May, 2005 All data presented in R$ and in metric tons, except when indicated NYSE Global Opportunities Conference

STEEL SECTOR GERDAU S.A. CONSOLIDATED CAPITAL MARKETS

Source: IISI / World Steel Dynamics WORLD STEEL OVERVIEW Production in 2004: 1.1 billion tons of crude steel China 26% Other 41% Japan 11% USA 9% Russia 6% South Korea 4% World Production & Demand Evolution Finished Steel F2010F 632 1,000 1,153 ProductionApparent Consumption Production by Countries , % + 85% Brazil 3% 3 In million tons According to the WSD forecast for 2010, 97% of the world production will be consumed.

INTERNATIONAL STEEL TRADE TOP 5 Net Exporters TOP 5 Net Importers 31.9 Japan 25.5 Russia 25.2 Ukraine 10.9 Brazil 9.4 Belgium USA 24.6 China 22.6 Thailand 8.2 Hong Kong 5.4 Italy 5.2 GDP Growth Rate 2004 (Annual percent change) 2.6 % 7.1 % 12.1 % 5.2 % 2.7 % 1.2 % 8.1 % 6.1 % 9.5 % 4.4 % Source: IISI / IMF In million tons 4

WORLD STEEL RANKING Crude Steel – Output 2004 Arcelor (LUX) 1 LNM Holdings (NED) 2 Nippon Steel (JAP) 3 JFE Steel (JAP) 4 Posco (KOR) 5 Shangai Baosteel (CHI) 6 US Steel (USA) 7 Corus Group (U.K.) 8 ThyssenKrupp (GER) 10 Riva Group (ITA) 11 ISG (USA) 12 Nucor (USA) 9 Gerdau Group (BRA) 13 Severstal (RUS) In million tons Mittal Steel (Ispat, LNM and ISG) is currently the biggest world steel company with 60 million tons of installed capacity. Gerdau will have an installed capacity of 21 million tons of crude steel per year after the investment program in Brazil is completed in Source: Metal Bulletin 5

BRAZILIAN STEEL SECTOR Per Capita Apparent Consumption – Finished Steel (Kg/inhab.) 234 Source: IISI / IBS Usiminas System (Usiminas + Cosipa) 27% Arcelor (Acesita+ Belgo+ CST) 28% Gerdau Açominas 22% CSN 17% Other 6% Market Share 2004 Crude SteelLong Rolled Steel Gerdau Açominas 48% Belgo 35% Barra Mansa 5% Other 12% South Korea Japan Germany USAFrance Russia China Middle East Mexico Brazil Africa India WORLD Finished steel per capita apparent consumption is still low compared to the developed countries. 489 kg/inhab. Average per capita apparent consumption of developed countries in

STEEL SECTOR GERDAU S.A. CONSOLIDATED CAPITAL MARKETS

COMPETITIVE EDGE Focused on long steel products manufacturing and distribution Market mill approach Up-to-date technology Competitive production costs Diversified production processes Multiple raw materials sourcing Service and distribution centers Relevant market share in every country in which the Company has operations Financial soundness and access to international capital markets Confirmed experience in turning around distressed operations 8

GEOGRAPHICAL LOCATION North America Steel mills (14) Downstream operations (13) Fab shops (29) Scrap collection and processing units (16) Joint Venture (1) Steel mills (10) Downstream operations (8) Fab shops (11) Flat steel service centers (6) Retail stores (70) Scrap collection and processing units (8) Solid pig iron production units (2) Iron ore extraction areas (3) Private port terminals (2) Brazil South America Steel mills (2) Fab shops (4) Joint Venture (1) Retail stores (6) 9

In thousand tons INSTALLED CAPACITY December 2004 Crude Steel Rolled Steel Products Slab, Blooms & Billets 510 8,2907,580 7,630 4,730 2,610 Brazil Billets, slabs, blooms, merchant bars, rebars, wire rod, drawn products, welded wire meshes, structural, nails, downstream products, fabricated steel products and specialty steel. North America South America Brazil ,380 12,970 2,610 North America Billets, merchant bars, rebars, wire rod, drawn products, welded meshes, nails, downstream products, fabricated steel products, flat steel products and grinding balls. South America Billets, merchant bars, rebars and wire rod. Main Products 10

SHIPMENTS Brazil - Domestic market Brazil - Exports South America North America 1Q042Q043Q044Q041Q05 3,148 3,134 3,171 3,107 3, ,389 1, ,334 1, , , ,631 In thousand tons 11 1Q04 2Q043Q044Q041Q05 Net Sales per Ton (R$/ton shipped) 1,000 1,200 1,400 1,600 1,800 2,000 2,200 1,212 1,302 1,462 1,678 1,769 2,078 South America North America Brazil

PRODUCTION COSTS Cost of Sales per Ton (R$ per ton shipped) 1Q042Q043Q044Q041Q05 1,326 1,690 1,650 1,575 1,739 Net Sales per tonCost per ton 1,258 1,098 1,058 1,095 1,002 Breakdown of Costs – 1Q05 12

