Gerdau Ameristeel Announces Acquisition of Enco Materials, Inc.

    TAMPA, FL, Oct. 1 /CNW/ - Gerdau Ameristeel Corporation (NYSE:   GNA; TSX:
GNA) announced today that it has acquired Enco Materials, Inc.
    Enco is a leader in the commercial construction materials market,
including fabricated rebar, construction products, concrete forming and
shoring material, as well as fabricated structural steel and architectural
products. Headquartered in Nashville, Tennessee, Enco has eight facilities
with fabrication capacity of approximately 50,000 tons and over 250 employees,
located in Arkansas, Tennessee, and Georgia. Terms of the transaction were not
    Originally founded in 1909, Enco is a third generation family business
led by Wilbur (Carson) Sensing III - President, and Ben Sensing - Executive
Vice President, both of whom intend to remain with the organization. They
bring with them a talented senior management team with extensive experience in
the construction industry.
    "We are very excited about the opportunities Enco brings to our company",
stated J. Neal McCullohs, Vice President of Commercial and Downstream
Operations, for Gerdau Ameristeel. "This acquisition positions us in new
markets, but more importantly, it expands our product and service offerings to
our current customers."

    About Gerdau Ameristeel:

    Gerdau Ameristeel is the second largest mini-mill steel producer in North
America with annual manufacturing capacity of approximately 12 million tons of
mill finished steel products. Through its vertically integrated network of 19
mini-mills (including one 50% owned joint venture mini-mill), 19 scrap
recycling facilities and 54 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
manufactures for use in a variety of industries, including construction,
cellular and electrical transmission, transportation and automotive, mining
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. For additional investor information, visit

    Forward Looking Statements

    This press release contains forward looking statements with respect to
Gerdau Ameristeel Corporation, including its 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 form those expressed or implied by such forward looking statements.
Factors that could cause actual results to differ materially from expectations
include, among other things, 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.

    %SEDAR: 00000593E

For further information:

For further information: Investor Relations Contact: Barbara R. Smith,
Investor Relations, (813) 319-4324,; Media
Contact: Steven Hendricks, Corporate Communications, (813) 319-4858,

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