<Page>

                                                                       Exhibit 3

                  Consolidated Financial Statements of


                  ACETEX CORPORATION


                  Years ended December 31, 2003, 2002 and 2001

<Page>

AUDITORS' REPORT TO THE SHAREHOLDERS


We have audited the consolidated balance sheets of Acetex Corporation as at
December 31, 2003 and 2002 and the consolidated statements of operations and
retained earnings (deficit) and cash flows for each of the years in the
three-year period ended December 31, 2003. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with Canadian generally accepted auditing
standards. Those standards require that we plan and perform an audit to obtain
reasonable assurance whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.

In our opinion, these consolidated financial statements present fairly, in all
material respects, the financial position of the Company as at December 31, 2003
and 2002 and the results of its operations and its cash flows for each of the
years in the three-year period ended December 31, 2003 in accordance with
Canadian generally accepted accounting principles.


/s/ KPMG LLP
Chartered Accountants

Vancouver, Canada

January 30, 2004

<Page>

ACETEX CORPORATION
Consolidated Balance Sheets
(Expressed in thousands of United States dollars)

December 31, 2003 and 2002

<Table>
<Caption>
                                                               2003         2002
--------------------------------------------------------------------------------
<S>                                                       <C>          <C>
Assets

Current assets:
   Cash and cash equivalents                              $  53,903    $  61,890
   Accounts receivable                                       79,774       43,699
   Inventory (note 4)                                        68,505       28,481
   Prepaid expenses and other                                 7,175        3,638
   -----------------------------------------------------------------------------
                                                            209,357      137,708

Property, plant and equipment (note 5)                      254,010      110,191

Other assets (note 6)                                        10,229       15,976
--------------------------------------------------------------------------------

                                                          $ 473,596    $ 263,875
================================================================================

Liabilities and Shareholders' Equity

Current liabilities:
   Accounts payable and accrued liabilities               $  94,108    $  60,006

Pension obligation (note 7)                                  20,976        4,725

Long-term debt (note 8)                                     294,137      190,000
--------------------------------------------------------------------------------
                                                            409,221      254,731

Shareholders' equity:
   Share capital (note 9)                                   103,059       64,039
   Contributed surplus (notes 3 and 9)                        1,547            -
   Deficit                                                  (30,699)     (11,563)
   Cumulative translation adjustment                         (9,532)     (43,332)
   -----------------------------------------------------------------------------
                                                             64,375        9,144
--------------------------------------------------------------------------------

                                                          $ 473,596    $ 263,875
================================================================================
</Table>

Commitments and contingencies (note 11)


See accompanying notes to consolidated financial statements.

Approved on behalf of the Board:


___________________  Director


___________________  Director

                                                                               1
<Page>

ACETEX CORPORATION
Consolidated Statements of Operations and Retained Earnings (Deficit)
(Expressed in thousands of United States dollars, except for per share
information)

Years ended December 31, 2003, 2002 and 2001

<Table>
<Caption>
                                                               2003         2002         2001
---------------------------------------------------------------------------------------------
<S>                                                       <C>          <C>          <C>
Sales                                                     $ 332,937    $ 205,529    $ 222,382

Cost of goods sold                                          275,241      166,458      171,887
Amortization                                                 23,091       16,248       14,854
---------------------------------------------------------------------------------------------
                                                            298,332      182,706      186,741
---------------------------------------------------------------------------------------------

Gross profit                                                 34,605       22,823       35,641

Other operating expenses:
   Selling, general and administrative                       15,060       10,722        8,761
   Research and development                                   2,387        1,069          794
   ------------------------------------------------------------------------------------------
                                                             17,447       11,791        9,555
---------------------------------------------------------------------------------------------

Operating earnings                                           17,158       11,032       26,086

Other earnings (expense):
   Interest expense                                         (25,148)     (20,480)     (18,251)
   Loss on debt refinancing                                       -            -       (6,352)
   Equity income (loss)                                         261           29         (328)
   Foreign exchange gain (loss) and other                   (11,248)      (3,504)         489
   ------------------------------------------------------------------------------------------
                                                            (36,135)     (23,955)     (24,442)
---------------------------------------------------------------------------------------------

Net earnings (loss)                                         (18,977)     (12,923)       1,644

Retained earnings (deficit), beginning of year              (11,563)       1,677           33

Excess of purchase price over value assigned
   to common shares repurchased (note 9(b))                    (159)        (317)           -
---------------------------------------------------------------------------------------------

Retained earnings (deficit), end of year                  $ (30,699)   $ (11,563)   $   1,677
=============================================================================================

Net earnings (loss) per common share (note 2(l)):
   Basic                                                  $   (0.66)   $   (0.49)   $    0.05
   Diluted                                                    (0.66)       (0.49)        0.05
=============================================================================================
</Table>

See accompanying notes to consolidated financial statements.

                                                                               2
<Page>

ACETEX CORPORATION
Consolidated Statements of Cash Flows
(Expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

<Table>
<Caption>
                                                               2003         2002         2001
---------------------------------------------------------------------------------------------
<S>                                                       <C>          <C>          <C>
Cash provided by (used for):

Operations:
   Net earnings (loss)                                    $ (18,977)   $ (12,923)   $   1,644
   Charges and credits to income not
     involving cash:
       Amortization                                          23,091       16,248       14,854
       Loss on debt refinancing                                   -            -        6,352
       Pension expense (recovery)                              (375)         (36)         499
       Amortization of deferred financing costs                 898          971          890
       Distributions received from equity
         investee in excess of income                          (256)         (29)         328
       Unrealized foreign exchange loss                       3,347            -            -
       Other                                                  3,655        1,011            -
   Changes in non-cash operating working capital:
       Accounts receivable                                    1,633        8,318        2,234
       Inventory                                              4,584        1,174       (3,046)
       Prepaid expenses and other                              (283)      (1,116)       2,421
       Accounts payable and accrued liabilities              (3,305)       4,175      (10,337)
   ------------------------------------------------------------------------------------------
                                                             14,012       17,793       15,839

