1. New York – June 13 th, 2003 JP Morgan

2. STEEL SECTOR WORLD Brazil GERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Outlook Capital Markets

3. WORLD PRODUCTION Crude Steel Source: IISI 3 1 st China 2 nd Japan 3 rd USA 4 th Russia 5 th South Korea 6 th Germany 7 th Ukraine 8 th Brazil 9 th India 10 th Italy Other Total 20012002 In million metric tons Var. On 1Q 2003 Brazil produced 7.5 million tons, 6.9% more than in the 1Q 2002.

4. LARGEST PRODUCERS Crude Steel 2002 Source: Metal Bulletin In million metric tons Gerdau pro forma Output in 2002: 11,3 million tons (including 12 months of Co-Steel) 4

5. FEB 2003 (USA) SCRAP PRICE US$ 114 / TON PIG IRON US$ 160 / TON INTERNATIONAL PRICES Source: MEPS/ USGS / AMM 1Q 2003 Price increases: 5% in slabs 11% in bars 12% in wire rod 12% in rebars 5 US$ 294 Rebars US$ 344 Slabs US$ 322 Bars US$ 306 Wire rod Jan. 01Jul. 01 Jan. 02Jul. 02Jan. 03 200 260 300 360 US$/ton. 1S 2002 (USA) Pig Iron price +17% 1S 2002 (USA) Scrap price +37% 1S 2002 Price increases: 39% in slabs 10% in bars 13% in wire rod 16% in rebars

6. STEEL SECTOR World Brazil GERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Outlook Capital Markets

7. BRAZILIAN STEEL SECTOR Source: IBS Steel companies Crude Steel output (million tons) Revenues (US$ billion) Exports (US$ billion) Number of employees (thousand) Steel apparent consumption (million tons) Crude steelper capita consump. (kg/inhab.) World Ranking 20012002Var. 7

8. CRUDE STEEL OUTPUT Brazil - 2002 Source: IBS In 2002, the output of crude steel reached 29.6 million tons compared to 26.7 million in 2001, an increase of 10.8%. Consolidating companies by economic groups, Gerdau is the 3 rd largest producer in Brazil. Individually, Gerdau ranks 5 th and Açominas 7 th. In thousand tons Usiminas/Cosipa Gerdau/Açominas Belgo/CST/Acesita (Arcelor) CSN Aços Villares V&M do Brasil Barra Mansa 8,447 5,999 8,439 5,107 700 500 387 BRAZILIAN CRUDE STEEL OUTPUT PER ECONOMIC GROUP 1Q 2003 Usiminas/Cosipa – 2,083 Arcelor – 2,079 Gerdau – 1,675 CSN – 1,272 8

9. Output of long steel, sector in which Gerdau is present, totaled 7.6 million tons in 2002. This is an increase of 4.7% compared to 2001, when output reached 7.3 million tons. ROLLED PRODUCTS OUTPUT Brazil - 2002 Source: IBS 1Q 2003 Gerdau – 921 K ton. – 49% Arcelor – 677 K ton. – 36% 9 Belgo/CST/Acesita (Arcelor) – 2,735 k ton. 35.9% Gerdau/Açominas 3,660 K ton. – 48.0% Barra Mansa – 367 K ton. – 4.8% Aços Villares – 421 K ton. – 5.5% V&M do Brasil – 442 K ton. – 5.8%

10. TOTAL SHIPMENTS WERE 27.5 MILLION TONS IN 2002, 10,1% HIGHER THAN IN 2001. OF THIS TOTAL, 58% WENT TO THE DOMESTIC MARKET AND 42% TO EXPORTS. TONS SHIPPED Brazil - 2002 Source: IBS Exports of flat steel increased most: 46.6%; semi- finished products increased 22.2%; long products increased 17.3% Total volume exported increased by 25.8% in 2002, reaching 11.7 million tons. Long Products 6.7M tons 42.6% Flat Products 9.1M tons 57.4% DOMESTIC MARKET Long Products 1.2M t – 10.2% Other Products 0.5M t – 4.5% Flat Products 2.2M t – 18.7% Semi-finished 7.8M t – 66.6% EXPORTS 10

