1

Investor PresentationAugust, 2008

2

728 725 752 750799 777 789

848 850904

970

1.0691.147

1.251

1.3441.415

1.4931.569

1.6561.744

90 93 95 101 109 115 124 127 151 182222

280356

423489

545595

639 678 712

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

World China

World Gro

wth

2000 th

rough 2

007 = 6

.8% p.a

.

World Crude Steel Production

Source: IISI

Growth rate in the last 10 years: + 68%

China: + 349%

World Growth

1993 through 1999 = 1.4% p.a.

China Growth

1993 through 1999 = 5.5% p.a.

China Gr

owth

2000 th

rough 20

07 = 21.

2% p.a

.

Estimated 2007-2012: +29.8%

In million tonnes

Brazil 9th largest producer with 2.5% of global production

3

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Flat steel Long steel

Attractive Industry Dynamics

Source: IISI / World Steel Figures 2007

Global Steel Industry DriversGlobal Crude Steel Consumption (million tonnes)

► Global

– World apparent crude steel use expected to continue growing at attractive rates in coming years

– Capacity utilization rates at record levels

► China and India

– Fixed assets investment expected to remain at high level, driving solid steel domestic market

– Demand growth led by government focus on infrastructure, auto and construction sectors

– Elimination of rebates curving China's export volumes

► USA

– Highway and infrastructure spending programs will continue supporting demand

– Solid non-residential market conditions persist

– Reduction on import volumes combined with low service center inventories

► Europe– Mature market with a solid demand and additional

growth coming from eastern countries

► Brazil

– Boom in auto and civil construction sectors to drive steel market

– Low production cost structure supports semi finished products export business

672 652 683758

672717

804894

957907

46% 46% 45%44%

44%46%

45%44%

44%45%

54% 54% 55% 56%56%

54% 55%56% 56% 55%

4

50%

37%

Real Estate Automotive

Exposure to Favorable End Markets

Civil Construction

Source: Central Bank, ANEF and International Organization of Motor Vehicle Manufacturers

Automotive

Brazil 2007

► Interest rate reduction and credit availability

increase

► Real estate booming market

► Strong jobs generator

► Housing deficit of 7.8 million houses (correspond

to 14.7% of the houses in the country)

Gerdau’s Sales Volume Breakdown

► Auto production in the 1S08 was 1.7 million

vehicles, growth of 21% compared to the same

period in 2007

► New vehicles sales increased 26.9% in the 1S08

compared to the 1S07

► Truck sales increased 34.6% in the comparative

1S08/1S07

Agricultural

► Commodities with high prices

► Harvest records

Credit Availability CAGR 2003 - 2007

Industry

► New installed capacities► Higher consumption of durable goods► Sustainable growth (larger exports and growth of the domestic demand)

► Industrial Production growth rate: (2003-2007)

• Agriculture machinery + 56%

• Light Vehicles production + 40%

• Heavy Vehicles production + 5%

Civil Construction

50%

Industry 49%

Agriculture 1%

Note: Based on 2Q08 numbers

5

Market Trends

Expected Industry CAGR 2005 – 2010E

Gerdau’s Sales Volume Breakdown

USA 2007

► Highway and Infrastructure spending programs

► Solid non-residential market conditions

Exposure to Favorable End Markets

6%9%

Infrastructure Non-residential

Non-residential Construction

37%

Infrastructure 41%

Others 7%

Manufacturing 15%

6

VISION

MISSION

“Gerdau is an organization focused on the steel business, seeking to satisfy

customers’ needs and add value to shareholders, committed to the fulfillment of

people and to the sustainable development of society.”

“To be a global steel company and one of the most profitable in the sector.”

