ADVANCED TECHNOLOGY FOR PRODUCING STEEL AND IMPROVING LIVES

4Q04

Net income tops R$ 3 billion in 2004

Belo Horizonte, February 25, 2005 Usinas Siderrgicas de Minas Gerais S/A - USIMINAS (BOVESPA: USIM3, USIM5, USIM6; OTC: USNZY) announced today its fourth quarter 2004 and fiscal year 2004 results. Operational and financial information of the Company presented in this release, except where otherwise indicated, is based on consolidated data in Brazilian reais in accordance with Corporate Law. All comparisons take into consideration the same period in 2003, except when stated to the contrary.

HIGHLIGHTS

The Usiminas System achieved impressive results in this fiscal year, its best ever. Net profit was R$ 3.02 billion and EBITDA reached R$ 5.6 billion, confirming the effectiveness of our corporate strategy and consolidating our position in the domestic and international steel industry. The year 2004 was marked by external factors that positively influenced the industrys activities. Global steel production advanced, growing 9% over 2003, and international steel prices reached historic highs over the course of the year. In Brazil, economic recovery and the increase in the demand for steel products brought significant gains for the Usiminas System, which continued its policy of making the domestic market its priority and maintaining its market leadership. Operating at full capacity in a context of operational stability, we set new production and sales records while exercising strong control and reduction of costs. The sum of these conditions resulted in solid operational cash generation and allowed us to reduce the debt of the Usiminas System by US$ 621 million. At the end of the fiscal year, we find ourselves in a comfortable position, ready to face new challenges. The excellent performance makes us very proud and, at the same time, encourages us to seek even better results. The numbers speak for themselves. Rinaldo Campos Soares CEO Performance Steel product sales reached 2.17 million tonnes in 4Q04 and totaled 8.06 million tonnes in 2004. Growth of 5% in the year was made possible by increasing production at the Systems two plants, which operated with stability at full capacity. Consolidated net revenues totaled R$ 3.8 billion in 4Q04 and reached R$ 12.2 billion in the year, a 41% increase in relation to 2003. The rise in average international prices followed by a gradual alignment of domestic prices and growth in higher value-added products were the main determinants in revenue growth. Consolidated net income reached R$ 1.1 billion in 4Q04, a growth of 214% and, at the end of fiscal year, reached the all-time high of R$ 3.02 billion, an increase of 131% in relation to 2003. Outlook With the present favorable industry conditions persisting, solid operational cash generation achieved in the last quarters should continue. Funds obtained will be directed toward the Systems investment program, which is entering a new phase and will proceed to add value to its products. Priorities in the Company also include shareholder remuneration and continued debt reduction. No substantial international price reductions are foreseen in the medium term due to heated demand in the main markets and raw materials cost increases foreseen for 2005. The Usiminas Systems goal for the year is to maintain its steel product sales at the 8-million tonne level, continuing its commitment to giving priority to the domestic market by earmarking 75% of total production to local customers.

Highlights
R$ million Total Sales Volume (000 t) Net Revenues Gross Profit Operating Result (EBIT) a Financial Result Net Income EBITDA b EBITDA (R$/t) Total Assets Net Debt Stockholders' Equity

4Q 2004
2,170 3,809 1,752 1,589 (81) 1,127 1,816 837 16,981 3,495 5,949

4Q 2003
2,120 2,442 779 650 (383) 359 763 360 15,573 6,744 3,999

3Q 2004
2,011 3,285 1,572 1,451 (96) 1,005 1,602 796 16,682 4,975 5,621

% Chg. 4Q/4Q 2 56 125 145 -79 214 138 133 9 -48 49

2004
8,062 12,230 5,572 4,959 (769) 3,019 5,624 698 16,981 3,495 5,949

2003
7,710 8,660 3,067 2,526 (851) 1,306 3,072 398 15,573 6,744 3,999

% Chg.
5 41 82 96 -10 131 83 75 9 -48 49

(a) Earnings before interest, tax and participations. (b) Earnings before interest, depreciation, amortization and participations.

IMMEDIATE RELEASE Contacts:

Bruno Seno Fusaro brunofusaro@usiminas.com.br Tel: +55 (31) 3499-8710

Paulo Esteves paulo.esteves@firb.com Tel: +55 (11) 3897-6466/6857

Market, Production and Sales

Brazilian crude steel production totaled 8.3 million tonnes in 4Q04 and 32.9 million tonnes in 2004, a growth of 5.7% over the previous year. Flat rolled steel had an even better performance, with expansion of 9.4% and a total annual production of 14.4 million tonnes. Domestic sales of flat rolled products reached 10.5 million tonnes in 2004. The 13.7% growth was considerably above initial projections. The Brazilian steel market posted a surprising reaction, driven initially by exporting companies and, from the second half of the year onward, by recovery in investment stimulated segments (industrial equipment, construction, shipbuilding industry and large-diameter pipe) and by domestic consumer segments (household appliances and packaging). Strong domestic demand proportionately reduced the rate of Brazilian flat steel exports. In spite of this, total exports were 3.7 million tonnes, a growth of 3.6%. The Usiminas System produced 2.2 million tonnes of crude steel in 4Q04, achieving 8.9 million tonnes of crude steel in 2004, 4% above that of the previous year. With operational stability and working at full capacity, the Systems two plants exceeded their goals: the Intendente Cmara plant in Ipatinga accounted for 4.7 million tonnes of crude steel (5% increase) and the Jos Bonifcio de Andrada e Silva plant in Cubato produced 4.2 million tonnes of crude steel (3% increase).

