Shares

GGBR shares refer to Gerdau S.A. and GOAU shares refer to Metalúrgica Gerdau S.A. According to our corporate governance structure, Metalúrgica Gerdau is the holding company that controls Gerdau S.A. Gerdau S.A. is another holding company that controls the diverse steel operations of Gerdau.

Another important factor is that Gerdau S.A.’s shares have greater liquidity than those of Metalúrgica Gerdau S.A. Greater liquidity represents higher speed in the purchase and sale of shares.

Gerdau has its shares traded in the following stock exchanges:

BM&Fbovespa (São Paulo Stock Exchange) with the following ticker symbols:

• GGBR3 – Gerdau S.A. – common shares
• GGBR4 – Gerdau S.A. – preferred shares
• GOAU3 – Metalúrgica Gerdau S.A. – common shares
• GOAU4 – Metalúrgica Gerdau S.A. – preferred shares

NYSE (New York Stock Exchange) with the ticker symbol:

• GGB – Gerdau S.A. – ADRs representative of preferred shares

LATIBEX (Madrid Stock Exchange segment that includes Latin American companies quoted in Euros):

• XGGB – DR Program of preferred shares issued by the Company in Spain

ADRs

ADRs are receipts held by an American bank that represent shares of a foreign company. Also called American depositary shares, they are traded in U.S. capital markets. It is through ADRs that investors can invest their capital domestically in foreign companies. Gerdau has Level II ADRs registered at the NYSE (New York Stock Exchange), which gives it more visibility in the American market. The Level II ADR program requires the company to fully register according to the Securities Act and also to divulge all of the information required by the Securities Exchange Act of 1934.

JP Morgan is Gerdau’s depository bank, whose responsibility is to maintain the registry, the emission/cancellation of ADRs, and the payment of dividends or interest on capital to the holders of these titles. The depository bank also provides Gerdau with detailed information about its ADRs movements, as well as tendencies and developments in the North American market.

DRs are receipts held by a bank that represent shares of a foreign company. Also called depositary shares, they are traded in foreign capital markets. It is through DRs that investors can invest their capital domestically in foreign companies.

Gerdau has DRs registered in the Madrid Stock Exchange (Latibex), which gives it more visibility in the European market.

The Depositary Institution of the Gerdau’s DRs is the SCL (Servicio de Compensación y Liquidación Valores) and the Custodian Institution is the CBLC (Companhia Brasileira de Liquidação e Custódia S.A.). These instituiotions have the responsibility to maintain the registry, the emission/cancellation of DRs, and the payment of dividends or interest on capital to the holders of these titles. The depository bank also provides Gerdau with detailed information about its DRs movements, as well as tendencies and developments in the market.

See below a summary of the main features of the Gerdau Level II ADR program:

• Ticker: GGB
• Currency: USD – North America dollar
• Depositary Bank: J.P. Morgan
• Custodian Bank: Itaú S.A.
• ADR ratio 1:1
• CUSIP number: 373737105