ADVANCED TECHNOLOGY FOR PRODUCING STEEL AND IMPROVING LIVES

2Q05

Belo Horizonte, Usinas Siderrgicas de Minas Gerais S/A - USIMINAS (BOVESPA: USIM3, USIM5, USIM6; OTC: USNZY; Latibex: XUSI) announced today its second quarter 2005 (2Q05) results. Operational and financial information of the Company, except where otherwise indicated, is presented based on consolidated data in Brazilian reais in accordance with Brazilian Corporate Law. All comparisons made in this release take into consideration the same period in 2004 (2Q04), except when specified differently.

Net income totals R$ 1.8 billion in 1H05, with consistent margins and strong cash generation.
The global steel industry is undergoing a moment of adjustment after the expressive results achieved as of the second half of 2004. The continuous efforts made for cost savings and maximization of opportunities are key elements. Companies are more aware of the changes in outlook that directly influence the demand for steel products. They seek to more efficiently control the balance between demand and supply and make faster decisions. Therefore, it is necessary to adapt to new market conditions in order to preserve profitability and margins. In this context, we face an environment of great challenges in a period marked by market retraction as a result of the countrys weaker economic activity and by excessive inventory levels in some industrial segments, especially in distribution. In the international market, we also observed inventory accumulation, mainly in the US and Europe. Industrial companies have turned to China, a market with heated demand; however, it has been oversupplied and prices have been negatively impacted. In spite of the adverse market conditions in the first half, the Usiminas System once again has performed well operationally. In the half, net sales revenues were R$6.9 billion, operational cash generation reached R$ 3.3 billion, (which corresponded to an EBITDA margin of 48%), and net profit was R$ 1.8 billion, 35%, 52% and 104%, respectively, greater than in the same period of 2004, compatible with our investment needs, shareholder remuneration and debt management. We continue firmly determined to achieve increasingly better results. Rinaldo Campos Soares CEO

Highlights
R$ million 2Q 2005 2Q 2004 1Q 2005
1,829 3,487 1,551 1,356 (174) 810 1,626 889 17,245 2,426 7,761 1,970 2,771 1,316 1,142 (339) 528 1,285 652 15,976 6,053 4,886 1,768 3,459 1,731 1,563 (160) 1,001 1,724 975 17,510 2,590 6,951 Chg. 2Q05/2Q04 -7% 26% 18% 19% -49% 53% 27% 36% 8% -60% 59%

1H 2005 1H 2004
3,598 6,946 3,282 2,919 (334) 1,812 3,350 931 17,245 2,426 7,761 3,881 5,136 2,248 1,919 (592) 887 2,206 568 15,976 6,053 4,886

Chg. 1H05/1H04 -7% 35% 46% 52% -44% 104% 52% 64% 8% -60% 59%

6/30/2005
Closing Quotes USIM3 USIM5 USNZY R$ 38.70 R$ 38.10 US$ 16.10

Market Capitalization R$ 8.6 billion US$ 3.6 billion

Total Sales Volume (000 t) Net Revenues Gross Profit Operating Result (EBIT) a Financial Result Net Income EBITDA b EBITDA (R$/t) Total Assets Net Debt Stockholders' Equity

(a) Earnings before interest, tax and participations. (b) Earnings before interest, taxes, depreciation, amortization and participations.

IMMEDIATE RELEASE

USIMINAS Bruno Seno Fusaro IRM brunofusaro @usiminas .com.br Tel : (55 31) 3499-8710

FIRB - Financial Investor Relations Brasil Ligia Montagnani IR Consultant ligia .montagnani @ firb.com Tel : (55 11) 3897-6405

Sales and Revenues

The Usiminas System sold 1.8 million tonnes in 2Q05, with 70% destined to the domestic market. In the half, total sales came to 3.6 million tonnes of products, with 74% going to the domestic market. These volumes were 7% less than in the same periods of 2004, basically in function of the following factors: retraction of demand in the domestic market due to excess inventories built up in some industrial segments and also in the distribution market as of the 4th quarter, 2004; slower growth rate in industrial production in the country; anticipation of sales to customers in 1Q05 to 4Q04 because of the 5-day stoppage of invoicing of the Company due to the implementation of the SAP system. When compared to 1Q05, the Brazilian flat steel market retracted 12%. In the international markets, although a similar situation of high inventory levels existed in the US and Europe, the Company increased its sales, going from 22% to 30% of sales volume with the greater share earmarked for Asian countries, especially China, which maintained lower inventory levels and heated demand in the period. In the quarter, net sales revenues reached R$ 3.5 billion, a 26% growth. In the half, sales grew 35%, reaching R$6.9 billion in consequence of better prices.

Outlook
After the record price levels reached in the beginning of the year, an adjustment between supply and demand had already been expected globally, reducing purchasing pressures and adjusting prices gradually at lower, however still high, levels. Excess inventories and supply continue to influence price formation in the third quarter, causing consumers to put off purchases. This situation, however, will probably not last long, given the new cost structures of the companies after raw materials increases, among others. The expectation is that inventory levels in the US and Europe will come down, and the mills will return to normal production and sales levels as of the fourth quarter. It is also expected that the Chinese economy maintain high growth rates, which will result in better geographic distribution of the market with normalized demand and reversion of the declining price curve. In the domestic market, market projections indicate lower GDP growth due to the government policy of high interest rates. Consequently, projected demand in the year for flat steel products has also been reduced and the growth rate experienced last year will not repeat itself. Our sales strategy will be to increase exports, regulating the supply to the domestic market for the duration of the adjustment period.

Market, Production and Sales

According to data from the IBS, the Brazilian Iron and Steel Institute, Brazilian crude steel production totaled 15.9 million tonnes in the first half, a similar level in relation to the same period in 2004, in spite of the declining economic activity and high level of inventories. Total flat steel production in the country finished the half slightly lower (2%) in relation to 2004, totaling 6.9 million tonnes. Demand for flat steel in the domestic market totaled 5.2 million tonnes in the half, 4% greater than in the same period of 2004. Good performance in the large diameter tubes segment can be pointed out, where Usiminas is the leader with more than 90% market share. Heavy plate sales continued strong this quarter, with a positive trend in the long term, in spite of postponement of some projects, such as the Gasene project. As a result, there will likely be some reallocation of sales to the export markets.

