TECHNOLOGICAL UPDATE

   The Gerdau Group invested R$ 55 million in the environmental area during the past year.

   The upgrading of the dust removal systems for the electric arc furnaces at Gerdau's Açonorte (Brazil), Charlotte (USA) and Laisa (Uruguay) mills provided for increased levels of atmospheric protection. At Açominas, investments to refurbish the secondary dust removal system of the sintering unit and the beginning of the installation of new fine particle filtering equipment represent important advances in environmental protection.

   In order to improve water management, the Cartersville (USA) mill installed new equipment to increase residuals recycling efficiency through segregation of the casting and rolling mill water systems. During the same period, the Laisa mill also completed the upgrade of its process water treatment system.

   The Gerdau Group's mills employ radioactivity detectors to protect the production process from contamination by radioactive scrap. During the past year, new and more advanced equipment was installed at the Cambridge (Canada), Charlotte (USA), Jackson (USA), Jacksonville (USA), Knoxville (USA) and Cartersville (USA) mills.