PORTO ALEGRE, Brazil, Aug. 8 /PRNewswire-FirstCall/ -- Gerdau announces 2007 first half results. Output of crude steel reaches 8.3 million metric tons in the 1st half, 8.2% more than the volume produced in 2006. Gross sales revenue reaches R$ 15.3 billion (US$ 8.0 billion) in the first six months of 2007, 13.7% more than the same period 2006. Of this amount, 64.1% consists of exports and sales by overseas companies. Exports from the Brazilian units contributed US$ 645.4 million to gross sales revenue in the 1st half of 2007. Net profit reaches R$ 1.7 billion (US$ 0.9 billion) in the first six months of 2007, 4.6% less than the same period for 2006. The net margin was 13.1%. Operating cash generation (EBITDA) reported an accumulated R$ 2.8 billion (US$ 1.5 billion) in the 1st half of 2007, 8.4% higher than the 1st half of 2006. EBITDA margin was 21.2%. Second quarter dividends will be paid on August 29. Shareholders of Metalurgica Gerdau S.A. will receive R$ 0.49 (US$ 0.25) per share and Gerdau S.A. R$ 0.29 (US$ 0.15) per share. The acquisitions announced this year represent an expansion of Gerdau's business to four more countries, the company's footprint now extending to thirteen countries. Gerdau's internal control structure receives full compliance certification under section 404 of the Sarbanes-Oxley Act (SOX). Fitch and Standard & Poor's rating agencies raised their risk classification for Gerdau to Investment Grade for the issue of foreign currency debt. Gerdau signs agreements for new labor contracts with the United Steelworkers - USW at various North American units. This year, Gerdau commemorates 60 years as a participant in the capital markets and uninterrupted payment of dividends to its shareholders. Additional Information Gerdau S.A. informs that it has filed today its 1st half and 2nd quarter 2007 results at the Securities and Exchange Commission (SEC) and at the Comissao de Valores Mobiliarios (CVM). To access this document, please click on http://www.gerdau.com.br/ing/ri/download.asp?categoria=1,47&menu=inffinanceira s_relevantes (please copy and paste into browser to access the site) This document and the complementary data regarding the 1st half and 2nd quarter 2007 are also available at Gerdau's site http://www.gerdau.com.br/ing/ri. Gerdau provides all shareholders, upon request and at no cost, a hard copy of the 1st half and 2nd quarter 2007 results. DATASOURCE: Gerdau S.A. CONTACT: Osvaldo Schirmer, Gerdau, +011-5551-33232703, Web site: http://www.gerdau.com.br/

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