June 13, 2006 — Gerdau Ameristeel Corp. announced that its U.S. operating subsidiary, Gerdau Ameristeel US Inc., acquired all of the outstanding shares of Sheffield Steel Corp. of Sand Springs, Okla.

The purchase price for all of the shares of Sheffield was approximately $103 million in cash plus the assumption of approximately $84 million of debt and other long-term liabilities net of cash. The price is subject to certain post closing adjustments.

Sheffield Steel is a minimill producer of long steel products (primarily rebar and merchant bars) with annual shipments of approximately 550,000 tons of finished steel products. Sheffield operates a meltshop and rolling mill in Sand Springs, Okla., a smaller rolling mill in Joliet, Ill., and three downstream steel fabricating facilities in Kansas City and Sand Springs.

Gerdau Ameristeel is the second largest mini-mill 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 mini-mills (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.