USIMINAS Release 2Q05

2/25

Brazilian flat steel export volume decreased 24%, going from 1.054 million tonnes in 2Q04 to 803 thousand tonnes in 2Q05 (decrease of 19% in the half, going from 1.8 million tonnes in 1S04 to 1.5 million tonnes in 1S05), as a consequence of weak demand in the US and European markets

Production of the Usiminas System

The Ipatinga (Usiminas) and Cubato (Cosipa) mills operated in an environment of operational stability and set new records in some industrial units. Additionally, a preventative maintenance program was carried out, installation of new equipment to improve product quality was installed, such as a new ultrasonic testing machine in the plate mill (Cosipa). Cost reduction measures were achieved, such as the use of natural gas in the blast furnaces, where a fuel rate of c. 500 kg/t and coke rate of 355 kg/t were obtained at the Cubato facilities. In 2Q05, crude steel production of the Usiminas System reached 2.2 million tonnes. In 1H05, production totaled 4.4 million tonnes (27% of Brazilian production), in line with the volume produced in the same period 2004.

Production (Crude Steel)

Thousand tons
Usiminas Cosipa Total

2Q 2005
1,161 1,042 2,203

2Q 2004
1,183 1,037 2,220

1Q 2005
1,135 1,032 2,167

Chg. 2Q05/2Q04 -2% 0% -1%

Chg. 2Q05/1Q05 2% 1% 2%

1H 2005 1H 2004
2,296 2,074 4,370 2,348 2,096 4,444

Chg. 1H05/1H04 -2% -1% -2%

72%

Consolidated Sales (000 t) 2,119 2,170 2,011 1,910 1,971 1,768

36% 28% 27% 29% 29% 22%

1,830
25%

1,939 1,822
26% 35%

1,829
30%

75%

74%

65%

64%

72%

73%

71%

71%

78%

70%

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

Domestic Market

Export Market

The Usiminas System sold 1.8 million tonnes of flat and processed steel products in 2Q05, finishing the first half with total volume of 3.6 million tonnes, 7% below the same period in 2004.

USIMINAS Release 2Q05

3/25

In 2Q05, the Usiminas System shipped 70% of total flat and processed steel products to the domestic market. Export sales growth in 2Q05 resulted in the increased importance of exports in the business of the Usiminas System, increasing 8 percentage points in relation to the 22% accounted for in 1Q05. Excess inventories in the distribution market and in some industrial segments led the Company to adopt a commercial strategy more focused on exports, adjusting its sales program. The Usiminas System continued to be the main supplier of flat rolled steel in the country and concluded the half year with a 52% market share, maintaining leadership in important segments, such as the automobile industry, agricultural and highway machinery, industrial equipment, electronics, small and large-diameter pipe and tube, shapes and shipbuilding industries. In the export markets, consolidated sales totaled 553 thousand tonnes, 2% above 2Q04 and 44% above shipments in 1Q05. In 1H05, accumulated exports were 938 thousand tonnes, a 13% drop in relation to 2004 as a result of inventory buildup in the main markets.

Sales Volume
Thousand tons
Usiminas Domestic Market Export Market Total Cosipa Domestic Market Export Market Total System Domestic Market Export Market Total 1,276 553 1,829 70% 30% 100% 1,429 73% 541 27% 1,970 100% 1,384 78% 384 22% 1,768 100% -11% 2% -7% 2,659 74% 939 26% 3,598 100% 2,808 72% 1,073 28% 3,881 100% -5% -12% -7% 531 341 872 61% 39% 100% 565 60% 374 40% 939 100% 538 67% 271 33% 809 100% -6% -9% -7% 1,068 64% 613 36% 1,681 100% 1,111 61% 707 39% 1,818 100% -4% -13% -8% 745 212 957 78% 22% 100% 864 84% 167 16% 1,031 100% 846 88% 113 12% 959 100% -14% 27% -7% 1,591 83% 326 17% 1,917 100% 1,697 82% 366 18% 2,063 100% -6% -11% -7%

2Q 2005

2Q 2004

1Q 2005

Chg. 2Q05/2Q04

1H 2005

1H 2004

Chg. 1H05/1H04

Out of the foreign shipments delivered in 1H05, slabs were 46% of total sales. Exports had the following geographical distribution: NAFTA, 33%; Asia, 30%; Europe, 21%; and Latin American, 16%.

Sales Volume Mix 1H05

Usiminas
Expt 17% Dom Mkt 83%

Cosipa

System
Expt 26%

Expt 36%

Dom Mkt 64%

Dom Mkt 74%

USIMINAS Release 2Q05

4/25

Net Sales Revenues

Consolidated net sales revenues grew 26% in 2Q05 and reached R$3.5 billion due to higher average prices. Compared to 1Q05 revenues, in spite sales volume 3.5% higher (61 thousand tonnes), 2Q05 revenues remained stable because of the appreciation of the Real over the dollar, thereby reducing export revenues. Over the half, revenues grew 35% and totaled R$6.9 billion, offsetting the reduction in volume in the period. Net per-tonne sales increased 42%, going from R$1,279/t in 1S04 to R$1,818/t in 1S05.

Gross Profit
Gross profit in the quarter was R$1.6 billion and R$3.3 billion in the half. These figures were 18% and 46% greater than the same amounts in the previous year, respectively. QoQ, COGS increased 12%, which was mainly due to increases in raw materials. Gross margin reached 44% in the quarter, compared to 47% in the same period in 2004. In 1H05, gross margin was 47%, compared to 44%, i.e. three percentage points above. In spite of incurring cost pressure in the period, efficient cost management allied to prices above historical levels allowed maintenance of margins at adequate levels.

Operating Profit
EBIT grew 19%, reaching R$1.4 billion in 1Q05 (R$2.9 billion in 1H05, 52% above 1H04). EBIT margin decreased from 41% in 2Q04 to 38% in 2Q05, due increases in SG&A and personnel expense and increase in other operating expenses (actuarial adjustment). Analyzing 1H05/1H04, EBIT margin went from 38% to 41%. EBITDA reached R$1.6 billion in 2Q05 and R$3.3 billion in 1H05, 27% and 52% higher, respectively, in the same periods in 2004. EBITDA margin was 47% in the quarter, one percentage point above 2Q04. In the half, the margin was 48%, five percentage points above that reached in 1H04. The good performance allowed the Company to reinforce its cash position to meet its investment, dividend and debt management needs.

Ebitda Margin Margin of 48% in 1H05

Financial Results and Debt

YoY quarterly analysis reveals that net financial expense (including monetary and exchange variation) was reduced by R$ 165 million. In the half, this reduction was even greater, approximately R$258 million, due to reduced debt and interest payments on debt, growth in financial income on applications and positive impact of the 11.5% appreciation of the Real over the dollar, resulting in positive exchange variation. Total debt went from R$ 4.9 billion (US$ 1.8 billion) on 03/31/05 to R$ 4.3 billion (US$ 1.8 billion on 06/30/05). Effective amortization in the period was US$ 314 million. Long-term loans and financing came to represent 75% of the total against 74% on 03/31/05, considered to be adequate by the Company. The solid financial situation is reflected by the maintenance of the net debt/EBITDA ratio of 0.4 times on 06/30/05. Gross consolidated debt on June 30, 2005, was made up of by export/import financing (which represented 32% of total debt), by BNDES financing (23%), by capital markets operations (14%) and sundry transactions (31%).

