Gerdau Ameristeel Closes Offering of 126,500,000 Common Shares



    TAMPA, Nov. 7 /CNW/ - Gerdau Ameristeel Corporation (NYSE:   GNA; TSX: GNA)
announced today the completion of its offering of 126.5 million common shares,
including the full exercise of the overallotment option. Gerdau S.A. purchased
approximately 84.1 million of the common shares (including approximately 10.9
million common shares issued to Gerdau S.A. concurrently with the closing of
the overallotment option) from Gerdau Ameristeel in the offering. After giving
effect to the offering, Gerdau S.A. owns approximately 66.5% or 287.4 million
common shares of Gerdau Ameristeel and intends to hold these common shares for
investment purposes only. Approximately 42.4 million common shares (including
approximately 5.5 million common shares issued to the underwriters pursuant to
the exercise of the overallotment option) have been purchased by an
underwriting syndicate described below for distribution to the public. The
common shares were sold in the United States and Canada at a price of US$12.25
per share for total gross proceeds of approximately US$1.55 billion.
    The net proceeds of the offering will be used to repay a portion of the
loans incurred by Gerdau Ameristeel for its previously announced acquisition
of Chaparral Steel Company, which closed on September 14, 2007.
    J.P. Morgan Securities Inc., CIBC World Markets, ABN AMRO Rothschild LLC
and HSBC Securities (USA) Inc. were joint book-running managers for the public
offering. Banc of America Securities LLC and BMO Capital Markets acted as
co-managers of the offering.
    For more information on the offering or to obtain a copy of a prospectus
relating to the offering, contact JPMorgan at National Statement Processing,
Prospectus Library, 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245,
telephone: 718-242-8002 or CIBC World Markets Corp., Attn: USE Prospectus
Department, 425 Lexington Avenue, 5th Floor, New York, NY 10017, toll free:
866-895-5637; or via email to useprospectus@us.cibc.com.
    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 the United States and Canada. 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
non-residential, infrastructure, commercial, industrial and residential
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 offering of common shares and use
of net proceeds, 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, excess global capacity in the steel industry and
the availability of competitive substitute materials; the cyclical nature of
the steel industry and the industries served by the Company; steel imports and
trade regulations; a change in China's steelmaking capacity or slowdown in
China's steel consumption; the ability to integrate newly-acquired businesses
such as Chaparral and achieve synergies; the Company's level of indebtedness;
the Company's participation in consolidation of the steel industry; increases
in the cost of steel scrap, energy and other raw materials; the ability to
renegotiate collective bargaining agreements and avoid labor disruptions; the
cost of compliance with environmental and occupational health and safety laws;
the enactment of laws intended to reduce greenhouse gases and other air
emissions; unexpected equipment failures and plant interruptions or outages;
the substantial capital investment and similar expenditures required in the
Company's business; the loss of key employees; interest rate risk; the
Company's ability to fund its pension plans; currency exchange rate
fluctuations; competitors' relief of debt burdens and legacy costs by seeking
protection under the bankruptcy laws; the accuracy of estimates used in the
preparation of the Company's financial statements; the Company's reliance on
joint ventures that it does not control; and other factors discussed in
materials filed with applicable securities regulatory authorities from time to
time.

    %SEDAR: 00000593E




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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