2Q03

ADVANCED TECHNOLOGY TO MAKE STEEL AND BENEFIT LIVES

EBITDA grows 109% in 1H03 and Net Profit totals R$ 824 million
Belo Horizonte, August 13, 2003 - Usinas Siderrgicas de Minas Gerais S/A - USIMINAS (BOVESPA: USIM3, USIM5, USIM6; OTC: USNZY), released today financial and operational figures for 2Q03. Financial and operational information in this release, except when specified to the contrary, are presented on a consolidated basis in reais, in accordance with existing Corporate Law. All comparisons made in this release refer to the same period in 2002, except when otherwise stated. HIGHLIGHTS Sales and Revenues Sales were favored by firm demand in the domestic market, mainly in the industrial and distribution sectors and companies related to agri-business. Sales volume reached 1,939 thousand tonnes in 2Q03, totaling 3,769 thousand tons in 1H03, a growth of 4% over 1H02. Net revenues totaled R$ 2.1 billion in the quarter and accumulated R$ 4.2 billion in the half, 56% above the same period last year. The additional of higher-value added sales and sustained domestic market prices in 2Q03 favored revenues in the period. EBITDA Cash generation reached R$ 760 million in 2Q03 and R$ 1.6 billion in 1H03, a growth of 109% in the semester. EBITDA margin went from 41.9% in 1Q03 to 36.0% in 2Q03 with increases in the cost of raw materials, electrical energy and reduction of export revenues due to exchange rate variations. Net Income Usiminas recorded a consolidated net income of R$ 468 million in 2Q03, totaling R$ 824 million in 1H03. The favorable result occurred not only from good operational performance, but also from less debt service pressure. With the expansion of cash generation and reduction of indebtedness, the Total Debt/EBITDA ratio went from 5.7x in June 2002 to 2.4x at the end of 2Q03, considering EBITDA of the last 12 months. Outlook Perspectives for growth in domestic demand for flat steel in 2003, as a consequence of the cooling down of the Brazilian economy from April onward, were reduced from 5.2% to 2.2% for the year. The worst domestic market demand should occur in 3Q03 with some recovery foreseen for 4Q03, in case the Federal government advances in its macroeconomic policy stimulus, reducing interest rates and the level of compulsory deposits and raising public spending, thereby injecting more money into the economy. In this manner, we estimate a fall in demand in second half 2003 of around 8% in relation to the first half. The Usiminas System intends to compensate the retraction in the domestic market with exports. The supply of products will be slightly reduced with the programmed stoppage for revamping of Blast Furnace no. 2 at Usiminas for approximately 3 months, as of September.

Highlights
R$ million 2Q 2003 2Q 2002 Chg % 1H 2003 1H 2002 Chg %

Total Sales Volume (000 t) Net Revenues Gross Profit Operating Result (EBIT) Financial Result Net Income EBITDA EBITDA (R$/t) Total Assets Net Debt Stockholders' Equity
(a) Earnings before interest and tax. (b) Earnings before interest, tax, depreciation and amortization.
b a

1,939 2,114 762 629 60 468 760 392 14,859 7,367 3,858

1,890 1,409 403 303 (932) (290) 440 233 14,297 8,444 3,084

3 50 89 108 -106 -261 73 68 4 -13 25

3,769 4,234 1,637 1,387 (111) 824 1,649 438 14,859 7,367 3,858

3,627 2,717 742 586 (1,122) (259) 789 218 14,297 8,444 3,084

4 56 121 137 -90 -418 109 101 4 -13 25

IMMEDIATE RELEASE
Contacts: Breno Jlio de Melo Milton bmilton@usiminas.com.br Tel: (55 31) 3499-8710 Paulo Esteves paulo.esteves@thomsonir.com.br Tel: (55 11) 3897-6466