USIMINAS Release 2Q05

5/25

2.7

Consolidated Net Debt / EBITDA 2.6 2.5

2.3 2.1 1.6 1.1 0.7 0.4 0.4
42%

EBITDA & EBITDA Margin

46% 36% 39% 33% 31% 49% 48% 50% 47%

258

255

225

263

318

422

538

652

646

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

CND (US$ billion)

CND/EBITDA

EBITDA (US$ million)

EBITDA Margin

Net Income
Net consolidated income was R$ 810 million in 2Q05, growing 53% in relation to 2Q04. In first half of 2005, accumulated net income was R$ 1.8 billion, 104% above net income in 1H04. This result is a reflex of the good moment of the steel industry, as well as the Companys strategy of rigidly controlling costs and the constant efforts to maximize its results.

Investments
Consolidated investments destined for maintenance and technological updating of equipment totaled R$ 253 million in the half, in accordance with the established planning time schedule. For the 2005 fiscal year, estimated investments total US$ 230 million. The Investment programs that have already been approved are in the process of obtaining the necessary authorizations from environmental agencies and final technical/commercial adjustments. The approved investments are: 60 MW thermoelectric power plant to be installed at the Ipatinga mill 12 MW top blowing turbine to be installed at the Cubato mill New coke plant with 550 kt/yr capacity at the Ipatinga mill Revamping of the continuous casting machine to be installed at the Cubato mill

The Company is negotiating long-term financing with government agencies for the above projects.

USIMINAS Release 2Q05

655

2.4

2.6

2.5

2.3

2.2

1.9

1.7

1.3

1.0

1.0

6/25

Capital Markets
Approximately R$ 4.0 billion in Usiminas shares were traded on the So Paulo Stock Exchange in 2Q05, the same level registered in 1Q05. Total trading volume with Usiminas shares represented 5.58% in the quarter on the Bovespa index. In the quarter, the Bovespa index decreased 5.9%, while Usiminas shares lost 34% in the period. ADRs negotiated over the counter in New York depreciated 24% in the quarter.
Trading Summary Table for Usiminas Shares - 2Q05
Stock, ADR or Index Number of Trades Share Traded (000 shares) Volume Traded 000 R$ 94,140 3,953,202 4,047,342 72,482,520 Appreciation % Closing Quotation 06/30/05 R$ 38.70 R$ 38.10 US$ 16.10 25,051
140 130 120 110 100 90 80 70 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 70,6 95,6

USIM5 vs. Ibovespa (12/30/04=100)

USIM3 (ON) USIM5 (PNA) USNZY (ADR) Total IBOVESPA

786 104,338 105,124

2,173 86,813 88,986

-24.6% -33.7% -24.4% -5.9%

1,905,427 1,032,705,456

USIM5

Ibovespa

Shareholder Base Total 225,285,820 ON 112,280,152 PNA 112,552,835 PNB 452,833

Usiminas PN share participation in the theoretical stock portfolio of the Ibovespa remains in fourth place among the most traded. The Ibovespa portfolio lists 55 securities and is composed by assets that proved their negotiability, participation in financial volume and presence in the auction at levels that meet established criteria of the calculation methodology. In order to maintain a representative share of the Ibovespa, reclassification occurs at the end of each four-month period, in effect for January to April, May to August and September to December periods. Events in 1H05 Usiminas shares were listed on the Latibex on July 5th. The objective is to facilitate access to the Company by the European financial community. Esprito Santo Investment was chosen as the Usiminas market maker. Since its launching until August 2nd, Usiminas shares have already reached second place among the most traded shares on the Latibex, representing around 13% of total business transacted in this period. Conclusion of the Cosipa restructuring process and delisting of its shares. Consequently CSPC3 and CSPC4 shares are no longer traded on the Bovespa. At the end of March, a Eurobond issued in October/03 with an 18-month term was liquidated in the amount of US$ 75 million.

Other Highlights
Standby Facility Operation in the amount of US$ 250 million Usiminas concluded a Standby Facility negotiation Export Pre-payment in the amount of US$ 250 million, with an available takedown period of two years and liquidation in two additional years from the date of takedown of each parcel.
USIMINAS Release 2Q05 7/25

The credit line may be drawn down both by Usiminas and Cosipa and has as sole bookrunner the Calyon New York Branch, which is syndicated leader with participation of more than 12 US, European, Brazilian and Japanese banks for a commitment fee of 0.35%. In case the facility is used, the prepayment cost will be Libor + 0.80% per annum.

Other companies of the Usiminas System (unconsolidated information)

Sidor
Sidor is the largest steel producer in Venezuela. In 1H05, it produced 1.9 million tones of crude steel, 10% above that of the same period in 2004. Total steel product sales were 1.9 million tonnes, 14% above 1H04, where 44% went to the domestic market and 56% for export. Gross sales of the company reached US$ 1.2 billion in the half, 56% above 1H04 and EBITDA was US$ 618 million, with EBITDA margin at 50%. Net profit was US$ 227 million in the half. In the hot rolling area, the 600 thousand-tonne capacity skin passing line is already in operation. Usiminas is a shareholder in Sidor via the Consorcio Amazonas and retains 16.6% of the consortium, which corresponds to 9.9% of Sidors capital.

Siderar
The Argentine economy continued to show positive signs of growth. Industrial activity grew 7.2% compared to the same period in 2004. Siderar sold 1.2 million tonnes, 11% higher than in the same period of the previous year. Out of this total, 64% was earmarked for the domestic market. The auto industry was maintained as the highest growth industry in the first six months of the year. Exports totaled 428 thousand tonnes, distributed mainly among Europe with 43%, Latin America, with 27% and North America with 22%. Net sales in the half reached ARP 2.4 billion (US$ 809.3 million), a growth of 44%. EBITDA reached ARP 1.0 billion (US$ 346.5 million) with a 43% margin. Net income in the period was ARP 758.5 million (US$ 260.0 million), 33% above the amount obtained in the previous year. Usiminas has a 5.32% share in the capital of Siderar. * Average exchange rate (ARP/US$): 6M 2005 2.918 6M 2004 2.916

Usiminas Mecnica
A capital goods and services company, UMSA detains several long-term projects in its portfolio. Highlights are port cranes, modular petroleum platform structures, equipment, assembly for the Alunorte expansion project and the refurbishing of the Bronx-Whitestone Bridge in New York. The company obtained net income of R$ 15.4 million in 1H05, a growth of 191% over the same period in 2004. Net sales revenues grew 71% and reached R$ 310 million. Usiminas has 99.9% of the capital of Usiminas Mecnica.

