1. Gerdau Group SMITH BARNEY’s 13 th Annual Latin America Conference New York, March 15-16, 2005

2. Steel Sector Gerdau S.A. Consolidated Consolidated Figures Capital Markets All data presented in R$ and in metric tons, except when indicated

3. +23.2% +2.6% +3.5% +4.9% +5.7% +2.7% +5.3% +2.0% +5.6% +4.6% 2003 2004 World Output Crude Steel In million tons 3 The world production of crude steel surpassed the 1 billion ton mark in 2004, an increase of 8.9% over the previous year. The growth average has been 4.6% year over year if China were not included. Source: IISI

4. 4 Source: Metal Bulletin COMPANY OUTPUT 2003 RANKING 2002 After the investment program in Brazil is completed in 2007, Gerdau will have an installed capacity of 21 million tons of crude steel per year. Mittal Steel (Ispat, LNM and ISG) will be the biggest world steel company with 60 million tons of installed capacity. World Top Producers Crude Steel COMPANY OUTPUT 2003 RANKING 2002 In million tons

5. Steel Sector Gerdau S.A. Consolidated Consolidated Figures Capital Markets

6. NORTH AMERICA 14 mills and 1 strategic shareholding (Gallatin Steel) 29 fabrication shops 13 downstream operations and special sections BRAZIL 10 mills 11 fabrication shops 8 downstream operations and special sections 75 sales points (Comercial Gerdau) and flat steel service centers SOUTH AMERICA 2 mills and 1 strategic shareholding (Sipar) 4 fabrication shops 4 sales points Sipar** Laisa Gerdau Açominas S.A. Aza Gerdau Ameristeel Corp. Gallatin Steel* Units Distribution ** Rolling mill, 38% stake JV * Flat steel mill, 50% stake JV 6

7. 12,970 7,630 610 4,730 ROLLED PRODUCTS Billets, merchant bars, rebars, wire rod, drawn products, welded mesh, nails, downstream products, fabricated steel products, flat steel products and grinding balls. -8,290 NORTH AMERICA 2,610 - SLABS, BLOOMS & BILLETS 16,380TOTAL Billets, merchant bars, rebars and wire rod. 510SOUTH AMERICA Billets, slabs, blooms, merchant bars, rebars, wire rod, drawn products, welded wire mesh, structurals, nails, downstream products, fabricated steel products and specialty steel. 7,580BRAZIL MAIN PRODUCTSCRUDE STEEL 7 In thousand tons Installed Capacity December 2004

8. 10,274 9,045 6,933 5,968 5,836 8 Output Evolution CRUDE STEEL In thousand tons ROLLED PRODUCTS In thousand tons Abroad Brazil 13,448 12,343 9,441 7,251 7,065 Utilization rate: Abroad: 83.7% Brazil: 91.7% Utilization rate: Abroad: 83.9% Brazil: 96.2%

9. 12,560 12,144 9,151 7,394 7,213 Shipments In thousand tons 74% increase in sales in the last 5 years 9 Abroad BrazilAverage price (Net sales (R$)/ton) 720 796 1,001 1,101 1,560 In R$/ ton

10. 10 ASIA 51% SOUTH AMERICA 6% NORTH AMERICA 9% CENTRAL AMERICA 11% AFRICA 11% EUROPE 12% ASIA 34% SOUTH AMERICA 15% NORTH AMERICA 15% CENTRAL AMERICA 17% AFRICA 8% EUROPE 11% Exports 2003 2004 EXPORTS 2004 Shipments from Brazil reached 2.7 million tons in 2004 Revenues generated by exports reached US$ 1.1 billion in 2004 Average price 57.9% greater than in 2003 (in US$)

11. 20032004 Financials In R$ million 11 NET SALES REVENUE +46.6% - Better prices in the international market; - Recovery of the domestic demand; - Consolidation of the units acquired in 2004. NET FINANCIAL EXPENSES -72.8% - Increase in financial investments of the cash generated in the period; OTHER OPERATING INCOME +1,153.3% - Favorable outcome of a legal suite due to the improper collection of PIS. EQUITY PICK UP +14.7% - FX variation over investments abroad; - Fiscal incentives reserves; - Goodwill amortization. MAIN VARIATIONS (YoY):

12. 12 Results by Region 2004 Var. % BRAZIL NORTH AMERICA SOUTH AMERICA 20042003 In R$ million Gross Revenue 12,914 9,453 1,040 23,407 15,78348% Net Revenue 9,976 8,857 764 19,597 13,36747% Gross Profit 4,307 1,662 276 6,245 3,29090% EBITDA 3,705 1,597 251 5,553 2,683107% Net Income 2,165 896 174 3,235 1,255158% In R$/Ton Gross Revenue 1,948 1,747 1,996 1,864 1,30043% Net Revenue 1,505 1,637 1,466 1,560 1,10142% Gross Profit 650 307 530 497 27183% EBITDA 559 295 482 442 221100% Net Income 327 166 334 258 103150% In % Gross Margin43%19%36%32%25% EBITDA Margin37%18%33%28%20% Net Margin22%10%23%17%9%