Market, Production and Sales

Brazilian raw steel production grows 8.4% in the half
Brazilian crude steel production grew 8.4% in 1H03 and totaled 15.3 million tonnes. Flat steel production totaled 6.4 million tonnes, growing 18%, while slab production for sale decreased 17% in the half. In the first half, domestic flat steel demand surpassed expectations for the industry due to the continuation of purchases in export-related segments, agricultural implements and machinery, as well as inventory replenishment on the part of distributors and other major customers. With this domestic sales grew 5.7% on a sales volume of 4.6 million tonnes the best semester in the history of flat steel sales in Brazil. Flat rolled exports grew from 0.8 million to 1.3 million tonnes. Slab exports were reduced from 3.4 to 2.7 million tonnes. The Usiminas System produced 2.2 million tonnes of raw steel in 2Q03, accumulating 4.3 million tonnes in the half. Growth was 8% in the period, basically from production increases at Cosipa. With the return of Cosipas production levels, after maintenance stoppages in 1Q03, the System operated at a production rate of approximately 9 million tonnes/yr in the quarter.

Usiminas System produces 4.3 million tonnes in 1H03

Production (Crude Steel)

Thousand tons 2Q03 2Q02 1Q03
Chg % 2Q/2Q Chg.% 2Q/1Q

1H 2003

1H 2002

Chg.%

Usiminas Cosipa Total

1,163 1,050 2,213

1,153 953 2,106

1,130 952 2,082

1 10 5

3 10 6

2,293 2,002 4,295

2,244 1,746 3,990

2 15 8

Sales volume grows 4% in the half

Consolidated sales volume reached 1.9 million tonnes in the quarter and totaled 3.8 million tonnes in 1H03, 4% above the same semester of last year. Domestic market sales accounted for 74% of shipments in the period.

Consolidated Sales (000 t.)

2,185 1,890 1,910 1,715 1,736 1,652 1,692 1,552 1,570 1,570 1,545 13% 33% 1,418 22% 31% 17% 12% 27% 19% 14% 18% 17% 1,939 33% 1,830 26% 25%

83%

82%

88%

81%

86%

87% 83%

73% 78%

69%

67% 67%

75%

74%

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03

Domestic Market

Export Market

Galvanized sales grow 42% in the half

Products with better sales margins continued to impact with a growing share of the product mix. Shipments of cold rolled products reached 484 thousand tonnes in the quarter, totaling 963 thousand tonnes in 1H03, 35% above 1H02. Sales of galvanized products reached 146 thousand tonnes in 2Q03 and 289 thousand tonnes in 1H03, a growth of 42% compared to the first half of 2002. In 2Q03, Usiminas concentrated on supplying domestic market customers, in response to the firm demand of companies with vigorous export programs, as well as the agribusiness and distribution segments.

USIMINAS Release 2Q03

2/14

The Usiminas System has a 59% market share in 2Q03

With the entry of new competitors the Usiminas Systems flat rolled steel market decreased from 62% in 2002 to 59% in 2Q03. It is worthy to mention, however, that the fall was less than was initially foreseen by the Company. The international market was affected by the interruption of purchases by China in the months of April and May, depressing exports to the Asian market and stagnating international prices. However, the beginnings of a recovery in this area has already been perceived at the end of the half.

Sales
Thousand tons 2Q03 % 2Q02 % 1H03 % 1H02 %

Usiminas Domestic Market Export Market Total Cosipa Domestic Market Export Market Total Consolidado Domestic Market Export Market Total

847 157 1,004

84 16 100

805 213 1,018

79 21 100

1,666 358 2,024

82 18 100

1,615 432 2,047

79 21 100

584 351 935

62 38 100

501 371 872

57 43 100

1,132 613 1,745

65 35 100

1,044 535 1,579

66 34 100

1,431 508 1,939

74 26 100

1,306 584 1,890

69 31 100

2,798 971 3,769

74 26 100

2,659 967 3,626

73 27 100

Although exports were less attractive because of the appreciation of the real and the fall in international prices, Usiminas maintained its presence, focusing of market with higher value-added products and large customers. In this way, the Company intends to sustain its margins through a pre-established export program.

