Feb. 9, 2006 — Gerdau Ameristeel Corp. reported net income of $80.4 million on net sales of $934.2 million for the fourth quarter, and net income of $295.5 million on net sales of $3.9 billion for the full year ended December 31, 2005.

Fourth Quarter Results—The $80.4 million net income ($0.26 per share fully diluted) compares to a net income of $66.4 million ($0.23 per share fully diluted) for the same quarter last year. Net sales of $934.2 million compare to net sales of $849.2 million for the same quarter last year. EBITDA was $157.3 million, which compares to EBITDA of $130.9 million for the December quarter of last year.

Included in Selling, General and Administrative expense is non-cash pretax expense of $4.8 million to mark to market outstanding stock appreciation rights and for expenses associated with other executive compensation agreements, compared to a non-cash pretax expense of $12.5 million for the year-ago fourth quarter.

Excluding joint ventures, the company shipped 1.5 million tons of finished steel, an increase of 14.1% over the fourth quarter of 2004. Average mill prices decreased $9 per ton (1.7%) compared to the fourth quarter in 2004. Scrap raw material costs decreased $30 per ton (13.9%) compared to the fourth quarter of 2004. Metal spread, the difference between mill selling prices and scrap raw material cost, increased $21 per ton (6.2%) compared to the fourth quarter last year. Mill manufacturing costs were $249 per ton, which compare to $241 per ton in the fourth quarter of 2004. Increased costs reflect higher energy and other raw material prices and the stronger Canadian dollar. Fabricated steel prices increased $30 per ton compared to the fourth quarter of the prior year.

Gallatin contributed operating income of $23.1 million in the fourth quarter of 2005, lower than the excellent results of $39.6 million reported in the fourth quarter of 2004. The decline in operating income was primarily the result of significantly lower average selling prices, although shipments and production for the quarter were very strong.

Consolidated operating income was $104.7 million and the operating income of the joint ventures was $23.1 million. Based on 1.7 million tons of finished steel shipped, the composite operating income was $77 per ton. For the three months ended December 31, 2004, Gerdau Ameristeel's consolidated operating income was $74.3 million and the operating income of the joint ventures was $39.6 million. Based on 1.5 million tons of finished steel shipped, the composite operating income was $78 per ton for the fourth quarter of 2004.

Full Year Results—The $295.5 million net income ($0.97 per share fully diluted) compares to a net income of $337.7 million ($1.45 per share fully diluted) for the full year ended December 31, 2004. Net sales of $3.9 billion compares to net sales of $3.0 billion for 2004. EBITDA was $620.9 million, which compares to EBITDA of $527.3 million for 2004. Included in the 2004 results was the recognition of certain net operating losses related to the U.S. operations that resulted in a $48.6 million reduction of tax expense. This provided a contribution to earnings of $0.21 per diluted share for the year ended December 31, 2004.

Included in Selling, General and Administrative expense is non-cash pretax expense of $4.1 million to mark to market outstanding stock appreciation rights and for expenses associated with other executive compensation agreements, compared to a non-cash pretax expense of $21.8 million for the quarter and the year ended December 31, 2004.

Excluding joint ventures, the company shipped 6.3 million tons of finished steel, an increase of 21.4% over the prior year. Average mill prices increased $32 per ton (+6.4%) compared to the year ended December 31, 2004. Scrap raw material costs decreased $11 per ton (–5.8%) compared to the year ended December 31, 2004. Metal spread, the difference between mill selling prices and scrap raw material cost, increased $43 per ton (+14.1%) compared to the previous year. Mill manufacturing costs were $239 per ton, which compares to $211 per ton for the same period in the prior year. Fabricated steel prices increased $104 per ton compared to the year ended December 31, 2004.

Consolidated operating income was $400.5 million and the operating income of the joint ventures was $91.1 million. Based on 7.1 million tons of finished steel shipped, the composite operating income was $70 per ton. For the year ended December 31, 2004, Gerdau Ameristeel's consolidated operating income was $373.3 million and the operating income of the joint ventures was $141.8 million. Based on 5.9 million tons of finished steel shipped, the composite operating income was $87 per ton for the year ended December 31, 2004.

The company amended its Senior Secured Credit Facility on October 31, 2005, increasing the Facility from $350 million to $650 million, extending the term to October 31, 2010 and lowering interest rates.

CEO Comments—Mario Longhi, President and CEO of Gerdau Ameristeel, commented, "The overall supply and demand picture for our steel products appears reasonably well balanced as we enter 2006, and we expect to see our normal seasonal strengthening of demand as we approach springtime. This should help support good metal spreads.

"Importantly, our fabricated rebar backlog is strong in terms of price and volume, and our Gallatin joint venture is fully booked through most of the first quarter. Even with the challenges that our company and the industry face, we believe our organization is fully prepared to optimize this favorable environment through relentless execution of our core values and business strategies.

"One key focus is to continue building on the significant mill productivity gains we achieved in 2005. With our investments in capital improvements (including a budgeted amount of $200-$230 million in 2006), we expect to continue enhancing productivity gains and are excited about the prospects for the operating side of our business in 2006.

"Overall we see the potential to build off of our solid 2005 results, although we still recognize that we work in a cyclical and changing sector with limited forward visibility. With safety at the forefront, we endeavor to maintain an exceptional human resource base, an unparalleled operating and technical knowledge platform, and a strong balance sheet with the flexibility to benefit from a wide range of potential economic scenarios."

Gerdau Ameristeel is the second largest minimill steel producer in North America with annual manufacturing capacity of over 8.4 million tons of mill finished steel products. Through its vertically integrated network of 15 minimills (including one 50%-owned minimill), 16 scrap recycling facilities and 42 downstream operations, Gerdau Ameristeel primarily serves customers in the eastern two-thirds of North America. The company's products are generally sold to steel service centers, steel fabricators, or directly to original equipment manufacturers (OEMs) for use in a variety of industries, including construction, automotive, mining, cellular and electrical transmission, metal building manufacturing and equipment manufacturing.