanol market conditions continue to be favourable. Supply 
limitations, including the loss of a significant portion of our 
production capacity in New Zealand, have led to a strong pricing 
environment in 2003 despite weak global economic conditions. With 
no new capacity expected to impact the market this year, we 
expect that any significant improvement in global economic 
activity could result in extremely tight market conditions. In 
this environment we are continuing to focus on maximizing the 
value generated from our low cost facilities and maintaining our 
global market position. The methanol price will ultimately depend 
on industry operating rates and the strength of global demand. We 
believe that our excellent financial position and financial 
flexibility, outstanding global supply network and low cost 
position will ensure that Methanex continues to be the leader in 
the methanol industry. 

July 21, 2003 

Additional Information - Supplemental Non-GAAP Measures 

In addition to providing measures prepared in accordance with 
Canadian Generally Accepted Accounting Principles (GAAP), 
Methanex presents EBITDA, a supplemental non-GAAP measure. This 
measure does not have any standardized meaning prescribed by GAAP 
and therefore is unlikely to be comparable to similar measures 
presented by other companies. This measure is provided to assist 
readers in evaluating the operating performance and liquidity of 
the Company's ongoing business. This measure should be considered 
in addition to, and not as a substitute for, operating income, 
net income, cash flows and other measures of financial 
performance and liquidity previously reported in accordance with 
GAAP. 

EBITDA 

This non-GAAP measure is provided to assist readers in 
determining the ability of Methanex to generate cash from 
operations. EBITDA differs from the most comparable GAAP measure, 
cash flows from operating activities, primarily because it does 
not include changes in non-cash working capital and the 
utilization of prepaid natural gas, cash flows from interest, 
income taxes, asset restructuring charges and other unusual 
items. 

Reconciliation 

The following table shows a reconciliation of cash flows from 
operating activities to EBITDA: 


/T/

                                2003                       2002
                    Three      Three        Six      Three       Six
                   months     months     months     months    months
                    ended      ended      ended      ended     ended
($ thousands)     June 30   March 31    June 30    June 30   June 30
--------------------------------------------------------------------
Cash flows
 from operating
 activities     $  87,197  $ 104,799  $ 191,996  $  23,044 $  33,162
Add (deduct):                                                       
 Changes in
  non-cash
  working
  capital and
  the
  utilization of
  prepaid
  natural gas        (547)     6,692      6,145     23,454    23,381
 Other non-cash
  operating
  expenses         (2,916)    (1,711)    (4,627)    (2,935)   (5,006)
 Interest
  expense           9,700      7,722     17,422      6,619    13,270
 Interest and
  other income     (4,384)    (3,892)    (8,276)    (4,111)   (6,476)
 Income tax
  expense -
  current          11,552     11,506     23,058      5,957     4,269
--------------------------------------------------------------------
EBITDA          $ 100,602  $ 125,116  $ 225,718  $  52,028 $  62,600
--------------------------------------------------------------------



Methanex Corporation 
                                                  
                                                  
Consolidated Statements of Income and Retained Earnings
                                  3 months ended      6 months ended
(unaudited)                              June 30             June 30
---------------------------------------------------------------------
(thousands of U.S. dollars,
 except number of shares
 and per share amounts)           2003      2002      2003      2002
                                                                    
                                                                    
Revenue                       $371,500  $223,563  $708,157  $405,290
                                                                    
Cost of sales and operating
 expenses                      270,898   171,535   482,439   342,690
Depreciation and
 amortization                   21,321    28,959    44,152    57,012
---------------------------------------------------------------------
Operating income before
 undernoted items               79,281    23,069   181,566     5,588
                                                                    
Interest expense (note 8)       (9,700)   (6,619)  (17,422)  (13,270)
Interest and other income        4,384     4,111     8,276     6,476
---------------------------------------------------------------------
Income (loss) before income
 taxes                          73,965    20,561   172,420    (1,206)
                                                                    