Investments:
     Acquisition of AT Plastics                              (9,129)           -            -
     Purchase of property, plant and equipment               (6,954)     (12,893)      (2,920)
     Other                                                     (217)        (246)      (1,101)
   ------------------------------------------------------------------------------------------
                                                            (16,300)     (13,139)      (4,021)

Financing:
     Increase in share capital                                  125          449          505
     Proceeds from issuance of long-term debt                82,125            -      190,000
     Repayment of long-term debt                            (90,496)           -     (180,000)
     Financing costs incurred                                (3,427)           -      (11,867)
     Increase (decrease) in pension obligation                  (81)         589          (61)
     Repurchase of common shares                               (597)      (2,305)           -
   ------------------------------------------------------------------------------------------
                                                            (12,351)      (1,267)      (1,423)

Foreign exchange gain (loss) on cash and cash
   equivalents held in foreign currencies                     6,652        6,898       (2,365)
---------------------------------------------------------------------------------------------

Increase (decrease) in cash and cash equivalents             (7,987)      10,285        8,030

Cash and cash equivalents, beginning of year                 61,890       51,605       43,575
---------------------------------------------------------------------------------------------

Cash and cash equivalents, end of year                    $  53,903    $  61,890    $  51,605
=============================================================================================

Supplementary information:
     Interest paid                                        $  21,511    $  20,318    $  17,550
     Income taxes paid                                          425          150        1,838
     Issuance of equity instruments on acquisition
       of business (note 3)                                  40,759            -            -
=============================================================================================
</Table>

See accompanying notes to consolidated financial statements.

                                                                               3
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

1.   OPERATIONS:

     Acetex Corporation was incorporated under the laws of the Province of
     Alberta on December 1, 1994. It has two principal businesses: The Acetyls
     Business consists of the production of acetic acid and its derivatives from
     production facilities in France and Spain and their distribution and sale
     primarily in Europe. The Specialty Polymers and Films Business develops and
     manufactures specialty plastics resins and film products for a number of
     niche products in Canada and the United States and around the world from a
     manufacturing facility in Edmonton, Canada.

2.   SIGNIFICANT ACCOUNTING POLICIES:

     (a)  Basis of presentation:

          The consolidated financial statements of Acetex Corporation (the
          "Company") have been prepared in accordance with generally accepted
          accounting principles in Canada. They include the accounts of Acetex
          Corporation and its subsidiaries, all of which are wholly owned. The
          Company's 45% interest in Erfei A.I.E. ("Erfei"), a company subject to
          significant influence, is accounted for by the equity method. Under
          this method, the Company recognizes its proportionate share of
          cumulative post acquisition income or losses and capital distributions
          of Erfei as they are realized. All material intercompany balances and
          transactions have been eliminated. Except as set out in note 15, there
          are no material measurement differences to these consolidated
          financial statements between generally accepted accounting principles
          in Canada and the United States.

          The preparation of financial statements in accordance with generally
          accepted accounting principles requires that management make estimates
          and reasonable assumptions which impact the reported amounts of assets
          and liabilities and the disclosure of contingent assets and
          liabilities at the date of the consolidated balance sheet, and the
          reported amounts of revenues and expenses during the reporting period.
          Actual amounts may differ from these estimates.

     (b)  Cash and cash equivalents:

          Cash equivalents include term deposits with major financial
          institutions having terms to maturity at their date of acquisition of
          three months or less.

     (c)  Inventory:

          Inventory is stated at the lower of cost and net realizable value. The
          cost of raw materials and spare parts is determined using the weighted
          average cost of inventory on hand. The cost of finished goods includes
          the cost of raw materials, as determined above, labour, depreciation
          and applicable overhead.

                                                                               4
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

2.   SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):

     (d)  Property, plant and equipment:

          Property, plant and equipment is stated at cost. Amortization is
          calculated on a straight-line basis over the estimated useful lives of
          the capital assets as follows:

<Table>
          <S>                                                    <C>
          Plant and processes                                    10 - 15 years
          Equipment                                               3 - 20 years
</Table>

          Periodically, the Company conducts a shutdown of operating facilities
          to allow for inspection, necessary repairs and replacements. Direct
          costs associated with these shutdowns are capitalized as incurred and
          amortized over the term to the next equivalent scheduled shutdown.
          Routine repairs and maintenance are expensed as incurred.

          The underlying value of property, plant and equipment is periodically
          assessed by management. If the estimated undiscounted future cash flow
          from the assets is less than their carrying value, a provision will be
          recognized equal to this excess.

          Obligations for future site remediation and restoration costs are
          provided for on a basis that matches the costs to be incurred with the
          events that are giving rise to the obligation when it is both probable
          that a future cost will be incurred and a reasonable estimate can be
          made of the Company's ultimate liability (see also note 11(a)).

     (e)  Other assets:

          Other assets are recorded at cost. They include deferred financing
          costs which are amortized to interest expense on the effective yield
          basis over the remaining term of the related senior notes.

          The Company's share of Erfei's net income or loss has been included as
          equity income (loss) in the consolidated statement of operations.
          Distributions received from Erfei have been applied against the
          carrying value of the equity investment.

     (f)  Research and development costs:

          Research costs are expensed as incurred. Development costs are
          expensed when incurred except when the Company has indicated its
          intention to use the process and the costs associated with the process
          are identifiable. In these circumstances, the costs are deferred and
          amortized on a systematic and rational basis. To December 31, 2003, no
          development costs have been deferred.