Sales Mix - Volume 2Q03

U sim in a s C o sip a S y ste m

Expt 16% Expt 38% Dom M kt 84% Dom M kt 62%

Expt 26% Dom M kt 74%

Net Sales Revenues

Net sales grow 56% in 1H03 and reach R$ 4.2 billion
Consolidated net sales revenues totaled R$ 2.1 billion in 2Q03, growing 50% in relation to 2Q02. This expansion was partially a result of the price recovery at the end of 2002. In the half net revenues reached R$ 4.2 billion, 56% higher than in 1H02. In relation to 1Q03, revenues remained at the same levels, in spite of the negative impact of exchange variation on export revenue. This behavior was a result not only of growth in sales volume, but also from the sustaining of domestic prices and larger sales volumes of higher value-added products.

Gross Profit
Gross Profit grows 121% and totals R$ 1.6 bi in 1H03
USIMINAS Release 2Q03 Gross profit was R$ 762 million in 2Q03, accumulating R$ 1,637 thousand in 1H03, with growth of 89% and 121%, respectively, over the same periods in 2002.

3/14

Gross margin advanced from 29% in 2Q02 to 36% in 2Q03. However, there was a retreat in relation to the 41% reached in 1Q03, mainly in function of the readjustments in the prices of raw materials, greater expenses with coke imports due to the revamping of Cosipas coke oven batteries and increases in the price of energy.

Operating Results
EBITDA totals R$ 1.7 bi in 1H03 with a 39% margin
Operational profit before financial expenses (EBIT) was R$ 629 million in 2Q03 and R$ 1,387 thousand in 1H03, increases of 108% and 137%, respectively. On the other hand, EBITDA reached R$ 761 million in 2Q03, accumulating R$ 1,649 million in the half, a growth of 109% in relation to 1H02. EBITDA margin went from 29% to 39%.
27%

E B ITD A /EB IT D A M a rgin 46% 42% 36% 37% 31%

349

440

621

1 ,0 2 0

889

760

1Q02

2Q02

3Q02

4Q02

1Q03

2Q03

Analyzing quarter over quarter, EBITDA E B ITD A E B ITD A Margin margin went from 41.9% in 1Q03 to 36.0% in 2Q03 as a consequence of cost increases of raw materials and reduction of export revenue due to the appreciation of the real. In spite of the retraction, the EBITDA margin remained above the historical average of the Company.

Financial Results and Debt

In 1H03, the Real appreciated by 19% and generated positive exchange gains of R$ 350 million (net of hedging operations). This decreased the impact of net financial expense, which totaled R$ 111 million.

Gross consolidated debt falls to R$ 7.9 billion

5 ,1

C o n s olid a te d T ota l D e b t/E B IT D A 6 ,2 5 ,7

Gross consolidated debt was reduced to R$ 7.9 billion at the end of June. Out of this total, 46% is made up of export and import financing, 21% refers to BNDES, 5% is domestic debentures and the remainder refers to sundry operations. With the purpose of reducing the cost of debt, Usiminas made its first issuance of Eurobonus. Demand surpassed expectations, and the original offering of US$ 50 million was expanded to US$ 75 million, fixing remuneration at the minimum limit of the interval of 6.875% per annum.

3 ,9 7 ,7 8 ,8 1 0 ,9 9 ,5

2 ,9 2 ,4 8 ,7 7 ,9

1Q02

2Q02 Total D ebt

3Q02

4Q02

1Q03

2Q03

D ebt/EB ITD A

Debt/EBITDA ratio is reduced to 2.4 X

Between December 2002 and June 2003, the Companys debt level was reduced by R$ 1.6 billion. With the expansion of cash generation and the gradual reduction of debt, total consolidated debt to EBITDA ratio decreased from 5.7x in 2Q02 to 2.4x in 2Q03.

USIMINAS Release 2Q03

4/14

Net Income
Net Consolidated Income reaches R$ 468 million in 2Q03 Investments total R$172 million in 1H03
Net income was favored by good operational performance and less pressure from debt servicing. Consolidated net income reached R$ 468 million in 2Q03, accumulating R$ 824 million in the half.