Income taxes:                                                       
 Current                       (11,552)   (5,957)  (23,058)   (4,269)
 Future                        (12,496)    1,067   (23,909)    3,769 
---------------------------------------------------------------------
                               (24,048)   (4,890)  (46,967)     (500)
---------------------------------------------------------------------
Net income (loss)             $ 49,917  $ 15,671  $125,453  $ (1,706)
                                                                    
Retained earnings, beginning
 of period                     424,630   373,370   386,868   397,310
Excess of repurchase price
 over assigned value of
 common shares                 (51,523)  (12,594)  (51,523)  (19,157)
Dividend payments               (6,397)        -   (44,171)        -
---------------------------------------------------------------------
Retained earnings, end of
 period                      $ 416,627 $ 376,447 $ 416,627 $ 376,447
---------------------------------------------------------------------
                                                                    
                                                                    
                                                                    
Weighted average number of
 common shares
 outstanding(1)            127,112,201         126,533,071
                                     126,965,224         128,291,902
Diluted weighted average
 number of common shares
 outstanding               130,488,310         130,184,048
                                     128,985,066         128,291,902
                                                                    
                                                                    
Basic and diluted net
 income (loss) per
 common share                $    0.39 $    0.12 $    0.99 $   (0.01)
Diluted net income
 (loss) per common share     $    0.38 $    0.12 $    0.96 $   (0.01)
                                                                    
                                                                    
(1) number of common shares outstanding at June 30, 2003:
 119,111,817 (June 30, 2002: 125,729,542)                
                                                                    
                                                                    
                                                                    
Methanex Corporation                                                
                                                                    
                                                                    
Consolidated Balance Sheets      
                                         June 30         December 31
(unaudited)                                 2003                2002
---------------------------------------------------------------------
(thousands of U.S. dollars)                                        
                                                                    
Assets                                                              
                                                                    
Current assets:                                                     
 Cash and cash equivalents           $   284,884         $   421,387
 Receivables                             212,135             201,037
 Inventories                             166,985             119,125
 Prepaid expenses                         17,275              12,079
---------------------------------------------------------------------
                                         681,279             753,628
                                                                    
Property, plant and equipment (note 2) 1,346,340             979,935
                                                                    
Other assets                              98,549              85,748
---------------------------------------------------------------------
                                     $ 2,126,168         $ 1,819,311
---------------------------------------------------------------------
                                                                    
Liabilities and Shareholders' Equity                                
                                                                    
Current liabilities:                                                
 Accounts payable and accrued
  liabilities                        $   173,803         $   136,035
 Current maturities on
  long-term debt and
  other long-term liabilities             28,481               6,079
---------------------------------------------------------------------
                                         202,284             142,114
                                                                    
Limited recourse long-term debt (note 4) 290,651              97,578
                                                                    
Long-term debt                           449,715             449,646
                                                                    
Other long-term liabilities               51,050              52,980
                                                                    
Future income taxes                      222,329             172,915
                                                                    
Shareholders' equity:                 
 Capital stock (note 5)                  493,512             517,210
 Retained earnings                       416,627             386,868
---------------------------------------------------------------------
                                         910,139             904,078
---------------------------------------------------------------------
                                     $ 2,126,168         $ 1,819,311
---------------------------------------------------------------------


                                                                    
Methanex Corporation                                                
                                                                    
                                                                    
Consolidated Statements of Cash Flows 
                                  3 months ended      6 months ended
(unaudited)                              June 30             June 30
---------------------------------------------------------------------
(thousands of U.S. dollars)       2003      2002      2003      2002
                                                                    
Cash flows from operating
 activities:                                                        
Net income (loss)             $ 49,917  $ 15,671 $ 125,453  $ (1,706)
Add (deduct):                                                       
 Depreciation and
  amortization                  21,321    28,959    44,152    57,012
 Future income taxes            12,496    (1,067)   23,909    (3,769)
 Other                           2,916     2,935     4,627     5,006
---------------------------------------------------------------------
                                                                    
