Gerdau Ameristeel Corp. announced that underwriters of the company’s recent public offering of common shares have exercised their over-allotment option to purchase an additional 4,381,000 common shares of Gerdau Ameristeel at the initial public offering price of Cdn. $5.90 per share.

As agreed to in a subscription agreement with Gerdau Ameristeel, Gerdau SA is purchasing the same number of additional common shares as the underwriters' pursuant to the exercise of their over-allotment option at $4.70 per share, the U.S. dollar equivalent of the public offering price.

Gross proceeds to the company upon exercise of the over-allotment option total Cdn.$25,847,900. Gross proceeds to the company upon Gerdau SA's additional purchase total $20,590,700.

Merrill Lynch, Pierce, Fenner & Smith Inc. and BMO Nesbitt Burns Inc. were joint book-running managers for the public offering in the United States and Canada. CIBC World Markets Corp., J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc. acted as underwriters.

A registration statement relating to the public offering was declared effective by the U.S. Securities and Exchange Commission. The company cautions that this announcement press release does not constitute an offer to sell or the solicitation of an offer to buy, and that there shall be no sale of these securities in any province, state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any province, state or other jurisdiction.

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), 15 scrap recycling facilities and 36 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, to fabricators, or directly to original equipment manufacturers for use in a variety of industries.