1. Second Annual NYSE Small-Cap Conference for Non-U.S. Companies New York, May 6 - 7, 2004

2. Steel Sector Gerdau S.A. Consolidated Stock Market

3. World Production Crude Steel In million tons Sources: IISI and MEPS In the 1Q 2004, the world produced 247.7 million tons of crude steel. Brazil contributed with 3.2% of this tonnage. 03

4. Largest Producers Crude Steel 2002 Source: IISI In million tons Production Company (LUX) (ENG) (JAP) (KOR) (CHI) (ENG) (GER) (JAP) Company Production (ITA) (USA) (JAP) (USA) (JAP) (BRA) (ENG) 04

5. Overview Brazilian Steel Sector - 2003 Belgo (Arcelor) – 33.8% 2,654 thousand tons Gerdau Açominas – 49.6% 3,894 thousand tons Barra Mansa - 5% 385 thousand tons Aços Villares - 6% 456 thousand tons V&M do Brasil - 6% 466 thousand tons LONG STEEL PRODUCERS IN BRAZIL Source: IBS CRUDE STEEL PRODUCERS IN BRAZIL In thousand tons Usiminas/Cosipa Gerdau Açominas Belgo/CST/Acesita (Arcelor) CSN Aços Villares V&M do Brasil Barra Mansa 8,624 6,976 8,449 5,318 775 551 421 MWL Brasil36 05 TOTAL 2003: 7,855 thousand tons TOTAL 2003: 31,150 thousand tons

6. Exports of Long Steel Products Brazilian Steel Sector - 9M2003 Source: IBS Exports Domestic Sales Exports of long steel products reached 2.2 million tons in 2003, an increase of 78% YoY. In million tons Domestic Sales Sep.2003/2001 - 11% Exports Sep.2003/2001 +85% 200120022003 Monthly Average 517.2 thousand tons 100 200 300 400 500 600 700 Monthly Average 528.2 thousand tons Monthly Average 461.5 thousand tons Monthly Average 84.4 thousand tons Monthly Average 99.2 thousand tons Monthly Average 156.3 thousand tons 06

7. Competitiveness Brazilian Steel Sector Source: IBS EBITDA MARGIN - 2002 BrazilAsia* * Does not include Japan JapanEUNorth America Others (World) In % 5 10 15 20 25 30 35 40 Despite increases in the prices of main inputs, Brazil has the highest operating margin in the world. The mills operate with up-to-date technology due to a permanent investment program. 35% 07

8. Investments Brazilian Steel Sector Source: IBS INVESTMENT SCHEDULE In US$ million 20071994959697989900010203040506 In million tons Apparent Consumption Installed Capacity Crude Steel Production INSTALLED CAPACITY X PRODUCTION X APPARENT CONSUMPTION 08 20032004200520062007TOTAL FLAT STEEL613.4 694.0 854.4 351.5 117.9 2,631.2 LONG STEEL290.3 276.2 281.2 185.9 180.1 1,213.7 SPECIALTY STEEL72.8 58.5 50.4 38.1 32.3 252.1 TOTAL976.5 1,028.8 1,186.0 575.4 330.4 4,097.0

9. Steel Sector Gerdau S.A. Consolidated Stock Market

10. Main Products BILLETS, BLOOMS & SLABS MERCHANT BARS REBARS FABRICATED STEEL HEAVY STRUCTURAL SHAPES WIRE-ROD WIRES NAILS 10

11. Billets, merchant bars, rebars, wire rod, drawn products, welded meshes, nails, downstream products and fabricated steel products. Billets, slabs, blooms, merchant bars, rebars, wire rod, drawn products, welded wire meshes, structurals, nails, downstream products, fab. steel products and specialty steel. Billets, merchant bars, rebars and wire rod. CRUDE STEEL SLABS, BLOOMS & BILLETS In thousand tons Gerdau Açominas South America North America 7,575 510 6,568 2,610 TOTAL14,6532,610 COMMON ROLLED PRODUCTS 4,640 634 6,186 11,460 - - PRODUCTS Installed Capacity 11

12. 12.3 million 9.0 million Aza Chile 1992 MRM Canada 1995 Part. Açominas 1997 AmeriSteel USA 1999 Cearense Guaíra 1982 Laisa Uruguay 1981 Hime 1985 Barão de Cocais 1988 Courtice Canada 1989 Usiba 1989 Piratini 1992 Pains 1994 Sipsa Argentina 1997 Açominas (control) 2002 Co-Steel 2002 2003 1980 19841996199219882000 Part. Sipar Argentina 1998 Output Evolution AVERAGE GROWTH RATE 1980 - 2003 Crude Steel 10.2% per year Rolled Products 9.2% per year 14 th largest world steel producer according to the IISI. Largest long steel producer in the Americas. Crude SteelRolled Products 12