Company’s Philosophy

�Satisfied CUSTOMERS

�TOTAL SAFETY in the workplace

�Engaged and fulfilled PEOPLE

�QUALITY in everything we do

�RESPONSIBLE ENTREPRENEURSHIP

�INTEGRITY

�GROWTH and PROFITABILITY

VALUES

7

Strategic Guidelines

Business Operations and Functional Processes

1. ROCE and EBITDA as the performance measures for the Business Operations;

2. Disseminate and Consolidate Gerdau Values;

3. Consolidate policies, guidelines and best practices (GBS);

4. Develop leaders and technical staff for Gerdau Group expansion;

5. Develop globally Gerdau brand image;

6. Identify and capture synergies among all Business Operations (procurement, sales, overhead, etc.);

7. Develop the Global SOP process, looking forward the integration between operations, optimizing the use of actives;

8. Be globally competitive (efficiency in costs; productivity, logistics, assets optimization, chain processes integration; customer focus, and worldwide benchmark);

9. Adopt sustainability best practices (Economic, Social and Environmental).

8

Diversify our markets

positioning a relevant part of our operations out of the Americas

Strategic Aspirations

Be a player in the long, flat and specialty steel

markets, developing

expertise in each business chain

Integrated OrganizationGeographical

Diversification

Player in all segments

Leadership in the

markets

Growth and Profitability

Be a relevant player in the markets we

are in

Be a leader in the global steel industry

consolidation with consistent return to the stakeholders

Be a global integrated organization with processes in permanent evolution and shared

values among Corporation (Functional Processes) and

Business Operations

9

LONG STEEL PRODUCTS (Brazil)

� Maintenance of market share

� Improvement of current installed

capacity

SPECIALTY STEEL

� Active role in the steel sector

consolidation process

� Search for new opportunities

AÇOMINAS

� New 1.5 MM tonnes blast furnace

� Growth platform for slabs, blooms

and billets

� Iron Ore Reserves

Growth Opportunities

LATIN AMERICA

� Maintenance of leadership in

the long steel sector

� New markets

NORTH AMERICA

� Efficiency and productivity

gains (Gaps)

� Enhancement of leadership in

the long steel sector through

acquisitions

10

Strategically Located and Vertically Integrated Operations

Upstream Steel Downstream

► Scrap: Brazil 80% captive. 32 collection units and scrap processing.

► Iron Ore: 30% self sufficiency and 70% other suppliers

► 1.8 billion tons of iron ore reserves

- 80% self sufficiency by 2010

► Recent acquisition of a coking coal mill and coking coal reserves in Colombia.

► Premium structural steel

assets

► Low cost structure

► Specialized efficient plants

► Mini-mills and integrated

mills

- 15 in Brazil

- 46 Abroad

► Up-to-date technology

► Fabrication Reinforcing Steel Facilities (Fab Shops)

- 30 in Brazil

- 69 Abroad (represent 23% of the North American sales)

► Downstream operations

- 4 in Brazil

- 29 Abroad

► Retail Facilities

- 68 in Brazil

- 29 Abroad

► Customization

11

Outstanding Corporate Governance

� First Brazilian company to release IFRS balance sheet

� Tag Along (100% Preferred and common shares)

� Board

• Independent board members (3 out of 9)

� Executive Committee

• Support Committees (Excellence and Support, Corporate Governance, Strategy and Compensation and Successions)

� SOX compliant (Gerdau S.A.)

� Audit Committee

Best Practices

Corporate Governance, Strategy and Succession and Remuneration Committees

Board of Directors

Business Operation

Processes

Directors

Executive Committee

Excellence and Support Committees

Shareholders’Meeting

Board of Auditors

12

Gerdau Brief Overview

► Among the most competitive steel companies in the world

– Strong low cost structure as a result of diversified production processes and multiple raw material sourcing

► An international company

– Operations in 14 countries (total of 33 downstream operations, 99 fab shops, 97 retail facilities, 4 Associated Companies and 2 Joint Ventures)

– Large export revenues from Brazil

► Ranked 13th globally by steel output for year 2007 with an output of 18.6 million tonnes (Source: IISI)

► Largest long steel producer in the Americas and 2nd globally

– 61 steel units with state of the art technology (including JointVentures and Associated Companies)

► Relevant market share and diversified product range through downstream and service centers

► Strong balance sheet and strong cash generation

► Gerdau S.A. shares are listed on the São Paulo, New York and Madrid Stock Exchanges