USIMINAS Release 2Q05

8/25

Unigal
Unigal is a joint venture between Usiminas and Nippon Steel Corp. and processes cold rolled coils for hot-dip galvanizing. In the first half of 2005, 204 thousand tonnes were processed, a volume approximately 5% above that processed in the same period of the previous year. In the period, net revenues grew 19% and reached R$ 105.7 million due to the volume increase and better prices. EBITDA was R$ 93.7 million and net income reached R$ 25.9 million, 20% and 63% higher, respectively than in 1H04. Usiminas has 79.3% of the capital of Unigal.

Conference Call: Friday, August 12 Local, at 9:00 AM (Braslia). Telephones for connection: Brazil: (11) 4613-0500 International: (55 11) 4613-4520 International, at 11:00 AM (Braslia). Telephones for connection: USA: (1 800) 860-2442 Brazil: (11) 4613-0502 Other countries: (1 412) 858-4600 Access codes: 258 + PIN (local) / 999 + PIN (international)

The conference call will be transmitted live via Internet, accompanied by a slide presentation at website: www.usiminas.com.br

Declarations contained in this release relative to the business outlook of the Company, forecasts of operational and financial results and references to growth potential constitute mere forecasts and were based on the expectations of Management in relation to future performance. These expectations are highly dependent on market behavior, the economic situation in Brazil, its industry and international markets and, therefore, are subject to change. ### Usinas Siderrgicas de Minas Gerais S/A USIMINAS is an integrated steel producer, with net sales of R$ 12.2 billion in 2004. The Usiminas System is made up mainly of USIMINAS and Cosipa and has an annual capacity of 9.3 million tonnes of raw steel and occupies a position of leadership in the domestic flat steel market in the automobile industry, autoparts, agricultural and highway machinery sectors, electrical and electronic equipment segments and large-diameter pipe industry.

USIMINAS Release 2Q05

9/25

Income Statement - Parent Company

Brazilian GAAP (Corporate Law) R$ thousand
Net Revenues Domestic Market Export Market COGS Gross Profit Gross Margin Operating Income (Expenses) Selling General and Administrative Others, Net EBIT EBIT Margin Financial Result Equity Income Operating Result Non-Operating Income Profit Before Taxes Income Tax / Social Contribution Income before Taxes and Profit Sharing Net Income Net Margin Net Income per thousand shares EBITDA EBITDA Margin Depreciation Provisions

2Q 2005
1,824,359 1,510,842 313,517 (1,014,385) 809,974 44.4% (82,525) (27,826) (34,595) (20,104) 727,449 39.9% (89,227) 360,739 998,961 713 999,674 (194,983) 804,691 804,691 44.1% 3.66806 832,814 45.6% 64,327 41,038

2Q 2004
1,501,566 1,224,659 276,907 (805,177) 696,389 46.4% (78,507) (28,449) (28,548) (21,510) 617,882 41.1% (92,039) 196,931 722,774 (1,895) 720,879 (185,330) 535,549 535,549 35.7% 2.44122 680,686 45.3% 62,804 -

1Q 2005
1,903,164 1,669,226 233,938 (887,560) 1,015,604 53.4% (78,913) (22,126) (27,463) (29,324) 936,691 49.2% (29,708) 493,028 1,400,011 2,225 1,402,236 (375,153) 1,027,083 1,027,083 54.0% 4.68180 1,000,113 52.6% 63,422 -

Chg. 2Q05/2Q04 21% 23% 13% 26% 16% -2 p.p. 5% -2% 21% -7% 18% -1 p.p. -3% 83% 38% -138% 39% 5% 50% 50% +8 p.p. 50% 22% +0,3 p.p. 2%

USIMINAS Release 2Q05

10/25

Income Statement - Parent Company

Brazilian GAAP (Corporate Law) R$ thousand
Net Revenues Domestic Market Export Market COGS Gross Profit Gross Margin Operating Income (Expenses) Selling General and Administrative Others, Net EBIT EBIT Margin Financial Result Equity Income Operating Result Non-Operating Income Profit Before Taxes Income Tax / Social Contribution Income before Taxes and Profit Sharing Net Income Net Margin Net Income per thousand shares EBITDA EBITDA Margin Depreciation Provisions

1H 2005
3,727,523 3,180,068 547,455 (1,901,945) 1,825,578 49% (161,438) (49,952) (62,058) (49,428) 1,664,140 45% (118,935) 853,767 2,398,972 2,938 2,401,910 (570,136) 1,831,774 1,831,774 49% 8.34987 1,832,927 49.2% 127,749 41,038

1H 2004
2,808,353 2,306,652 501,701 (1,543,107) 1,265,246 45% (143,233) (49,359) (50,600) (43,274) 1,122,013 39% (174,003) 277,258 1,225,268 (6,705) 1,218,563 (317,723) 900,840 900,840 32% 4.10634 1,251,448 44.6% 124,843 4,592

Chg. 1H05/1H04 33% 38% 9% 23% 44% +4 p.p. 13% 1% 23% 14% 48% +6 p.p. -32% 208% 96% -144% 97% 79% 103% 103% +17 p.p. 103% 46% +4,6 p.p. 2% 794%

USIMINAS Release 2Q05

11/25

Income Statement - Consolidated

Brazilian GAAP (Corporate Law) R$ thousand
Net Revenues Domestic Market Export Market COGS Gross Profit Gross Margin % Operating Income (Expenses) Selling General and Administrative Others, Net EBIT EBIT Margin % Financial Result Equity Income Operating Result Non-Operating Income Profit Before Taxes Income Tax / Social Contribution Income before Taxes Minority Interests Net Income Net Margin Net Income per thousand shares EBITDA EBITDA Margin % Depreciation Provisions

2Q 2005
3,487,371 2,599,020 888,351 (1,935,982) 1,551,389 44% (195,800) (59,876) (65,285) (70,639) 1,355,589 39% (173,693) 26,093 1,207,989 669 1,208,658 (395,125) 813,533 (3,079) 810,454 23% 3.69433 1,625,908 46.6% 197,920 72,399

2Q 2004
2,771,470 1,889,132 882,338 (1,455,646) 1,315,824 47% (173,509) (64,799) (59,706) (49,004) 1,142,315 41% (338,556) 7,101 810,860 (4,721) 806,139 (264,626) 541,513 (13,231) 528,282 19% 2.40809 1,285,187 46.4% 135,070 12,394