Production (Crude Steel)

Thousand tons
Usiminas Cosipa Total

4Q04
1,178 1,051 2,229

4Q03
1,074 1,064 2,138

3Q04
1,211 1,067 2,278

% Chg. 4Q/4Q
10 -1 4

% Chg. 4Q/3Q
-3 -1 -2

2004
4,738 4,213 8,951

2003
4,524 4,097 8,621

% Chg.
5 3 4

72%

Consolidated Sales (000 t.)

2,185 1,910 1,830 1,939 1,822 2,119 1,910 1,971 2,170 2,011

1,890 1,736

33% 22% 31% 33% 25%

29% 26% 35% 36% 28% 27% 29%

78%
1Q02

69%
2Q02

67%
3Q02

67%
4Q02

75%
1Q03

74%
2Q03

65%
3Q03

64%
4Q03

72%
1Q04

73%
2Q04

71%
3Q04

71%
4Q04

Domestic Market

Export Market

Greater demand for heavy plates in 2004

The Usiminas System sold 2.2 million tonnes of flat and processed steel products (including slabs) in 4Q04 and 8.1 million tonnes in the year, an increase of 5% over 2003. The share of heavy plate sales increased in the product mix, representing 21% of total sales volume, as a consequence of the significant increase in the demand for the product, which also had higher average price increases among the other products offered.

USIMINAS Release 4Q04

2/18

In 4Q04, the System maintained the same sales volume distribution as in the previous quarter, placing 71% of its sales in the domestic market and 29% for export. With this, the domestic/export ratio was 72/28 in 2004. Following the increase in demand seen in 2004, the Usiminas System sold 5.8 million tonnes in the domestic market, increasing sales volume by 8% over 2003. The greater part of this performance is resultant from above average sales to the automobile industry, agricultural and highway machinery, electronic equipment, re-rolling, large-diameter pipe segments and the shipbuilding industry. Even with the entry of new players in the domestic market, the Usiminas System maintained its position as the main supplier of flat steel, ending the year with a 55% Brazilian domestic market share. Usiminas consolidated export sales were 2.3 million tonnes for the year, a reduction of 4%. This decrease is in line with the Companys strategic planning, which gives priority to local market supply, investing in the stability of its commercial relationships and in the maintenance of long-term business profitability.

Sales Volume
Thousand tons
Usiminas Domestic Market Export Market Total Cosipa Domestic Market Export Market Total System Domestic Market Export Market Total 1,542 627 2,170 71 29 100 1,361 64 759 36 2,120 100 1,434 577 2,011 71 29 100 13% -17% 2% 5,784 2,278 8,062 72 28 100 5,343 69 2,368 31 7,710 100 8% -4% 5% 617 443 1,060 58 42 100 560 55 464 45 1,024 100 603 286 889 68 32 100 10% -5% 3% 2,331 1,436 3,767 62 38 100 2,159 59 1,507 41 3,666 100 8% -5% 3% 925 185 1,110 83 17 100 801 73 295 27 1,096 100 831 291 1,122 74 26 100 16% -37% 1% 3,453 842 4,295 80 20 100 3,183 79 861 21 4,044 100 8% -2% 6%

4Q04

4Q03

3Q04

Chg. 4Q/4Q

2004

2003

Chg.

Exports showed improved geographic distribution

Exports showed improved geographic distribution in 2004, channeling sales away from China and increasing volumes to the US and Mexico, among other countries. North America and Latin America together share 57% of the Usiminas Systems export volume, versus 29% in 2003. On the other hand, sales to Asia went from 59% to 34%.

Sales Volume Mix 4Q04

Usiminas
Expt 17% Dom Mkt 83%

Cosipa

System

Expt 42%

Dom Mkt 58%

Expt 29%

Dom Mkt 71%

USIMINAS Release 4Q04

3/18

Net Revenues
Consolidated net revenues grew 56% in 4Q04 and reached R$ 3.8 billion. In the year, growth was 41%, with the total at R$ 12.2 billion. Net per tonne revenues grew from R$ 1,080 in 2003 to R$ 1,463 in 2004, an increase of 35%. The positive performance in revenues was a result of international steel price increases, especially benefiting heavy plate and slab exports. In the domestic market, the gap between prices practiced domestically and international prices was reduced as a consequence of strong demand.

Gross Profit
Gross profit was R$ 1.8 billion in 4Q04, increasing 125%. In 2004, it accounted for R$ 5.6 billion, an 82% increase. COGS (cost of goods sold) increased 19% in 2004 due to cost pressures of steel inputs, mainly coal and iron ore, among others. Gross margin jumped from 35% in 2003 to 46% in 2004, evidencing the positive steel cycle, the Companys capacity to absorb increased raw materials costs and exercise of strict control over operating costs.