Cash flows from operating
 activities before
 undernoted changes             86,650    46,498   198,141    56,543
                                                                    
Receivables and accounts
 payable and accrued
 liabilities                    25,588   (13,468)   30,437   (22,264)
Inventories and prepaid
 expenses                      (26,286)   (9,712)  (38,057)     (633)
Utilization of prepaid
 natural gas                     1,245      (274)    1,475      (484)
---------------------------------------------------------------------
                                87,197    23,044   191,996    33,162
---------------------------------------------------------------------
Cash flows from financing
 activities:                                                        
Proceeds on issue of long-term
 debt                                -   200,000         -   200,000
Proceeds on issue of limited
 recourse long-term debt         6,043         -    18,011         -
Repayment of limited recourse
 long-term debt                (29,000)        -   (29,000)        -
Funding of debt service
 reserve account                (3,248)        -    (3,248)        -
Financing costs                      -    (5,776)        -    (5,776)
Payment for shares repurchased (88,648)  (25,879)  (88,648)  (45,183)
Proceeds of issue of shares on                                      
 exercise of stock options       9,669     3,550    13,427     4,695
Dividend payments               (6,397)        -   (44,171)        -
Repayment of other long-term
 liabilities                    (1,428)     (630)   (2,288)   (1,154)
---------------------------------------------------------------------
                              (113,009)  171,265  (135,917)  152,582 
---------------------------------------------------------------------
Cash flows from investing
 activities:                                                        
Acquisition of Titan Methanol
 Company, net of cash acquired
 (note 1)                      (74,130)        -   (74,130)        -
Plant and equipment under
 development                   (53,641)  (46,927)  (93,952)  (77,782)
Property, plant and equipment   (9,043)   (1,233)  (14,272)   (2,629)
Accounts payable and accrued
 liabilities related to
 capital expenditures           (1,460)    9,704     5,832     5,030
Other assets                   (15,940)   (1,464)  (16,060)   (1,487)
---------------------------------------------------------------------
                              (154,214)  (39,920) (192,582)  (76,868)
---------------------------------------------------------------------
Increase (decrease) in
 cash and cash
 equivalents                  (180,026)  154,389  (136,503)  108,876
Cash and cash equivalents,
 beginning of period           464,910   286,616   421,387   332,129
---------------------------------------------------------------------
Cash and cash equivalents,
 end of period               $ 284,884 $ 441,005 $ 284,884 $ 441,005
---------------------------------------------------------------------
                                                                    
Supplementary cash flow
 information:                                                  
---------------------------------------------------------------------
Interest paid, net of
 capitalized interest        $       - $       - $  17,102 $  13,846
Income taxes paid (received) $  20,268 $    (138)$  21,460 $     377
---------------------------------------------------------------------

/T/

Methanex Corporation 

Notes to Consolidated Financial Statements 

(unaudited) 

Six months ended June 30, 2003 

The consolidated financial statements are prepared in accordance 
with generally accepted accounting principles in Canada. The 
consolidated financial statements have been prepared from the 
books and records without audit, however, in the opinion of 
management, all adjustments which are necessary to the fair 
presentation of the results of the interim period have been made. 


These consolidated financial statements should be read in 
conjunction with the consolidated financial statements included 
in the Methanex 2002 Annual Report. 

1. Business combination 

Effective May 1, 2003, the Company acquired the remaining 90% 
interest in Titan Methanol Company ("Titan"). Titan's principal 
asset is an 850,000 tonne per year methanol facility in Trinidad. 
The Company had acquired a 10% interest in Titan in 2000. The 
acquisition has been accounted for under the purchase method of 
accounting with its results of operations consolidated from the 
date of acquisition. The Company's 100% interest in the net 
assets at fair values is as follows: 


