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October 31, 2008

Conference Call / Webcast | Third Quarter 2008 Earnings

Paulo Penido Pinto MarquesCFO and Investor Relations Director

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“Declarations relative to business perspectives of the Company,

operating and financial results and projections, and references to the

growth of the Company, constitute mere forecasts and were based on

Management’s expectations in relation to future performance. These

expectations are highly dependent on market behavior, Brazil’s

economic situation, the industry and international markets, and are

therefore subject to change.”

Disclaimer

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Macro Economic Analysis - BrazilMacro Economic Analysis - Brazil

• Brazilian economy went through a strong period of growth until Sep/08. • The country should end 2008 with strong economic figures.

Estimates

GDP Growth = 5.3%

Industrial Production Growth = 5.5%

Inflation: 4.5% (BACEN target)

• Steel Industry:

Flat Steel demand increased 10% until September/08 when compared to the same period of 2007, growth observed in almost all sectors.

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Macro Economic Analysis - WorldMacro Economic Analysis - World

Steel Industry:

Uncertainty regarding the continued growth of demand. Reduction of inventory levels. Decrease in international prices.

• The subprime mortgage crisis in the US directly influenced the financial bubble.• Greater impacts were felt throughout the world, affecting mainly the US and European economies.• An inflationary pressure was seen due to an increase in the commodity prices.

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OutlookOutlookDomestic DemandDomestic Demand

For 2009, the forecast is a more modest expansion pace in domesticdemand for flat steel, which can be supplied without imports and of theoverburden of the production units.

Usiminas can make necessary operational adjustments

in order to maintainthe balance betweensupply and demand

10.1

09

9.22

9

9.90

2 11.6

69

12.8

20

12.4

75

2004 2005 2006 2007 2008 2009

+6,9% +2,8%Demand Growth (thous. tons)

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UsiminasUsiminasDevelopment PlanDevelopment Plan

• Investment Plan is well structured.• Capex fits into the capital structure considered adequate by the Company.• 50% of the investment plan’s capex will be financed with cash generation and the remainder through debt.

TransactionsValue

US$ millionValue

R$ millionTermYears

BNDES - Credit Line - 900 6

BNDES - 493 7

Eurobonds 400 - 10

Debentures - 500 4 / 5

Prepayment 600 - 5 / 7

JBIC 550 - 10

Transactions ValueUS$ million

ValueR$ million

TermYears

BNDES - Credit Line - 900 6

BNDES - 493 7

Eurobonds 400 - 10

Debentures - 500 4 / 5

Prepayment 600 - 5 / 7

JBIC 550 - 10

Loans and Financing already signed

TransactionsValue

US$ millionValue

R$ millionTermYears

BNDES - Credit Line - 900 6

BNDES - 493 7

Eurobonds 400 - 10

Debentures - 500 4 / 5

Prepayment 600 - 5 / 7

JBIC 550 - 10

Transactions ValueUS$ million

ValueR$ million

TermYears

BNDES - Credit Line - 900 6

BNDES - 493 7

Eurobonds 400 - 10

Debentures - 500 4 / 5

Prepayment 600 - 5 / 7

JBIC 550 - 10

Loans and Financing already signed

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STEELMAKING MINING TOTAL

2008 1.480 960 2.440

2009 2.550 1.060 3.610

2010 4.410 480 4.890

2011 1.830 770 2.600

2012 360 200 560

TOTAL 10.630 3.470 14.100

UsiminasUsiminasDevelopment PlanDevelopment Plan

The capex plan can be adjusted in order to preserve the quality ofthe Company’s financial performance.

US$ million

At the investment peak,the Total Debt/EBITDAratio reaches themaximum of 2,5x

“Investment Grade”maintenance

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Usiminas3Q08 and 9M08 Results3Q08 and 9M08 Results

• Net revenue was record in 3Q08 - R$ 4.5 billion, due to better prices and mix.• EBITDA record in the quarter - R$ 1.9 billion – Highlights was the EBITDA margin in 3Q08 = 42.6%.• Net Profit of R$ 2.4 billion in the 9M08, 8% higher than 9M07. Higher result of equity income.• Conservative financial management . Usiminas does not speculate thought financial derivatives.• Impact in the quarter of R$ 498 million due to foreign exchange costs (devaluation of the Brazilian real againstthe US dollar = accounting impact, non-cash effect).

