Gerdau Ameristeel Announces Filing of Preliminary Prospectus for Offering of its Common Shares



    TAMPA, FL, Oct. 12 /CNW/ - Gerdau Ameristeel Corporation (NYSE:   GNA; TSX:
GNA) announced today that it has filed a preliminary short form prospectus
with the securities regulatory authorities in each of the provinces and
territories of Canada, and a registration statement on Form F-10 with the
United States Securities and Exchange Commission, in connection with a
proposed offering in the United States and Canada of 110 million of its common
shares. Gerdau S.A. currently owns approximately 66.5% of the outstanding
common shares of Gerdau Ameristeel, and has agreed to purchase approximately
73 million of the common shares from Gerdau Ameristeel in the proposed
offering.
    The common shares offered to the public are being sold in Canada and the
United States. J.P. Morgan Securities Inc., CIBC World Markets Corp., ABN AMRO
Rothschild LLC and HSBC Securities (USA) Inc. are acting as joint book-running
managers and Banc of America Securities LLC and BMO Capital Markets are acting
as co-managers (collectively, the "underwriters") of the offering. Gerdau
Ameristeel has granted the underwriters an option to purchase up to an
additional 5,535,750 common shares at the public offering price, less
underwriting commission, within 30 days following the closing date (the
"overallotment option"). Gerdau S.A. has agreed to purchase, within two days
after the exercise of the overallotment option, a number of additional common
shares to maintain its approximate 66.5% ownership interest, at the public
offering price. The maximum aggregate number of additional common shares
issuable to the underwriters and to Gerdau S.A. is 16.5 million. The final
terms of this offering will be determined at the time of pricing.
    The net proceeds of this offering will be used to partially repay the
loans incurred by Gerdau Ameristeel for its previously announced acquisition
of Chaparral Steel Company, which closed on September 14, 2007.
    A copy of the preliminary prospectus may be obtained by contacting
JPMorgan at National Statement Processing, Prospectus Library, 4 Chase
Metrotech Center, CS Level, Brooklyn, NY 11245, telephone: 718-242-8002.
    A registration statement relating to the common shares has been filed
with the United States Securities and Exchange Commission but has not yet
become effective. The common shares to be issued under this offering may not
be sold, nor may offers to buy be accepted prior to the time the registration
statement becomes effective. Similarly, these common shares may not be sold in
Canada until a receipt for a final prospectus has been obtained. This news
release shall not constitute an offer to sell or the solicitation of an offer
to buy, nor shall there be any sale of the common shares in any state,
province, territory or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of such state, province, territory or jurisdiction.

    About Gerdau Ameristeel

    Gerdau Ameristeel is the second largest minimill steel producer in North
America with annual manufacturing capacity of approximately 11.7 million tons
of mill finished steel products. Through its vertically integrated network of
19 minimills (including one 50%-owned joint venture minimill), 19 scrap
recycling facilities and 62 downstream operations, Gerdau Ameristeel serves
customers throughout North America. The company's products are generally sold
to steel service centers, steel fabricators, or directly to original equipment
manufacturers for use in a variety of industries, including construction,
metal building, manufacturing, automotive, mining, cellular and electrical
transmission and equipment manufacturing. The common shares of Gerdau
Ameristeel are traded on the New York Stock Exchange and the Toronto Stock
Exchange under the symbol GNA.
    Gerdau Ameristeel is approximately 66.5% owned by Gerdau S.A.

    About Gerdau Group

    Gerdau Group is the leader in the production of long steel products in
the Americas and ranks as the 14th largest steelmaking company worldwide. It
has approximately 35,000 employees and is present in thirteen countries:
Argentina, Brazil, Canada, Chile, Colombia, Dominican Republic, India, Mexico,
Peru, Spain, the United States, Uruguay and Venezuela. Gerdau Group has an
annual installed capacity of more than 20 million metric tons of steel and is
one of the largest recyclers in the Americas. With more than 100 years of
history, it has taken a path of international growth in line with the
steelmaking consolidation process. The Gerdau Group companies have stock
listed on the Sao Paulo (Bovespa: GGBR4, GGBR3, GOAL4 e GOAL3) New York (NYSE:  
GNA, GGB), Toronto (GNA) and Madrid (Latibex: XGGB) stock exchanges.

    Forward Looking Statements

    This press release contains forward looking statements with respect to
Gerdau Ameristeel Corporation, including its financing activities, business
operations, strategy, financial performance, and condition. Although
management believes that the expectations reflected in such forward looking
statements are reasonable, such statements involve risks and uncertainties.
Actual results may differ materially from those expressed or implied by such
forward looking statements. Factors that could cause actual results to differ
materially from expectations include, among other things, risk related to
completing the offering of common shares, and general economic and market
factors, including demand for steel products, availability and costs of
electricity, natural gas and raw materials, government regulations and trade
policies affecting steel imports or exports in Canada and the United States,
and other factors discussed in materials filed with applicable securities
regulatory authorities from time to time.





For further information:

For further information: Vice President, Finance and Chief Financial
Officer, Barbara R. Smith, (813) 319 4324, BAsmith@gerdauameristeel.com

Organization Profile

GERDAU AMERISTEEL CORPORATION

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