1Q 2005
3,458,802 2,789,209 669,593 (1,727,829) 1,730,973 50% (167,566) (54,044) (58,055) (55,467) 1,563,407 45% (160,288) 149,238 1,552,357 1,466 1,553,823 (543,263) 1,010,560 (9,242) 1,001,318 29% 4.56436 1,723,897 49.8% 139,847 20,643

Chg. 2Q05/2Q04 26% 38% 1% 33% 18% -3 p.p. 13% -8% 9% 44% 19% -2 p.p. -49% 267% 49% -114% 50% 49% 50% -77% 53% +4 p.p. 53% 27% +0,2 p.p. 47% 484%

USIMINAS Release 2Q05

12/25

Income Statement - Consolidated

Brazilian GAAP (Corporate Law) R$ thousand
Net Revenues Domestic Market Export Market COGS Gross Profit Gross Margin Operating Income (Expenses) Selling General and Administrative Others, Net EBIT EBIT Margin Financial Result Equity Income Operating Result Non-Operating Income Profit Before Taxes Income Tax / Social Contribution Income before Taxes and Profit Sharing Profit Sharing Net Income Net Margin Net Income per thousand shares EBITDA EBITDA Margin Depreciation Provisions

1H 2005
6,946,173 5,388,229 1,557,944 (3,663,811) 3,282,362 47.3% (363,366) (113,920) (123,340) (126,106) 2,918,996 42.0% (333,981) 175,331 2,760,346 2,135 2,762,481 (938,388) 1,824,093 (12,321) 1,811,772 26.1% 8.25869 3,349,805 48.2% 337,767 93,042

1H 2004
5,136,180 3,670,518 1,465,662 (2,888,366) 2,247,814 43.8% (328,664) (118,081) (113,659) (96,924) 1,919,150 37.4% (591,989) 21,009 1,348,170 (12,109) 1,336,061 (429,271) 906,790 (20,088) 886,702 17.3% 4.04190 2,206,270 43.0% 271,921 15,199

Chg. 1H05/1H04 35% 47% 6% 27% 46% +3 p.p. 11% -4% 9% 30% 52% +5 p.p. -44% 735% 105% -118% 107% 119% 101% 104% 104% +9 p.p. 104% 52% +5,2 p.p. 24% 512%

USIMINAS Release 2Q05

13/25

Cash Flow
Brazilian GAAP (Corporate Law) R$ thousand
Operating Activities Net Income (Loss) in the Period Financial Expenses and Monetary Var/Net Exchge Var Depreciation, Exhaustion and Amortization Investment Write-offs (Decrease in Permanent Assets) Equity in the Results of Subsidiaries/Associated Companies Dividend Income from Subsidiaries Income Tax and Social Contribution Provisions Adjustment for Minority Participation Total Increase/Decrease of Assets Increase (Decrease) in Accounts Receivables Increase (Decrease) in Inventories Increase (Decrease) in Recovery of Taxes Increase (Decrease) from Deferred Income Tax & Social Contrb'n Increase (Decrease) in Judicial Deposits Others Total Increase (Decrease) of Liabilities Increase (Decrease) in Suppliers Amounts Owed to Affiliated Companies Customers Advances Tax Payable Income Tax and Social Contribution Others Total Cashflow Generated from Operating Activities Financial Activities Inflow of Loans and Financing Payment of Loans, Financing and Debentures Interest paid on Loans, Financ., Debent.and tax installments Swap Operation Redemptions Dividends Paid Net Funds from Financial Activities Investment Activities (Additions) in Long-term Investments (Additions) to Permanent Assets, except Deferred Charges (Additions) Right off of permanent assets Funds Used for Investments Exchange Variation of Cash and Cash Equivalents Cash Balance Change At the Beginning of the Period At the End of the Period (7,833) (91,559) 0 (99,392) (28) (399,199) 1,469,959 1,070,760 0 (33,317) 3,617 (29,700) 4,263 261,164 305,625 566,789 (25,647) (129,601) 0 (155,248) (64,098) (501,073) 2,333,825 1,832,752 (1,624) (86,126) 5,577 (82,173) 35,201 (81,589) 1,225,848 1,144,259 0 (47,934) (13,598) 0 (785,719) (847,251) 13,196 (394,685) (46,990) (9,771) (2,923) (441,173) 93,347 (347,379) (67,694) 0 (785,719) (1,107,445) 198,420 (1,015,208) (150,644) (27,453) (2,923) (997,808) 100,443 4,942 (2,532) (50,691) (93,831) (155,126) (196,795) 547,472 (10,970) 20,200 4,646 7,064 (96,527) 53,731 (21,856) 727,774 165,105 (26,931) (32,861) (75,686) (174,658) (178,196) (323,227) 825,718 16,281 4,256 39,413 7,417 (100,150) 56,598 23,815 963,191 (52,091) (124,815) 3,776 56,327 (6,820) 137,185 13,562 167,724 (137,411) 20,972 69,533 (10,949) (62,635) 47,234 (54,920) (407,737) 78,624 89,983 (12,160) 55,366 (250,844) (94,888) (275,548) (28,018) 35,257 (7,570) 51,710 (319,057) 804,691 48,764 64,327 4,419 (360,739) 0 194,983 (25,740) 0 730,705 535,549 112,667 62,804 0 (196,931) 0 185,330 2,977 0 702,396 810,454 (4,305) 197,921 4,631 (26,093) 1,723 395,125 17,254 3,079 1,399,789 528,282 325,794 136,853 194 (7,101) 323 264,626 (3,769) 13,231 1,258,433

Parent Company 2Q 2005 2Q 2004

Consolitaded 2Q 2005 2Q 2004

USIMINAS Release 2Q05

14/25

Cash Flow
Brazilian GAAP (Corporate Law) R$ thousand
Operating Activities Net Income (Loss) in the Period Financial Expenses and Monetary Var/Net Exchge Var Depreciation, Exhaustion and Amortization Investment Write-offs (Decrease in Permanent Assets) Equity in the Results of Subsidiaries/Associated Companies Dividend Income from Subsidiaries Income Tax and Social Contribution Provisions Adjustment for Minority Participation Total Increase/Decrease of Assets Increase (Decrease) in Accounts Receivables Increase (Decrease) in Inventories Increase (Decrease) in Recovery of Taxes Increase (Decrease) from Deferred Income Tax & Social Contrb'n Increase (Decrease) in Judicial Deposits Others Total Increase (Decrease) of Liabilities Increase (Decrease) in Suppliers Amounts Owed to Affiliated Companies Customers Advances Tax Payable Income Tax and Social Contribution Others Total Cashflow Generated from Operating Activities Financial Activities 165,515 51,417 (3,380) (37,637) (413,247) (222,042) (459,374) 1,395,092 (27,371) (5,252) 3,376 8,933 (180,661) (11,764) (212,739) 1,245,801 192,019 41,836 (637) (72,813) (585,446) (181,010) (606,051) 2,507,006 25,256 24,243 83,871 9,619 (223,452) 11,829 (68,634) 1,942,175 8,933 (264,163) (1,789) 170,417 (6,955) 156,401 62,844 171,838 (116,003) 87,211 104,270 (28,484) (69,689) 149,143 180,184 (668,236) 61,711 251,926 (17,288) 133,991 (57,712) (115,263) (269,641) 44,313 68,957 (32,832) 59,031 (245,435) 1,831,774 122,242 127,749 13,646 (853,767) 0 570,136 (20,158) 0 1,791,622 900,840 200,283 124,843 5 (277,258) 0 317,723 42,961 0 1,309,397 1,811,772 189,099 337,768 14,074 (175,331) 1,723 938,388 40,955 12,321 3,170,769 886,702 580,470 271,923 287 (21,009) 685 429,271 87,827 20,088 2,256,244