/T/

($ thousands)
--------------------------------------------------------------
Net Assets Acquired:
 Cash                                                $   4,384
 Other current assets                                   35,323
 Property, plant and equipment                         299,866
 Other assets - debt service reserve account             9,874
 Current liabilities                                   (11,969)
 Long-term debt, including current portion            (222,959)
 Future income taxes                                   (25,505)
--------------------------------------------------------------
                                                     $  89,014
--------------------------------------------------------------
Consideration, including costs on acquisition:
 Cash                                                $  78,514
 Carrying value of original 10% investment in Titan     10,500
--------------------------------------------------------------
                                                     $  89,014
--------------------------------------------------------------

2. Property, plant and equipment

($ thousands)                 Cost      Accumulated         Net Book
                                       Depreciation            Value
--------------------------------------------------------------------
June 30, 2003
Plant and equipment    $ 2,421,320      $ 1,403,148      $ 1,018,172
Plant and equipment                                                 
 under construction                                                 
 or development            304,657                -          304,657
Other                       45,489           21,978           23,511
--------------------------------------------------------------------
                       $ 2,771,466      $ 1,425,126      $ 1,346,340
--------------------------------------------------------------------
December 31, 2002
Plant and equipment    $ 2,111,575      $ 1,363,277      $   748,298
Plant and equipment                                                 
 under construction                                                 
 or development            210,705                -          210,705
Other                       41,548           20,616           20,932
--------------------------------------------------------------------
                       $ 2,363,828      $ 1,383,893      $   979,935
--------------------------------------------------------------------

/T/

Included in property, plant and equipment is the idled Medicine 
Hat Plant 3 which is being maintained in a position to restart if 
conditions warrant. At June 30, 2003 this facility had a net book 
value of $64 million (December 31, 2002 - $65 million). 

3. Interest in Atlas joint venture 

The Company has a 63.1% joint venture interest in Atlas Methanol 
Company ("Atlas"). The joint venture is constructing a 1.7 
million tonne per year methanol plant in Trinidad. Construction 
is expected to be completed in the first part of 2004. 

The consolidated financial statements include the following 
amounts representing the Company's interest in the Atlas joint 
venture: 


/T/

($ thousands)                        June 30, 2003  December 31, 2002
---------------------------------------------------------------------
Consolidated Balance Sheets
 Cash and cash equivalents               $   5,518          $   7,168
 Other current assets                        2,080              1,349
 Property, plant and equipment             199,127            161,808
 Other assets                                5,996              5,996
 Current liabilities                         8,474              3,847
 Limited recourse long-term debt (note 4)  115,589             97,578
---------------------------------------------------------------------



                  Three months  Three months  Six months  Six months
                         ended         ended       ended       ended
                       June 30,      June 30,    June 30,    June 30,
($ thousands)             2003          2002        2003        2002
--------------------------------------------------------------------
Consolidated Statements                                             
 of Cash Flows                                                      
 Cash inflows from                                                  
 financing activities $  6,043      $      -   $  18,011    $      -
 Cash outflows from                                                 
 investing activities  (11,431)      (28,258)    (33,423)    (57,323)
--------------------------------------------------------------------

/T/

To June 30, 2003, the joint venture had no revenue and all 
expenditures were capitalized. 

The Company estimates that its remaining share of capital 
expenditures to complete the construction of Atlas, including 
capitalized interest and funding of a debt reserve fund, will be 
approximately $80 million. The Company expects that these 
expenditures will be funded from cash generated from operations, 
cash and cash equivalents and the proceeds from the limited 
recourse debt facilities. The Company's proportionate share of 
the total Atlas limited recourse facility is $159 million and the 
facility will be utilized to fund the construction of Atlas pro 
rata with equity contributions. The Company estimates its future 
cash equity contribution to complete the construction of the 
project will be approximately $37 million. 

4. Limited recourse long-term debt 

The consolidated financial statements include the limited 
recourse long-term debt of Titan and the Company's proportionate 
share of limited recourse long-term debt of the Atlas joint 
venture. These loans are described as limited recourse as they 
are secured only by the assets of the related subsidiary or joint 
venture. 


