Gerdau Ameristeel Announces Completion of Acquisition of Chaparral Steel Company

    TAMPA, FL., Sept. 14 /CNW/ - Gerdau Ameristeel Corporation (NYSE:   GNA;
TSX: GNA) announced today that it has completed its acquisition of Chaparral
Steel Company, broadening Gerdau Ameristeel's product portfolio and giving it
a full range of structural steel products. Chaparral's shareholders approved
the merger at a special shareholder meeting on Wednesday, September 12, 2007.
    On July 10, 2007, Gerdau Ameristeel announced that it had reached an
agreement to acquire Chaparral Steel, the second largest producer of
structural steel products in North America. Chaparral operates two mini-mills,
one located in Midlothian, Texas, and the other located in Dinwiddie County,
Virginia. Chaparral employs approximately 1,400 employees and has an annual
installed capacity of 2.8 million tons. The combined companies now become the
second largest structural steel producer in North America.
    "Today is a defining moment in the history of our company. This
solidifies our position as one of the major steel producers in our region with
a major market position in structural steel products in addition to rebar and
merchant bar products," said Mario Longhi, President and CEO, Gerdau
Ameristeel. "We are excited to offer our customers the broadest range of long
steel products in the mini-mill sector."
    "The completion of this acquisition confirms our global strategy of being
one of the consolidators in the steel industry," says André Gerdau
Johannpeter, CEO of the Gerdau Group. "We are confident that the growth of our
North American operations will add value and bring benefits for our customers,
shareholders, employees and the communities in which we operate."
    Gerdau Ameristeel's acquisition of Chaparral Steel Company is being
financed, in part, by a US$1,150,000 Bridge Loan Facility and a US$2,750,000
Term Loan Facility which have been provided by two separate international
syndicates of banks, each arranged by ABN AMRO Bank N.V., HSBC and J.P. Morgan
Securities, Inc. Subsidiaries of Gerdau Ameristeel are the borrowers under the
    The Bridge Loan Facility matures 90 days from closing (with an option to
extend for a further 90 days) and the Term Loan Facility has tranches maturing
5 and 6 years from the closing. Gerdau S.A. and certain of its Brazilian
affiliates have guaranteed the obligations of the borrowers under both credit
facilities. The Bridge Loan Facility and the Term Loan Facility are not
secured by the assets of Gerdau Ameristeel or its subsidiaries.

    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 53 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,
cellular and electrical transmission, automotive, mining and equipment
manufacturing. The common shares of Gerdau Ameristeel are traded on the New
York Exchange and the Toronto Stock Exchange under the symbol GNA.
    Gerdau Ameristeel is 67% 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 20.2 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 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 transaction, 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 additional financial and investor information, visit

    %SEDAR: 00000593E

For further information:

For further information: Chief Financial Officer, Barbara Smith, (813)
319-4324,; Media Relations, Steven Hendricks,
(813) 319-4858,

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