Gerdau Ameristeel Announces Revised Financing Commitment

    TAMPA, FL, Aug. 30 /CNW/ - Gerdau Ameristeel Corporation (NYSE:   GNA,
TSX: GNA) today announced that its previously announced financing commitment
from J.P. Morgan Securities, Inc. to fund the pending acquisition of Chaparral
Steel Company has been replaced with a firm commitment from ABN AMRO Bank
N.V., HSBC and J.P. Morgan Securities, Inc. as Joint Lead Arrangers. The new
financing commitment, which is being syndicated internationally, is fully
committed, provides additional flexibility, and is on terms that are expected
to be at least as favorable as those contemplated by the original financing
commitment. The consummation of the acquisition of Chaparral remains subject
to other customary conditions, including adoption of the Agreement and Plan of
Merger by Chaparral's stockholders.

    About Gerdau Ameristeel

    Gerdau Ameristeel is the second largest mini-mill steel producer in North
America with annual manufacturing capacity of over 9.0 million tons of mill
finished steel products. Through its vertically integrated network of 17
mini-mills (including one 50% owned joint venture mini-mill), 17 scrap
recycling facilities and 52 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, 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.

    Forward Looking Statements

    In this press release, "Gerdau Ameristeel" and "Company" refer to Gerdau
Ameristeel Corporation and its subsidiaries and 50%-owned joint ventures.
Certain statements in this press release constitute forward-looking
statements. Such statements describe the Company's assumptions, beliefs and
expectations with respect to its operations, future financial results,
business strategies and growth and expansion plans can often be identified by
the words "anticipates," "believes," "estimates," "expects," "intends,"
"plans," and other words and terms of similar meaning. The Company cautions
readers that forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those currently projected
by the Company. In addition to those noted in the statements themselves, any
number of factors could affect actual results, including, without limitation:
    The highly competitive nature of the global steel industry and the
availability of competitive substitute materials; the cyclical nature of the
steel industry and the industries served by the Company; economic conditions
in North America and worldwide steel imports and trade regulations; the
substantial capital investment and maintenance expenditures required in the
Company's business; unexpected equipment failures, transportation disruptions
or production curtailments or shutdowns; 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 laws and regulations; the Company's costs relative to
competitors who have sought bankruptcy protection; the Company's ability to
fund its pension plans; the deviation of actual results from estimates made by
the Company in the preparation of its financial statements; the loss of key
employees; the Company's reliance on joint ventures that it does not control;
the effects of the consolidation of operations or of the steel industry, and
the ability to integrate newly-acquired businesses and achieve synergies.
    Any forward-looking statements in this press release are based on current
information as of the date of this press release and the Company does not
undertake any obligation to update any forward-looking statements to reflect
new information, future developments or events, except as required by law.

    %SEDAR: 00000593E

For further information:

For further information: Barbara R. Smith, Vice President and Chief
Financial Officer, Gerdau Ameristeel, (813) 319-4324,

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