A Present A

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2Q082Q08


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Agenda

Global View

Usiminas

Investments

Mining & Logistics

Financials

Corporate Governance and Social Responsability


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Agenda

Global View

Usiminas

Investments

Mining & Logistics

Financials



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327 350 372 395428 456

147 135 153141 146

210225 220

246 255260259

297 353384

428477

126

757164

596052

2003 2004 2005 2006 2007 2008F

Other USA/Canada LATAM Europe China

St eel Consum pt ion - W or ld( m i l l io n t )

So u r c e: I I SI - 2 0 0 8

Substantial growth in the past few years,mainly coming from China ...

974 1,079

1,1391,242

1,3231,414


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31 . 533 . 842 . 848 . 651 . 653 . 1

72 . 498 . 2

1 2 0 . 2

4 8 9 . 2

W or ld St eel Prod uc t ionW or ld St eel Prod uc t ion

Brazil is the 9th largest producer...

So u r c e: I n t e r n a t i o n a l I r o n a n d St e e l I n s t i t u t e - I I SI - 2 0 0 8

2007

(million t.)

Chin a Japan USA Russ ia I nd ia S . Korea Germ any Ukra in e Braz i l I ta ly


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416 449 462517 528

558 567602 615 627

650 655

779

595

Brazil

Mexic

oInd

ia

Australia

CIS

USAInt

egChina

South

Korea

(Inte

g)

Canada

Eastern

Europe

W

ester

nEu

rope

Japan

USAMi

ni

Glob

alAv

erage

Sour ce: WSD, May 200 8

Brazil has the lowest production cost in the world

Cost com pet i t i venessCos t com pet i t i veness

Production Cost USD / ton

(Slabs May 2008)


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Agenda

Global View

Usiminas

Investments

Mining & Logistics

Financials



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Usiminas System is the 36th largest producer in the world and 1st f l a t s tee l

producer in Latin America

Brazi l ian St ee l Pr odu ct ionBrazi l i an St ee l Pro du c t ion

Top Braz i l ian Stee l

Produce rs - 200 7

( 33 .8 m i l l i on ton = Brazi l s c rude

stee l p roduct ion)

Gerdau

21.5%

ArcelorMit ta l

30 .3%

Usiminas

25.7%

Othe rs

6.7%

CSN

15.8%

Majo r P roduce rs 2007( c rude s tee l p roduc t i on - m i l l i on t . )

20,2

20,5

22,8

22,9

26,5

28,6

32,8

33,8

34,5

116,4

8 ,735 - U SI M I N AS

10 - W uhan

9 - US Steel

8 - Tangshan

7 - J iangsu Shagang

6 - Tat a St ee l

5 - Baos tee l

4 - Posco

3 - JFE

2 - N ipp on S tee l

1 - A rcelo r M i t ta l

Source : I BS - 200 8 and Me ta l Bu l l e t i n - 2 008


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iBoard of Directors from solid Brazilian and foreign groups

iLong-term commitment

iExcellence and experience of management

Exce l l ence o f t h e m a in shareho lde rsShareho lde r St ru ct u r eShareho ld e r St ru ct u r e

Free Float

50 .2%

Previ

5 .2%

Free Float12 .9%

Votorantim /

Camargo

Corr a Group

11 .5%

Usiminas

Pensions Fund

5.0%

VALE

2.9%

Nippon Group

12 .3%

ControlGroup31.9

%

Total Capital

June , 2008

PN s - 5 0 .2 %ON s - 4 9 .8 %


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Usim inas i s s t r a t eg ica l l y locat edUsim inas i s s t r a t eg ica l l y locat edClo se t o m a jo r d o m e st i c m a rk e t s

I r o n O r e Mi n e

2 p o r t s

Rai l road ( MRS)

Braz i lB raz i l

(Minas Gerais)

(So Paulo)(Rio de Janeiro)

(Esprito Santo)