13

Global Player with dominant Regional Presence

Source: Steel on the Net

Long Steel Capacity – Ranking by Company (million tonnes) - 2007

Largest long steel producer in the Americas and 2nd

globally

Steel units

Associated companies

Joint ventures

U.S. & Canada

Mexico

Colombia

Peru

Chile

Uruguay

Argentina

Brazil

DominicanRepublic

Venezuela

India

Spain

Guatemala

19.5

47.3

14.7

10.7 10.5 10.1 9.5 8.9 8.6 8.27.0 6.7 6.6 6.5 5.8 5.6 5.5 4.6 4.4 4.4

14

100+ Years in Business

1900 1940´s 1950´s 1960´s 1970´s 1980´s 1990´s 2000

1901 - First Operation:Nail Factory

1948 - 1st Steel Mill Acquisition (Riograndense)

Expansion of Riograndense Mill (Construction of 2nd

steel mill)

Distribution channel arrangements (today: more

than 70 sales points)Market Share increase by:

Diversification / Verticalization

Distribution channelNew acquisition

(Pernambuco, Brazil)

Acquisition of a new steel mill (Paraná,

Brazil)Construction of a new mill (Rio de Janeiro, Brazil)Entering in the Reforestation business

Acquisition of 3 mills (Rio de Janeiro, Minas Gerais and

Bahia, Brazil)Construction of 2 mills

(Paraná and Ceará, Brazil)International expansion (Uruguay and Canada)

New Acquisitions:Piratini (Rio Grande do Sul, Brazil) –specialty steel

Second mill in Minas Gerais and rolling mill in São Paulo

(Brazil)Stake in Açominas

International expansion ( Chile, Canada, Argentina

and USA)

New Acquisitions:Downstream units, fab shops, Chaparral and MacSteel in North America

Entering European and Asian marketExpansion in Latin American marketConstruction of steel mill in São Paulo (Brazil)

15

45%

43% 44% 46%

50% 46% 51% 65%

63% 61% 62% 84% 84%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2010e

Exterio r - Crude Steel Installed Capacity (1.000ton)

Brazil - Crude Steel Installed Capacity (1.000ton)

Outstanding Growth Track Record

Consistent Growth

CAGR 1997-2008YTD:

Brazil: 10.4%

Abroad: 31.3%

Total: 17.2%

Gerdau’s Expertise

Note:1 YTD – Jun / 2008

21 acquired companies totaling 50 steel units since 1997

Gerdau’s business systems (GBS) support the capture of synergies and promote efficient

capital base

Consistent exchange of best practices between acquired mills and existing Gerdau network

Experienced integration team overseeing all elements of recent acquisitions

Ability to increase profitability and execute quick turnarounds

4,556 4,556

7,696 8,026 8,428

11,076

14,451

16,37216,857

19,870

24,80526,050

29,355

1

16

2Q07 3Q07 4Q07 1Q08 2Q08

PRODUCTS

ShipmentsIn thousand tonnes (IFRS)

NORTH AMERICA: ~1,500

costumers

LATIN AMERICA: More than 5,800

costumers and 500 retail

companies

EUROPE: ~ 450 costumers

BRAZIL: ~165,000 final costumers

and retail companies

More than 173.000 costumers (2007)

1- Does not include Specialty Steel

2- Include Specialty Steel operations in Brazil, Europe and United States

4,1604,637

4,940

4,204

5,495

Brazil1 – Domestic Market (23% in 2Q08)

Brazil1 – Exports (10% in 2Q08)

Latin America (12% in 2Q08)

North America (41% in 2Q08)

Specialty steel2 (14% in 2Q08)

