GERDAU

February 2006

The World Money Show

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Laisa - 1980(Uruguay)

Piratini(Brazil)

AZA(Chile)

Ameristeel(USA)

AZANew Plant

(Chile)

Additionalstake in

Açominas(Brazil)

Potter FormGate City & RJ

North Star(USA)

SACK(Chile)

Cambridge(Canada)

Usiba(Brazil)

Manitoba(Canada)

Controllof

Açominas(Brazil)

CartersvilleDrawingCo-Steel

(USA)

1,757

3,0723,934

4,595

7,69611,076

16,372

Abroad – Crude Steel Installed Capacity

TOTAL INVESTED (1981-Sep.2005):Brazil = US$ 4.0 billion + Debt North America = US$ 1.4 billion + DebtSouth America = US$ 448 million + Debt

In thousand tons

Solid Track Record

Brazil – Crude Steel Installed Capacity

Araçariguama(Brazil)

Diaco(Col.)

17,797

Barãode

Cocais(Brazil)

2,611Stake in

Açominas(Brazil)

4,568

Brazil

8.5 million tons of crude steel

4.8 million tons of rolled steel products

Abroad

10.1 million tons of crude steel

9.6 million tons of rolled steel products

Total Capacity (Includes Joint Ventures)

18.6 million tons of crude steel

14.4 million tons of rolled steel products

11 mills

11 fabrication shops

6 downstream operations and special sections

75 sales points and flat steel service centers

18 mills and 1 rolling mill

37 fabrication shops

17 downstream operations and special sections

2 joint ventures (USA and Spain)

An International Company

Steel mills

Joint venture

Rolling mill

Cylinders factory

GERDAU BELGO CSN USIMINAS NUCORSTEEL

DYNAMICS

Market Cap - 01.23.2006(US$ mm)

8.153 4.279 6.627 5.332 11.429 1.706

Enterprise Value (EV) (US$ m)

9.284 4.531 9.683 6.325 10.746 2.152

EBITDA (US$ m)

2.287 1.226 2.091 2.725 2.470 406

EV/ EBITDA(X)

4,1 3,7 4,6 2,3 4,3 5,3

Stock Price - 01.23.06(US$)

18,45 606,73 24,36 23,67 72,40 37,81

Net Profit(US$ m)

1.485 766 976 1.532 1.292 209

P/ E(X)

5,5 5,6 6,8 3,5 8,8 8,2

Market Cap / EBITDA (X)

3,6 3,5 3,2 2,0 4,6 4,2

Dividend Yield 2004 6,1% 2,9% 15,8% 9,5% 1,3% 0,7%

Pay-out 2004 32% 29% 104% 35% 10% 4%

Comparison of Results 9M2005 – Annualized Data

*

* Last stock price in 11.10.2005

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