/T/

                                               June 30,  December 31,
($ thousands)                                     2003          2002 
---------------------------------------------------------------------
 Atlas                                                               
 i)   Senior commercial bank loan facility to
       a maximum amount of $72 million with
       interest rates based on LIBOR plus a
       spread ranging from 2.25% to 2.75%.
       Principal will be paid in twelve
       semi-annual payments commencing six
       months after the earlier of completion
       of construction and December 31, 2004. $ 50,957     $  43,513 

 ii)  Senior secured notes to a maximum
       amount of $63 million bearing an
       interest rate based on the yield to
       maturity on a ten-year U.S. treasury
       security plus 3.85% with semi-annual
       interest payments. Principal will be
       paid in nine semi-annual payments
       commencing six years after the earlier
       of completion of construction and
       December 31, 2004.                       45,013        38,432

 iii) Senior fixed rate bonds to a maximum
       amount of $15 million bearing an interest
       rate of 8.25% with semi-annual interest
       payments. Principal will be paid in four
       semi-annual payments commencing eleven
       years after the earlier of completion of
       construction and December 31, 2004.      12,774         9,825

 iv)  Subordinated loans to a maximum amount of
       $9 million with an interest rate based on
       LIBOR plus a spread ranging from 2.25% to
       2.75%. Principal will be paid in twenty
       semi-annual payments commencing six years
       after the earlier of completion of
       construction and December 31, 2004.       6,845         5,808
--------------------------------------------------------------------
                                              $115,589     $  97,578
--------------------------------------------------------------------
Titan

 i)   Senior loans with an average fixed
       interest rate of 7.4%. Principal and
       interest is repayable by semi-annual
       payments. The loans mature in April
       2010.                                    54,596             -

 ii)  Senior commercial bank loan facility
       and senior loans with interest rates
       based on LIBOR plus a spread ranging
       from 0.75% to 2.25%. Principal and
       interest is repayable by semi-annual
       payments. The loan matures in April
       2010.                                    67,500             -

 iii) Senior revolving working capital
       facilities to a maximum amount of
       $35 million with interest payable
       semi-annually and interest rates based
       on LIBOR plus a spread of 3%. The
       facilities expire in 2010.               25,000             -

 iv)  Senior liquidity support facility, to a
       maximum amount of $22 million, with
       interest payable semi-annually and
       interest rates based on LIBOR plus a
       spread of 3%. Principal is repayable
       over time from available cash flows of
       Titan in accordance with the terms of
       the agreement. The facility expires in
       2008.                                    18,367             -

 v)   Subordinated loans with current interest
       rates based on LIBOR plus 4%. Principal
       and interest is scheduled to be repaid
       semi-annually over the period to 2010.
       To date payments have not been made.
       Principal and interest is payable from
       the available cash flows of Titan
       following full repayment of the senior
       liquidity support facility.              28,612             -
--------------------------------------------------------------------
                                              $194,075     $       -
--------------------------------------------------------------------
                                              $309,664     $  97,578
Less: current maturities                       (19,013)            -
--------------------------------------------------------------------
                                              $290,651     $  97,578
--------------------------------------------------------------------

At June 30, 2003, Titan has an interest rate swap contract with a
remaining notional principal amount of $70 million. Under the
contract, Titan has agreed to exchange, with another party, at
specified intervals, the difference between floating interest rates
and a fixed interest rate of 6.6%. The swap contact matures over the
period to 2010.

5. Capital stock

Changes in the capital stock of the Company during the period
January 1, 2003 to June 30, 2003 were as follows:


                                            Number of  Consideration
                                        Common Shares   ($ thousands)
--------------------------------------------------------------------
Balance, December 31, 2002                125,651,639     $  517,210
Issued on exercise of stock options           843,725          3,758
--------------------------------------------------------------------
Balance, March 31, 2003                   126,495,364     $  520,968
Issued on exercise of stock options         1,616,453          9,669
Shares repurchased                         (9,000,000)       (37,125)
--------------------------------------------------------------------
Balance, June 30, 2003                    119,111,817     $  493,512
--------------------------------------------------------------------

On June 30, 2003, the Company repurchased for cancellation 9 million
of its common shares from NOVA Chemicals. The cost to acquire the
shares in the amount of $88.6 million was allocated $37.1 million to
capital stock and $51.5 million to retained earnings.