Billets, blooms& slabs

Merchant bars

Rebars Fabricated steel Heavy

structural shapesWire-rod Wires NailsSBQ

Growth

2Q07 / 2Q08 + 3

2.1%

17

Investments

INVESTMENT PLAN 2008–2010

859301416141Latin America

785264338183North America

1,052455426172Specialty steel

1,644565754324ABROAD

TOTAL201020092008

3,6781,0361,6281,014BRAZIL

2,0561,510 2,808 6,374TOTAL

In US$ million

�Investments in Fixed assets in the 2Q08: US$ 380

million

�Acquisitions completed and

announced in the year: US$ 3,1 billion

*Does not include acquisitions

42%

11%

47%

Maintenance

Energy Generation, IT,reforestation and mining

Installed CapacityExpansion - Crude Steeland Rolled Products(2008-2010)

Investment Plan Break Down 2008-2010

CapacityJun/2008

2008 2009 2010New

Capacity *Variation

Crude Steel 10,010 0 200 1,080 11,290 12.8%Rolled Products 5,305 135 335 2,250 8,025 51.3%

Crude Steel 10,015 0 0 225 10,240 2.2%Rolled Products 10,350 0 0 90 10,440 0.9%

Crude Steel 2,295 610 160 780 3,845 67.5%Rolled Products 2,610 265 225 580 3,680 41.0%

Crude Steel 3,730 0 170 180 4,080 9.4%Rolled Products 3,780 0 140 45 3,965 4.9%

Crude Steel 26,050 610 530 2,265 29,455 13.1%Rolled Products 22,045 400 700 2,965 26,110 18.4%

TOTAL

Brazil

North Amercia

Latin America

Aços Especiais

6,374

18

Financial and Operational Summary

2.2%2.7%Dividend yield (%)

37,1%29,3%Pay-Out Ratio (%)

79.030.4Average Daily Trading Volume (US$ MM) 1H08/1H07

34,2¹17,1Market cap (US$ MM)

31%30%ROE (%)

24.7%21.2%EBITDA Margin (%)

1,725829EBITDA (US$ MM)

5,4954,160Total shipments (MM metric tones)

29,87216,712Total assets (US$MM)

6,9733,915Net Revenues (US$MM)

2Q082Q07Gerdau S.A. - Consolidated Figures

Note: 1 Market cap in Jun 30th

19

32%32%

38%

35%

10%

11%

20%

22%

2Q07 2Q08

Brazil North America Latin America Special Steel

Net Sales

Net Sales (US$ million) Gross Margin*

* Data in IFRS

Consolidated

Brazil

North America

Latin America

Specialty Steel*

3,915

6,973

39.9%

33.0%34.1%

18.8%

20.1%

18.4%

24.6% 26.6%

19.1%

25.1%26.8%

23.8%

22.2%

18.7%

22.0%

2Q07 1Q08 2Q08

20

38%

44%29%

32%

10%

12%

14%

21%

2Q07 2Q08

Brazil North America Latin America Specialty Steel

EBITDA

EBITDA* (US$ million) EBITDA MARGIN*

Consolidated

Brazil

North America

Latin America

Specialty Steel

* Data in IFRS

829

1,725

*

21.2%

24.7%22.2%

25.2%

33.8%

28.2%

21.0%19.4%

17.8%

25.9%

21.9%

16.4%

20.6%

16.7%

20.1%

2Q07 1Q08 2Q08

21

Joint Ventures and Associated Companies

1,025

120

-

75

150

680

Crude Steel Installed Capacity

(1000 tonnes)

1,270

-

200

150

210

710

Rolled Products Installed Capacity

(1000 tonnes)

301

-

49

30

22

197

Shipments2Q08

(1000 tonnes)

49%Corsa (Mexico)

49%Inca (Dominican Republic)

45%

30%

50%

Shareholding

SJK Steel (Asia)

Corporación Centroamericana del Acero (Guatemala) (1)

Gallatin Steel (USA)

TOTAL

(1) Acquisition announced on April 21st, 2008

� Total net revenue was equivalent to R$ 561.4 million

� Total equity in earnings of unconsolidated companies was R$ 82.0 million

22

41%

49%

44%

2006 2007 1H08

Total Debt / Total CapitalizationTotal Debt (US$ million)

Capital Structure

Long Term Debt Amortization Schedule (US$ million)

