A culture of social responsibility in the communities where we work • The Gerdau Group participates in building quality of life in our communities. It is active in projects in 77 the areas of scientific research, entrepreneurship, education, culture, health, volunteer work, Total Quality, sports, and history. Investments in these areas in 2001 totaled R$ 13 million. • Over the years, Gerdau has established its role as a good corporate citizen, exchanging know-how with the community and encouraging economic and social development in the areas where it operates. • Gerdau sponsors the Young Scientist and Young Scientist of the Future awards, in partnership with the Roberto Marinho Foundation and the Brazilian National Council for Scientific and Technological Development (CNPq). Nineteen years ago it launched the Gerdau Best of the Land award, in recognition of the role of the agricultural machinery industry in developing innovative solutions to increase agricultural productivity. • Gerdau encourages the growth of small and very small businesses in Brazil, believing that the prosperity of a community is directly linked to the number of employers generating new investments, jobs and taxes. In partnership with Sebrae (the Brazilian Support Service for Small and Very Small Businesses), Gerdau offers awards in the southern, southeastern and northeastern regions of Brazil, evaluating company management in terms of Total Quality parameters. • It is a member of Junior Achievement, a movement that operates throughout the Americas with the aim of encouraging young people to enter the world of business. • Among other cultural projects, Gerdau takes part in the Mercosur Biennial Visual Arts Foundation, organizer of the largest exhibition dedicated to Latin American art. The first three Mercosur Biennials have brought together a total of 1.2 million visitors and 1,500 art works. • One of the highlights in the field of education is the Solidarity Training program, which prepares young people from low-income backgrounds for new income-generating activities. In the last two years, the program has reached 63,500 young people between the ages of 16 and 21, involving 1,900 social organizations in 83 Brazilian municipalities. • Gerdau is also involved in Total Quality Management programs, with the aim of increasing competitiveness in the private and public sectors. • Volunteer work currently involves hundreds of Gerdau employees. In partnership with other companies in Brazil, Gerdau founded the NGO Volunteer Partners (Parceiros Voluntários), which is now one of the largest centers for the promotion of volunteer work. By the end of 2001, 16,000 volunteers were involved in the organization. • In Canada, Gerdau supports the Heart and Stroke Foundation through volunteer activities on the part of employees of MRM Steel, in the province of Manitoba. • In Chile, Gerdau takes part in the Program in Support of Education, Art and Technology, together with the Diego Portales University, the Catholic University of Chile, the Federico Santa Maria University, the Andrés Bello University and the Corbeta Esmeralda School. Gerdau is also involved in Community Solidarity Projects, helping needy people in Renca, Colina and Arica, as well as encouraging corporate social responsibility through its involvement in the Fundación Generación Empresarial. • In the United States, Gerdau is involved in the Community Action Team volunteer program. One of its initiatives is the Habitat for Humanity project, which builds houses for low-income families in Tampa, Florida. Seventy five new houses were built in 2001. • Since 1999, Gerdau has been involved in the Casa Joven project in Montevideo, Uruguay. The project aims to place young people in the job market by means of technical training. In 2001, the project involved 70 people between the ages of 15 and 21.