Progress in USIMINAS System Development Plan

Usinas Siderú；rgicas De Minas Gerais S/A-USIMINAS (“Usiminas”)， which is an equity-method-applicable company of Nippon Steel Corporation (“Nippon Steel”)， has held a series of meetings of the Board of Directors this month to discuss its system development plan which was announced on August 9， 2007 (the “Development Plan”) and resolved as follows:

1. Construction of No. 2 CGL at Unigal
With the rapid expansion of automobile production and the increasingly promoted anti-corrosion need in South American countries (led by Brazil and Argentina)， the demand for galvanized sheet steel for automobiles has sharply increased in the region. Unigal (the largest producer of galvanized sheet steel for automobiles in South America)， which is a joint venture established by Usiminas and Nippon Steel， will construct No. 2 CGL to meet the demand.

(1) Production capacity: 550 thousand metric tons/year (No. 1 CGL: 480 thousand metric tons/year)
(2) Site location: Usiminas Ipatinga Works (adjacent to No. 1 CGL)
(3) Operation startup: End of 2010

Details will be scrutinized further and the construction will not be implemented until and unless the Board of Directors of Usiminas approves the definitive plan.

2. Capacity Expansion of Plate Mill at Ipatinga Works
Usiminas， the only producer of plate products in South America， will expand the capacity of the plate mill at Ipatinga Works to meet the increasing demand for plate products in energy-related use.

(1) Capacity to be increased: An increase of 500 thousand metric tons/year (Current capacity: One million metric tons/year)
(2) Site location: Usiminas Ipatinga Works
(3) Operation startup: Middle of 2010

Details will be scrutinized further and the capacity expansion will not be implemented until and unless the Board of Directors of Usiminas approves the definitive plan.

3. Construction of New Hot-Rolling Mill at Cubatao Works
A state-of-the-art hot-rolling mill will be constructed to meet the high and middle grade steel demand in the future， and also the need for high-grade steel for energy-related applications. On March 17， 2008， Usiminas and Mitsubishi Corporation signed a contract for the supply of a new hot-rolling mill. Actual construction is scheduled to start in August 2008.

(1) Production capacity: 2.3 million metric tons/year in the first phase (Ultimate capacity after further expansion: 4.7 million metric tons/year)
(2) Site location: Usiminas Cubatao Works
(3) Operation startup: April in 2011

4. Construction of the New Steelworks for Semi-Finished Steel
As for the crude steel capacity increase， the Development Plan includes Ipatinga Works expansion and construction of a new steelworks for semi-finished steel. Usiminas will continue its preparatory study of the new steelworks for 3 million metric tons/year of semi-finished steel with the current proposed location being adjacent to Cubatao Works where it is considered advantageous because it will be steadily supplied with iron ore from the J. Mendes Iron Mine which Usiminas acquired in February 2008.

For more information， please contact:
Public Relations Center Tel.:81-3-3275-5021， 5022， 5023