                                                                               5
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

2.   SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):

     (g)  Income taxes:

          Income taxes are accounted for under the asset and liability method.
          Future income taxes are recognized for future income tax consequences
          attributable to differences between the financial statement carrying
          amounts and their respective tax base and operating loss and tax
          credit carry forwards. Future tax assets and liabilities are measured
          using enacted, or, where applicable, substantially enacted tax rates
          for the years in which these temporary differences are expected to be
          recovered or settled. The effect on future income tax assets and
          liabilities of a change in tax rates is included in income generally
          in the period that includes the enactment or substantive enactment
          date. Future income tax assets are reduced by a valuation allowance to
          the extent that their realization is not considered to be more likely
          than not.

     (h)  Sales recognition:

          The Company recognizes sales in accordance with sales agreements when
          title to the product has been transferred to the customer, collection
          of the sales proceeds is reasonably assured and the Company has no
          significant continuing risks or obligations with respect to the
          product. Sales are recorded net of shipping and handling costs of
          $34.0 million (2002 - $28.2 million; 2001 - $26.6 million).

     (i)  Stock-based compensation:

          The Company has a stock-based compensation plan, which is described in
          note 8(d). During 2003, the Company adopted retroactively to January
          1, 2002, the new recommendations of the Canadian Institute of
          Chartered Accountants regarding stock-based compensation. The Company
          now applies the fair value method of accounting for all stock-based
          transactions. The reported financial position and results of
          operations of the Company were not impacted on adoption.

     (j)  Employee future benefits:

          The Company maintains non-contributory defined benefit pension plans,
          a defined contribution pension plan and a defined benefit life
          insurance and health care plan which cover substantially all of its
          Canadian employees. The pension plans provide pensions based on length
          of service and the best three years' average earnings. The Company
          also sponsors defined benefit life insurance and dental health care
          plans for substantially all Canadian retirees and employees. The
          Company measures the costs of its obligation based on its best
          estimate.

                                                                               6
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

2.   SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):

     (j)  Employee future benefits (continued):

          The Company accrues its obligations under employee benefit plans as
          the employees render the services necessary to earn the pension and
          other employee future benefits. The Company has adopted the following
          policies:

          (i)   The cost of pensions and other retirement benefits earned by
                employees is actuarially determined using the projected benefit
                method prorated on service and management's best estimate of
                expected plan investment performance, salary escalation,
                retirement ages and expected health care costs.

          (ii)  For the purpose of calculating expected return on plan assets,
                plan assets are valued at fair value.

          (iii) Past service costs from plan amendments are amortized on a
                straight-line basis over the average remaining service period of
                employees active at the date of the amendment.

          (iv)  When a restructuring of a benefit plan gives rise to both a
                curtailment and a settlement of obligations, the curtailment is
                accounted for prior to the settlement.

          The Company uses the corridor method to amortize actuarial gains or
          losses (such as changes in actuarial assumptions and experience gains
          or losses). Under the corridor method, amortization is recorded only
          if the accumulated net actuarial gains or losses exceed 10% of the
          greater of the accrued pension benefit obligation and the value of the
          plan assets. Amortization is taken over the average remaining service
          period of active employees.

     (k)  Foreign currency translation:

          The Company's functional and reporting currency is the United States
          dollar for all material operations other than for operations in France
          and Spain, where the functional currency is the Euro. As each of these
          operations is considered to be a self-sustaining foreign operation,
          their financial statements have been translated into United States
          dollars using the exchange rate in effect at the end of each reporting
          period for asset and liability amounts and at the average exchange
          rate for each reporting period for amounts included in the
          determination of income. Any gains or losses resulting from this
          translation of items that form part of the Company's net investment in
          foreign operations have been included in the cumulative translation
          adjustment account on the consolidated balance sheet.

          Foreign currency denominated transactions are translated into the
          appropriate functional currency at the exchange rate in effect on the
          date of the transaction. Monetary assets and liabilities denominated
          in foreign currencies have been translated into the appropriate
          functional currency at the rate of exchange in effect at the balance
          sheet date. Any gains or losses resulting from this translation have
          been included in the determination of income.

                                                                               7
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

2.   SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):

     (l)  Net earnings (loss) per common share:

          Basic net earnings (loss) per share is calculated by dividing net
          earnings (loss) available to common shareholders by the weighted
          average number of common shares outstanding in the period. For all
          periods presented, net earnings (loss) available to common
          shareholders equals net earnings (loss). Diluted net earnings (loss)
          per share is calculated by the treasury stock method. Under the
          treasury stock method, the weighted average number of common shares
          outstanding for the calculation of diluted net earnings (loss) per
          share assumes that the proceeds to be received on the exercise of
          dilutive stock options are applied to repurchase common shares at the
          average market price for the period.

          The weighted average number of common shares used in the net earnings
          (loss) per share calculations are set out in note 9(f).

3.   AT PLASTICS ACQUISITION:

     Pursuant to the terms of the Combination Agreement dated June 20, 2003
     between the Company, 2028569 Ontario Limited ("Subco") a wholly owned
     subsidiary of the Company, and AT Plastics Inc., the Company agreed to
     acquire all of the issued and outstanding equity securities of AT Plastics
     Inc. (the "Acquisition"). The Acquisition was consummated on August 5, 2003
     (the "Effective Date") through the amalgamation of Subco and AT Plastics
     and the concurrent issuance of equity securities by the Company to the
     equity holders of AT Plastics at that time. The Company issued:

     (a)  8,370,574 common shares being that number of common shares determined
          by multiplying the number of outstanding AT Plastics common shares by
          one-sixth (that is one common share for every six AT Plastics common
          shares tendered);

     (b)  706,760 warrants to purchase common shares having an exercise price
          per share equal to CDN$6.10 being the closing price of the Company's
          common shares on the Toronto Stock Exchange at the Effective Date and
          141,352 warrants having an exercise price per share of CDN$4.32 each,
          all expiring June 2, 2008, in exchange for all outstanding warrants of
          AT Plastics; and

     (c)  666,866 vested options to purchase common shares of the Company
          determined by dividing the number of AT Plastics options at the
          Effective Date by six having an exercise price per Company share equal
          to the exercise price per share of the particular AT Plastics option
          at the Effective Date multiplied by six.