6. Net income per share

A reconciliation of the weighted average number of common shares is
as follows:

                  Three months  Three months  Six months  Six months
                         ended         ended       ended       ended
                       June 30,      June 30,    June 30,    June 30,
                          2003          2002        2003        2002
--------------------------------------------------------------------
Denominator for                                                     
 basic net income                                                   
 per share         127,112,201   126,965,224 126,533,071 128,291,902
Effect of dilutive                                                  
 stock options       3,376,109     2,019,842   3,650,977           -
--------------------------------------------------------------------
Denominator for                                                     
 diluted net income                                                 
 per share         130,488,310   128,985,066 130,184,048 128,291,902
--------------------------------------------------------------------

7. Stock-based compensation

(a) Stock options:

 (i) Incentive stock options:

 Common shares reserved for incentive stock options at June 30, 2003
 were as follows:

            Options denominated in CAD$   Options denominated in US$
            ---------------------------   --------------------------
                               Weighted                     Weighted
                                Average                      Average
                    Number of  Exercise          Number of  Exercise
                Stock Options     Price      Stock Options     Price
--------------------------------------------------------------------
Outstanding at                                                      
 December 31, 2002  6,848,328  $  10.53          2,432,000   $  6.47
Granted                     -         -          1,194,000      9.23
Exercised            (650,725)     6.96            (61,000)     6.45
Cancelled             (14,000)     8.89            (10,000)     6.45
--------------------------------------------------------------------
Outstanding at                                                      
 March 31, 2003     6,183,603  $  10.91          3,555,000   $  7.40
Exercised            (856,403)     9.75           (301,850)     6.45
Cancelled                (750)     9.56            (13,500)     6.45
--------------------------------------------------------------------
Outstanding at                                                      
 June 30, 2003      5,326,450  $  11.10          3,239,650   $  7.49
--------------------------------------------------------------------

As at June 30, 2003, 4,610,788 incentive stock options denominated
in CAD$ and 836,400 incentive stock options denominated in US$ had
vested and were exercisable at an average price of CAD$11.33 and
US$6.47, respectively.

 (ii) Performance stock options:

Common shares reserved for performance stock options at June 30, 2003
were as follows:


                                       Number of   Average Exercise
                                   Stock Options        Price (CAD$)
-------------------------------------------------------------------
Outstanding at December 31, 2002       1,662,200            $  4.47
Exercised                               (132,000)              4.47
-------------------------------------------------------------------
Outstanding at March 31, 2003          1,530,200            $  4.47
Exercised                               (458,200)              4.47
-------------------------------------------------------------------
Outstanding at June 30, 2003           1,072,000            $  4.47
-------------------------------------------------------------------

/T/

The vesting of the performance stock options is tied to the 
market value of the Company's common shares subsequent to the 
date of grant. Pursuant to the terms of the option agreements, on 
October 1, 2002, 699,000 options vested and became exercisable as 
the Company's shares had traded above CAD $10 per share. On June 
5, 2003, an additional 761,000 options vested and became 
exercisable as the Company's shares traded above CAD$15 per 
share. 

As at June 30, 2003, 407,000 outstanding performance stock 
options have vested and are exercisable. The remaining 665,000 
options will vest if the Company's shares trade at or above CAD 
$20 per share. 

(iii) Fair value method disclosure: 

The Company does not recognize compensation expense when stock 
options are granted and instead provides pro forma disclosure as 
if a fair value based method had been used. The Company uses the 
Black-Scholes option pricing model to estimate the fair value of 
each stock option at the date of grant. 

