RELATIONSHIP WITH SHAREHOLDERS, INVESTORS AND ANALYSTS

In complying with its policy of transparency, the Gerdau Group provides detailed information about all our operations at the Website www.gerdau.com.br. This information can also be obtained from our investor relations office. We conduct regular meetings with the capital market agents in Brazil, North America and Europe, in addition to holding conference calls to discuss quarterly performance that are transmitted in real time via the Internet. In 2003, more than 500 people participated in these conference calls. During the same year, 7.3 thousand investors and shareholders were assisted by telephone and over 31 thousand e-mails requesting information were answered. In addition, 55 financial institutions followed the performance of the Group's companies and published reports with their assessment.

Total shareholder return reflects the increase (in US dollars) in the value of the shares for the period indicated, assuming that the distributed dividends were reinvested in shares of the same companies. Quotes refer to the period from December 31, 1996 to December 31, 2003, except for Usiminas (February 26, 1999 to December 31, 2003). Source: Bloomberg

Source: Shareholder records from the custodian bank and São Paulo Stock Exchange. The Brazilian Securities Exchange Commission (CVM) is duly informed of stakes representing more than 5% of the voting capital.
(1) Gerdau Ameristeel ownership reflects the situation in December 2003, not including the April 2004 private placement.

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