1 Gerdau March 28, 2007 Exane BNP Paribas Basic Materials Seminar 2007

2 One of the world’s lowest cost steel companies Strong cost position as a result of diversified production processes and multiple raw material sourcing Strong foreign currency generation Large export base International subsidiaries Ranked 14 th globally by steel output for year 2005 with an output of 13.7m tons Largest long steel producer in the Americas 2 nd largest long steel producer in North America 32 mills, integrated and mini mills, with state of the art technology Relevant market share and diversified product range through downstream and service centers Strong balance sheet, low leverage and strong cash generation Gerdau S.A. shares are listed on the São Paulo, New York and Madrid Stock Exchanges Highlights

3 CANADA Brazil 9.2 million tonnes of crude steel 6.3 million tonnes of rolled steel products Abroad 10.0 million tonnes of crude steel 10.7 million tonnes of rolled steel products Total Capacity (Includes Strategic Shareholdings) 19.2 million tonnes of crude steel 17.0 million tonnes of rolled steel products 11 steel units 12 fabrication shops 6 downstream operations 74 sales points and flat steel service centers 21 steel units 44 fabrication shops 17 downstream operations 1 associated company (Sidenor) 1 joint venture (Gallatin) An International Company

4 Laisa (Uruguay) Piratini (Brazil) AZA (Chile) Ameristeel (USA) AZA New Plant (Chile) Additional stake in Açominas (Brazil) North Star (USA) Cambridge (Canada) Usiba (Brazil) Manitoba (Canada) Control of Açominas (Brazil) Co-Steel (USA) 1,757 3,072 3,934 4,595 7,696 11,076 16,372 Diaco (Colombia) 16,709 Barão de Cocais (Brazil) 2,611 Stake in Açominas (Brazil) 4,568 19,230 Araçariguama (Brazil) Sidenor (Spain) Sheffield (USA) Siderperú (Peru) GSB (Spain) Solid Track Record e: estimated In thousand tonnes 21,605 Installed Capacity Expansion Abroad – Installed capacity of Crude Steel Brazil – Installed Capacity of Crude Steel Besides the mills acquired, as related above, Gerdau acquired many fab shops in order to add value to its products and offer services and products to its clients according to their needs. 2009e TOTAL INVESTED ( ): Brazil = US$ 5.2 billion + Debt North America = US$ 2.0 billion + Debt South America = US$ 654 million + Debt Europe = US$ 380 million + Debt CAGR : 15% p.a.

5 BRAZIL COUNTRY MARKET SHARE MAIN COMPETITORS Gerdau 47% Arcelor Brasil 37% Barra Mansa 5% Other 5% V&M do Brasil 6% CHILE * URUGUAY ARGENTINA 44% 19% 83% CAP + Imports Acindar + Bragado + Zapla Imports COLOMBIA37%Acerias Paz Del Rio + Imports * Market share of rebars, profiles and wire-rod. ** Market share of long products, it doesn’t include flat steel. NORTH AMERICA 17% Nucor + ArcelorMittal + CMC Markets PERU ** 45% Aceros Arequipa + Imports SPAIN 43% Aceralia + Saarsthal

6 Historical Financial Performance In US$ millions HISTORICAL PERFORMANCE * FINANCIAL PERFORMANCE 2001 TO 2006 Group sales have risen strongly in recent years following the global recovery of the steel business and the company’s growth Brazilian domestic shipments increased 12.6% in 2006, compared to the 2005, reflecting the most improved civil construction sector 2006 results show Gerdau’s Brazilian operations contributing approximately 41.0% of net sales, North America 45.6%, South America 9.9% and Spain 3.5% * All data in BR GAAP converted by R$ 2.138

7 CONSOLIDATED Cost of Sales/t Net Sales/t NORTH AMERICA Costs and Prices BRAZILSOUTH AMERICA Net Sales and Cost of Sales per tonne (US$/tonne) All data in BR GAAP converted by R$ EUROPE Cost of Sales/t Net Sales/t Cost of Sales/t Net Sales/t

8 ACTUAL 2006* INVESTMENT PLAN 2007 – 2009: US$ 4.0 billion BRAZIL694.4 ABROAD1,308.2 North America537.6 South America255.5 Europe515.1 TOTAL2,002.6 In million US$ TOTAL BRAZIL ,0002,390 ABROAD ,610 North America South America Europe TOTAL1,4001,1001,5004,000 In million US$ Investment Plan * Including acquisitions in the period. INSTALLED CAPACITY EVOLUTION Crude Steel Rolling Products In thousand metric tons Brazil Abroad Brazil Abroad + 12% ,260 9,970 11,005 10,600 19,230 21, % + 10% ,680 6,360 6,450 17,040 18, % + 12% + 8% 11,985

9 European Investment Plan ACTUAL 2006 INVESTMENT PLAN 2007 – 2009: US$ 148 million EUROPE515.1 CAPEX17.9 ACQUISITIONS497.2 In million US$ TOTAL EUROPE In million US$ MAIN INVESTMENTS: Acquisition of 40% stake in Corporación Sidenor (Jan./06) Investment of US$ million plus US$ million in liabilities Acquisition of 100% of GSB Acero through Corporación Sidenor (Dec./06) Investment of US$ million plus US$ 14.0 million in liabilities Capital expenditures totaled US$ 17.9 million in synergies and improvements in the mills Gerdau plans to invest more than US$ 30 million in a new bloom caster

10 Outlook BRAZIL Growing volumes in the domestic market: 6 to 8% in 2007 Industrial and residential construction sectors revving up Recovery of agricultural sector Prices in reais stable Costs relatively stable NORTH AMERICA Demand remains strong for rebars, merchant bars and profiles Imports falling Increase in supply of higher value added products SOUTH AMERICA Strong growth in the economy Civil construction sector strengthening Increase in public investments Demand in line with economic growth EUROPE Demand continues strong Price increases Specialty steel sector performing well Growing market share

11 Disclaimer This document can contain statements which constitute forward-looking statements. Such forward-looking statements are dependent on estimates, data or methods that may be incorrect or imprecise and that may be incapable of being realized. These estimates also 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. Prospective investors are cautioned that any such forward- looking statements are not guarantees of future performance and involve risks and uncertainties. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements, which speak only as of the date made.

Gerdau S.A.