If the fair value based method had been used to measure and 
recognize stock-based compensation, the Company's net income and 
net income per share would have been as follows: 


/T/

                                    Three months       Three months 
                                       ended              ended     
                                    June 30, 2003      June 30, 2002
                                 -----------------------------------
($ thousands, except per               As      Pro       As      Pro
 share amounts)                  Reported    Forma Reported    Forma
--------------------------------------------------------------------
Net income                      $  49,917 $ 48,990 $ 15,671 $ 14,637
Basic net income per share      $    0.39 $   0.39 $   0.12 $   0.12
Fully diluted net income
 per share                      $    0.38 $   0.38 $   0.12 $   0.11
--------------------------------------------------------------------



                                     Six months         Six months  
                                       ended              ended     
                                   June 30, 2003      June 30, 2002 
--------------------------------------------------------------------
($ thousands, except per               As      Pro       As      Pro
 share amounts)                  Reported    Forma Reported    Forma
--------------------------------------------------------------------
Net income (loss)               $ 125,453 $123,516 $ (1,706)$ (3,081)
Basic net income (loss)                                             
 per share                      $    0.99 $   0.98 $  (0.01)$  (0.02)
Fully diluted net income (loss)
 per share                      $    0.96 $   0.95 $  (0.01)$  (0.02)
--------------------------------------------------------------------

/T/

The pro forma amounts exclude the effect of stock options granted 
prior to January 1, 2002.  

The fair value of each stock option grant was estimated on the 
date of grant using the Black-Scholes option pricing model with 
the following assumptions: 


/T/

                                              2003              2002
--------------------------------------------------------------------
Risk-free interest rate                         5%                5%
Expected dividend yield                         2%                 -
Expected life                              5 years           5 years
Expected volatility                            35%               35%
Weighted average fair value of options
 granted ($US/share)                         $2.85             $2.46
--------------------------------------------------------------------

/T/

(b) Restricted share units: 

Commencing in 2003, executive officers may elect to receive 50% 
or 100% of the value of their annual long-term incentive award in 
the form of restricted share units (RSU's). RSU's are grants of 
notional shares that are non-dilutive to shareholders. Holders of 
RSU's are entitled to dividend-equivalents in the form of 
additional RSU's. Upon vesting, RSU's are redeemed at a value 
based on the trading price of the Company's shares. Compensation 
expense for RSU's is measured at fair value based on the market 
value of the Company's shares at the date of grant and is 
recognized, together with changes in fair value, over the period 
from the date of grant to the date of vesting. As at June 30, 
2003 a total of 513,034 RSU's are outstanding and will vest on 
December 1, 2005. 

8. Interest expense 


/T/

                  Three months  Three months  Six months  Six months
                         ended         ended       ended       ended
                       June 30,      June 30,    June 30,    June 30,
($ thousands)             2003          2002        2003        2002
--------------------------------------------------------------------
Interest expense                                                    
 before capitalized                                                 
 interest            $  14,232      $  8,749  $   25,396   $  16,900
Less: capitalized                                                   
 interest               (4,532)       (2,130)     (7,974)     (3,630)
--------------------------------------------------------------------
Interest expense     $   9,700      $  6,619  $   17,422   $  13,270
--------------------------------------------------------------------

/T/

Interest expense before capitalized interest includes the 
Company's proportionate share of interest expense related to the 
limited recourse long-term debt facilities of Atlas. 

9. New Zealand natural gas 

The Maui natural gas field has been the primary gas supply source 
for the Company's New Zealand plants. A contractual process was 
initiated in December 2001 to re-determine the economically 
recoverable reserves in the Maui field. On February 6, 2003, the 
independent expert, who was appointed by the parties to the Maui 
gas contract, released a final determination report of 
economically recoverable reserves and based on this report, the 
Company has lost substantially all of its remaining contractual 
entitlements from the Maui field. Natural gas exploration in New 
Zealand is ongoing and the Company is continuing to pursue 
acquisitions of additional gas to supplement contracted gas. 
However, there can be no assurance that we will be able to secure 
additional gas in New Zealand on commercially acceptable terms. 
As such, there can be no assurance that the New Zealand 
operations will generate sufficient cash to recover their 
carrying value. 