     For accounting purposes, the acquisition of AT Plastics by the Company has
     been accounted for as a purchase business combination with the Company
     identified as the acquirer.

                                                                               8
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

3.   AT PLASTICS ACQUISITION (CONTINUED):

     Fair value of consideration issued by the Company:

<Table>
     <S>                                                                                    <C>
     Common shares                                                                          $ 39,162
     Warrants                                                                                  1,196
     Options                                                                                     401
     Costs                                                                                     9,075
     -----------------------------------------------------------------------------------------------

                                                                                            $ 49,834
     ===============================================================================================
</Table>

     The fair value of the warrants and options issued has been determined by
     application of the Black-Scholes option pricing model. Costs include all
     incremental costs directly attributable to the Acquisition but exclude
     costs attributable to the bond financing described in note 8. Acquisition
     costs include $3.4 million attributable to restructuring of AT Plastics
     pursuant to a plan primarily related to employee costs which management of
     the Company began to develop and approved after the consummation date of
     the acquisition. Certain issues within this plan are to be finalized. Of
     the costs accrued as part of the acquisition, $3.1 million are included in
     accounts payable and accrued liabilities at December 31, 2003.

     Assets acquired (liabilities assumed) at their fair values:

<Table>
     <S>                                                                                       <C>
     Current assets                                                                            $  70,085
     Current liabilities, excluding current portion of long-term debt                            (27,471)
     ---------------------------------------------------------------------------------------------------

     Working capital                                                                              42,614
     Property, plant and equipment                                                               139,302
     Other long-term liabilities                                                                 (14,584)
     Long-term debt, including current portion of long-term debt                                (117,498)
     ---------------------------------------------------------------------------------------------------

                                                                                               $  49,834
     ===================================================================================================
</Table>

     These consolidated financial statements include the results of operations
     of AT Plastics from the Effective Date of the Acquisition. If the
     Acquisition had been effective on January 1, 2002, the unaudited pro forma
     results of operations would have been as follows:

<Table>
<Caption>
                                                                                        2003        2002
     ---------------------------------------------------------------------------------------------------
     <S>                                                                           <C>         <C>
     Sales                                                                         $ 428,131   $ 351,553

     Cost of goods sold and other operating expenses (including restructuring
       costs of $1,238 in AT Plastics in 2003 prior to the acquisition)              374,606     301,871
     Amortization                                                                     26,667      22,914
     ---------------------------------------------------------------------------------------------------
                                                                                     401,273     324,785
     ---------------------------------------------------------------------------------------------------

     Operating earnings                                                            $  26,858   $  26,768
     ===================================================================================================
</Table>

                                                                               9
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

4.   INVENTORY:

<Table>
<Caption>
                                                              2003         2002
     --------------------------------------------------------------------------
     <S>                                              <C>            <C>
     Raw materials and spare parts                    $     13,281   $    7,672
     Finished products                                      55,224       20,809
     --------------------------------------------------------------------------

                                                      $     68,505   $   28,481
     ==========================================================================
</Table>

5.   PROPERTY, PLANT AND EQUIPMENT:

<Table>
<Caption>
                                                              2003         2002
     --------------------------------------------------------------------------
     <S>                                              <C>            <C>
     Property                                         $      7,425   $    2,665
     Plant and processes                                    63,994       52,581
     Equipment                                             363,420      184,090
     --------------------------------------------------------------------------
                                                           434,839      239,336

     Accumulated amortization                             (180,829)    (129,145)
     --------------------------------------------------------------------------

                                                      $    254,010   $  110,191
     ==========================================================================
</Table>

6.   OTHER ASSETS:

<Table>
<Caption>
                                                              2003         2002
     --------------------------------------------------------------------------
     <S>                                              <C>            <C>
     Deferred financing costs                         $      3,513   $    7,027
     French taxes recoverable                                5,322        4,419
     Other                                                   1,394        4,530
     --------------------------------------------------------------------------

                                                      $     10,229   $   15,976
     ==========================================================================
</Table>

     The Company is currently pursuing through the French judicial courts the
     recovery of taxes related to a prior year. As there can be no certainty
     that the refund will be received in fiscal 2004, the amounts have been
     classified outside of current assets.

7.   EMPLOYEE FUTURE BENEFITS:

     The Company has pension obligations in France which total $5.5 million at
     December 31, 2003 (2002 - $4.7 million) and which are accrued in the
     consolidated balance sheet. Substantially all of the Company's obligations
     in France are met as payment obligations to pensioners arise.

     In North America, the Company's Specialty Polymers and Films Business
     maintain non-contributory defined benefit pension plans and a defined
     benefit life insurance and health care plan covering substantially all of
     its employees. In addition, it maintains a defined contribution pension
     plan, for which the expense for the year ended December 31, 2003 was
     $230,000.

                                                                              10
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

7.   EMPLOYEE FUTURE BENEFITS (CONTINUED):

     These registered pension plans had no unfunded actuarial liability as at
     December 31, 2003 based upon the most recent estimate provided by the
     Company's actuaries using funding assumptions.