11. IMPORTS & EXPORTS Brazil - 2002 Source: IBS 2002199919982000 11,686 9,291 672 1,076 9,599 10,017 930 642 8,741 886 US$/t 250.6 US$/t 245.6 US$/t 283.1 US$/t 236.1 US$/t 315.0 2001 1Q 2003 - EXPORTS US$ 281.2 / ton ImportsExports Exports US$/ton In thousand metric tons In 2002 exports increased by 25,8%. The devaluation of the real and the price increases in the international markets were the main variables in explaining this growth. Dec02 / Dec01 Increases in export prices Billets +33,2% Slabs +33,7% Bars +7,4% Rebars –4,0% 11

12. APPARENT CONSUMPTION Brazil - 2002 Source: IBS Apparent consumption in 2002 decreased 1,1% compared to 2001, basically due to the reduction in demand for flat steel (-1,8%). Long steel products represent 42% of apparent consumption. 20012002 7.0 9.7 9.5 Long Products Flat Products 16.7 16.5 FLAT PRODUCTS 2002 Imports 0.4M tons 4.7% Domestic sales 9.1M tons 95.3% Imports 0,2M tons 3.3% Domestic sales 6.8M tons 96.7% LONG PRODUCTS 2002 12

13. STEEL SECTOR World Brazil GERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Outlook Capital Markets

14. 102 years of tradition focused on the production of steel in mini-mills and in the distribution of steel products. Installed capacity of 14 million metric tons of crude steel. 19 th largest world steel producer according to Metal Bulletin Magazine (15 th including 12 months of Co-Steel). Largest long steel producer in the Americas. Gerdau S.A. is listed on the Brazilian Stock Exchanges, on the NYSE and on the Latibex (Madrid Stock Exchange). Gerdau Ameristeel Corp. is listed on the Toronto Stock Exchange. 10 units in Brazil, 12 abroad and 2 strategic shareholdings (Sipar and Gallatin Steel). 68 sales points in Brazil (Comercial Gerdau). 17 downstream operations and special sections (5 in Brazil e 12 in North America). 26 fabrication shops (9 in Brazil, 03 in South America and 14 in North America). 4 service centers for flat steel in Brazil (Comercial Gerdau). Highlights 14

15. Barão de Cocais BRAZIL 7.4 MILLION TONS OF CRUDE STEEL PER YEAR 4.8 MILLION TONS OF ROLLED PRODUCTS PER YEAR ABROAD 7.0 MILLION TONS OF CRUDE STEEL PER YEAR 6.8 MILLION TONS OF ROLLED PRODUCTS PER YEAR SIPAR LAISA GERDAU AMERISTEEL GERDAU S.A. AÇOMINAS AZA Geographical Distribution Gerdau S.A. Açominas Cearense Açonorte Usiba Cosigua Açominas Guaíra Piratini Riograndense Divinópolis 15

16. Billets, rebars, merchant bars, profiles, wire rod, drawn products, nails, specialty steel. Billets, slabs, blooms, rebars, merchant bars, profiles and structurals. Rebars, merchant bars, profiles and wire rod Products Rebars, merchant bars, profiles, wire rod, downstream products, special sections and flat products. Crude Steel Rolled Products Capacity & Products 2003 In thousand metric tons 16

17. Output Evolution Objectives Strategies Evolution Main Events Gerdau Ameristeel Corp. Challenges and Forecasts Growth Average Rate 1980 - 2002 CRUDE STEEL 10.4% year ROLLED PRODUCTS 9.6% year Aza Chile 1992 Part. Sipar Argentina 1998 MRM Canada 1995 Part. Açominas 1997 AmeriSteel USA 1999 Crude Steel Rolled Products Cearense Guaíra 1982 Laisa Uruguay 1981 Hime 1985 Barão de Cocais 1988 Courtice Canada 1989 Usiba 1989 Piratini 1992 Pains 1994 Sipsa Argentina 1997 2002* Açominas (control) 2002 Co-Steel 2002 1980 19841996199219882000 * 100% of Co-Steel 17

