Disclaimer ”This presentation may contain statements that express management’s expectations about future events or results rather than historical facts. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements, and CVRD cannot give assurance that such statements will prove correct. These risks and uncertainties include factors: relating to the Brazilian economy and securities markets, which exhibit volatility and can be adversely affected by developments in other countries; relating to the iron ore business and its dependence on the global steel industry, which is cyclical in nature; and relating to the highly competitive industries in which CVRD operates. For additional information on factors that could cause CVRD’s actual results to differ from expectations reflected in forward-looking statements, please see CVRD’s reports filed with the Brazilian Comissão de Valores Mobiliários and the U.S. Securities and Exchange Commission.”

Agenda High performance in an unfriendly environment Strong market fundamentals

High performance in an unfriendly environment

Several factors had a negative impact on 1Q05 performance BRL appreciation against the USD (7.8% yoy, 4.1% qoq) Cyclical cost pressures Seasonality Operational challenges Despite these factors, CVRD delivered a very good quarterly result

Production growth, currency volatility and some price hikes generated a US$ 351 million cost increase US$ million 25 9 1,360 31 54 61 demurrage depreciation 81 others BRL appreciation 90 energy 1,009 outsourced services material 1Q04 1Q05 Costs = COGS + SG&A

Top-line growth of 34. 5% yoy Top-line growth of 34.5% yoy. No effect of 2005 iron ore & pellet prices yet Price contribution to 1Q05 revenue yoy growth - US$ 417 million in US$ million

Strong demand, new projects and capacity creep are driving iron ore and pellets shipments growth ª Capão Xavier Carajás 70 Mtpy São Luís ª Proforma data for 2002 and 2003. It includes Caemi data to facilitate comparison.

Strong operational performance evidenced by an above average adjusted EBIT margin (1) in %

Operational excellence across-the-board adjusted EBIT margin by business area

Earnings performance in 1Q05 was one of the best in a streak of very good results US$ million Gains with asset sales 629 631

LTM adjusted EBITDA US$ billion An impressive performance: twelve consecutive quarters of adjusted EBITDA growth 1Q05 adjusted EBITDA (2) US$ 993 million LTM adjusted EBITDA US$ billion

Fábrica Nova is ramping up. Current production running at 9.6 Mtpy Fabrica Nova is the third CVRD iron ore project to come on stream over the last twelve months 1Q05 Capex – US$ 570.3 million Stay-in-business US$ 139.5 million Projects US$ 402.6 million R&D US$ 28.2 million Fábrica Nova is ramping up. Current production running at 9.6 Mtpy

CVRD investment is much more growth-focused than the industry average growth capex¹ / total capex % CVRD Metals and mining industry ¹ projects and R&D Sources: CVRD and Citigroup Smith Barney

A powerful cash flow and financial discipline drive continued balance sheet strengthening (3) (4) 2.5 1.0 1.5 1.0

Cost of capital reduction is a strategic priority given the capital intensiveness of the mining industry CVRD enhanced its committed bank facilities (cbf) with a larger, longer term and lower cost transaction. => US$ 650 million 2 years for withdrawal + 2 years for repayment. Commitment fee: 0.3%p.a. - Interest rate: Libor + 0.75% p.a. No restrictions linked to country risk. Total cbf: US$ 750 million.

Strong market fundamentals

Growth scare destroyed US$ 63 billion of mining value in March/April Growth scare destroyed US$ 63 billion of mining value in March/April. However, this is not supported by global macroeconomic fundamentals Global GDP growth % After averaging 6% in 2H03/1H04, global growth moderated reflecting a return to a more sustainable pace of expansion. Source: IMF

Chicago Fed National Activity Index¹, 3M moving average The U.S. economy is still growing above-trend. Inflation and interest rates remain subdued and domestic demand is robust Chicago Fed National Activity Index¹, 3M moving average ¹ The CFNAI is a weighted average of 85 indicators of the US economic activity. Positive values indicate above-trend growth while negative values are associated with below-trend growth. Source: Federal Reserve Bank of Chicago

GDP growth in China remains very strong and could be stronger than expected China’s GDP growth 2005E=8.5% 2006E=8.0% Sources: CEIC and CVRD

FAI is a good leading indicator of Chinese steel consumption FAI is a good leading indicator of Chinese steel consumption. There is no indication of weakening

Brazil-Japan and Australia-Japan freight rates differential. Freight rate differential reached an all-time high, reflecting the strength in iron ore trade Brazil-Japan and Australia-Japan freight rates differential. Source: Clarksons

Spot market prices at levels well above benchmark prices continue to evidence global market tightness Jan/04 Mar/04 May/04 Jul/04 Sep/04 Nov/04 Jan/05 Mar/05 Sources: The Ministry of Land and Resources P.R.C. and CVRD

China’s iron ore imports Chinese iron ore import growth remains on track, driving the seaborne trade China’s iron ore imports million tons 40.5% 23.5% Sources: Tex Report, IISI and National Bureau of Statistics

Copper inventories are at critically low levels, contributing to support prices Sources: LME, Comex, SFE and Bloomberg

Aluminum stocks are falling and alumina availability is constraining smelter production Sources: LME, Comex and Bloomberg

Global alumina shortage is not expected to be corrected in 2005/06 Sources: Metal Bulletin, LME and Bloomberg

CVRD – A global leader www.cvrd.com.br e-mail: rio@cvrd.com.br

Appendix Reconciliation of non-GAAP information and comparable GAAP information (1) Adjusted EBIT (US$ million) 1Q04 4Q04 1Q05 Net operating revenues 1,656 2,317 2,213 COGS (908) (1,208) (1,247) SG&A (101) (133) (113) Research & development (23) (67) (34) Other operating expenses (41) (87) (24) Adjusted EBIT 583 822 795 (2) Adjusted EBITDA (US$ million) Reconciliation between adjusted EBITDA vs. operating cash flow   1Q04 4Q04 1Q05 Operating cash flow 597 1.071 431 Income tax 97 10 160 Monetary and foreign exchange losses (3) (169) (25) Financial expenses 144 179 65 Net working capital (56) (48) 341 Others (36) (42) 24 Adjusted EBITDA 743 1.001 993

Appendix Reconciliation of non-GAAP information and comparable GAAP information (3) Total Debt / LTM Adjusted EBITDA 1Q04 4Q04 1Q05 Total debt / adjusted LTM EBITDA (x) 1.86 1.10 1.05 Total debt / LTM operating cash flow (x) 2.26 1.18 1.27 (4) LTM Adjusted EBITDA / LTM Interest Coverage 1Q04 4Q04 1Q05 Adjusted LTM EBITDA / LTM interest expenses (x) 11.69 12.41 13.24 LTM operating income / LTM interest expenses (x) 8.96 10.41 11.12