Parent Company 1H 2005 1H 2004

Consolitaded 1H 2005 1H 2004

Inflow of Loans and Financing Payment of Loans, Financing and Debentures Interest paid on Loans, Financ., Debent.and tax installments Swap Operation Redemptions Dividends Paid Net Funds from Financial Activities Investment Activities (Additions) in Long-term Investments (Additions) to Permanent Assets, except Deferred Charges (Additions) Right off of permanent assets Funds Used for Investments Exchange Variation of Cash and Cash Equivalents Cash Balance Change At the Beginning of the Period At the End of the Period (295,624) (191,783) 0

0 (374,779) (52,777) (15,830) (792,728) (1,236,114)

19,327 (687,274) (92,221) (21,754) (305,130) (1,087,052)

206,626 (990,367) (193,636) (78,005) (807,639) (1,863,021)

1,365,180 (2,238,489) (324,147) (54,994) (305,130) (1,557,580)

0 (44,185) 3,617 (40,568) 5,875 124,056 442,733 566,789

(391,572) (253,411) (1,713) (646,696) (66,711) (69,422) 1,902,174 1,832,752

(1,624) (126,439) 5,577 (122,486) 39,143 301,252 843,007 1,144,259

(487,407) 1,050 (327,379) 1,398,139 1,070,760

USIMINAS Release 2Q05

15/25

Balance Sheet - Assets

Brazilian GAAP (Corporate Law) - R$ thousand Assets
Current Assets Cash and Cash Equivalents Trade Accounts Receivable Taxes Recoverable Inventories Deferred Income Tax & Social Contrb'n Other Securities Receivables

Parent Company 30-June-05 31-March-05

3,475,734 1,070,760 881,449 22,372 1,195,603 253,467 52,083 3,828,878 1,469,959 829,358 26,148 1,070,788 245,155 187,470

Consolidated 30-June-05 31-March-05

6,676,918 1,832,752 1,630,550 100,565 2,648,693 328,668 135,690 6,688,508 2,333,825 1,575,630 105,062 2,240,956 245,155 187,880

Long-Term Receivable Deferred Income Tax & Social Contrb'n Related Company Credits Deposits at Law Taxes Recoverable Others

786,055 421,581 111,362 166,435 36,346 50,331

851,869 486,220 128,644 159,615 26,937 50,453

1,037,499 599,828 111 283,143 54,196 100,221

1,179,047 773,325 188 270,983 30,252 104,299

Permanent Assets Investments Property, Plant and Equipment Deferred

7,810,255 4,253,618 3,556,637 -

7,418,925 3,889,454 3,529,471 -

9,530,721 669,174 8,813,810 47,737

9,642,480 716,080 8,877,640 48,760

Total Assets

12,072,044

12,099,672

17,245,138

17,510,035

USIMINAS Release 2Q05

16/25

Balance Sheet - Liabilities and Shareholders' Equity

Brazilian GAAP (Corporate Law) - R$ thousand Liabilities and Shareholders' Equity
Current Liabilities Loans and Financing and Taxes Payable in Installments Suppliers, Subcontractors and Freight Taxes, Charges and Payroll Taxes Related Companies Financial Instruments FEMCO Dividends Payable Others Long-Term Liabilities Loans and Financing and Taxes Payable in Installments Related Companies Provision for Contingencies Actuarial Liability Financial Instruments FEMCO Others Minority Interests Shareholders' Equity Capital Reserves Revenues from Fiscal Year Total Liabilities and Shareholders' Equity

Parent Company 30-June-05

1,533,440 536,268 264,494 451,575 98,315 48,738 2,075 131,975 2,696,851 722,621 79,986 593,405 968,296 244,600 87,943 7,841,753 2,400,000 3,609,979 1,831,774 12,072,044

Consolidated 30-June-05
3,029,877 1,060,735 539,259 700,796 89,154 188,420 7,711 3,106 440,696 6,398,722 2,825,255 16,027 1,027,285 1,411,943 620,899 317,176 180,137 55,283 7,761,256 2,400,000 3,549,484 1,811,772 17,245,138

31-March-05
2,263,662 536,241 163,816 446,452 93,373 23,527 787,794 212,459 2,798,948 864,557 96,415 604,390 965,363 165,258 102,965 7,037,062 2,400,000 3,609,979 1,027,083 12,099,672

31-March-05
3,869,624 1,252,338 374,154 699,180 116,085 92,601 10,527 796,803 527,936 6,609,332 3,319,751 16,404 1,042,659 1,042,008 579,127 341,481 267,902 80,277 6,950,802 2,400,000 3,549,484 1,001,318 17,510,035

USIMINAS Release 2Q05

17/25

Companhia Siderrgica Paulista - COSIPA Income Statement - Consolidated

Brazilian GAAP (Corporate Law) R$ thousand
Net Revenues Domestic Market Export Market COGS Gross Profit Gross Margin Operating Income (Expenses) Selling General and Administrative Others, Net EBIT EBIT Margin Financial Result Equity Income Operating Result Non-Operating Income Profit Before Taxes Income Tax / Social Contribution Income before Taxes and Profit Sharing Profit Sharing Net Income EBITDA EBITDA Margin

2Q 2005
1,469,261 963,565 505,696 (853,438) 615,823 42% (74,827) (14,010) (13,389) (47,428) 540,996 37% (28,099) 964 513,861 (486) 513,375 (175,096) 338,279 338,279 694,821 47.3%

2Q 2004
1,219,969 675,140 544,829 (712,647) 507,322 42% (59,570) (16,790) (15,856) (26,924) 447,752 37% (243,698) 1,481 205,535 (3,172) 202,363 (68,455) 133,908 133,908 512,880 42.0%

1Q 2005
1,343,405 958,058 385,347 (709,634) 633,771 47% (54,788) (16,689) (12,962) (25,137) 578,983 43% (124,140) 2,729 457,572 (759) 456,813 (157,958) 298,855 298,855 663,543 49.4%

Chg. 2Q05/2Q04
20% 43% -7% 20% 21% 0 p.p. 26% -17% -16% 76% 21% 0 p.p. -88% -35% 150% -85% 154% 156% 153% 0% 153% 35% +5,3 p.p.

