в€љ Net Revenue of R$ 2.97 billion in the 2Q07, also a new quarterly record

R$ 952 million, 25% higher than the 1Q07 and 133% up year-on-year в€љ Net Income of R$ 1.7 billion in the first half of 2007, 129% more than in the 1H06 and a new Company record. With the stable currency, both of which associated with growth incentives generated by the В“growth incentiveВ” program (PAC), and in line with в€љ BRAZIL - Flat steel demand is expected to remain heated, due to the gradual reduction in local interest rates coupled AsianДemand as a whole should remain firm in the next three months, especially in the automotive and construction sectors. в€љ ASIA В– Prices may recover in the 3Q07, providing exports to Europe (the main destination for Chinese steel products) pick up. With a probable recovery in the final quarter. в€љ EUROPE - Following the rapid hikes at the beginning of 2007, prices are expected to remain stable in most European countries in the short term, в€љ USA В– Inventories in the service centers, currently at relatively low levels, are expected to be restored.

In Asia, the imposition of export taxes on hot-rolled products by the Chinese government, following on from the introduction of the export licensing regime, which led to a slight price decrease in prices.

Thanks to the increase in imports from China, European inventories have moved up and this trajectory is expected to.

reduction in US steel demand, due to the less aggressive performance of the automotive, home appliance/OEM and, especially, construction industries.

в€љ The main developments in the period for in the international steel market were: Growth in the construction, automotive, capital goods, semi- finished and home appliance/OEM sectors was particularly marked. в€љ The Brazilian flat steel market did exceptionally well in the 2Q07, with sales volume moving up 13.9% over the previous quarter and 15.6% year-on-year.

MARKET: Construction apparent consumption of cement has been increasing in the Southeast Region of Brazil.OBJETIVE: To add value to the slag produced in the Blast Furnaces through grinding and the production of 2.5 Mt p.a.OBJECTIVE: New businesses and markets, with annual production of 500,000 tonnes ofВ longВ steel (bars, rebars and wire rods) in the Presidente Vargas Plant в€љ Goals: 11.5 million tonnes in 2008 and 14 million tonnes/year as of 2009. в€љ Iron ore already shipped in 2007 : about 1.5 million tonnes в€љ 2007 sales program: approximately 5 million tonnes In 1H07 already sold approximately 2.7 million tonnes в€љ CFM sold approximately 3.6 million tonnes of iron ore in 2006. в€љ The acquisition is worth up to US$440 million and funds to acquire CFM were obtained through financing from third parties Installations close to the Casa de Pedra Mine в€љ In July, 2007, NAMISA acquired Companhia de Fomento Mineral (CFM), located in the state of Minas Gerais, and has

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