     Information about the defined benefit plans for the Company's Specialty
     Polymers and Films Business, in aggregate, for the period ended December
     31, 2003 are as follows:

<Table>
<Caption>
                                                             Pension            Other
                                                       benefit plans    benefit plans
     --------------------------------------------------------------------------------
     <S>                                               <C>              <C>
     Accrued benefit obligation:
         Balance, August 5, 2003                       $      32,745    $       5,202
         Current service cost                                    542               75
         Past service cost                                       352                -
         Interest cost                                           932                -
         Benefits paid                                          (799)             (75)
         Actuarial losses (gains)                              1,156                -
         Foreign currency exchange rate changes                2,797              432
         ----------------------------------------------------------------------------
         Balance, end of year                                 37,725            5,634

     Plan assets:
         Fair value, August 5, 2003                           23,362                -
         Experience gain                                           -                -
         Annual return on plan assets                          1,857                -
         Employer contributions                                  954                -
         Benefits paid                                          (799)               -
         Settlements                                               -                -
         Foreign currency exchange rate changes                2,012                -
         ----------------------------------------------------------------------------
         Fair value, end of year                              27,386                -
     --------------------------------------------------------------------------------

     Funded status - deficit                                  10,339            5,634
     Unamortized net actuarial loss                              (98)               -
     Unamortized past service costs                             (364)               -
     --------------------------------------------------------------------------------

     Accrued benefit liability                         $       9,877    $       5,634
     ================================================================================
</Table>

     Plan assets are invested in a pooled balance fund, managed by a
     professional investment manager, comprised of equity investments in public
     companies and fixed income securities which satisfy specific rating
     criteria.

                                                                              11
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

7.   EMPLOYEE FUTURE BENEFITS (CONTINUED):

     The significant weighted average actuarial assumptions adopted in measuring
     these accrued benefit obligations are as follows:

<Table>
<Caption>
                                                             Pension            Other
                                                       benefit plans    benefit plans
     --------------------------------------------------------------------------------
     <S>                                                        <C>              <C>
     Discount rate                                              6.25%            6.25%
     Expected long-term rate of return on plan assets           8.00%                %
     Rate of compensation increase                              3.50%                %
</Table>

     The assumed health care cost trend rate at December 31, 2003 was 8.0%,
     decreasing 1.0% per year until an ultimate rate of 4.0% is reached. The
     assumed dental care cost trend rate at December 31, 2003 was 3.7%,
     decreasing by 0.1% per year until an ultimate rate of 3.0% is reached.

     The net benefit plan expense from these benefit plans in the Specialty
     Polymers and Films Business is as follows:

<Table>
<Caption>
                                                               Pension            Other
                                                         benefit plans    benefit plans
     ----------------------------------------------------------------------------------
     <S>                                                 <C>              <C>
     Current service cost                                $         542    $          75
     Interest cost                                                 932                -
     Expected return on plan assets                               (796)               -
     ----------------------------------------------------------------------------------

     Net benefit plan expense                            $         678    $          75
     ==================================================================================
</Table>

8.   LONG-TERM DEBT:

<Table>
<Caption>
                                                                   2003             2002
     -----------------------------------------------------------------------------------
     <S>                                                  <C>              <C>
     10-7/8% senior unsecured notes due August 1, 2009    $     265,000    $     190,000
     Revolving credit facility due January 10, 2008              29,137                -
     -----------------------------------------------------------------------------------

                                                          $     294,137    $     190,000
     ===================================================================================
</Table>

     During the year ended December 31, 2001, the Company issued $190.0 million
     senior unsecured notes (the "New Notes"), the proceeds of which were, in
     part, applied to repay in full the existing 9-3/4% senior secured notes
     (the "Old Notes"). A loss of $3.5 million was incurred on settlement of the
     Old Notes reflecting the excess of the cost of settlement over the net
     carrying value of the Old Notes at the date of settlement. Interest on the
     New Notes is payable semi-annually. The New Notes are redeemable at the
     Company's option on or after August 1, 2005 at specified redemption prices
     plus accrued interest. The New Notes have financial and other covenants
     which, if violated, would limit its ability to make certain types of
     expenditures or enter into certain types of transactions in the future.

                                                                              12
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

8.   LONG-TERM DEBT (CONTINUED):

     To fund part of the AT Plastics Acquisition, on August 5, 2003 the Company
     issued $75.0 million 10 7/8% senior unsecured bonds due August 1, 2009. The
     bonds were issued at a price of 109.50% plus accrued interest from August
     1, 2003, and provide for semi-annual interest payments starting February 1,
     2004. The costs incurred in the refinancing of approximately $3.4 million
     are amortized as a charge to interest expense over the period that the
     bonds are outstanding. The premium on issuance of $7.125 million, which has
     been recorded as a reduction to deferred financing costs, is amortized as a
     credit to interest expense over the period that the bonds are outstanding.

     The Company's Specialty Polymers and Films Business has a CDN$70.0 million
     committed revolving credit facility, which may be drawn in either Canadian
     or United States dollars. This facility bears interest at Canadian bank
     prime plus 1.125% per annum on Canadian dollar advances, U.S. base rate
     plus 1.125% per annum on U.S. dollar advances, and bankers' acceptance rate
     plus 2.875% per annum on bankers' acceptances issued. This facility is
     secured by a first charge on accounts receivable, inventory and fixed and
     other assets of the business. At December 31, 2003, substantially all of
     the facility has been drawn in United States dollars. For the amounts drawn
     under this facility in Canadian dollars, the Company is at risk of the
     impact of changes in the Canadian: US dollar exchange rate. In addition, as
     amounts drawn bear interest at a floating rate, the Company has interest
     rate risk. To December 31, 2003, the Company has not entered into any
     financial instruments specifically to mitigate these risks.

9.   SHARE CAPITAL:

     (a)  Authorized: Unlimited number of common shares.

