Conference Call / Webcast

Third Quarter 2008 Earnings

Paulo Penido Pinto Marques CFO and Investor Relations Director October 31, 2008

Disclaimer

Declarations relative to business perspectives of the Company, operating and financial results and projections, and references to the growth of the Company, constitute mere forecasts and were based on Managements expectations in relation to future performance. These expectations are highly dependent on market behavior, Brazils economic situation, the industry and international markets, and are therefore subject to change.

Macro Economic Analysis - Brazil

Brazilian economy went through a strong period of growth until Sep/08. The country should end 2008 with strong economic figures.
Estimates GDP Growth = 5.3% Industrial Production Growth = 5.5% Inflation: 4.5% (BACEN target)

Steel Industry: Flat Steel demand increased 10% until September/08 when compared to the same period of 2007, growth observed in almost all sectors.

Macro Economic Analysis - World

The subprime mortgage crisis in the US directly influenced the financial bubble. Greater impacts were felt throughout the world, affecting mainly the US and European economies. An inflationary pressure was seen due to an increase in the commodity prices. Steel Industry: Uncertainty regarding the continued growth of demand. Reduction of inventory levels. Decrease in international prices.

Outlook

Domestic Demand
For 2009, the forecast is a more modest expansion pace in domestic demand for flat steel, which can be supplied without imports and of the overburden of the production units.

Demand Growth (thous. tons)

+6,9%

+2,8%

Usiminas can make necessary operational adjustments in order to maintain the balance between supply and demand

1 .4 5 2 7

1 .1 9 0 0

2004

2005

9 2 .2 9

2006

9 0 .9 2

2007

1 .6 9 1 6

2008

2009

1 .8 0 2 2

Development Plan
Investment Plan is well structured. Capex fits into the capital structure considered adequate by the Company. 50% of the investment plans capex will be financed with cash generation and the remainder through debt.
Loans and Financing already signed
Transactions BNDES - Credit Line BNDES Line BNDES BNDES Eurobonds Debentures Debentures Prepayment Prepayment JBIC JBIC Value Value US$ million 400 600 600 550 Value Value million R$ million 900 900 493 493 500 500 Term Term Years Years 6 6 7 7 10 10 4 /5 4 5 /7 10 10

Usiminas

Development Plan
The capex plan can be adjusted in order to preserve the quality of the Companys financial performance.

Usiminas

US$ million
STEELMAKING 2008 2009 2010 2011 2012 TOTAL MINING TOTAL

1.480 2.550 4.410 1.830 360 10.630

960 1.060 480 770 200 3.470

7

2.440 3.610 4.890 2.600 560 14.100

At the investment peak, the Total Debt/EBITDA ratio reaches the maximum of 2,5x Investment Grade maintenance

3Q08 and 9M08 Results

Highlights
R$ million

Usiminas

3Q 2008
1,915 4,451 1,836 1,489 (537) 880 1,894 42.6% 989 25,388 1,579 14,334

3Q 2007 2Q 2008
2,094 3,630 1,343 1,139 13 758 1,375 3 7.9% 657 19,893 (243) 12,115 1,917 3,973 1,455 1,245 201 861 1,458 36.7% 761 24,415 552 13,598

Chg. 3Q08/3Q07 -9% 23% 37% 31% 16% 38% + 4.7 p.p. 51% 28% 18%

9M 2008 9M 2007
5,718 11,978 4,524 3,745 (366) 2,387 4,607 38.5 % 806 25,388 1,579 14,334 6,010 10,346 3,690 3,118 83 2,202 3,786 36.6 % 630 19,893 (243) 12,115

Chg. 9M08/9M07 -5% 16% 23% 20% 0% 8% 22% + 1.9 p.p. 28% 28% 0% 18%

Total Sales Volume (000 t ) Net Revenues Gross P rofit Operating Result (EBIT) (a) Financia l Result Net Incom e EBITDA (b) EBITDA MARGIM EBITDA (R$/t) Total Assets Net Debt Stockholders' Equity
(a) E arn in g s be fore in tere st, ta x a nd pa rtici pa tio ns .

(b) E arn in g s be fore in tere st, ta xe s, de pr eci ati on , a mo rtiza tio n a nd pa rtic ip atio ns .

Net revenue was record in 3Q08 - R$ 4.5 billion, due to better prices and mix. EBITDA record in the quarter - R$ 1.9 billion Highlights was the EBITDA margin in 3Q08 = 42.6%. Net Profit of R$ 2.4 billion in the 9M08, 8% higher than 9M07. Higher result of equity income. Conservative financial management . Usiminas does not speculate thought financial derivatives. Impact in the quarter of R$ 498 million due to foreign exchange costs (devaluation of the Brazilian real against the US dollar = accounting impact, non-cash effect).

Consolidated Sales

Usiminas da liderana de mercado - Market Share de 49% no 3T08. Manuteno

Production volume and sales in line with the Companys planning.

