Aug. 9, 2006 — Gerdau Ameristeel Corp. has sent a notice to redeem all outstanding 6.50% convertible unsecured subordinated debentures due April 30, 2007.

Debentures will be redeemed on September 8, 2006, at a price equal to the outstanding principal amount of the Debentures of CDN$125,000,000, plus accrued and unpaid interest to the redemption date. The company will fund the redemption with existing cash and no additional debt will be incurred in connection with this transaction. Further details are contained in the Notice of Redemption that was sent to Debenture holders.

The company notes that this announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any securities.

Gerdau Ameristeel is the second largest minimill steel producer in North America with annual manufacturing capacity of over 9 million tons of mill finished steel products. Through its vertically integrated network of 17 minimills (including one 50% owned mini-mill), 17 scrap recycling facilities and 46 downstream operations, Gerdau Ameristeel primarily serves customers in the eastern two thirds of North America and the Southwestern United States. The Company's products are generally sold to steel service centers, steel fabricators, or directly to original equipment manufacturers for use in a wide variety of industries.