     (b)  Issued:

<Table>
<Caption>
                                                    Number of      Assigned
                                                common shares         value
          -----------------------------------------------------------------
          <S>                                      <C>           <C>
          Issued, December 31, 2000                26,114,364    $   65,073
          Issued on exercise of options               295,600           505
          -----------------------------------------------------------------

          Issued, December 31, 2001                26,409,964        65,578
          Issued on exercise of options               113,500           209
          Repurchased                                (879,500)       (1,988)
          Settlement of share purchase loan                 -           240
          -----------------------------------------------------------------

          Issued, December 31, 2002                25,643,964        64,039
          Issued on AT Plastics Acquisition         8,370,574        39,162
          Issued on exercise of options                63,000           125
          Repurchased and other                      (176,100)         (267)
          -----------------------------------------------------------------

          Issued, December 31, 2003                33,901,438    $  103,059
          =================================================================
</Table>

                                                                              13
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

9.   SHARE CAPITAL (CONTINUED):

     (b)  Issued (continued):

          During the year ended December 31, 2003, the Company repurchased
          176,100 (2002 - 879,500) common shares for cash consideration of $0.6
          million (2002 - $2.3 million) pursuant to a normal course issued bid.
          Of the purchase cost, $0.4 million (2002 - $2.0 million) has been
          allocated to reduce share capital and $0.2 million (2002 - $0.3
          million) assigned to increase the deficit.

     (c)  Notes receivable:

          Share capital is disclosed net of $161,000 (December 31, 2002 -
          $135,000; 2001 - $375,000) of demand notes receivable that bear
          interest at 8% per annum and relate to the purchase of the Company's
          issued common shares by directors, officers or employees.

     (d)  Stock options:

          The Company's stock option plan provides for grants to directors,
          officers and key employees. Stock options are granted having exercise
          prices that are determined by reference to market prices at the date
          of grant. Stock options vest and become exercisable as to 50% on the
          first anniversary and as to 25% each on the second and third
          anniversary of grant. Stock options expire 10 years from the date of
          grant.

<Table>
<Caption>
                                                       Number         Weighted average
                                                   of options    exercise price (CDN$)
          ----------------------------------------------------------------------------
          <S>                                       <C>          <C>
          Outstanding, December 31, 2000            3,472,288    $               6.46
               Granted                                200,000                    6.35
               Exercised                             (295,600)                  (2.65)
               Forfeited                               (7,500)                  (2.60)
          ----------------------------------------------------------------------------

          Outstanding, December 31, 2001            3,369,188                    6.59
               Granted                                 40,000                    3.00
               Exercised                             (113,500)                  (2.88)
               Forfeited                             (402,500)                 (12.22)
          ----------------------------------------------------------------------------

          Outstanding, December 31, 2002            2,893,188                    6.14
               Granted                                 50,000                    6.10
               Issued on AT Plastics Acquisition      666,866                   21.31
               Exercised                              (63,000)                  (2.78)
               Forfeited                              (12,583)                 (10.03)
          ----------------------------------------------------------------------------

          Outstanding, December 31, 2003            3,534,471    $               9.05
          ============================================================================
</Table>

                                                                              14
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

9.   SHARE CAPITAL (CONTINUED):

     (d)  Stock options (continued):

          The following table summarizes information about stock options
          outstanding and exercisable at December 31, 2003 (exercise prices in
          Canadian dollars):

<Table>
<Caption>
                                  Options outstanding                               Options exercisable
          -------------------------------------------------------------------   ----------------------------
                                                                     Weighted
                                                                      average                       Weighted
          Range of exercise                       Weighted average   exercise   Exercisable          average
          prices                         Number    remaining term       price        number   exercise price
          --------------------------------------------------------------------------------------------------
          <S>                         <C>               <C>          <C>          <C>         <C>
          $2.60 - $3.18                 752,583         7.85         $   2.72       732,583   $         2.71
          $5.50 - $8.00               2,271,088         6.28             7.18     2,171,088             7.22
          $10.08 - $81.60               510,800         7.24            26.88       510,800            26.68
          --------------------------------------------------------------------------------------------------

                                      3,534,471         7.32         $   9.05     3,414,471   $         9.17
          ==================================================================================================
</Table>

     (e)  Warrants:

          Pursuant to the AT Plastics Acquisition, the Company issued 706,760
          warrants to purchase common shares having an exercise price of
          CDN$6.10 per share and 141,432 warrants to purchase common shares
          having an exercise price of CDN$4.32 per share, all expiring June 2,
          2008.

     (f)  Restrictions on dividends:

          Covenants attached to the senior unsecured notes (note 8) restrict the
          Company's ability to make dividend or other cash capital distributions
          to an amount determined by reference to cumulative earnings (as
          defined) plus the proceeds from specified capital transactions.

     (g)  Net earnings (loss) per share:

          The weighted average number of common shares used in the calculation
          of net earnings (loss) per share for each period have been determined
          as follows (in thousands):

<Table>
<Caption>
                                                         2003        2002      2001
          -------------------------------------------------------------------------
          <S>                                          <C>         <C>       <C>
          Basic - weighted average number
            outstanding                                28,912      26,314    26,310
          Effect of dilutive stock options                  -           -       678
          -------------------------------------------------------------------------

          Dilutive - weighted average number
            outstanding                                28,912      26,314    26,988
          =========================================================================
</Table>

          All stock options have been excluded from the calculation of diluted
          loss per share for 2003 and 2002 as their effect is anti-dilutive.

