Gerdau announces its new corporate governance structure, now formed of a Board of Directors and an Executive Committee. The Executive Committee is in charge of managing the Group’s five steel operations. The Board of Directors now includes three independent members, enhancing practices of corporate governance.

   The merger of Gerdau’s operations in Canada and the United States with those of Co-Steel results in the formation of a new company: Gerdau AmeriSteel Corporation, with assets of US$.1.6.billion and a production capacity of 6.6.million metric tons of crude steel for the North American market.

   Gerdau’s gross sales increase by 57.5%, reaching R$ 11.1 billion.

   The Company’s stake in Açominas, located in Ouro Branco (state of Minas Gerais, Brazil), increases to 78.9%, and ensures a qualified majority under the stockholders’ agreement. In 2002, Açominas began operating at an annual rate of 3.million tons of liquid steel after the repair of the mill’s blast furnace cowper. Açominas also expanded its line of products by launching structural shapes. Açominas ended this fiscal year with its third consecutive net profit, for the first time since beginning operations in 1986.

   Gerdau Group investments in expansion, technological updating and social participation reach US$.463.8.million.

   The strategy of adding value to civil construction products is reinforced with the expansion of rebar fabricating services in Brazil, Chile and Uruguay.

   Listing on the Latibex, the index for Latin American companies on the Madrid Stock Exchange, increases visibility on the European stock market.

   Gerdau extends tag along rights to minority shareholders of common and preferred shares. In the event of transfer of Company control, minority shareholders have the right to get 100% of the value paid to members of the controlling block. The benefit is higher in percentage terms and more comprehensive than that provided for under Brazilian corporate law, which determines a payment of 80% of the value of controlling block shares, and only for holders of common shares.