PORTO ALEGRE, Brazil, Nov. 5 /PRNewswire-FirstCall/ --

Nine Month 2008 Results

Revenues reached R$ 36.2 billion in the first nine months of 2008, 44.1% higher than the same period in 2007.

Net income of R$ 4.6 billion year to date, with net margin of 14.3%.

Third-quarter dividends to be paid on November 26. Metalurgica Gerdau S.A. shareholders will receive R$ 0.26 per share while Gerdau S.A. shareholders will receive R$ 0.18 per share.

EBITDA in the nine months through September totaled R$ 8.6 billion, 85.0% higher than in the same period of 2007. EBITDA margin in the period was 26.4%, versus 20.6% in the same nine months of 2007.

Crude steel production grew to 16.4 million tonnes in the first nine months, up 25.9% on the same period of 2007.

Brazilian exports in the year through September of 2.1 million tonnes generating revenue of US$ 1.8 billion.

In April, Metalurgica Gerdau S.A. and Gerdau S.A. concluded capital increases of approximately R$ 1.5 billion and R$ 2.9 billion, respectively. Metalurgica Gerdau issued 19.2 million shares and Gerdau S.A. 48.1 million shares.

The shareholders' meetings held in May approved the 1:1 stock split aimed at increasing stock liquidity and facilitating investor access by lowering the price of the standard trading lot.

Acquisitions announced and concluded this year represented investment of US$ 3.4 billion and expanded Gerdau's operations in Brazil and internationally.

Additional Information

Gerdau S.A. informs that it has today filed its Nine Months 2008 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. (Due to the length of URL, please copy and paste into browswer).

This document and the complementary data regarding the nine months 2008 are also available at Gerdau's site http://www.gerdau.com/investidores/en- US/default.asp

SOURCE Gerdau S.A.