                                                                              15
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

10.  INCOME TAXES:

     The provision for income taxes varies from the provision for income taxes
     calculated at the Canadian combined statutory income tax rate of 37.6%
     (2002 - 39.6%; 2001 - 44.6%) as follows:

<Table>
<Caption>
                                                          2003         2002         2001
     -----------------------------------------------------------------------------------
     <S>                                             <C>          <C>          <C>
     Income (loss) before income taxes               $ (18,977)   $ (12,923)   $   1,644
     -----------------------------------------------------------------------------------

     Provision for income taxes at statutory rates   $  (7,139)   $  (5,118)   $     733
     Lower taxes in foreign jurisdictions              (11,011)     (11,208)     (14,566)
     Losses for which no tax benefit has been
       provided                                         18,150       16,326       13,833
     -----------------------------------------------------------------------------------

                                                     $       -    $       -    $       -
     ===================================================================================
</Table>

     As at December 31, 2003 and 2002, the effects of temporary differences that
     give rise to significant future tax assets and liabilities are as follows:

<Table>
<Caption>
                                                                       2003         2002
     -----------------------------------------------------------------------------------
     <S>                                                          <C>          <C>
     Future tax assets:
       Net operating loss carry forwards                          $ 114,000    $  84,581
       Net capital loss carry forwards                                1,567        1,742
       Inventory valuations                                           1,061          813
       Pension plan                                                   1,876        1,371
       Other                                                          2,395        1,987
       ---------------------------------------------------------------------------------
       Total gross future tax assets                                120,899       90,494

     Valuation allowance                                            (94,816)     (67,235)
     -----------------------------------------------------------------------------------

     Net future tax assets                                           26,083       23,259

     Future tax liabilities:
       Excess of book basis over tax basis of capital assets        (23,272)     (20,569)
       Other                                                         (2,811)      (2,690)
       ---------------------------------------------------------------------------------
       Total gross future tax liabilities                           (26,083)     (23,259)
     -----------------------------------------------------------------------------------

     Net future tax liability                                     $       -    $       -
     ===================================================================================
</Table>

                                                                              16
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

10.  INCOME TAXES (CONTINUED):

     At December 31, 2003, the Company has operating tax loss carry forwards
     which are available to offset taxable income in future years as follows:

<Table>
<Caption>
                                                        Amount    Expiry dates
     -------------------------------------------------------------------------
     <S>                                            <C>           <C>
     Canada                                         $  174,000       2004/2010
     United States                                       3,500            2021
     France                                            126,000    Indefinitely
     Spain                                              21,500       2007/2016
     -------------------------------------------------------------------------

                                                    $  325,000
     =========================================================================
</Table>

     In addition, the Company has capital loss carry forwards of $8.8 million
     that are available indefinitely to offset taxable capital gains in Canada.

11.  COMMITMENTS AND CONTINGENCIES:

     (a)  Rhodia Agreement:

          Concurrent with completion of the acquisition of the acetic acid
          business of Rhodia in 1995 (the "Acquisition"), the Company entered
          into an agreement with Rhodia which indemnifies the Company from
          specified costs arising due to existing environmental matters. The
          continuing material terms of the agreement are as set out below.

          At the time of the Acquisition, environmental studies were undertaken
          of the French and Spanish production facilities. The French studies,
          which identified certain problems relating to soil and groundwater
          pollution, were submitted to the appropriate French government
          environmental authority. This authority is responsible for defining
          the remedial actions required for the environmental problems
          identified in the report. The Spanish studies were finalized and
          submitted and the Company received comments from the applicable
          authorities in 1998. Under the indemnity agreement, Rhodia is
          responsible for all of the costs associated with the remedial actions
          required by the environmental authority to be taken in connection with
          these identified environmental problems without regard to cost,
          expense or time. As those identified problems at the date of
          Acquisition are the responsibility of Rhodia, no provision has been
          made for the costs associated with such matters in the consolidated
          financial statements.

          In addition, notwithstanding the completion of the remedial actions
          discussed in the preceding paragraph, Rhodia is solely responsible for
          any additional remedial actions relating to the identified problems
          that may be required by any government agency unless such additional
          remedial measures are required in connection with a change in
          environmental law or environmental permits.

                                                                              17
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

11.  COMMITMENTS AND CONTINGENCIES (CONTINUED):

     (a)  Rhodia Agreement (continued):

          Any remedial actions required as a result of any change in or
          cessation of the activities of the Pardies plant are to be borne
          solely by the Company. Management does not believe that the Company
          has any material financial obligations with respect to currently
          existing environmental problems.

     (b)  Operating costs:

          (i)   Acetyls Business:

                The Company's Acetyls Business has entered into long-term supply
                contracts to purchase methanol, carbon monoxide and oxygen for
                the Pardies plant, being three of the principal feedstocks of
                production. The business has a fixed price methanol supply
                contract under which it has agreed to purchase an amount of
                methanol, which currently represents approximately 50% of its
                annual requirements, at a price that is fixed for the duration
                of the contract. This contract will terminate in 2010 and is
                automatically renewable on an annual basis thereafter unless
                ninety days prior notice has been given. The business purchases
                its remaining methanol requirements in the merchant market at
                European spot and contract prices. The business purchases oxygen
                pursuant to a contract that expires May 7, 2006, under which the
                price of oxygen is indexed to the business's cost of
                electricity. The business purchases carbon monoxide pursuant to
                a contract that expires March 31, 2007, under which the price
                includes a fixed base amount and an additional variable cost
                based on usage. The aggregate minimum annual obligations under
                these contracts is approximately $28 million.

                The business currently purchases substantially all of its
                natural gas requirements, the other significant raw material
                feedstock, pursuant to a contract expiring on June 30, 2005.

                The business has entered into contracts for the shipping of its
                products to customers. These contracts are predominantly
                short-term in nature.

                The business has indirectly entered into a contract which
                extends to 2005 under which a third party has undertaken to
                produce and deliver to the business 40,000 tonnes per year of
                vinyl acetate monomer. The business supplies acetic acid which
                is tolled into vinyl acetate monomer at a price per tonne based
                on the third party's cost of production.

                                                                              18
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

11.  COMMITMENTS AND CONTINGENCIES (CONTINUED):

     (b)  Operating costs (continued):

          (ii)  Specialty Polymers and Films Business:

                In 1999, the Company's Specialty Polymers and Films Business
                entered into a 15-year ethylene supply contract for the purchase
                of approximately 125,000 tonnes per year under a limited
                take-or-pay arrangement. In 2000, the Specialty Polymers and
                Films Business entered into a 10 year electrical supply contract
                at a fixed price per kilowatt hour.