18. STEEL SECTOR World Brazil GERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Outlook Capital Markets

19. HIGHLIGHTS 1Q2003 Net Income of R$ 287 million in the 1 st quarter (+129%). Net Sales of R$ 3.3 billion in the 1 st quarter (+101%). Output recorded 1 million metric tons of crude steel in March. Dividends paid in a quarterly basis. Stock Bonus of 100% to Metalúrgica Gerdau S.A. shareholders and 30% to Gerdau S.A shareholders. Shares reduced by 1,000:1 reverse split and shares traded as single units. Stock option plan to the management and employees. Gerdau is the 19 th largest crude steel producer in the world as published by Metal Bulletin. Metalúrgica Gerdau S.A. will be listed in the Level I of Bovespa Corporate Governance Index. 19

20. RESULTS 1Q2003 20

21. Gross MarginEbitda Margin Brazil North America South America R$ million Net Sales 1Q024Q021Q03 1,659 2,566 3,327 120 1,717 1,490 Ebitda R$ million 1Q024Q024Q03 412 598 706 39 620 47 36% 32% 3% 1Q022Q023Q024Q021Q031Q022Q023Q024Q02 43% 34% 4% 1Q03 RESULTS COMPARISON 21

22. Good market condition in Chile. Merger with Co-Steel and recovery of demand after the harsh seasonal weather. Açominas operating in full capacity. Better international prices and stronger exports could balance the lower domestic market demand. SHIPMENTS Brazil – Domestic Market Brazil – Exports North America South America Exports 13.3% Domestic Market 12.9% 854 657 1,269 107 980 580 1,067 106 876 536 625 84 1Q024Q021Q03 2,887 2,733 2,121 22 In thousand metric tons

23. Domestic Market 14% Exports 86% SEMI-FINISHED PRODUCTS Gerdau has 49% of the market share in the Brazilian long steel market. The strong participation of common long steel products abroad is due to the merger with Co-Steel. SALES BY PRODUCT LINE Common long steel products Abroad 43% Common long steel products Brazil 22% Semi-finished 19% Specialty steel 3%Drawn products 6% Flat steel 8% 1 st QUARTER 2003 Domestic Market 72% Exports 28% COMMON LONG STEEL PRODUCTS SALES BY SEGMENTS 45% Civil Construction, 53% Industry and 2% Agricultural (Gerdau S.A. non consolidated) 23

24. OUTPUT CRUDE STEEL OUTPUTROLLED PRODUCTS OUTPUT 1Q02 4Q021Q03 798 612 71 996 1,084 105 922 1,122 91 1,481 2,185 2,135 1,675 1Q024Q021Q03 1,496 662 69 1,691 1,134 97 1,195 85 2,227 2,922 2,955 South America North America Brazil 24 In thousand metric tons

25. INDEBTEDNESS March 2003 In R$ million The increase in the ST portion is due to the reclassification of North American debt - LT x ST (refinancing process under development) Cash & equivalents reduction due to the dividend payment made in the 1 st quarter of 2003 (R$ 186 million). 25

26. DEBT BREAKDOWN March 2003 Companies abroad R$ 2,234 million Other - R$ 285 million BNDES – R$ 110 million Açominas (in R$) – R$ 114 million Import loans – R$ 362 million Pre-export /ACC – R$ 341 million Açominas (in US$) - R$ 834 million Working capital (in US$) - R$ 290 million SHORT TERM – R$ 4.6 billion Companies abroad R$ 547 million Other - R$ 165 million BNDES – R$ 278 million Açominas (in R$) – R$ 186 million Debentures - Brazil– R$ 543 million Pre-export /ACC – R$ 124 million Açominas (in US$) - R$ 114 million Working capital (in US$) - R$ 179 million Import loans – R$ 28 million Eurobonds – R$ 317 million Debentures Abroad– R$ 209 million LONG TERM – R$ 2.7 billion 26