Investments
Resources destined for investments in the Usiminas System totaled R$ 96 million in 2Q03 and R$ 172 million in the half. Total projected investments for 2003 are basically being directed to equipment maintenance, revamping of Blast Furnace no. 2 at Usiminas and production optimization at Cosipa. In the beginning of June, Usiminas started operating its blast furnace top blowing turbine on Blast Furnace no. 3 at the Ipatinga works, raising its energy selfsufficiency from 20% to 25%.

Participation in Sidors Restructuring

Usiminas maintains its share in Sidor
On June 23 Usiminas announced its participation in the restructuring of Sidors debt through a US$ 25.8 million cash contribution in the form of subordinated convertible debt. Consolidated debt at Sidor was reduced from US$ 1,883 million to US$ 791 million. Additionally, all guarantees offered by the Consrcio Siderurgia Amaznia relative to loans made to Sidor were cancelled and substituted by securitization of assets of Sidor. After conclusion of this first phase, Usiminas share will reach 11.35% of the total capital of Consrcio Siderurgia Amaznia. At the conclusion of the restructuring process, total share in the voting capital of Consrcio Siderurgia Amaznia could reach 16.6%. With the restructuring, Usiminas maintained its stake in one of the most important companies with competitive costs and a more solid financial structure. Sidor is the main steel producer in Venezuela, with an installed capacity of 3.6 million tonnes/yr and is the second largest exporter in the country.

Interest on Equity
Usiminas pays out interest on equity
The Company decided to pay out interest on equity to shareholders owning shares on July 11, 2003 in the amount of R$ 0.3730 per common share and R$ 0.4103 per preferred share. Payment was made on August 1, 2003.

Outlook
Exports will increase with market retraction in 3Q03
As a consequence of the retraction of the Brazilian economy as of April, growth projections of domestic demand for flat steel for 2003 were reduced from 5.2% to 2.2%. The worst performance in the domestic market should occur in 3Q03, and recovery should begin in 4Q03, in the case the Federal government advances in its policy to stimulate the economy with falls in the interest rate and compulsory deposits and increased public spending, thereby injecting money into the economy. Thus, we estimate a fall in demand in the 2nd half of 2003 of 8% in relation to 1H03. The Usiminas with exports. stoppage for months, as of System intends to compensate the retraction in the domestic market The supply of products will be slightly reduced with the programmed revamping of Blast Furnace no. 2 at Usiminas for approximately 3 September.

USIMINAS Release 2Q03

5/14

Declarations contained in this communiqu relative to business perspectives of the Company, projections of operational and financial results and references to potential growth of the Company constitute mere forecasts and were based on expectations of Management in relation to its future performance. These expectations are highly dependent on market behavior, the economic situation in Brazil, on industry and international markets, and are, therefore, subject to changes. ### Usinas Siderrgicas de Minas Gerais S/A USIMINAS is an integrated steel manufacturer, with net consolidated sales of R$ 6.6 billion in 2002. The USIMINAS System is made up of USIMINAS and Cosipa, has an annual production capacity of 9.2 million tons of raw steel, occupying a position of leadership in the domestic flat steel market in the automobile industry, autoparts, agricultural and highway machinery, electronics and linepipe industries.

USIMINAS Release 2Q03

6/14

Attachment 1

Financial Statements
Income Statement - Parent Company
Brazilian GAAP (Legislao Societria)

Parent Company
R$ thousand Net Revenues COGS Gross Profit Gross Margin % Operating Income (Expenses) Selling General and Administrative Othres, Net EBIT EBIT Margin % Financial Result Financial Income Financial Expenses Equity Income Operating Result Non-Operating Income Profit (Loss) Before Taxes Social Contribution Income Tax Income (Loss) before Taxes and Profit Sharing Profit Sharing Net Income (Loss) Net Income (Loss)
per thousand shares

1Q 2003 1,198,462 (750,878) 447,584 37% (67,928) (13,608) (23,698) (30,622) 379,656 32% (14,551) (59,526) 44,975 198,348 563,453 2,385 565,838 (30,910) (61,547) 473,381 0 473,381 2.20080

1Q 2002 800,598 (547,940) 252,658 32% (52,403) (13,317) (19,411) (19,675) 200,255 25% (272,231) 108,962 (381,193) (246,467) (318,443) (5,758) (324,201) 9,301 28,415 (286,485) 0 (286,485) (1.33190)

Chg.