R$ million 3Q 2008 3Q 2007 2Q 2008 Chg. 3Q08/3Q07 9M 2008 9M 2007 Chg.

9M08/9M07

Total Sales Volume (000 t ) 1,915 2,094 1,917 -9% 5,718 6,010 -5%Net Revenues 4,451 3,630 3,973 23% 11,978 10,346 16%Gross Profit 1,836 1,343 1,455 37% 4,524 3,690 23%Operating Result (EBIT) (a) 1,489 1,139 1,245 31% 3,745 3,118 20%Financial Result (537) 13 201 (366) 83 0%

Net Income 880 758 861 16% 2,387 2,202 8%EBITDA (b) 1,894 1,375 1,458 38% 4,607 3,786 22%EBITDA MARGIM 42.6% 37.9% 36.7% + 4.7 p.p. 38.5% 36.6% + 1.9 p.p.

EBITDA (R$/t) 989 657 761 51% 806 630 28%Total Assets 25,388 19,893 24,415 28% 25,388 19,893 28%Net Debt 1,579 (243) 552 1,579 (243) 0%

Stockholders' Equity 14,334 12,115 13,598 18% 14,334 12,115 18%

(a) E arn ings before in terest, tax and participations .

(b) E arn ings before in terest, taxes, depr eciation, amortization and partic ipations .

Highlights

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“Manutenção da liderança de mercado - Market Share de 49% no 3T08.”UsiminasConsolidatedConsolidated Sales Sales

Market Share: 49%

Production volume and sales in line with the Company’s planning.

3Q08 Total Sales:

Down 9% in relation to 3Q07and stable in relation to2Q08.

DM = sales growth of 7%until Sep/08.

EM: down 37% in relation to3Q07 and increase of 19% inrelation to 2Q08

Con s olida te d S a le s (0 0 0 t)

1Q04 2Q 04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q 06 1Q07 2Q 07 3Q07 4Q 07 1Q08 2Q 08 3Q08

Dom e st ic Market Export M arke t

73%72% 71% 71%

28%

1,910

27%

1,9712,011

29%

2,170

29%

78%

1,768

22%

70%

1,829

30%

69%

1,770

31%

54%

1,981

46%

62%

1,954

38%

69%

2,028

31%

1,971

32%

68%

1,992

33%

67%

1,936

28%

72%

1,980

24%

76%

2,095

23%

77%

1,980

19%

81%

1,886

19%

81%

1,917

13%

87%

16%

84%

1,915

Con s olida te d S a le s (0 0 0 t)

1Q04 2Q 04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q 06 1Q07 2Q 07 3Q07 4Q 07 1Q08 2Q 08 3Q08

Dom e st ic Market Export M arke t

73%72% 71% 71%

28%

1,910

27%

1,9712,011

29%

2,170

29%

78%

1,768

22%

70%

1,829

30%

69%

1,770

31%

54%

1,981

46%

62%

1,954

38%

69%

2,028

31%

1,971

32%

68%

1,992

33%

67%

1,936

28%

72%

1,980

24%

76%

2,095

23%

77%

1,980

19%

81%

1,886

19%

81%

1,917

13%

87%

16%

84%

1,915

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Spain13%

South Korea4%

USA13%

Thailand5%

Vietnan3%

Mexico13%

Argentina18%

Chile8%

Germany7%

Taiwan7%

Outros9%

UsiminasUsiminasDomestic Market Sales and ExportsDomestic Market Sales and Exports

Domestic Market Sales3Q08

Exports9M08

Hot Rolled31%

Processed Products

3%

HDG6%

Electrogalv.3%

Cold Rolled24%

Heavy Plates24%

Slabs9%

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UsiminasUsiminas Financial HighlightsFinancial Highlights

Record EBITDA consolidates the basis for the Company’s growth

• Record EBITDA totaled R$ 1.9 billion(US$ 1.1 billion) in 3Q08, that is, 38%higher than 3Q07 and 30% higherthan 2Q08.