27. FINANCIAL RATIOS * EBITDA last 12 months. 27

28. INVESTMENTS 1 ST QUARTER 2003 US$ 78 MM Açominas US$ 37 mm Gerdau US$ 17 mm South America US$ 2 mm North America US$ 22 mm Stronger investments in the 1Q 2003 due to the new wire rod rolling mill facility. HIGHLIGHTS Conclusion of the new wire rod rolling mill in Açominas. Enlargement of electric furnace of Piratini and an increase of 15% in the melt shop capacity. Implantation of a new continuous casting in Usiba mill (conclusion in 2004). Improvements and technological update of the facilities in North America. The São Paulo Greenfield project will be analyzed in the 2 nd half of 2003. 2003 FORECAST US$ 230 MM 28

29. STEEL SECTOR World Brazil GERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Outlook Capital Markets

30. FORECASTS BRAZIL Increase of 2.0% in GDP Increase of exports Decrease of the Brazilian risk Better risk perception by foreign investors Record year of Agricultural output Impact of the Asian economy slowdown NORTH AMERICA End of the war and slow economic recovery End of winter time and increase in demand Price increases will enhance 2Q2003 results Main inputs cost decreasing SOUTH AMERICA Good condition of the Chilean economy Slow recovery of Argentinean economy 30

31. STEEL SECTOR World Brazil GERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Outlook Capital Markets

32. Other investors 16% Foreign Inst. Investors 19% Brazilian Inst. Investors 13% Gerdau Companies 52% SHAREHOLDERS STRUCTURE March 2003 Other investors 33% Foreign Inst. Investors 19% Brazilian Inst. Investors 23% Gerdau Controlling Group 25% METALÚRGICA GERDAU S.A. GERDAU S.A. 32

33. STOCK BONUS & REVERSE SPLIT Events schedule 05.02.2003: shares traded with all adjustments (ex-rights) 05.15.2003: dividend payment based on positions held on 03.31.2003 06.10.2003: deadline to shareholders compose their odd lots 06.23.2003: Bovespa’s auction to sell the odd lots 06.30.2003: credit in the shareholders’ bank accounts of the odd lot amounts METALÚRGICA GERDAU S.A.GERDAU S.A. 33

34. DIVIDEND POLICY Adjusted Net IncomeDividend paid Distribute, at least, 30% of the Adjusted Net Income. Since March 2003, the dividend payment started to be made on a quarterly basis. 1998 R$ million METALÚRGICA GERDAU S.A. 2000 174 57 106 34 1999 163 54 2001* 234 123 2002 412 140 Pay out 32.8%32.0%32.8%35.6%34.9%32.0%33.1%32.6%52.5%33.9% 34 Yield 11.7 %3.6 %6.1 %6.8 %7.1%16.4 %6.0 %7.9 %17.0 %12.4 % GERDAU S.A. 2001 461 164 2000 382 125 1999 306 98 1998 181 59 2002 763 266 R$ million * Higher amount due to the supplementary dividend payment.

35. LIQUIDITY OF SHARES Gerdau S.A. NYSE Bovespa 200019992001 LTM* 250 10 423 282 54 82 143 459 700 US$ million +70% Bovespa +440% Nyse -33% Bovespa +52% Nyse -3% Bovespa 4% Nyse 2002 500 300 100 +68% Bovespa +68% Nyse 474 138 *Date: 04.30.2003 Traded Volume Source: Economática 35

36. 60 100 150 200 250 20012002 Base 100 Metalúrgica Gerdau S.A Gerdau S.AIbovespa Period: 01.01.2001 a 04.30.2003 Source: Economática QUOTES EVOLUTION 36

37. APPRECIATION CHART Date: 04.30.2003 Source: Economática GGBR4 +2% Ibov -22% GGBR4 +29% GGBR4 +84% Dow -6% Ibov -57% Dow -15% Dow -21% Ibov -49% GOAU4 +37% GOAU4 +53% GOAU4 +98% 1 year3 years 5 years Met. Gerdau – GOAU4 Gerdau - GGBR4 Ibovespa Dow Jones 37 PROFITABILITY IN US$

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