Praia Mole

Terminal

IngTerminal

Cubato

Terminal

So Paulo

BeloHorizonte

MRS

J. Bon i fJ. Bon i f ciocio

PlantP lant

I n tI n t . C. C m a r am a r a

PlantP lant

I r o n Or eI r o n Or e

MinesMines

San tanaSan tana

ParaPara soso PlantP lant


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Opera t ing Pro f i t Ma rg ins %

High quality, value-added products (from slabs to coated products)

Among the lowest cost producers in the world

Source : I n tege r Research

Cost com pet i t i venessCos t com pet i t i veness

2005 2006 2Q 2007

43,040,8

39,4

35,233,4

0

10

20

30

40

50

China Steel

Tata SteelUsiminas

Novolipetsk CSN

37,134,6

28,7 28,2 27,5

0

10

20

30

40

50

Magnitogorsk

Tata Steel

UsiminasNovolipetsk

CSN

40,0

37,5

31,7 30,929,9

0

10

20

30

40

50

JSW Steel

CSN

Novolipetsk Usiminas

Ezz


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M aj o r con su m e r s

Heavy p la te 1 ,0 0 0 ,0 0 0 1 ,0 0 0 ,0 0 0

Ho t co il 3 ,5 5 0 ,0 0 0 2 ,1 0 0 ,0 0 0

Cold coi l 2 ,5 0 0 ,0 0 0 1 ,2 0 0 ,0 0 0

-

-

Capac i t y ( t onnage / yea r )

3 6 0 ,0 0 0

4 8 0 ,0 0 0

Slab 5 ,0 0 0 ,0 0 0 4 ,5 0 0 ,0 0 0

Elec t ro ga lvan ized co i l

Ho t d i p ga l van i zed co i l

Pipelines, pressure vessels,

shipbuilding, general structures.

Agricultural machinery, pipe and tube,chassis, gas cylinders, containers,general structures.

Auto industry, household appliances,

packaging.

Auto industry, household appliances.

Auto industry, household appliances,civil construction.

Rolling mills.

I p a t i n g aPlant

Cubato

Plant

Produc tsProduc ts

Complete product lines: from slabs to coated products

Uncoa

te

d

Coated


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SalesSales

( m i l l io n t o n . )( m i l l io n t o n . )

Domestic market is a priority

As o f June, 20 08

84%

77%

67%

72%69%70%

67%

16%

23%

33%

28%

31%30%33%

2002 2003 2004 2005 2006 2007 1H08

7 ,7 2 2 7 ,7 1 08 ,0 6 2

7 ,3 4 8

7 ,9 4 5

Dom est ic Mar k et Fo r eign Mar k et

7 ,9 9 0

3 ,8 0 3


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SalesSales

Domestic Market(Volume: 3.194 million t. - 1H08)

Combination of market leadershipand diversified customer base

reduces market risk

Spain

14%

Argentina

21%

USA

14%

Indonesia

2%

Bolivia

3%

Mexico6%

Taiwan

5%

South Korea

7%

Chile

11%

Germany6%

Others

11%

Distributors

23%

Autoparts

18%

Auto

Industry

13%

CivilConstruction

6%

Household

Appliances

2%

Industrial

Equipment

9%

Elect-

Equipment

4%

Packaging

1%

Pipelines

7%

Others

10%

Small Diam.

Tubes

7%

International Market(Volume: 0.609 million t. - 1H08)

Diversified geographic sales

As o f June, 20 08


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USIMINAS

15%

Others

17%

ArcelorMittal

14%

CSN / Inal11%

Gerdau

8%

Armco

4%

Benafer

4% Pires do Rio /

Cibrao

4%

Tuper

4%

Frefer

4%

Tyco Metal

4%

Zamprogna

7%

Mangels4%

SteelSteel D ist r i bu t i on Sect o rD ist r i bu t i on Sect o r

Source : I NDA - June , 2008


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Mark e t ShareMarke t Share

Do m est i c M ar k e t ( % ) - 1 H0 8Do m est i c Mar k e t ( % ) - 1 H0 8Combination of market leadership and diversified customer base reduces market risk

* F la t Stee l m ark et : Us im inas System , CSN, Aces i ta and Arce lor Bras i l .