13. 992 1,055 1,1951,217 1,435 1,705 1,830 1,844 US$ million NET REVENUE 210 225 230 229 304 552 582 486 US$ million EBITDA Brazil North America South America GROSS MARGIN EBITDA MARGIN 2.9% 14.9% 42.0%43.6% 34.1% 30.3% 3.6% 13.5% 36.2% 35.8% 32.1% 25.3% Evolution of Results 13

14. COST OF DEBT (per annum) Brazil - Domestic currency 15.2% Brazil – Foreign currency FX+4.4% Companies abroad 7.2% Indebtedness 2004 2003 HEDGE In R$ million Foreign currency debt 2,358 Swap operations 225 Exports2,904 Cash in US$ 1,393 TOTAL HEDGE 4,522 COVERAGE RATIO 1.9x DEBT AVERAGE LIFE 4.1 years In R$ million 14

15. 772 1,140 1,260 770 North Star Assets (USA) Investments in São Paulo Acquisition of stakes in Colombia Melt shop start up in São Paulo Acquisition of stakes in Colombia Improvements at Piratini Improvements at Cosigua Rolling mill start up in São Paulo Improvements in Colombia New blast furnace in Ouro Branco Improvements at Brazilian mills New Specialty Steel mill in Rio 15 In US$ million Capital Expenditures Abroad Brazil Scheduled CAPEX 2005 - 2007: US$ 3.2 billion

16. Main Investments 16 Brazil:Expansion: US$ 1,620 mm Update: US$ 750 mm TOTAL INVESTMENT: US$ 3.2 BILLION Abroad: Update: US$ 800 mm INSTALLED CAPACITY CRUDE STEEL Brazil Current: 7,580 k tons New: 11,720 k tons Abroad Current: 8,800 k tons New: 9,230 k tons Consolidated Current : 16,380 k tons New: 20,950 k tons ROLLED PRODUCTS Brazil Current : 4,730 k tons New: 6,610 k tons Abroad Current : 8,240 k tons New: 8,880 k tons Consolidated Current : 12,970 k tons New: 15,490 k tons

17. Outlook In general terms, the expectation is that 2005 will be similar to 2004 both in Brazil and abroad. Increase in cost of coking coal and iron ore brings repercussions to the steel products international prices. In the short term there is a decline in scrap and pig iron prices. In Brazil the trend is to see margins in the 1Q05 at the same levels as those of the 4Q04. In the 1Q05, volumes in Brazil seasonally low, compensated by exports. In Brazil GDP should grow around 4% leading to an increase in the demand for steel products. Investments in infrastructure in Brazil are expected to grow sharply in 2005. The increase in interest rates in North America brings uncertainties. The role of China. 17

18. Steel Sector Gerdau S.A. Consolidated Consolidated Figures Capital Markets

19. GGBR4 – GERDAU S.A. GNA – GERDAU AMERISTEEL CORP. GGB – GERDAU S.A. ADRs GOAU4 – METALÚRGICA GERDAU S.A. Stock Performance Source: Economática/Bloomberg - Period: 01.01.2004 to 03.03.2005 (Base 100). Metalúrgica Gerdau S.A. Ibovespa Market Cap: US$ 2.0 bi +116% +28% ADRs - Gerdau S.A. Dow Jones Market Cap: US$ 4.5 bi +86% +4% Gerdau Ameristeel Corp. S&P TSX Market Cap: US$ 2.6 bi +84% +20% +77% +28% Gerdau S.A. Ibovespa Market Cap: US$ 5.6 bi 19

20. 30% Stock bonus + 70% Split (GOAU) 100% Stock bonus (GGBR) 3 6 9 12 15 300 600 1,200 900 Dec 03 Jan 04 Feb 04 Mar 04 Apr 04 May 04 Jun 04 Jul 04 Aug 04 Sep 04 Oct 04 Nov 04 Dec 04 Jan 05 GOAU4: 384 trades US$ 5.7mm GGBR4: 1,420 Trades US$ 21.1mm Feb 05 1,500 18 21 Monthly daily average # of trades Monthly daily volume 20 Stock Liquidity Bovespa Source: Economática In US$ million (Volume) In number of trades Monthly daily average # of trades Monthly daily volumeMETALÚRGICA GERDAU (GOAU4)GERDAU (GGBR4) GGBR4: 492 Trades US$ 5.4mm GOAU4: 109 trades US$ 1.6mm

21. LIQUIDITY OF SHARES: Monthly daily average 9M04: GNA.TO = Trades: 217 thousand shares/day GNA.TO = Volume: US$ 871 thousand/day Monthly daily average since 10.18.2004: GNA.TO + NY= : 1,057 mil thousand/day GNA.TO + NY = Volume: US$ 5.9 million/day SHARE APPRECIATION FROM 10.18.2004 TO 03.03.2005: Source: Bloomberg – Base 100 GNA.TO + 47% GNA + 48% Stock Liquidity GNA 21

22. +55 (51) 3323 2703 www.gerdau.com.br inform@gerdau.com.br