1H 2003 2,420,962 (1,461,756) 959,206 40% (132,977) (26,705) (43,007) (63,265) 826,229 34% (122,989) (78,091) (44,898) 349,584 1,052,824 (6,893) 1,045,931 (61,901) (148,573) 835,457 0 835,457 3.88412

1H 2002 1,555,160 (1,101,718) 453,442 29% (52,742) (27,347) (36,131) 10,736 400,700 26% (373,669) 120,299 (493,968) (289,753) (262,722) (3,084) (265,806) 1,307 4,286 (260,213) 0 (260,213) (1.20976)

Chg.

50 37 77 18 30 2 22 56 90 27

56 33 112 36 152 -2 19 -689 106 32

EBITDA EBITDA Margin% Depreciation Provisions

448,504 37.4% 60,735 8,113

281,497 35.2% 65,286 15,956

59 6 (7) (49)

963,237 39.8% 120,398 16,610

495,757 31.9% 128,485 (33,428)

94 25 (6) (150)

USIMINAS Release 2Q03

7/14

Attachment 2

Financial Statements
Income Statement - Consolidated
Brazilian GAAP (Legislao Societria)

Consolidated
R$ thousand Net Revenues COGS Gross Profit Gross Margin % Operating Income (Expenses) Selling General and Administrative Othres, Net EBIT EBIT Margin % Financial Result Financial Income Financial Expenses Equity Income Operating Result Non-Operating Income Profit (Loss) Before Taxes Social Contribution Income Tax Income (Loss) before Taxes and Profit Sharing Profit Sharing Minority Interests Net Income (Loss) Net Income (Loss) EBITDA EBITDA Margin% Depreciation Provisions
per thousand shares

2Q 2003 2,114,396 (1,352,401) 761,995 36% (133,420) (38,833) (56,041) (38,546) 628,575 30% 60,478 (126,155) 186,633 2,421 691,474 (1,102) 690,372 (62,445) (144,498) 483,429 0 (15,474) 467,955 2.17557 760,449 36.0% 119,417 9,896

2Q 2002 1,408,922 (1,005,895) 403,027 29% (99,760) (31,218) (46,498) (22,044) 303,267 22% (932,473) 186,053 (1,118,526) 164,609 (464,597) (66,972) (531,569) 74,729 139,112 (317,728) 27,636 0 (290,092) (1.34867) 440,150 31.2% 120,487 16,395

Chg.

1H 2003 4,234,222 (2,597,209) 1,637,013 39% (250,493) (74,237) (104,566) (71,690) 1,386,520 33% (110,587) (161,475) 50,888 2,812 1,278,745 (12,903) 1,265,842 (116,306) (297,019) 852,517 0 (28,374) 824,143 3.83152

1H 2002 2,717,031 (1,974,820) 742,211 27% (156,130) (57,035) (88,416) (10,679) 586,081 22% (1,121,588) 176,393 (1,297,981) 139,581 (395,926) (64,264) (460,190) 46,373 129,570 (284,247) (2,042) 27,115 (259,174) (1.20493) 789,275 29.0% 235,989 16,704

Chg.