Earnings before financial expense (EBIT) grew 145% and reached R$ 1.6 billion in 4Q04. In 2004, EBIT grew 96% and came to R$ 5.0 billion. Comparing on an annual basis, EBIT margin increased from 29% to 41%, in spite of greater sales expenses, a consequence of the growth in export revenues, as well as greater general and administrative expenses. EBITDA reached R$ 1.8 billion in 4Q04, an increase of 138%. With this, EBITDA grew 83% in the year and surpassed R$ 5.6 billion. This strong cash generation reached in the fiscal year synthesized the favorable conditions in the steel industry and operational, commercial and financial efficiency of the Usiminas System.

EBITDA tops R$ 5.6 billion in 2004

Operating Profit

Financial Result and Debt

Q-o-Q, net financial expense was significantly reduced, decreasing from R$ 383 million in the last quarter of 2003 to R$ 81 million in 4Q04. This was the result of less interest paid out mainly due to debt reduction and monetary and exchange rate effects, which were positive in the period. In the year, net financial expenses were R$ 769 million, against R$ 851 million in the 2003 fiscal year. Consolidated gross debt totaled R$ 5.4 billion on December 31, 2004. Of this total, 35% came from export-import financing; 22% from BNDES; 19% from capital markets operations; and the remainder, from sundry operations. Total consolidated debt was reduced by R$ 1.8 billion over the course of 2004.

5.5 4.8

Consolidated Net Debt / EBITDA

5.7

EBITDA & EBITDA Margin

45% 42% 36% 37% 39% 33% 31% 46% 49%

48%

3.6 2.7

31%

2.2 2.2 2.2

27%

2.0

1.7

1.1

1,285

10.1

1,019

349

660

440

621

8.5

6.3

5.0

7.4

7.4

7.4

6.7

8.8

6.1

3.5

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04

CND (R$ billion)

CND/EBITDA

EBITDA (R$ million)

760

8.1

Net debt/EBITDA falls to 0.6x

The debt profile was adjusted and the maturities schedule was extended. Long-term financial commitments came to represent 74% of loans and financing, against 63% in the previous year. The consolidated debt is compatible with the Systems cash generation capacity. The solid financial situation is reflected in the consolidated net debt/EBITDA ratio, which went from 2.2X at the end of 2003 to 0.6X in December 2004. 4/18

USIMINAS Release 4Q04

763

EBITDA Margin

1,602

889

921

1,816

0.6

Net Income
Consolidated net income reached R$ 1.1 billion in 4Q04, growing by 214%. In fiscal year 2004, consolidated net income at Usiminas reached the mark of R$ 3.02 billion, with expansion of 131% compared to 2003. In addition to the present conditions in the steel industry, the net income achieved by Usiminas constitutes a well-deserved prize for its long-term vision, for its fidelity and focus on the domestic market, for its financial management and for the recognized stability of its operations under varying scenarios.

Capital Markets
In November 2004, Usiminas filed a request for Public Offering with the Brazilian Securities & Exchange Commission (CVM) to acquire all shares issued by Cosipa to de-list it as a publicly-traded company. The Notice of the operation was published on February 15, setting the date of the auction for acquisition of outstanding shares on March 18. With the operation, Usiminas will advance in the process of integrating the System, optimizing synergies among the companies. In a meeting held on February 24, 2005, the Board of Directors of Usiminas approved complementary dividends to its shareholders, in addition to interest on equity (previously approved) related to fiscal year 2004, of R$ 2.93208 per ordinary share and R$ 3.22529 per preferred share. Totaling the distribution of interest on equity and complementary dividends related to fiscal year 2004, Usiminas distributed R$ 1.1 billion to its shareholders, resulting in a payout ratio of 35% over net income of the parent company in the year and a dividend yield of 9.5% for its preferred shares, considering share price quote at year end 2004. At the same meeting, the Board authorized the initiation of proceedings for the future listing of Usiminas on the Latibex (The International Stock Exchange for Latin American Securities) in Madrid, to increase exposure to European investors.

Investments
Consolidated investments totaled R$ 333 million in 2004 and respected Managements established timetable. At the Intendente Cmara plant, investments basically were focused on preventative maintenance, and expenditures came to R$ 161 million in the year. In the Jos Bonifcio de Andrada e Silva plant, investments also were concentrated on equipment maintenance and small revamping in the amount of R$ 152 million. The Usiminas System is preparing for a new phase of investments. In 2005 and 2006, investments of approximately US$ 230 million and US$ 350 million, respectively, are foreseen, including expenditures with maintenance and technology updating. At the Intendente Cmara plant, a new coke oven battery will be built, making the System self-sufficient in coke production. Additionally, investments for greater in-house energy generation will be made (a new 60MW thermoelectric power plant at Usiminas and a 12 MW top-blowing turbine at Cosipa). The end result will be expansion of in-house generation capacity from the present 16% to 33% of the Usiminas System. In addition, the revamping of one of the continuous casting machines at Cosipa will enable it to upgrade its products, as well as marginally increase its steel production capacity.

