The 100 social projects supported by the Gerdau Group in Brazil benefited a large population in 2003: 7.6 million Brazilians, ranging from needy children and adults to scientists from the country's major universities. During the year, actions developed in the community received R$ 21 million in investments.

The majority of the initiatives are based on the spread of knowledge, fundamental for improving the quality of life. The Company acts together with schools and universities, but these are not the only areas where knowledge is transmitted. It is also spread through education for entrepreneurship, vital for the development of talents capable of generating jobs and wealth for communities, through education for scientific research, which can minimize Brazil's problems, and through education for volunteer work and for total quality.

The Gerdau Group also participates in projects in the areas of culture, health and sports, in addition to assisting with community action campaigns.

In partnership with employees, we have developed the Gerdau Professionals Pro-Childhood Fund, a nation-wide project focused on assisting underprivileged children and adolescents who are at risk, who are drug addicts or who have special needs. During the year, the Company and 308 employees contributed to 68 aid organizations throughout Brazil.

Together, projects supported by the Pro-Childhood Fund benefited 13,400 children and adolescents. In 2003, we collected a total of R$ 2.3 million, a result that surpassed the initial goal of R$ 1.2 million by 91%. Of this total, approximately 80% was invested in education and 20% in health. Contributions are made through an income tax deduction in accordance with the federal FUNCRIANÇA law. The initiative served as a model for the creation of a state program in 2003 that is managed by the Federation of Industries of Rio Grande do Sul (FIERGS).

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