50 34 89 26 34 24 21 75 107 38

56 32 121 42 60 30 18 571 137 52

73 15 (1) (40)

1,649,251 39.0% 242,703 17,467

109 34 3 5

USIMINAS Release 2Q03

8/14

Attachment 3

Financial Statements
Cash Flow
Brazilian GAAP (Legislao Societria)

Parent Company
R$ thousand Operating Activities Net Income (Loss) in the Period Financial Expenses and Monetary Var/Net Exchge Var Depreciation, Exhaustion and Amortization Investment Write-offs (Decrease in Permanent Assets) Equity in the Results of Subsidiaries/Associated Companies Income Tax and Social Contribution Reversion of Long-Term Provision Adjustment for Minority Participation Total Increase/Decrease of Increase (Decrease) Increase (Decrease) Increase (Decrease) Increase (Decrease) Others Total Assets in Accounts Receivables in Inventories in Recovery of Taxes in Judicial Deposits 1H 2003 835,457 42,589 120,398 7,770 (349,585) 210,474 (121) 0 866,982 1H 2002 (275,114) 296,769 128,485 0 304,655 (5,593) 16,072 0 465,274

Consolidated
1H 2003 824,143 (22,646) 247,969 7,514 (2,812) 413,325 (6,113) 28,374 1,489,754 1H 2002 (259,174) 1,107,782 235,989 0 (139,580) (175,943) 16,704 (27,115) 758,663

2,043 (60,126) (1,221) 5,854 (96,417) (149,867)

(134,170) (2,218) (11,182) 16,971 24,527 (106,072)

117,362 (200,616) (55,755) (12,953) (76,620) (228,582)

(230,030) 20,209 (14,315) 9,107 (53,759) (268,788)

Increase (Decrease) of Liabilities Increase (Decrease) in Suppliers Increase (Decrease) in Accounts Payable Others Total

19,409 (69,017) (76,741) (126,349) 590,766

(33,005) 26,186 71,650 64,831 424,033

132,194 (100,516) (107,672) (75,994) 1,185,178

(91,237) 125,837 2,281 36,881 526,756

Cashflow Generated from Operating Activities

Financial Activities Inflow of Loans and Financing Payment of Loans, Financing and Debentures Interest Paid on Loans and Financing Dividends Paid Swap Operations Redemptions

371,155 (946,922) (112,502) (42) 25,934 (662,377)

319,701 (610,800) (137,659) (50,000) 86 (478,672)

2,274,299 (2,993,537) (303,966) (42) (37,727) (1,060,973)

1,162,930 (1,231,787) (281,895) (51,417) 3,077 (399,092)

Net Funds from Financial Activities

Investment Activities (Additions) in Long-term Investments (Additions) to Permanent Assets, except Deferred Charges Decrease of Permanent Assets

(757) (93,325) 0 (94,082) (7,535) (173,228) 461,692 288,464

(5,637) (38,229) 0 (43,866) 30,483 (68,022) 166,831 98,809

(83,953) (122,049) 0 (206,002) (79,429) (161,226) 731,755 570,529

(5,637) (213,640) 0 (219,277) 30,612 (61,001) 449,909 388,908

Funds Used for Investments Exchange Variation of Cash and Cash Equivalents Cash Balance Change
At the Beginning of the Period At the End of the Period

USIMINAS Release 2Q03

9/14

Attachment 4

Financial Statements
Balance Sheet - Assets
Brazilian GAAP (Legislao Societria) - R$ thousand

Assets Current Assets Cash and Cash Equivalents Trade Accounts Receivable Taxes Recoverable Financial Instruments Inventories Deferred Income Tax & Social Contrb'n Other Securities Receivables

Parent Company
30-Jun-03 1,963,032 288,464 760,395 38,151 9,889 721,866 57,361 86,906 31-Dec-02 2,103,290 461,692 762,438 36,930 103,582 661,741 76,907

Consolidated
30-Jun-03 3,658,013 570,529 1,257,816 150,948 10,406 1,450,998 57,361 159,955 31-Dec-02 3,700,748 731,755 1,375,178 95,193 113,226 1,250,382 135,014

Long-Term Receivable Deferred Income Tax & Social Contrb'n Related Company Credits Deposits at Law Financial Instruments Others