Outlook
The Usiminas System believes in the continuity of economic growth in the country during 2005 and is working with an expectation of GDP (Gross Domestic Product) growth of approximately 3.5%. For the Brazilian flat steel market, the Brazilian Steel Institute (IBS) preliminary forecast is around 9% growth, driven by expectations of demand in infrastructure-related sectors. No substantial international price reductions are foreseen in the medium term due to the heated demand in the main markets and raw materials cost increases foreseen for 2005. Based on this likely scenario, the solid operational cash generation achieved in the last quarters should be maintained. Resulting funds, in accordance with the Companys strategic planning, will be directed toward the Systems investment program, shareholder remuneration and debt reduction. The Usiminas System has the annual goal of maintaining product sales at the 8-million-tonne level and will continue to give priority to the domestic market by earmarking 75% of total production to local customers.

USIMINAS Release 4Q04

5/18

Conference Call: Monday, February 28th

Local, at 10:00 AM (Braslia). Phone numbers for connection: Brazil: (11) 4613-0500 Abroad: (55 11) 4613-4520 International, at 12:00 PM (Braslia). Phone numbers for connection: USA: (1 800) 860-2442 Brazil: (11) 4613-0502 Other countries: (1 412) 858-4600 Pin numbers: 401 + PIN (local) 802 + PIN (international)

The conference call audio and slide presentation will be transmitted live on the internet at website: www.usiminas.com.br

Declarations contained in this release relative to the business outlook of the Company, forecasts of operational and financial results and references to growth potential constitute mere forecasts and were based on the expectatios of Management in relation to future performance. These expectations are highly dependent on market behavior, the economic situation in Brazil, its industry and international markets and, therefore, are subject to change.

### Usinas Siderrgicas de Minas Gerais S/A USIMINAS is an integrated steel producer, with net sales of R$ 12.2 billion in 2004. The Usiminas System is made up mainly of Usiminas and Cosipa and has an annual capacity of 9.5 million tones of raw steel and occupies a position of leadership in the domestic flat steel market in the automobile industry, autoparts, agricultural and highway machinery sectors, electrical and electronic equipment segments and large-diameter pipe industry.

USIMINAS Release 4Q04

6/18

Attachment 1 Financial Statements

Income Statement - Parent Company
Brazilian GAAP (Legislao Societria) R$ thousand
Net Revenues Domestic Market Export Market COGS Gross Profit Gross Margin % Operating Income (Expenses) Sales General and Administrative Other Revenues (Expenses) EBIT EBIT Margin % Financial Result Financial Income Financial Expenses Equity in the Earnings of Subsidiaries Operating Income Non-Operating Income Profit Before Taxes and Profit-sharing Income Tax / Social Contribution Income before Profit-sharing Net Income Net Income per share EBITDA EBITDA Margin % Depreciation Provisions

4Q 2004
2,028,584 1,684,435 344,149 (1,066,700) 961,884 47% (97,827) (24,988) (33,623) (39,216) 864,057 43% (65,107) (3,903) (61,204) 676,979 1,475,929 4,391 1,480,320 (333,185) 1,147,135 1,147,135 5.22904 994,304 49.0% 64,198 66,049

4Q 2003
1,285,084 980,587 304,497 (852,233) 432,851 34% (115,046) (24,643) (33,738) (56,665) 317,805 25% (108,337) 14,055 (122,392) 155,109 364,577 (27,722) 336,855 21,350 358,205 358,205 1.63282 446,049 34.7% 65,839 62,405

3Q 2004
1,846,190 1,332,055 514,135 (976,090) 870,100 47% (63,610) (23,303) (34,642) (5,665) 806,490 44% (59,863) (17,423) (42,440) 429,585 1,176,212 (10,314) 1,165,898 (160,149) 1,005,749 1,005,749 4.58456 892,570 48.3% 63,723 22,357

% Chg. 4Q/4Q 58 72 13 25 122 + 13 p.p. -15 1 0 -31 172 + 18 p.p.

220

123 +14.3 p.p. -2 6

USIMINAS Release 4Q04

7/18

Attachment 2 Financial Statements

Income Statement - Parent Company
Brazilian GAAP (Legislao Societria) R$ thousand
Net Revenues Domestic Market Export Market COGS Gross Profit Gross Margin % Operating Income (Expenses) Sales General and Administrative Other Revenues (Expenses) EBIT EBIT Margin % Financial Result Financial Income Financial Expenses Equity in the Earnings of Subsidiaries Operating Income Non-Operating Income Profit Before Taxes and Profit-sharing Income Tax / Social Contribution Income before Profit-sharing Net Income Net Income per share EBITDA EBITDA Margin % Depreciation Provisions

2004
6,683,127 5,323,142 1,359,985 (3,585,897) 3,097,230 46% (304,670) (97,650) (118,865) (88,155) 2,792,560 42% (298,973) 58,605 (357,578) 1,383,822 3,877,409 (12,628) 3,864,781 (811,057) 3,053,724 3,053,724 13.91994 3,138,322 47.0% 252,764 92,998

2003
4,808,759 3,878,889 929,870 (3,012,755) 1,796,004 37% (318,792) (69,201) (99,312) (150,279) 1,477,212 31% (360,748) (34,869) (325,879) 461,240 1,577,704 (23,951) 1,553,753 (241,066) 1,312,687 1,312,687 5.98369 1,818,879 37.8% 246,459 95,208

% Chg.
39 37 46 19 72 + 9 p.p. -4 41 20 -41 89 + 11 p.p.