• Total of R$ R$ 4.6 billion in the 9M08.• Highlight for the EBITDA margin of 43%in 3Q08.

404

414

479

565

551

559

622

717

683

721

881

1,13

7

31%34%

39%36% 35%

31%

37% 38%35% 35%

37%

43%

4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

EBITDA (US$ million) EBITDA Margin

EBITDA & EBITDA Margin

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UsiminasUsiminasFinancial HighlightsFinancial Highlights

Usiminas finds itself in a favorable position to implement its developmentplan.

• Net Debt: US$ 0.8 billion in 9/30/08 Adequate debt profile• Debt profile by Currency: Local: 32% Foreign: 68%

0.8

0.9

0.7

0.7

0.8

0.4

0.1

-0.1

-0.1

-0.2

0.4

0.3

0.3 0.4 0.4 0.2 0 0 -0.1 -0.20.1 0.1 0.20.4

4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

CND (US$ bi) CND/EBITDA

Consolidated Net Debt/EBITDA

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UsiminasUsiminas3Q08 Consolidated Cash Flow - 3Q08 Consolidated Cash Flow - R$ millionR$ million

Solid and consistent cash generation.

4,098(6)529

76570383306731,894

4,523

Inicial

Balance

EBITDA

New Fina

ncing

Amortiza

tion of F

inancin

g

Interes

t

Working C

apita

l Cha

ngeInve

stmen

ts

Dividen

ds/In

teres

t on C

apita

l

Others

Final Bala

nce

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ADRADRNível INível I

UsiminasUsiminasStock PerformanceStock Performance

Despite the solid fundamentals,Usiminas’ shares depreciatedaround 30% untilSeptember/08, due to theinternational crisis and to theplummeting stock marketprices.

69.3

77.574.6

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60

70

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100

110

120

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150

160

170

180

D ec -07 Jan-08 Feb-08 Mar-08 A pr-08 May-08 Jun-08 Jul-08 A ug -08 Sep-08

IBOVES PA U SIM5 U SIM3

69.3

77.574.6

50

60

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80

90

100

110

120

130

140

150

160

170

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D ec -07 Jan-08 Feb-08 Mar-08 A pr-08 May-08 Jun-08 Jul-08 A ug -08 Sep-08

IBOVES PA U SIM5 U SIM3

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• New executive structure announced by the Board of Directors assuresbetter capability to face market trends.

• Within Usiminas’s commercial strategy, the remaining 49%participation in DUFER S/A was acquired, reinforcing the group’spresence in the distribution and services center segments.

UsiminasUsiminasOther Highlights of the QuarterOther Highlights of the Quarter

• Usiminas Mecânica and Nuclebrás Equipamentos Pesados – Nuclepestablished a partnership to supply capital goods. The forecast ofprojects is in the amount of R$ 300 million.

• Usiminas is included, for the second consecutive year, in the Dow Jones Sustainability World Index – the only steel company in the

Americas to be part of this index.

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http://eng.usiminas.com.br

Investor Relations:

Bruno Seno Fusaro (Head of IR) Gilson Rodrigues Bentes Matheus Perdigão Rosabrunofusaro@usiminas.com.br gilson@cosipa.com.br mprosa@usiminas.com.brTel.: +55-31-3499-8772 Tel.: +55-31-3499-8617 Tel.: +55-31-3499-8056Fax: +55-31-3499-9357 +55-11-5070-8980

Luciana Valadares dos Santos Diogo Dias Gonçalves lsantos@usiminas.com.br dgoncalves@usiminas.com.br Tel.: +55-31-3499-8619 Tel.: +55-31-3499-8710

Declarations contained in this presentation in relation to the business outlook of theCompany, operational and financial projections and references to the growth potential of theCompany constitute mere forecasts and were based on the expectations of the Managementin relation to future performance.These expectations are highly dependent on market behavior, of the economic situation inBrazil, on industry and international markets, and are, therefore, subject to changes.

ADRNível I