Net Debt / EBITDA

8,97810,354

Local Currency (Brazil)

19%

Foreign Currency

16%Companies Abroad

65%16% 19%

84%81%

4Q07 2Q08

Short Term Debt Long Term Debt

321

1,061 1,106

1,987

3,905

2S09 2010 2011 2012 After 2012

0.6x

1.7x

1.4x

2006 2007 1H08

23

Listed Companies

GERDAU S.A.Market Cap = US$ 34.2 billion Average daily volume = US$ 78.7 million

METALÚRGICA GERDAU S.A.Market Cap = US$ 13.3 billionAverage daily volume = US$ 28.2 million

BOVESPASão Paulo

GERDAU S.A.Average daily volume = US$ 113.4 million

GERDAU AMERISTEEL CORP.Average daily volume = US$ 19.1 million

NYSENew York

GERDAU AMERISTEEL CORP.Market Cap = US$ 8.4 billionAverage daily volume = US$ 11.6 million

TSEToronto

GERDAU S.A.Average daily volume = US$ 379.0 thousand

LATIBEXMadrid

Gerdau's shares traded a daily volume of US$ 251.4 million during the 1H08

1Q08: 03/31/2008Currently: 05/15/2008

24

Share’s Performance

1 – negotiated since 03/1999 2 – negotiated since 10/2002 3 – negotiated since 10/2004* From 07/20/2007 to 07/21/2008Source: Economática / Bloomberg

GOAU4 – Metalúrgica Gerdau S.A. (Preferred Shares)

GGBR4 – Gerdau S.A. (Preferred Shares)

GGB – (ADRs) Gerdau S.A.

GNA.TO – Gerdau Ameristeel Corp.

GNA – Gerdau Ameristeel Corp. (NYSE)

Ibovespa – São Paulo stock exchange index

Dow Jones –NYSE index

TS300 –Toronto stock exchange index

LAST 10 YEARS

10,065%

7,649%

456%

GOAU4

GGBR4

Ibovespa

TS300

GGB¹

GNA.TO²

Ibovespa

GNA³

GOAU4

Dow Jones

GGBR4

LAST 5 YEARS

2,007%

1,563%

1,337%

1,172%

1,079%

344%

169%

26%

LAST 12 MONTHS*

62%

44%

39%

11%

6%

5%

GOAU4

GGBR4

GGB

GNA

Dow Jones

GNA.TO

TS300 -2%

-17%

Ibovespa

25

Dividends

Note: Dividends refers to each period, but not necessarily paid in the same period.

31.1%

30.9%

2006

36.5%Gerdau S.A.

36.4%Met. Gerdau S.A.

2007

35.6%

36.4%

1Q08

PAY OUT

Payment based on the Net Income in accordance with IFRS

Payment date: Aug 27th, 2008

Record date: position in Aug 15th, 2008

Ex-dividend: Aug 18th, 2008

2.2%R$ 0.36R$ 511.0MMGerdau S.A.

2.7%R$ 0.60R$ 244.0MMMet. Gerdau S.A.

Dividend Yield

Dividends per shareTotal Paid

33.7%

37.1%

2Q08

In R$ million

DIVIDENDS EVOLUTION

351

859796 835

386416364

434

172

895

2003 2004 2005 2006 2007

Metalúrgica Gerdau S.A. Gerdau S.A.

DIVIDENDS 2Q08

26

Disclaimer

This document can contain statements which constitute forward-looking

statements. Such forward-looking statements are dependent on

estimates, data or methods that may be incorrect or imprecise and that

may be incapable of being realized. These estimates also are subject to

risk, uncertainties and suppositions and include, among other, overall

economic, political and commercial environment, in Brazil and in the

markets we are present in addition to government regulations, present

and future. Prospective investors are cautioned that any such forward-

looking statements are not guarantees of future performance and

involve risks and uncertainties. The Company does not undertake, and

specifically disclaims any obligation to update any forward-looking

statements, which speak only as of the date made.

27

www.gerdau.com.br

inform@gerdau.com.br

+55 51 3323 2703