133

73 +9.2 p.p. 3 -2

USIMINAS Release 4Q04

8/18

Attachment 3 Financial Statements

Income Statement - Consolidated
Brazilian GAAP (Legislao Societria) R$ thousand
Net Revenues Domestic Market Export Market COGS Gross Profit Gross Margin % Operating Income (Expenses) Sales General and Administrative Other Revenues (Expenses) EBIT EBIT Margin % Financial Result Financial Income Financial Expenses Equity in the Earnings of Subsidiaries Operating Income Non-Operating Income Profit Before Taxes and Profit-sharing Income Tax / Social Contribution Income before Profit-sharing Minority Interests Net Income Net Income per share EBITDA EBITDA Margin % Depreciation Provisions

4Q 2004
3,808,981 2,747,365 1,061,616 (2,056,945) 1,752,036 46% (163,015) (67,337) (66,114) (29,564) 1,589,021 42% (81,091) 18,526 (99,617) 236,985 1,744,915 (85,443) 1,659,472 (494,283) 1,165,189 (37,948) 1,127,241 5.13836 1,816,063 47.7% 133,215 111,988

4Q 2003
2,442,111 1,745,488 696,623 (1,663,415) 778,696 32% (129,172) (61,174) (68,414) 416 649,524 27% (382,584) 41,961 (424,545) 112,754 379,694 (29,592) 350,102 9,815 359,917 (1,156) 358,761 1.63536 763,219 31.3% 137,928 (24,233)

3Q 2004
3,284,712 2,245,545 1,039,167 (1,712,510) 1,572,202 48% (121,608) (55,975) (65,895) 262 1,450,594 44% (95,788) (52,839) (42,949) 69,071 1,423,877 (14,167) 1,409,710 (371,102) 1,038,608 (33,685) 1,004,923 4.58079 1,601,561 48.8% 138,195 12,772

% Chg. 4Q/4Q
56 57 52 24 125 +14 p.p. 26 10 -3 -7207 145 + 15 p.p.

214

138 +16.4 p.p. -3 -562

USIMINAS Release 4Q04

9/18

Attachment 4 Financial Statements

Income Statement - Consolidated
Brazilian GAAP (Legislao Societria) R$ thousand
Net Revenues Domestic Market Export Market COGS Gross Profit Gross Margin % Operating Income (Expenses) Sales General and Administrative Other Revenues (Expenses) EBIT EBIT Margin % Financial Result Financial Income Financial Expenses Equity in the Earnings of Subsidiaries Operating Income Non-Operating Income Profit Before Taxes and Profit-sharing Income Tax / Social Contribution Income before Profit-sharing Minority Interests Net Income Net Income per share EBITDA EBITDA Margin % Depreciation Provisions

2004
12,229,873 8,663,428 3,566,445 (6,657,821) 5,572,052 46% (613,287) (241,393) (245,668) (126,226) 4,958,765 41% (768,868) 131,182 (900,050) 327,065 4,516,962 (111,719) 4,405,243 (1,294,656) 3,110,587 (91,721) 3,018,866 13.76105 5,623,894 46.0% 543,331 121,798

2003
8,659,909 6,399,645 2,260,264 (5,592,873) 3,067,036 35% (541,508) (180,262) (225,643) (135,603) 2,525,528 29% (851,445) (14,762) (836,683) 115,711 1,789,794 (33,812) 1,755,982 (422,414) 1,333,568 (27,396) 1,306,172 6.07252 3,072,426 35.5% 502,746 44,152

% Chg.
41 35 58 19 82 + 11 p.p. 13 34 9 -7 96 +12 p.p.

131

83 +10.5 p.p. 8 176

USIMINAS Release 4Q04

10/18

Attachment 5 Financial Statements

Cash Flow
Brazilian GAAP (Legislao Societria) R$ thousand 4Q 2004
Operating Activities Net Income (Loss) in the Period Financial Expenses and Monetary Var/Net Exchge Var Depreciation, Exhaustion and Amortization Investment Write-offs (Decrease in Permanent Assets) Equity in the Results of Subsidiaries/Associated Companies Dividend Income from Subsidiaries Income Tax and Social Contribution Provisions Adjustment for Minority Participation Total Increase/Decrease of Assets Increase (Decrease) in Accounts Receivables Increase (Decrease) in Inventories Increase (Decrease) in Recovery of Taxes Increase (Decrease) from Deferred Income Tax & Social Contrb'n Increase (Decrease) in Judicial Deposits Others Total Increase (Decrease) of Liabilities Increase (Decrease) in Suppliers Amounts Owed to Affiliated Companies Customers Advances Tax Payable Income Tax and Social Contribution Others Total Cashflow Generated from Operating Activities Financial Activities Inflow of Loans and Financing Payment of Loans, Financing and Debentures Interest Paid on Loans, Financing and Debentures Swap Operation Redemptions
Dividends/Interest on Equity Paid Cash Flow from Financial Activities Investment Activities (Additions) in Long-term Investments (Additions) to Permanent Assets, except Deferred Charges Write-off of Permanent Assets Cash Flow from Investments Exchange Variation of Cash and Cash Equivalents Cash Balance Change At the Beginning of the Period At the End of the Period (348) (55,352) 0 (55,700) 542 894,815 503,324 1,398,139 (732) (73,406) 39,501 (34,637) 786 247,018 195,715 442,733 (348) (161,167) 0 (161,515) (1,743) 955,406 442,733 1,398,139 (1,489) (240,369) 39,501 (202,357) (23,927) (18,959) 461,692 442,733

