CSN -- Net Income Surpasses R$1 Billion and EBITDA Surpasses US$1 Billion in 2003.

Business Editors

SAO PAULO, Brazil--(BUSINESS WIRE)--March 9, 2004

Companhia Siderurgica Nacional (CSN) (BOVESPA:CSNA3) (NYSE:SID) announces today its fourth quarter results (4Q03) as well as its 2003 full-year results, in accordance with the Brazilian Corporate Law and denominated in Reais.

Production: In 4Q03, crude steel output reached 1.4 million tons, while rolled finished product volume stood at 1.2 million tons, representing an increase of 2% for crude steel, compared to the same period of 2002. In 2003, crude steel production amounted to 5,318 thousand tons, a 4% increase over last year's production due to better operating performance of the revamped equipment (BF-3 and HSM-2). Another highlight of the year was the operating performance of Presidente Vargas Mill, which registered an average productivity growth of 7% over 2002, reaching 946 tons/man/year.

Production Costs (Parent Company): In 4Q03, total production costs were 38% higher, mostly due to hot rolled coil purchases (to supply CSN Parana and our coated products customers) and higher prices of purchased coke and scrap. Another important reason was an increase in depreciation resulting from asset revaluations held in April 2003.,

Net Revenue Increased 35% Y-O-Y: Consolidated net revenue grew 19%, totaling R$2,022 million, reflecting the higher sales volume and increase in average prices obtained both in domestic and external markets, as well as the consolidation of CSN LLC and Lusosider in the Company's results. For 2003, net revenue had a substantial growth of 35%. Domestic sales constituted 66% of total net revenues, against 69% in 2002.

EBITDA: CSN maintained its consolidated EBITDA at 43%. EBITDA reached a record level of R$3,002 million, 32% over 2002 EBITDA of R$2,276 million. 4Q03 EBITDA was 22% lower when compared to 4Q02, totaling R$732 million.

Net Income Higher Than R$1 Billion: As a result of the foregoing, the Company's consolidated net income in 4Q03 amounted to R$315 million, 17% lower than 4Q02 net income of R$380 million. In the year, net income reached R$1 billion, compared to an R$195 million loss in 2002.

The Company also informs that a live webcast for discussion of its 2003 results will be hosted at its Web site www.csn.com.br on March 11, 2004.