4 9 % M ar k e t sh a r e *

8 9 %

2 9 %

6 8 %

6 6 %

6 1 %

1 0 %

4 2 %

4 7 %

5 2 %

6 0 %

0,0% 20,0% 40,0% 60,0% 80,0% 100,0%

Distributors

Packaging

Civil Construction

Shipbuilding

Elect. Equipment

Household Appliances

Pipelines

Small Diam. Tubes

Autoparts

Auto Industry

TOTAL

OthersI pa t ing a and Cubato P lan t s

4 8 %

5 3 %

4 0 %

5 8 %

3 9 %

8 6 %

3 3 %

7 1 %

1 0 0 %

3 4 %

1 2 %

Flat St eel

As o f June, 20 08


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Braz i lBraz i l s ou t l ook - 2008s ou t l ook - 20 08

i Flat steel demand is expected to exceed 10%

Vehicle production may reach 3.400 million (Anfavea)

Industrial segment should outperform, growth to exceed 10%

Civil Construction growing activities

So u r c e: I B S / U si m i n a s / A n f av e a

8,576 8,90810,109

9,2299,902

11,66912,922

2002 2003 2004 2005 2006 2007 2008E

+ 1 8 %

1 ,793 1 ,828

2 ,2102 ,528 2 ,611

2 ,973

3 ,400

2002 2003 2004 2005 2006 2007 2008E

+ 1 4 %

Vehicle Production (1,000 vehicles)Flat Steel Demand (1,000 t.)

+ 1 1 %

+ 1 4 %


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I nv est m en ts & Techno logyI nv est m en ts & Techno logy

Commitment to the best technology

Partnership with Nippon Steel assures access to state-of-the-art technology

in steel production, including high value-added products

6th Technology Transfer Agreement with Nippon Steel, valid until 2009

425 received patents, of which 23 are international

150 researchers

Usiminas sells US$ 2 for each US$ 1of acquired technology.


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Agenda

Global View

Usiminas

Investments

Mining & Logistics

Financials



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Production capacity

5 million tons/yr

Start of works1st Half 2009

Start up

2.5 million t/yr in 20112.5 million t/yr in 2012

Coke plant2.0 million t/yr

Power plant250 MW

TOTALTOTAL InvestmentsInvestments: US$ 5.7: US$ 5.7 billionbillion **

* Does not include investment in thermoelectric powerplant of approximately US$ 400 million

NewNew Slab PlantSlab Plan t ( San t ana do Para( San t ana do Para so )so)


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LINEVOLUME

thsd tons

START UP

FORECASTPROJECT VALUE

Hot Strip Mill 2,300 / 4,800 1st Half 2011 US$ 1.0 billion

BF1 Revamping 3.5 thsd/day => 4.5 thsd/day Concluded US$ 170 million

Continuous Casting

Machine+350 / ano Concluded US$ 140 million

Other US$ 1.1 billion

Total Investments

Technology updating, cost savings andenvironmental control

US$ 2.4 billion

JosJos Bon i fBon i f ciocio Plan t ( Cub atPlan t ( Cub at o)o )

Investments


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Plant / EquipCAPACITY

tonsPROJECT VALUE

Concentration Plant 16 million US$ 650 million

Pellet Plant 7 million US$ 750 million

Mining Equip. - US$ 90 million

Railroad conection - US$ 60 million

Others - US$ 20 million

Acquisition 1,4 billion US$ 1,9 billion

Total Investments US$ 3.47 billion

Mi n i ngM i n i ng

Investments


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Usi m i nas 2013Usi m i nas 2013

Techn ica l con f igu r a t i onTechn ica l con f ig ur a t i on o f t h eo f t h e p l an t s af t e rp l an t s af t e r t h et h e

i n v est m en t p r o g r a mi n v est m en t p r o g r a m

Current After Current After

Slabs 5.00 5.00 4.50 4.80 ( 1)

Hvy Plate 1.00 1.50 1.00 1.00

Hot Strip 3.60 3.80 2.10 4.40 / 6.10 ( 2 )