USIMINAS Release 2Q05

18/25

Companhia Siderrgica Paulista - COSIPA Income Statement - Consolidated

Brazilian GAAP (Corporate Law) R$ thousand
Net Revenues Domestic Market Export Market COGS Gross Profit Gross Margin Operating Income (Expenses) Selling General and Administrative Others, Net EBIT EBIT Margin Financial Result Equity Income Operating Result Non-Operating Income Profit Before Taxes Income Tax / Social Contribution Income before Taxes and Profit Sharing Profit Sharing Net Income EBITDA EBITDA Margin

1H 2005
2,812,666 1,921,623 891,043 (1,563,072) 1,249,594 44% (129,615) (30,699) (26,351) (72,565) 1,119,979 40% (152,239) 3,693 971,433 (1,245) 970,188 (333,054) 637,134 637,134 1,358,364 48.3%

1H 2004
2,153,367 1,287,105 866,262 (1,332,606) 820,761 38% (113,010) (33,122) (31,807) (48,081) 707,751 33% (409,868) 2,567 300,450 (6,029) 294,421 (99,814) 194,607 194,607 836,043 38.8%

Chg. 1H05/1H04
31% 49% 3% 17% 52% +6 p.p. 15% -7% -17% 51% 58% +7 p.p. -63% 44% 223% -79% 230% 234% 227% 0% 227% 62% +9,5 p.p.

USIMINAS Release 2Q05

19/25

Companhia Siderrgica Paulista - COSIPA Cash Flow

Brazilian GAAP (Corporate Law) R$ thousand
Operating Activities Net Income (Loss) in the Period Financial Expenses and Monetary Var/Net Exchge Var Depreciation, Exhaustion and Amortization Investment Write-offs (Decrease in Permanent Assets) Equity in the Results of Subsidiaries/Associated Companies Dividend Income from Subsidiaries Income Tax and Social Contribution Provisions Adjustment for Minority Participation Total Increase/Decrease of Assets Increase (Decrease) in Accounts Receivables Increase (Decrease) in Inventories Increase (Decrease) in Recovery of Taxes Increase (Decrease) from Deferred Income Tax & Social Contrb'n Increase (Decrease) in Judicial Deposits Others Total Increase (Decrease) of Liabilities Increase (Decrease) in Suppliers Amounts Owed to Affiliated Companies Tax Payable Income Tax and Social Contribution Others Total Cashflow Generated from Operating Activities

2Q 2005

Consolitaded 2Q 2004 1H 2005

1H 2004

338,279 (15,777) 121,317 10 (964) 1,723 175,096 41,679 0 661,363

133,908 247,989 60,879 61 (1,665) 323 68,455 (18,732) 0 491,218

637,134 98,353 185,601 237 (3,693) 1,723 333,054 58,504 0 1,310,913

194,607 402,703 120,880 61 (3,026) 685 99,814 33,580 0 849,304

6,790 (241,714) 32,237 0 (4,458) (28,297) (235,442)

(126,000) (125,966) (65,241) 0 5,118 (12,060) (324,149)

181,580 (316,869) 27,950 0 (8,816) 28,842 (87,313)

(78,023) (133,988) (44,982) 0 1,098 (10,107) (266,002)

79,491 0 (23,461) (109,303) (81,061) (134,334) 291,587

(38,733) 10,218 (8,506) 0 56,231 19,210 186,279

57,815 0 (20,965) (177,515) (63,871) (204,536) 1,019,064

(19,404) 12,883 (3,833) 0 61,228 50,874 634,176

Financial Activities Inflow of Loans and Financing Payment of Loans, Financing and Debentures Interest paid on Loans, Financ., Debent.and tax installments Swap Operation Redemptions Dividends Paid Net Funds from Financial Activities Investment Activities (Additions) in Long-term Investments (Additions) to Permanent Assets, except Deferred Charges (Additions) Right off of permanent assets Funds Used for Investments Exchange Variation of Cash and Cash Equivalents Cash Balance Change At the Beginning of the Period At the End of the Period

0 (166,412) (52,363) 16 (116,795)

-

117,752 (525,297) (75,214) (12,784) 0

-

133 (415,515) (127,900) (50,768) (132,081)

-

1,211,965 (1,413,252) (200,246) (28,342) 0

-

(335,554)

(495,543)

(726,131)

(429,875)

0 (32,651) 0 (32,651) (40,934) (117,552) 636,379 518,827

(164) (50,554) 0 (50,718) 13,943 (346,039) 666,441 320,402

0 (53,592) 0 (53,592) (45,489) 193,852 324,975 518,827

(164) (75,533) 0 (75,697) 14,616 143,220 177,182 320,402

USIMINAS Release 2Q05

20/25

Companhia Siderrgica Paulista - COSIPA Balance Sheet - Assets

Brazilian GAAP (Corporate Law) - R$ thousand Assets
Current Assets Cash and Cash Equivalents Trade Accounts Receivable Taxes Recoverable Inventories Deferred Income Tax & Social Contrb'n Other Securities Receivables Long-Term Receivable Deferred Income Tax & Social Contrb'n Deposits at Law Taxes Recoverable Others Permanent Assets Investments Property, Plant and Equipment Deferred Total Assets

Consolidated 30-June-05 31-March-05

2,342,099 518,827 548,195 12,604 1,159,740 75,201 27,532 298,545 150,158 86,029 17,494 44,864 4,736,242 23,568 4,668,013 44,661 7,376,886 2,177,380 636,379 554,985 22,671 918,026 45,319 391,189 259,139 80,523 2,951 48,576 4,828,995 22,605 4,761,586 44,804 7,397,564

USIMINAS Release 2Q05

21/25

Companhia Siderrgica Paulista - COSIPA Balance Sheet - Liabilities and Shareholders' Equity
Brazilian GAAP (Corporate Law) - R$ thousand Liabilities and Shareholders' Equity
Current Liabilities Loans and Financing and Taxes Payable in Installments Suppliers, Subcontractors and Freight Taxes, Charges and Payroll Taxes Deferred Taxes Financial Instruments Actuarial Liability FEMCO Dividends Payable Others Long-Term Liabilities Loans and Financing and Taxes Payable in Installments Related Companies Provision for Contingencies Actuarial Liability Financial Instruments FEMCO Others Minority Interests Shareholders' Equity Capital Reserves Revenues from Fiscal Year Total Liabilities and Shareholders' Equity