                Under the terms of operating leases, AT Plastics is committed,
                as at December 31, 2003, to rental payments until expiry of
                leases as follows:

<Table>
                Year ending December 31:

                <S>                                                 <C>
                2004                                                $    2,990
                2005                                                     2,620
                2006                                                     1,760
                2007                                                     1,310
                2008                                                     1,130
                Thereafter                                               4,940
                --------------------------------------------------------------

                                                                    $   14,750
                ==============================================================
</Table>

12.  FINANCIAL INSTRUMENTS:

     At December 31, 2003, financial instruments comprise cash and cash
     equivalents, accounts receivable, investments, accounts payable and accrued
     liabilities and long-term debt. Except as indicated below, the fair value
     of such amounts are not materially different from their carrying values
     primarily due to their ability for prompt liquidation or short term to
     maturity. Based on market trading information, the fair value of the
     long-term debt at December 31, 2003 is $299.5 million (2002 - $201.4
     million).

     The Company does not hold any other financial instruments with off-balance
     sheet risk of accounting loss. In prior years, the Company has entered into
     feedstock, swap and other contracts intended to mitigate the risk of
     unplanned fluctuations on its operating costs. When entered into, such
     instruments involve risk from the possible inability of counterparties to
     meet their obligations. Historically, the Company has limited its risk by
     having only major financial institutions as counterparties.

     The cost of ethylene, the main raw material for the Specialty Polymers
     business, fluctuates with the price of natural gas. As a means of hedging
     its ethylene cost exposure, from time to time the Company purchases natural
     gas call options because the correlation between changes in the prices of
     natural gas and ethylene provide protection against increases in the price
     of ethylene. At December 31, 2003, the Company did not have natural gas
     call options outstanding.

                                                                              19
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

13.  ECONOMIC DEPENDENCE AND CONCENTRATION OF CREDIT RISK:

     Approximately 44% (2002 - 52%; 2001 - 51%) of the Company's Acetyls
     Business sales were made to ten customers. Approximately 46% of the
     Company's Specialty Polymers and Films Business sales were made to ten
     customers. The loss of a material amount of sales to any of these customers
     could have a material adverse effect on operations. As at December 31,
     2003, approximately 47% (2002 - 48%) of the Acetyls Business accounts
     receivable and 44% of the Specialty Polymers and Films Business accounts
     receivable were owing from these customers, thereby increasing the level of
     credit risk due to the concentration of the accounts receivable.

14.  SEGMENTED INFORMATION:

     As described in note 1, the Company operates in two businesses: the Acetyls
     Business and the Specialty Polymers and Films Business. The accounting
     policies as applied by the Company's operating segments are consistent to
     those set out in note 2.

     The segmented information for the Specialty Polymers and Films segment
     includes the results of operations only for the period from August 5, 2003
     to December 31, 2003.

<Table>
<Caption>
                                                        Specialty
                                                         Polymers   Corporate
                                             Acetyls    and Films   and other        Total
     -------------------------------------------------------------------------------------
     <S>                                   <C>          <C>         <C>          <C>
     Sales                                 $ 264,790    $  68,147   $       -    $ 332,937

     Cost of goods sold and operating
       expenses                              228,292       61,514       2,882      292,688
     Amortization                             20,459        2,520         112       23,091
     -------------------------------------------------------------------------------------
                                             248,751       64,034       2,994      315,779
     -------------------------------------------------------------------------------------

     Operating earnings                    $  16,039    $   4,113   $  (2,994)      17,158
     ========================================================================

     Interest expense                                                              (25,148)
     Equity income                                                                     261
     Foreign exchange loss and other                                               (11,248)
                                                                                 ---------

     Net loss                                                                    $ (18,977)
                                                                                 =========
</Table>

     Capital expenditures by operating segment for 2003 are as follows:

<Table>
<Caption>
                                                        Specialty
                                                         Polymers   Corporate
                                             Acetyls    and Films   and other        Total
     -------------------------------------------------------------------------------------
     <S>                                   <C>          <C>         <C>          <C>
     Purchase of property, plant and
       equipment                           $   4,983    $   1,971   $       -    $   6,954
     =====================================================================================
</Table>

                                                                              20
<Page>

ACETEX CORPORATION
Notes to Consolidated Financial Statements
(Tabular dollar amounts expressed in thousands of United States dollars)

Years ended December 31, 2003, 2002 and 2001

14.  SEGMENTED INFORMATION (CONTINUED):

     Sales by product for each of the years in the three-year period ended
     December 31, 2003 were as follows:

<Table>
<Caption>
                                                          2003        2002        2001
     ---------------------------------------------------------------------------------
     <S>                                             <C>         <C>         <C>
     Acetyls Business:
         Acetic acid                                 $  87,662   $  66,955   $  67,122
         VAM                                            97,024      79,552      91,494
         Acetic derivatives                             80,104      59,022      63,766
         -----------------------------------------------------------------------------
                                                       264,790     205,529     222,382

     Specialty Polymers and Film Business:
         Specialty polymers                             55,334           -           -
         Films                                          12,813           -           -
         -----------------------------------------------------------------------------
                                                        68,147           -           -
     ---------------------------------------------------------------------------------

                                                     $ 332,937   $ 205,529   $ 222,382
     =================================================================================
</Table>

     As at December 31, 2003:

<Table>
<Caption>
                                                        Specialty
                                                         Polymers   Corporate
                                             Acetyls    and Films   and other        Total
     -------------------------------------------------------------------------------------
     <S>                                   <C>          <C>         <C>          <C>
     Property, plant and equipment         $ 114,972    $ 138,753   $     285    $ 254,010
     Total assets                            261,498      202,003      10,095      473,596
</Table>

     All amounts as at December 31, 2002 and for the years ended December 31,
     2002 and 2001 are in the Acetyls segment.

                                                                              21