Parent Company 4Q 2003

358,205 112,969 60,548 (7,736) (155,109) 3,972 (21,350) 52,922 0 404,421

2004
3,053,724 312,169 252,764 22,734 (1,383,822) 0 811,057 18,112 0 3,086,738

2003
1,312,687 285,960 241,167 57 (461,240) 3,972 241,066 77,743 0 1,701,412

1,147,135 56,084 64,198 157 (676,979) 0 333,185 (17,599) 0 906,181

(42,859) (1,271) 14,895 79,167 (985) 232,291 281,238

(97,560) 91,979 (79,547) (249,459) (1,296) 53,039 (282,844)

(34,628) (248,848) 97,616 228,042 (29,190) 140,434 153,426

(93,316) (20,852) (81,269) (138,857) (467) (42,668) (377,429)

(39,360) (56,362) 3,729 53,413 (103,178) (51,337) (193,095) 994,324

(24,260) 90,497 20,825 23,359 61,728 124,198 296,347 417,924

(41,228) (41,814) 4,744 84,753 (327,528) (106,803) (427,876) 2,812,288

19,469 (29,788) (18,688) 11,136 (110,702) 142,649 14,076 1,338,059

139 (33,386) (20,766) (235)

9,897 (44,351)

291,396 (384,650) (27,312) (5,684)

(10,805) (137,055)

20,619 (971,627) (155,786) (22,330)

(564,500) (1,693,624)

1,193,614 (2,010,387) (239,116) 19,124

(93,969) (1,130,734)

USIMINAS Release 4Q04

11/18

Attachment 6 Financial Statements

Cash Flow
Brazilian GAAP (Legislao Societria) R$ thousand 4Q 2004
Operating Activities Net Income (Loss) in the Period Financial Expenses and Monetary Var/Net Exchge Var Depreciation, Exhaustion and Amortization Investment Write-offs (Decrease in Permanent Assets) Equity in the Results of Subsidiaries/Associated Companies Dividend Income from Subsidiaries Income Tax and Social Contribution Provisions Adjustment for Minority Participation Total Increase/Decrease of Assets Increase (Decrease) in Accounts Receivables Increase (Decrease) in Inventories Increase (Decrease) in Recovery of Taxes Increase (Decrease) from Deferred Income Tax & Social Contrb'n Increase (Decrease) in Judicial Deposits Others Total Increase (Decrease) of Liabilities Increase (Decrease) in Suppliers Amounts Owed to Affiliated Companies Customers Advances Tax Payable Income Tax and Social Contribution Others Total Cashflow Generated from Operating Activities Financial Activities Inflow of Loans and Financing Payment of Loans, Financing and Debentures
Interest Paid on Loans, Financing and Debentures Swap Operation Redemptions Dividends/Interest on Equity Paid Cash Flow from Financial Activities Investment Activities (Additions) in Long-term Investments (Additions) to Permanent Assets, except Deferred Charges Write-off of Permanent Assets Cash Flow from Investments Exchange Variation of Cash and Cash Equivalents Cash Balance Change At the Beginning of the Period At the End of the Period

Consolidated 4Q 2003
358,761 180,083 130,032 (7,974) (126,450) 3,972 (9,815) 135,805 14,520 678,934

2004
3,018,866 720,840 543,331 107,786 (327,065) 1,338 1,294,656 38,306 91,721 5,489,779

2003
1,306,172 520,748 502,746 (411) (115,711) 3,972 422,414 196,124 27,396 2,863,450

1,127,241 45,580 133,214 84,921 (236,985) 378 494,283 (57,329) 37,948 1,629,251

(84,193) 23,219 141,429 122,395 515 (38,421) 164,944

(261,651) 137,463 (54,459) (279,950) (7,639) 103,841 (362,395)

(366,937) (538,611) 82,183 332,202 (35,349) (4,669) (531,181)

(68,619) (191,464) (149,266) (138,857) (40,692) 63,744 (525,154)

(99,557) (77,573) (103,892) 98,446 (267,160) (2,928) (452,664) 1,341,531

(183,250) 125,593 70,241 29,575 64,884 274,081 381,124 697,663

26,561 3,980 38,088 132,849 (527,122) (92,463) (418,107) 4,540,491

(7,396) 9,674 37,046 15,186 (182,251) 247,441 119,700 2,457,996

147,797 (619,379)
(89,078) (20,308) 10,647 (570,321)

572,073 (639,665)
(135,451) (86,118) (11,976) (301,137)

1,655,060 (3,471,627)
(581,947) (92,453) (564,500) (3,055,467)

4,291,963 (5,267,568)
(629,115) (144,518) (97,940) (1,847,178)