1Q04 FINANCIALS 1Q In R$ millions Consolidation of the new North American units (North Star Steel) Increase of 31% in the average prices (net sales/ton) Improvement in the operating efficiency and gains in productivity 1Q05 Main Events 13

INDEBTEDNESS Mar In R$ millions COST OF DEBT (per annum) Brazil - Domestic currency 15.78% Brazil – Foreign currency FX+5.61% Companies abroad 7.05% HEDGE In R$ millions Foreign currency debt (Brazil) 2,321 Swap operations 162 Exports 3,000 Cash in US$ 1,597 TOTAL HEDGE 4,759 COVERAGE RATIO 2.0 x DEBT AVERAGE LIFE 4.1 years 29 Dec.04 14

FINANCIAL RATIOS Consolidated Leverage Ratio (Net Debt/EBITDA*) Interest Coverage Ratio (EBITDA / Net Interest Expense – FX and Monetary Var.) 1Q042Q04 3Q044Q041Q05 Net Debt Consolidated Leverage Ratio In R$ millions 1Q042Q04 3Q044Q041Q05 EBITDAInterest Coverage Ratio In R$ millions ,715 1,665 1, ,228 4,957 3,847 4, , , *Last 12 months

INVESTMENTS ,800 7,580 9,230 11,720 16,380 20, % + 5% + 28% Installed Capacity Evolution 2005: US$ 1,140 mm 2006: US$ 1,260 mm 2007: US$ 770 mm Total: US$ 3,170 mm Brazil Expansion: US$ 1,620 mm Tech. Update: US$ 750 mm Abroad Tech. Update: US$ 800 mm Investment Schedule ,240 4,730 8,880 6,610 12,970 15, % + 8% + 19% BrazilAbroad BrazilAbroad Crude SteelRolled Products 16

Expansions OURO BRANCO (Minas Gerais) – US$ 830 mm Capacity increase: 1.5 million tons of crude steel (2007 year-end) COSIGUA (Rio de Janeiro) – US$ 174 mm Capacity increase: 400 thousand tons of crude steel (2007 year-end) 150 thousand tons of rolled products (2005 year-end) 150 thousand tons of rolled products (2007 year-end) USIBA (Bahia) – US$ 88 mm Capacity increase: 320 thousand tons of crude steel (2007 year-end) 370 thousand tons of rolled products (2007 year-end) AÇOS FINOS PIRATINI (Rio Grande do Sul) – US$ 43 mm Capacity increase: 150 thousand tons of rolled products (March 2005) OTHER MILLS IN BRAZIL – US$ 87 mm Capacity increase: 220 thousand tons of crude steel (2007 year-end) MAIN INVESTMENTS Greenfield Projects ARAÇARIGUAMA (São Paulo) – US$ 105 mm Capacity: 900 thousand tons of crude steel (May 2005) 600 thousand tons of rolled products (April 2006) GERDAU AÇOS ESPECIAIS RIO (Rio de Janeiro) – US$ 293 mm Capacity: 800 thousand tons of crude steel (2007 year-end) 500 thousand tons of rolled products (2007 year-end) 17

STEEL SECTOR GERDAU S.A. CONSOLIDATED CAPITAL MARKETS

SHAREHOLDING STRUCTURE Met. Gerdau S.A. Gerdau S.A. 45% Gerdau Participações S.A. 100% 92% Gerdau Internacional Empreendimentos Ltda. Gerdau Açominas S.A. 72% Gerdau Chile Gerdau Laisa SIPAR Aceros 38% 100% 23% Gerdau Ameristeel Corp. 66% 19

STOCK PERFORMANCE +41% +15% Gerdau S.A. GGBR4 Gerdau S.A. - ADR GGB GGBR4 IBovespa +82% +15% +45% +15% Metalúrgica Gerdau S.A. GOAU4 Gerdau Ameristeel Corp. GNA.TO GOAU4 IBovespa GNA.TO TS % - 4% GGB Dow Jones Source: Economática/Bloomberg - Period: to (Base 100) 20

DIVIDEND POLICY Payout of 30% of the Adjusted Net Income. Dividend payments are being made on a quarterly basis since March * = Higher amount due to an extraordinary dividend payment. Metalúrgica Gerdau S.A.Gerdau S.A. In R$ millions 33.1%32.8%52.6%34.0%31.5%31.8% 6.0%7.9%17.0%12.4% 6.2% 7.8% 32.0%32.7%35.6%34.9% 3.6%6.1%6.8%7.1% 32.5% 3.9% 31.9% 6.1% Pay out Yield Adjusted Net Income Dividend paid , , ,

Declarations relative to business perspectives are based on current expectations on future events and trends that affect our business. These estimates are subject to risk, uncertainties and suppositions and include, among other, overall economic, political and commercial environment, in Brazil and in the markets we are present in addition to government regulations, present and future.