Consolidated 30-June-05 31-March-05

1,286,181 554,111 250,111 145,854 62,356 108,331 7,711 563 1,031 156,113 3,393,021 1,925,368 387,879 388,934 447,094 4,558 187,068 52,120 2,697,684 1,763,814 296,736 637,134 7,376,886 1,389,157 673,112 186,916 168,937 43,458 57,520 10,527 1,446 117,826 129,415 3,582,884 2,308,986 392,876 363,413 322,615 4,497 137,617 52,880 2,425,523 1,763,814 362,854 298,855 7,397,564

USIMINAS Release 2Q05

22/25

Sales Volume Breakdown - Consolidated

Thousand tonnes
TOTAL SALES Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Electrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs TOTAL SALES - DOMESTIC MARKET Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Electrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs TOTAL SALES - EXPORTS Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Electrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs

2Q 2005
1,829 424 434 481 55 80 79 276 1,275 353 401 336 46 69 43 27 554 71 33 145 9 11 36 249 100% 23% 24% 26% 3% 4% 4% 15% 70% 19% 28% 18% 3% 4% 2% 1% 30% 5% 2% 8% 0% 1% 2% 11%

2Q 2004
1,971 425 531 506 62 104 100 243 1,429 285 494 383 54 78 64 71 542 140 37 123 8 26 36 172 100% 22% 27% 26% 3% 5% 5% 12% 73% 14% 25% 19% 3% 4% 3% 4% 27% 7% 2% 6% 0% 1% 2% 9%

1Q 2005
1,768 376 511 453 73 73 64 218 1,384 306 486 394 51 73 41 33 384 70 25 59 22 23 185 100% 21% 29% 26% 4% 4% 4% 12% 78% 17% 23% 22% 3% 4% 2% 2% 22% 4% 1% 3% 1% 0% 1% 10%

Chg. 2Q05/2Q04 -7% 0% -18% -5% -11% -23% -21% 14% -11% 24% -19% -12% -15% -12% -33% -62% 2% -49% -11% 18% 13% -58% 0% 45%

Net Revenues per tonne - USIMINAS + COSIPA

R$ / t.
Total Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Electrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs

2Q 2005
1,800 2,031 1,673 1,834 2,253 2,195 2,296 1,052

1Q 2005
1,836 2,034 1,654 1,922 2,291 2,289 2,342 1,081

1Q 2004
1,173 1,107 1,022 1,296 1,658 1,661 1,530 769

4Q 2004
1,698 1,843 1,466 1,851 2,237 2,201 2,245 1,150

USIMINAS Release 2Q05

23/25

Sectorial Sales - Consolidated

Thousand tonnes
Domestic Market Auto Autoparts Shipbuilding Line Pipes Small Diameter Pipes Packaging Household Appliances Civil Construction Electrical Equipment Distributors Industrial Equipment Others

2Q 2005
1,275 167 167 12 111 96 20 22 96 56 307 37 185 100% 13% 13% 1% 9% 8% 2% 2% 7% 4% 24% 3% 14%

2Q 2004
1,429 151 177 18 80 119 24 29 107 57 366 38 263 100% 11% 12% 1% 6% 8% 2% 2% 8% 4% 26% 3% 17%

1Q 2005
1,384 162 208 23 104 97 28 25 105 64 334 39 195 100% 11% 15% 2% 7% 7% 2% 2% 8% 5% 24% 3% 14%

Chg. 2Q05/2Q04 -11% 10% -6% -33% 40% -19% -18% -22% -11% -3% -16% -3% -30%

Market Share - Usiminas System (*)

(% volume) 1H 2005 (*)
DOMESTIC MARKET Auto Autoparts Shipbuilding Electrical Equipment Household Appliances Line Pipes Small Diameter Pipes Packaging Civil Construction Distributors 52% 57% 57% 100% 65% 33% 93% 54% 12% 44% 44%

2004 (*)
55% 55% 62% 100% 63% 36% 98% 60% 15% 48% 51%

2003 (*)
60% 62% 67% 100% 58% 44% 95% 68% 16% 58% 59%

2002 (*)
62% 62% 73% 100% 54% 44% 100% 80% 14% 54% 62%

(*) Defined by USIMINAS, Cosipa, CSN, Acesita and CST markets. Source: Information System - IBS

USIMINAS Release 2Q05

24/25

Loans and Financing by Index - Consolidated

R$ million TOTAL DEBT Foreign Currency (*) IGP-M TJLP Others Sub-Total Taxes Payable in Installments TOTAL FEMCO TOTAL DEBT Cash and Cash Equivalents NET DEBT (*) 99.2% of total foreign currency is denominated in US dollars 671,090 115,668 209,391 37,512 1,033,661 27,074 1,060,735 7,711 1,068,446 2,167,546 167,510 292,108 45,028 2,672,192 153,063 2,825,255 365,018 3,190,273 2,838,636 283,178 501,499 82,540 3,705,853 180,137 3,885,990 372,729 4,258,719 1,832,752 2,425,967 3,475,388 278,349 520,993 115,554 4,390,284 181,805 4,572,089 352,008 4,924,097 2,333,825 2,590,272 -18% 2% -4% -29% -16% -1% -15% 6% -14% -21% -6%

Short Term

30-June-05 Long Term

TOTAL

31-March-05 TOTAL

Chg. 2Q05/1Q05

Financial Income - Consolidated

R$ million
Monetary Effects Exchange Variation Hedge Income (Expenses) Interest on Loans, Financing, ACC's and Pre-Payment Financial Income Other Financial Expenses NET INTEREST INCOME

2Q 2005
(24,869) 241,119 (317,748) (86,893) 58,552 (43,854) (173,693)

2Q 2004
(58,280) (298,159) 126,796 (128,784) 47,346 (27,475) (338,556)

1H 2005
(29,449) (22,948) (63,281) (93,128) 84,501 (35,983) (160,288)

Chg. 2Q05/2Q04 -57% -181% -351% -33% 24% 60% -49%

Financial Income - Consolidated

R$ million
Monetary Effects Exchange Variation Hedge Income (Expenses) Interest on Loans, Financing, ACC's and Pre-Payment Financial Income Other Financial Expenses NET INTEREST INCOME

1H 2005
(54,318) 219,543 (381,029) (180,021) 141,681 (79,837) (333,981)

1H 2004
(104,818) (321,171) 71,356 (283,557) 88,187 (41,986) (591,989)

Chg. 1H05/1H04 -48% -168% -634% -37% 61% 90% -44%

USIMINAS Release 2Q05

25/25