1,494,207 1,008,040 245,974 123,969 116,224

1,794,241 1,162,529 239,510 129,823 155,062 107,317

1,835,669 1,357,904 75,006 202,766 199,993

2,394,009 1,555,217 7,499 189,814 368,054 273,425

Permanent Assets Investments Property, Plant and Equipment Deferred

5,512,889 1,891,470 3,621,419 -

5,233,422 1,577,183 3,656,239 -

9,365,558 66,884 9,222,219 76,455

9,428,066 60,246 9,297,978 69,842

Total Assets

8,970,128

9,130,953

14,859,240

15,522,823

USIMINAS Release 2Q03

10/14

Attachment 5

Financial Statements
Balance Sheet - Liabilities and Shareholders' Equity
Brazilian GAAP (Legislao Societria) - R$ thousand

Liabilities and Shareholders' Equity

Parent Company
30-Jun-03 1,785,871 1,042,118 159,695 195,199 99,061 289 158,451 26,809 7,027 97,222 31-Dec-02 2,277,864 1,489,552 133,855 243,143 49,630 331 207,842 25,441 22,750 105,320

Consolidated
30-Jun-03 4,338,811 2,852,663 159,695 736,437 354,253 335 11,279 28,310 51,859 143,980 31-Dec-02 5,038,478 3,760,337 133,855 782,352 130,645 2,018 33,664 26,843 62,202 106,562

Current Liabilities Loans and Financing Debentures Suppliers, Subcontractors and Freight Taxes, Charges and Payroll Taxes Dividends Related Companies Taxes Payable in Installments Salaries and Social Contribution Others

Long-Term Liabilities Loans and Financing Debentures Provision for Contingencies Actuarial Liability Taxes Payable in Installments Others

3,296,258 1,271,014 310,228 412,668 955,321 95,847 251,180

3,800,547 1,739,963 326,264 416,972 938,710 102,246 276,392

6,547,477 3,759,955 310,228 642,408 1,012,229 99,118 723,539

7,363,918 4,787,586 326,264 630,619 995,288 106,013 518,148

Minority Interests

3,887,999 1,221,000 1,831,542 835,457

3,052,542 1,221,000 1,831,542 -

115,389 3,857,563 1,221,000 1,831,542 805,021

87,007 3,033,420 1,221,000 1,812,420 -

Shareholders' Equity Capital Capital Reserves Revenue (Loss) Reserves Total Liabilities and Shareholsers' Equity

8,970,128

9,130,953

14,859,240

15,522,823

USIMINAS Release 2Q03

11/14

Attachment 6

Sales Breakdown
Sales Volume Breakdown - Consolidated
Thousand tons TOTAL SALES Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Eletrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs TOTAL SALES - DOMESTIC MARKET Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Eletrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs TOTAL SALES - EXPORTS Heavy Plates Hot Coils/Sheets Cold Coils/Sheets Eletrogalvanized Coils Hot Dip Galvanized Coils Processed Products Slabs 2Q 2003 1,939 374 551 484 52 94 100 285 1,431 300 507 402 45 81 65 31 509 75 44 82 7 12 34 254
100% 19% 28% 25% 3% 5% 5% 15%

2Q 2002 1,890 343 581 368 53 56 116 373 1,306 278 505 313 49 56 86 19 584 65 76 55 4 30 354
100% 18% 31% 19% 3% 3% 6% 20%

Chg
3% 9% -5% 31% -2% 68% -14% -24%

1H 2003 3,769 764 1,069 963 102 187 224 459 2,798 597 998 757 87 162 148 49 971 167 71 206 16 26 76 411
100% 20% 28% 26% 3% 5% 6% 12%

1H 2002 3,626 734 1,122 711 91 113 222 633 2,659 624 993 626 86 112 173 45 967 110 129 85 5 1 49 588
100% 20% 31% 20% 3% 3% 6% 17%