C on s oli da t e d S a le s (0 0 0 t )
1,910 1,971 2,170 2,011 1,981 2,028 1,992 1,980 1,971 1,954 1,936 2,095 1,980 1,917 1,915 1,886

1,829 1,768 1,770

28% 27% 29% 29% 22% 30% 31%

46% 38% 31% 32% 33% 28%

24% 23% 19% 19% 13% 16%

3Q08 Total Sales: Down 9% in relation to 3Q07 and stable in relation to 2Q08. DM = sales growth of 7% until Sep/08.

72% 73% 71% 71% 78% 70% 69% 54% 62% 69% 68% 67% 72% 76% 77% 81% 81% 87% 84%

EM: down 37% in relation to 3Q07 and increase of 19% in relation to 2Q08

1 Q 0 4 2Q 04 3 Q 0 4 4 Q 0 4 1 Q 0 5 2 Q 0 5 3 Q 0 5 4 Q 0 5 1 Q 0 6 2 Q 0 6 3 Q 0 6 4 Q 0 6 1 Q 0 7 2 Q 0 7 3 Q 0 7 4 Q 0 7 1 Q 0 8 2 Q 0 8 3 Q 0 8

D o m e st ic M a rk et

E x po rt M a rke t

Market Share: 49%

Domestic Market Sales and Exports

Domestic Market Sales 3Q08 Exports 9M08
South Korea 4%

Usiminas

Slabs Processed 9% Products 3% HDG 6% Electrogalv. 3%

Heavy Plates 24%

Germany 7% Argentina 18%

Taiwan 7%

Vietnan 3% Thailand 5% Outros 9%

Hot Rolled 31% Cold Rolled 24%

Chile 8% Mexico 13% Spain 13%

USA 13%

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Usiminas
Financial Highlights
Record EBITDA consolidates the basis for the Companys growth

EBITDA & EBITDA Margin

43% 39% 31% 31% 34% 38% 37% 36% 35% 37% 35% 35%

Record EBITDA totaled R$ 1.9 billion (US$ 1.1 billion) in 3Q08, that is, 38% higher than 3Q07 and 30% higher than 2Q08. Total of R$ R$ 4.6 billion in the 9M08. Highlight for the EBITDA margin of 43% in 3Q08.

4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

EBITDA (US $ million)

EBITDA Margin

11

1,137

551

622

404

414

479

565

559

717

683

721

881

Financial Highlights
Usiminas finds itself in a favorable position to implement its development plan. Consolidated Net Debt/EBITDA

Usiminas

0.4 0.3 0.4 0.4 0.2

-0.1 -0.2

0.1 0.1 0.2

Net Debt: US$ 0.8 billion in 9/30/08 Adequate debt profile Debt profile by Currency: Local: 32% Foreign: 68%

-0.1

-0.1

-0.2

0.9

0.7

0.7

0.8

0.4

0.1

0.4

4Q05 1Q06 2 Q06 3Q0 6 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

CND (US$ bi)

CND/EBITDA

12

0.3

0.8

In i ci al Ba l an c

Usiminas

4,523

N A Fi na n ci ng m or tiz at io n of Fi n an c in g ew

EB IT D A

1,894 73 306

W or ki ng In t C ap ita l C ha n es In te re s ge In v tm en to n er e st
13

Solid and consistent cash generation.

83

3Q08 Consolidated Cash Flow - R$ million

703

D iv id e nd s/

ts Ca p

765

ita O th Fi na lB al

529

er s

(6)

an c

4,098

Stock Performance
ADR Nvel I
180 170 160 150 140 130 120 110 100 90 80 70 60 50 D ec -07 Ja n-08 Feb-08 Ma r-08 A pr- 08 May -08 U SIM5 J un- 08 Jul- 08 A ug -08 U SIM3 Sep- 08

Usiminas

Despite the solid fundamentals, Usiminas shares depreciated around 30% until
77.5 74.6 69.3

September/08, due to the international crisis and to the plummeting stock market prices.

IBO VES PA

14

Other Highlights of the Quarter

New executive structure announced by the Board of Directors assures better capability to face market trends. Within Usiminass commercial strategy, the remaining 49% participation in DUFER S/A was acquired, reinforcing the groups presence in the distribution and services center segments. Usiminas Mecnica and Nuclebrs Equipamentos Pesados Nuclep established a partnership to supply capital goods. The forecast of projects is in the amount of R$ 300 million. Usiminas is included, for the second consecutive year, in the Dow Jones Sustainability World Index the only steel company in the Americas to be part of this index.

Usiminas

15

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

http://eng.usiminas.com.br
ADR Nvel I

Investor Relations:
Bruno Seno Fusaro (Head of IR) brunofusaro@usiminas.com.br Tel.: +55-31-3499-8772 Fax: +55-31-3499-9357 Gilson Rodrigues Bentes gilson@cosipa.com.br Tel.: +55-31-3499-8617 +55-11-5070-8980 Luciana Valadares dos Santos lsantos@usiminas.com.br Tel.: +55-31-3499-8619
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Matheus Perdigo Rosa mprosa@usiminas.com.br Tel.: +55-31-3499-8056

Diogo Dias Gonalves dgoncalves@usiminas.com.br Tel.: +55-31-3499-8710