Cold Strip 2.50 2.50 1.20 1.20

EG 0.36 0.36 - -

HDG 0.48 1.03 - -

Intendente Cmara Plant

million tons

Jos Bonifcio Plant Santana do Paraso

New Plant

-

-

5.00

-

-

-

Source: Usiminas

(1) Concluded - May/2008(2) Additional expansion - up to 6.10 million tons/year


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Agenda

Global View

Usiminas

Investments

Mining & Logistics

Financials



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J. Mendes is the last sizeable mining asset available in the Quadriltero Ferrfero,a major iron ore province in Brazil

The acquired company is comprised of four mining sites with total expectedr esour ces o f 2 .7 to 3 .0 Bt and expect ed reserv es o f 1 .1 t o 1 .8 B t

Expected mine use fu l l i f e of at least 2 5 y e a rs

Expected iron content between 4 6 a n d 4 8 %

Current production level at roughly 5 MMt / y ear

J. Mend es b r ie f o ver v iewJ. Mend es b r ie f over v iew

Som isa Glob al / Cam ar g os J Men des Pau de Vin h o


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0

10

20

30

2008 2009 2010 2011 2012 2013 2014

Pellet Feed

Sinter Feed

Lump

Min in g Asse t sMin ing Asset s

Source: Usiminas

5.2 5.8

8.8 9.010.5

27.729.2

13.0

2.2

14.0


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Min ing Asset sMin in g Asse t s

A l t h o u g hA l t h o u g h I pa t i nga and San tana do Pa r aI pa t i nga and San tana do Pa r a so doso do n o t h a v en o t h a v e

log is t ics accesslog is t ics access t ot o be supp l i ed by i t sbe supp l i ed by i t s m i n e sm i n e s onon Ser raSer ra

Azu lAzu l , Us im inas, Us im inas w i l l h av ew i l l h av e t h et h e bene f i tbene f i t o fo f f u l lf u l l hedgehedge

aga ins t i r onaga inst i r on o r eo r e p r i ce f l uc tu a t ion sp r i ce f l uc tu a t i ons

Mining29.2 MM t/yr

J. Bonifcio Plant10.3 MM t/yr

Dom. Mkt. Sales

2.2 MM t/yr

Exports

16.7 MM t/yr

Supply

IntendIntend. C. Cmaramara PlantPlant8.0 MM t/8.0 MM t/yryr

Santana do ParaSantana do Parasoso

8.0 MM t/8.0 MM t/yryr

JosJos BonfBonfcio Plantcio Plant

2.0 MM t/2.0 MM t/yryr

HedgeHedge

Source: Usiminas


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Start of operations2012

Logis t ics Asset sLog is t ics Asset s

Area w ill be a benchmark f rom t he environm ental point of view

Amount est imat ed for environm ental recovery - up to R$ 40 m illion

PriceR$ 72 million

Land850 thousand m

Shipping capacity25 million tons of Iron Ore,

in addition to other products

Usiminas acquired land in Sepetiba Bay where it will build a maritime terminal


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Agenda

Global View

Usiminas

Investments

Mining & Logistics

Financials



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STEELMAKING MINING TOTAL

2008 1,480 960 2,440

2009 2,550 1,060 3,610

2010 4,410 480 4,890

2011 1,830 770 2,600

2012 360 200 560

TOTAL 10,630 3,470 14,100

Estimated Capex for the Investment Program fits into thecapital structure considered adequate for the company

US$ million


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530734 657

831999

1,9222,269 2,010

2,581

1.181

1.602

31%35% 32%

35% 35%

46%42%

35% 36% 35%37%

1999

1,81

2000

1,83

2001

2,35

2002

2,92

2003

3,07

2004

2,93

2005

2,44

2006

2,18

2007

1,95

1H07

1,75

1H08

1,74

Ebitda Ebitda Margin

AVG.