Chg
4% 4% -5% 35% 13% 66% 1% -27%

74% 15% 26% 21% 2% 4% 3% 2%

69% 15% 27% 17% 3% 3% 5% 1%

10% 8% 0% 28% -8% 45% -24% 61%

74% 16% 26% 20% 2% 4% 4% 1%

73% 17% 27% 17% 2% 3% 5% 1%

5% -4% 0% 21% 1% 44% -14% 8%

26% 4% 2% 4% 0% 1% 2% 13%

31% 3% 4% 3% 0%

-13% 15% -42% 49% 67%

26% 4% 2% 5% 0% 1% 2% 11%

27% 3% 4%

0% 51% -45%

2% 142% 0% 210% 0% #### 1% 16% 55% -30%

0% #DIV/0! 2% 19% 15% -28%

Sectorial Sales - Consolidated

Thousand Tons Domestic Market Auto Autoparts Shipbuilding Line Pipes Small Diameter Pipes Packaging Household Appliance Civil Construction Electrical Equipment Distributors Industrial Equipment Others 2Q 2003 1,431 114 166 7 89 130 26 31 118 52 431 51 218
100% 8% 12% 0% 6% 9% 2% 2% 8% 4% 30% 4% 15%

2Q 2002 1,306 135 173 9 92 125 15 51 95 32 363 27 189

100% 10% 13% 1% 7% 10% 1% 4% 7% 2% 28% 2% 14%

Chg
9.6% -16% -4% -23% -3% 4% 73% -39% 24% 61% 19% 88% 15%

1H 2003 2,798 230 334 7 186 271 46 60 238 99 843 95 389

100% 8% 12% 0% 7% 10% 2% 2% 9% 4% 30% 3% 14%

1H 2002 2,659 249 314 20 210 270 26 108 190 69 768 63 372
100% 9% 12% 1% 8% 10% 1% 4% 7% 3% 29% 2% 14%

Chg
5.2% -8% 6% -64% -11% 0% 78% -44% 25% 43% 10% 51% 5%

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Attachment 7

Market Share

Market Share - Usiminas System (*)

(% volume) 2Q 2003(**) DOMESTIC MARKET Auto Autoparts Shipbuilding Electrical Equipment Household Appliance Line Pipes Small Diameter Pipes Packaging Civil Construction Distributors 59% 60% 71% 100% 55% 49% 98% 71% 15% 57% 55% 2002(**) 62% 62% 73% 100% 54% 44% 100% 80% 14% 54% 62% 2001(*) 62% 66% 69% 100% 64% 47% 100% 77% 12% 45% 66% 2000(*) 59% 67% 63% 100% 62% 48% 100% 72% 13% 40% 64%

(*) Defined by USIMINAS, Cosipa, and CSN markets. (**) Defined by USIMINAS, Cosipa, CSN, Acesita and CST (since September), markets. Source: IBS - Information System

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Attachment 8

Financial Indebtedness
Financial Income (Expenses), Net
R$ million TOTAL DEBT Foreign Currency (*) IGP-M TJLP Others Sub-Total Debentures Sub-Total Taxes Payable in Installments TOTAL FEMCO TOTAL 2,604 86 239 197 3,126 160 3,286 28 3,314 23 3,337 2,715 328 583 134 3,760 310 4,070 99 4,169 432 4,601 5,319 414 822 331 6,886 470 7,356 127 7,483 455 7,938 6,116 409 840 312 7,677 454 8,131 131 8,262 431 8,693
-13% 1% -2% 6%

6/30/03 Short Term

6/30/03 Long Term

6/30/03 Total

3/31/03 Total

Chg. 2Q03/1Q03

-10%
3%

-10%
-3%

-9%
6%

-9%

(*) 98.8% of foreign currency is denominated in US$ dollars.

Financial Income (Expenses), Net

R$ million Monetary Effects Exchange Variation Hedge Income Interest of Loans and Financing Interest of Pre-Export Payment Financial Income Other Financial Expenses NET INTEREST INCOME 1S 2003 (132) 1,080 (730) (230) (55) 66 (109) (111) 1S 2002 (55) (1,078) 273 (264) (25) 59 (31) (1,122)

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