10. Subsequent event 

On July 1, 2003, the Company acquired the Kitimat, British 
Columbia ammonia production assets of Pacific Ammonia Inc. for 
$20 million. The consideration will be paid in installments over 
the period to December 31, 2005. As part of the acquisition the 
Company entered into an agreement to supply Mitsui & Co., Ltd. 
with 100% of the ammonia produced through the end of 2005, during 
which time the Company is not subject to cost or market risk. 


/T/

--------------------------------------------------

Quarterly History              YTD
(unaudited)                   2003      Q2      Q1
--------------------------------------------------

Methanol sales volume
(thousands of tonnes)

 Company produced product    2,405   1,211   1,194
 Purchased product             643     332     311
 Commission sales (1)          254      55     199
--------------------------------------------------

                             3,302   1,598   1,704
--------------------------------------------------

Methanol production
(thousands of tonnes)

 Chile                       1,440     732     708

 New Zealand                   581     225     356

 North America                 249     122     127

 Trinidad (1)                  153     153       -

--------------------------------------------------

                             2,423   1,232   1,191
--------------------------------------------------

Methanol price (2)
 ($/tonne)                     232     240     223
 ($/gallon)                   0.70    0.72    0.67

Per share information
 Net income (loss)          $ 0.99    0.39    0.60

----------------------------------------------------------------

Quarterly History
(unaudited)                   2002      Q4      Q3     Q2     Q1
----------------------------------------------------------------

Methanol sales volume
(thousands of tonnes)

 Company produced product    5,686   1,347   1,419  1,489  1,431
 Purchased product             809     278     207    129    195
 Commission sales (1)          725     197     188    183    157
----------------------------------------------------------------

                             7,220   1,822   1,814  1,801  1,783
----------------------------------------------------------------

Methanol production
(thousands of tonnes)

 Chile                       2,932     735     748    743    706

 New Zealand                 2,281     552     593    601    535

 North America                 478     126     125    103    124

 Trinidad (1)                    -       -       -      -      -

----------------------------------------------------------------

                             5,691   1,413   1,466  1,447  1,365
----------------------------------------------------------------

Methanol price (2)
 ($/tonne)                     155     188     182    138    111
 ($/gallon)                   0.47    0.57    0.55   0.42   0.33

Per share information
 Net income (loss)            0.21   (0.24)   0.47   0.12  (0.13)

----------------------------------------------------------------

Quarterly History
(unaudited)                   2001      Q4      Q3     Q2     Q1
----------------------------------------------------------------

Methanol sales volume
(thousands of tonnes)

 Company produced product    5,390   1,522   1,327  1,296  1,245
 Purchased product           1,280     170     301    404    405
 Commission sales (1)          720     169     184    146    221
----------------------------------------------------------------

                             7,390   1,861   1,812  1,846  1,871
----------------------------------------------------------------

Methanol production
(thousands of tonnes)

 Chile                       2,783     662     710    708    703

 New Zealand                 2,133     592     520    447    574

 North America                 445     127     123     93    102

 Trinidad (1)                    -       -       -      -      -

----------------------------------------------------------------

                             5,361   1,381   1,353  1,248  1,379
----------------------------------------------------------------

Methanol price (2)
 ($/tonne)                     172     115     147    200    225
 ($/gallon)                   0.52    0.35    0.44   0.60   0.68

Per share information
Net income (loss)             0.46   (0.10)  (0.15)  0.25   0.43


1 On May 1, 2003 we acquired the remaining interest in the 850,000
  tonne per year Titan methanol facility ("Titan"). Prior to May 1,
  2003 we had a 10% interest in Titan and marketed its entire
  production on a commission basis.

2 Produced and purchased product.

/T/



-30-


FOR FURTHER INFORMATION PLEASE CONTACT:

Methanex Corporation
Chris Cook
Director, Investor Relations
(604) 661-2600 or Toll Free: 1-800-661-8851
Website: www.methanex.com