R$/US$

Consol idatedConso l idated Ebi tdaEbi tda

Investment return and market conditions have allowed consistent cash generation

US$ Million

As o f June, 20 08


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83

2,841

238 434 358 284 473 460138 216 9

409

86

Cash 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

on

Debt has an adequate maturity profile

SwapCDI5%

Long8 3 %

US$ 2,659 M

Shor t1 7 %

US$ 529 M

Fore ign6 5 %

Local3 5 %

TERM CURRENCY

Stand by Facility - US$ 300 million

Note: Pr inc ipa l Va lues

US$ Million

Conso l ida ted Deb t Mat u r i t yConso l ida t ed Deb t Ma tu r i t y

As o f June, 20 08


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3 4 6(537)

355

860

1,317

2,3342,491 0,1-0,20,20,4

0,7

2,33,1

0

1.000

.000

3.000

.000

2002

3,53

2003

2,89

2004

2,65

2005

2,34

2006

2,14

2007

1,77

1H08

1,59

Net Debt Net Debt / Ebitda

R$/US$

Tot a l Ne t DebtTo t a l Net Debt

And have made it possible to considerably reduce debt

US$ Million

As o f June, 20 08


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Con sol idat ed Figu r es

Finan cia l H igh l igh t sFinan cia l H igh l ig h t s

Jun 30/08 Dec 31/07 Dec 31/06 Dec 31/05 Dec 31/04

Crude Steel Produc. (thsd t) 3,983 8,675 8,770 8,661 8,951

Sales (thsd t) 3,803 7,990 7,945 7,348 8,062

Net sales (US$ million) 4,443 7,131 5,709 5,354 4,197

EBITDA (US$ million) 1,602 2,581 2,010 2,269 1,922Net Profit (US$ million) 892 1,607 1,156 1,609 1,033

Gross Debt (US$ million) 3,187 1,693 1,628 1,685 2,033

Net Debt / EBITDA 0.1 (0.2) 0.2 0.4 0.7

EBITDA / Interest 14.4 20.0 16.9 11.8 11.3


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Agenda

Global View

Usiminas

Investments

Mining & Logistics

Financials



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I nv est m en t s i n Socia l Respons ib i l i t yI nves tm en t s i n Socia l Respons ib i l i t y

Env i r onm en ta l Pro t ect i on

C o m m u n i t y

- More than R$ 2 billion invested in Ipatinga and Cubato plantssince 1992.

- Usiminas and Cosipa were the 2nd and 3rd steel companies in theworld to be certified with ISO 14001.

- Fresh water recirculation rate above 93%.

- Green belt in Ipatinga area is 10 times above

recommended level (World Health Organization).

- More than R$ 139 million invested in cultural activities in thelast fifteen years (tax incentives), involving 3 thousandartists and 200 thousand spectators.

- Construction of its 2nd hospital, one of three in Brazilaccredited by ONA (National Accreditation Organization),

through USIMINAS Foundation, which is self sustaining. Bothhospitals provide healthcare to a region with 600 thousandinhabitants.

- Investment in education through So Francisco Xavier School,maintained by USIMINAS foundation, teaching more than 3thousand children and young people.

- The city of Ipatinga holds a high standard of humandevelopment, as defined by the UN - United Nations.


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w w w .u si m i n as.co m .b r / r i

Investor Relations:

Bruno Seno Fusaro (Head of IR) Matheus Perdigo Rosa Luciana Valadares dos Santos

[email protected] [email protected] [email protected].: + 55-31-3499-8772 Tel.: + 55-31-3499-8056 Tel.: + 55-31-3499-8619Fax: + 55-31-3499-9357

Gilson Rodrigues Bentes Diogo Dias GonalvesCosipa (So Paulo Office) [email protected]@cosipa.com.br Tel.: + 55-31-3499-8710

Tel.: + 55-11-5070-8980

Declarations relative to business perspectives of the Company, operating andfinancial results and projections, and references to the growth of the Company,constitute mere forecasts and were based on Managements expectations inrelation to future performance. These expectations are highly dependent on

market behavior, of Brazils economic situation, on the industry and oninternational markets, and are therefore subject to change.

ADRLevel I

A Present A

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