* 100 years of tradition focused in the production of steel in mini-mills and in the distribution of steel products. * Installed capacity of 8 million metric tons of crude steel. * 24 th largest world steel producer and the best ranked Brazilian Company. * Largest Latin American long steel producer. * Distribution network with 64 sales points, 3 service centers for flat steel and 27 fab shops for civil construction. * 9 steel plants in Brazil, 9 abroad and 2 strategic shareholdings.

LONG TERM US$ MM SHORT TERM US$ MM BNDES 5% Companies Abroad 54% Eurobonds 14% ACC / Pre Export 10% Açominas 9% FIRCE 8% BNDES 20% Debentures 14% Companies Abroad 32% Eurobonds 16% ACC / Pre Export 3% Açominas 6% FIRCE 9%

* COMPLETED IN 2000 US$ MM Maintenance / technological update Acquisitions and shareholdings 39.0 Environment * COMPLETED IN 1Q * PLANNED TO

EBITDA and financial expenses - last 12 months

R$ million

Rationing of electricity may reduce crude steel output by 4.5% in 2001.

Economic impact of the real devaluation is almost nil for Gerdau due to its capital structure and its ability to generate a cash flow in U.S. dollars.

Total shipments expected to remain at the same levels of 2000 in spite of the impact of the increase in interest rates and the devaluation of the real.