13. Geographical Distribution (2) Rolling mill, 38% stake JV (1) Flat steel mill, 50% stake JV SOUTH AMERICA 2 mills and 1 strategic shareholding (Sipar) 3 fabrication shops BRAZIL 10 mills 11 fabrication shops 6 downstream operations and special sections 68 sales points (Comercial Gerdau). 5 service centers for flat steel (Comercial Gerdau). NORTH AMERICA 10 mills and 1 strategic shareholding (Gallatin Steel) 20 fabrication shops 12 downstream operations and special sections Gerdau AmeriSteel Corp. Sipar (2) Laisa Gerdau Açominas S.A. AZA Gallatin Steel (1) 13

14. Competitive Edge Focus on long steel products manufacturing and distribution Market mill approach Up-to-date technology Competitive production costs Diversified production processes Multiple raw materials sourcing Vertical and horizontal integration 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 14

15. Results 1Q2004 15

16. Results by Regions 1Q2004 16

17. Brazil (domestic sales) Brazil (exports) North America South America 436 416 352 376 5,180 3,476 3,400 5,140 3,211 3,376 3,034 1,891 3,874 2,294 1,068 3,656 351 2,264 1,052 3,546 285 927 730 3,152 260 505 208 2,837 208 240 499 2,711 199719981999 2000 2001200220031Q04 Annualized 3,6583,8115,0947,213 7,394 9,15112,14412,492TOTAL TONS Sales Track Record In thousand tons 17

18. Indebtedness In R$ million 19 FX rate US$ R$ 2.9086 R$ 2.8892

19. Investments 2003 Gerdau Açominas US$ 230 mm South America US$ 7 mm North America US$ 59 mm NEW WIRE-ROD MILL Installed capacity: 550 thousand tons/year Total investment: US$ 66 mm TOTAL IN 2003: US$ 295 MM FORECAST FOR 2004: US$ 350 MM 20

20. Operational Integration Combination of strengths of both companies: greater competitiveness Project developed in partnership between Gerdau and CEA (Employee Investment Club) Headquarters in Ouro Branco - MG Gerdau Açominas S.A.Gerdau S.A.Aço Minas Gerais S.A. Açominas NEW CORPORATE GOVERNANCE Met. Gerdau S.A. Gerdau Açominas S.A. BrazilNorth America South America Gerdau Ameristeel Gerdau AZA Gerdau Laisa Sipar Gerdau S.A. 21

21. Stronger demand in Brazil (domestic market); Lower interest rates in Brazil expected for the end of the year; Economic stability in Brazil and uncertainty in the political scenario; International prices trend: stable to upwards; North American operations pursuing better results; US economy recovering; South American operations in very good shape and improving. Outlook 22

22. Steel Sector Gerdau S.A. Consolidated Stock Market

23. Shareholders Structure Metalúrgica Gerdau S.A. Other Gerdau Companies 25% Brazilian Inst. Investors 24% Foreign Inst. Investors 15% Other Shareholders 36% Gerdau S.A. Met. Gerdau and other Gerdau companies 52% Brazilian Inst. Investors 10% Foreign Inst. Investors 22% Other Shareholders 16% Gerdau Açominas S.A. Gerdau Group 92% CEA Clube / Fund. Aços 4% Other Shareholders 4% 24

24. Adjusted Net IncomeDividends paid Payout of 30% of the Adjusted Net Income. Dividend payments are being made on a quarterly basis since March 2003. Dividend Policy * Met. Gerdau paid a higher amount due to a one-time supplementary dividend payment in 2001. 25 1.080 33.0%32.6%52.5%34.2% PAY OUT YIELD 6.0%7.9%17.0%12.4 % 32.2%32.8%35.7%34.7%32.5% 3.6%6.1%6.8%7.1 %3.9% 31.5% 6.2 % METALÚRGICA GERDAU S.A. In R$ million 234 123 163 54 174 57 413 141 546 172 200019992001*2002 2003 763 265 462 165 381 125 306 98 351 2001200019992002 2003 GERDAU S.A. In R$ million

25. Stock Price Performance Period: 01.01.2003 to 04.19.2004 Source: Economática/Bloomberg USA (New York Stock Exchange) Canada (Toronto Stock Exchange) 26 2003 > GGBR4: + 152% GOAU4 : + 161% 2004 > GGBR4: + 10% GOAU4 : + 25% 2003 > GGB: + 195% 2004 > GGB: + 12% 2003 > GNA: +103% 2004 > GNA: + 9% Brazil (São Paulo Stock Exchange)

26. 1 year3 years5 years Appreciation Chart In US$ Source: Economática Base: 04.19.2004 Dividend-adjusted USA (NYSE) GGB +171% GGB +246% GGB +304% DOW +25% DOW -2.4% DOW 0% BRAZIL (Bovespa) GGBR4 +180% GGBR4 +468% GGBR4 +319% GOAU4 +199% GOAU +720% GOAU4 +458% IBOV +82% IBOV +11% IBOV 13% Gerdau S.A. Metalúrgica Gerdau S.A. Ibovespa Gerdau - ADR Dow Jones 27

27. Comparative Chart Source: Economática and company websites 28

28. www.gerdau.com.br inform@gerdau.com.br