(822) (105,589) (53,495) (159,906) (33,533) 577,771 1,324,403 1,902,174

(2,981) (132,203) 46,688 (88,496) (2,717) 305,313 537,694 843,007

(2,628) (333,276) (51,516) (387,420) (38,437) 1,059,167 843,007 1,902,174

(4,792) (447,926) 46,688 (406,030) (93,536) 111,252 731,755 843,007

USIMINAS Release 4Q04

12/18

Attachment 7 Financial Statements

Balance Sheet - Assets
Assets
Current Assets Cash and Cash Equivalents Trade Accounts Receivable Taxes Recoverable Inventories Deferred Income Tax & Social Contrb'n Other Receivables

Brazilian GAAP (Legislao Societria) - R$ thousand Parent Company Consolidated 31-dec-04 31-dec-03 31-dec-04 31-dec-03
3,746,938 1,398,139 890,382 20,583 931,440 294,607 211,787 2,309,116 442,733 855,754 118,199 682,592 138,857 70,981 6,343,217 1,902,174 1,810,734 162,276 1,980,457 294,607 192,969 4,247,631 843,007 1,443,797 244,459 1,441,846 138,857 135,665

Long-Term Receivable Deferred Income Tax Related Company Credits Judicial Deposits Others

913,668 550,858 138,206 159,480 65,124

1,425,614 934,650 297,560 130,290 63,114

1,349,007 885,816 80,787 265,855 116,549

1,820,804 1,373,768 77,501 230,506 139,029

Permanent Assets Investments Property, Plant and Equipment Deferred

6,610,516 3,108,864 3,501,652 -

5,606,873 1,990,933 3,615,940 -

9,289,250 344,300 8,895,881 49,069

9,504,377 179,522 9,274,440 50,415

Total Assets

11,271,122

9,341,603

16,981,474

15,572,812

USIMINAS Release 4Q04

13/18

Attachment 8 Financial Statements

Balance Sheet - Liabilities and Shareholders' Equity
Brazilian GAAP (Legislao Societria) - R$ thousand Parent Company Liabilities and Shareholders' Equity 31-dec-04 31-dec-03
Current Liabilities Loans and Financing, Deb. and Taxes Payable in Installments Suppliers, Subcontractors and Freight Taxes, Charges and Payroll Taxes Financial Instruments Related Companies Debts FEMCO Accounts Payable Dividends Payable Others Long-Term Liabilities Loans and Financing, Deb. and Taxes Payable in Installments Amounts Owed to Affiliated Companies Contingencies Actuarial Liability Financial Instruments FEMCO Accounts Payable Others Minority Interests Shareholders' Equity Capital Reserves Income for the Year Total Liabilities and Shareholders' Equity 2,239,083 616,470 98,979 461,480 27,167 46,898 794,803 193,286 3,022,060 1,113,224 94,409 589,769 962,431 155,581 106,646 6,009,979 1,280,839 1,675,416 3,053,724 11,271,122 1,846,094 972,226 140,207 77,867 27,647 181,777 306,372 139,998 3,470,451 1,688,438 20,655 502,685 967,802 54,597 236,274 4,025,058 1,280,839 1,431,532 1,312,687 9,341,603

Consolidated 31-dec-04 31-dec-03

3,916,815 1,378,417 347,240 738,550 129,112 47,318 11,166 807,026 457,986 6,921,004 3,669,798 16,918 1,019,548 1,037,093 556,827 337,357 283,463 194,171 5,949,484 1,280,839 1,649,779 3,018,866 16,981,474 4,205,279 2,794,185 316,763 238,067 90,868 47,061 8,891 306,415 403,029 7,253,708 4,430,420 20,655 914,315 1,024,539 284,000 353,067 226,712 114,404 3,999,421 1,280,839 1,412,410 1,306,172 15,572,812

USIMINAS Release 4Q04

14/18

Attachment 9 Quarterly Sales Breakdown

Sales Volume Breakdown - Consolidated
Thousand tons
TOTAL SALES Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Electrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs TOTAL SALES - DOMESTIC MARKET Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Electrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs TOTAL SALES - EXPORTS Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Electrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs

4Q 2004
2,170 447 553 553 61 95 102 359 1,542 347 523 434 60 78 64 36 627 100 30 119 1 17 38 323 100% 21% 25% 25% 3% 4% 5% 17% 71% 16% 23% 20% 3% 4% 3% 2% 29% 5% 1% 5% 0% 1% 2% 15%

4Q 2003
2,120 438 523 523 66 100 92 378 1,361 317 459 357 47 79 63 40 759 121 64 166 19 21 29 339 100% 21% 25% 25% 3% 5% 4% 17% 64% 15% 21% 17% 2% 4% 3% 2% 36% 6% 3% 8% 1% 1% 1% 16%

3Q 2004
2,011 414 503 471 63 109 110 342 1,434 319 477 381 58 70 64 66 577 96 26 90 5 39 45 276 100% 21% 26% 23% 3% 5% 5% 17% 71% 16% 24% 19% 3% 3% 3% 3% 29% 5% 1% 4% 0% 2% 2% 15%

Chg. 4Q/4Q
2% 2% 6% 6% -6% -6% 10% -5% 13% 9% 14% 21% 30% -1% 2% -8% -17% -17% -52% -28% -94% -22% 29% -5%

Sectorial Sales - Consolidated

Thousand Tons
Domestic Market Auto Autoparts Shipbuilding Line Pipes Small Diameter Pipes Packaging Household Appliances Civil Construction Electrical Equipment Distributors Industrial Equipment Others

