Gerdau Announces Public Offering of Common and Preferred Shares

Gerdau S.A. GGB and Metalúrgica Gerdau S.A., announce to their shareholders and the market their intention to conduct a primary public offering of new common and preferred shares; and a secondary public offering of preferred shares, all of them registered and book-entry shares with no par value, issued by Gerdau S.A. and owned by the shareholders of Metalúrgica Gerdau S.A. and Gerdau BG Participações S.A., to be held under the scope of a global offering, which will include the public distribution of preferred and common shares in Brazil in the over-the-counter market, pursuant to CVM Rule 400, dated December 29, 2003, with placement efforts abroad; and simultaneously the public distribution of preferred shares issued by Gerdau S.A. abroad in the form of American Depositary Shares.