4Q 2004
1,542 174 197 22 108 102 33 37 117 62 429 39 222 100% 11% 13% 1% 7% 7% 2% 2% 8% 4% 28% 3% 14%

4Q 2003
1,361 132 154 13 79 120 21 32 112 54 390 38 216 100% 10% 11% 1% 6% 9% 2% 2% 8% 4% 28% 3% 16%

3Q 2004
1,434 155 189 14 79 104 30 30 98 60 397 35 243 100% 11% 13% 1% 6% 7% 2% 2% 7% 4% 28% 2% 17%

Chg. 4Q/4Q
13% 32% 28% 69% 37% -15% 57% 16% 4% 15% 10% 3% 3%

USIMINAS Release 4Q04

15/18

Attachment 10 Accumulated Sales Breakdown

Sales Volume Breakdown - Consolidated
Thousand tons
TOTAL SALES Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Electrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs TOTAL SALES - DOMESTIC MARKET Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Electrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs TOTAL SALES - EXPORTS Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Electrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs

2004
8,062 1,712 2,124 1,999 252 381 419 1,174 5,784 1,252 1,984 1,568 221 290 257 213 2,278 461 140 431 31 91 162 962 100% 21% 26% 25% 3% 5% 5% 15% 72% 16% 24% 19% 3% 4% 3% 3% 28% 6% 2% 5% 0% 1% 2% 12%

2003
7,710 1,568 2,070 1,913 218 371 416 1,155 5,343 1,164 1,864 1,431 172 315 279 118 2,368 405 206 481 46 57 136 1,037 100% 20% 27% 25% 3% 5% 5% 15% 69% 15% 23% 19% 2% 4% 4% 2% 31% 5% 3% 6% 1% 1% 2% 13%

Chg.
5% 9% 3% 5% 16% 3% 1% 2% 8% 8% 6% 10% 28% -8% -8% 81% -4% 14% -32% -11% -31% 60% 19% -7%

Sectorial Sales - Consolidated

Thousand Tons
Domestic Market Auto Autoparts Shipbuilding Line Pipes Small Diameter Pipes Packaging Household Appliances Civil Construction Electrical Equipment Distributors Industrial Equipment Others

2004
5,784 624 739 84 337 444 113 124 418 233 1,578 164 926 100% 11% 13% 1% 6% 8% 2% 2% 7% 4% 27% 3% 16%

2003
5,343 490 629 31 305 504 61 191 476 177 1,572 105 802 100% 9% 12% 1% 6% 9% 1% 4% 9% 3% 30% 2% 14%

Chg.
8% 27% 17% 171% 10% -12% 85% -35% -12% 32% 0% 56% 15%

USIMINAS Release 4Q04

16/18

Attachment 11 Market Share

Market Share - Usiminas System (*)
(% volume) 2004(**)
DOMESTIC MARKET Auto Autoparts Shipbuilding Electrical Equipment Household Appliances Large Diameter Pipes Small Diameter Pipes Packaging Construction Distributors 55% 55% 62% 100% 63% 36% 98% 60% 15% 48% 51%

2003(**)
60% 62% 67% 100% 58% 44% 95% 68% 16% 58% 59%

2002(**)
62% 62% 73% 100% 54% 44% 100% 80% 14% 54% 62%

2001(*)
59% 66% 69% 100% 64% 47% 100% 77% 12% 45% 66%

(*) Defined by USIMINAS, Cosipa, and CSN markets. (**) Defined by USIMINAS, Cosipa, CSN, Acesita and CST (since September) markets. Source: Information System IBS

USIMINAS Release 4Q04

17/18

Attachment 12 Financial Indebtedness

Loans and Financing by Index - Consolidated
R$ million TOTAL DEBT Foreign Currency (*) IGP-M TJLP Others Sub-Total Debentures Sub-Total Taxes Payable in Installments TOTAL FEMCO TOTAL 972 115 224 47 1,358 0 1,358 20 1,378 11 1,390 2,874 216 360 57 3,508 0 3,508 161 3,670 337 4,007 3,846 331 584 105 4,866 0 4,866 182 5,048 349 5,397 4,460 320 641 100 5,521 243 5,764 178 5,943 357 6,299 5,401 393 747 295 6,835 257 7,092 133 7,225 362 7,587 -14% 4% -9% 5% -12% -100% -16% 2% -15% -2% -14% 12/31/04 Short Term 12/31/04 Long Term 12/31/04 Total 09/30/04 Total 12/31/03 Total Chg. 4Q04/3Q04

(*) 99.3% of total foreign currency is denominated in US dollars

Consolidated Financial Result

R$ million
Monetary Effects Exchange Variation Hedge Income (Expenses) Interest on Loans, Financing, ACC's and Pre-Payment Financial Income Other Financial Expenses NET FINANCIAL RESULT

4Q 2004
(21) 229 (225) (97) 62 (30) (81)

4Q 2003
(117) 39 (192) (169) 52 3 (383)

2004
(161) 223 (423) (497) 191 (102) (769)

2003
(288) 1,042 (993) (658) 140 (94) (851)

USIMINAS Release 4Q04

18/18