CSN Issues US$350 Million in 10-Year Notes.

Business Editors

SAO PAULO, Brazil--(BUSINESS WIRE)--Dec. 16, 2003

Companhia Siderurgica Nacional (CSN) (BOVESPA:CSNA3) (NYSE:SID) informs that, through CSN Islands VIII Corp., a wholly owned subsidiary, the Company issued US$350 million in 10-year Notes, secured by CSN. The transaction has a coupon of 9.75% p.a. The proceeds from this issuance will be used for general corporate purposes and short-term debt refinancing, aiming at extending the average maturity of the Company's indebtedness.

Regarding this transaction, Otavio de Garcia Lazcano, CSN's CFO said: "We are very pleased with this issuance. This issuing of 10-year Notes, the second ever issued by CSN, was placed at 9.75% p.a. return to the investors or just 90 basis points over the Brazilian sovereign ceiling, with no financial covenants or political risk insurance features embedded in it, and is the last step to close a series of well succeeded issuances performed by CSN in 2003. The last transaction with such a long maturity was done in 1997. We took advantage of a favorable market momentum and concluded the transaction in record time. The work that has been done since the privatization and intensified in 2003, made possible this series of Notes amounting to US$1.4 billion, in the local and international markets. Once again, this only confirms the high confidence level that these markets have on CSN's future performance, whereas the Company certainly positively surprised the market with its remarkable results in the last 12 months."

Citigroup was the underwriter and the Notes were bought by more than 80 investors in Brazil, Europe and United States.

Companhia Siderurgica Nacional, located in the state of Rio de Janeiro, Brazil, is a steel complex integrated by investments in infrastructure and logistics, that combines in its operation captive mines, an integrated steel mill, service centers, ports and railways. With a total annual production capacity of 5,800,000 tons of crude steel and gross revenues of R$5.2 billion reported in 2002, CSN is also the only tin-plate producer in Brazil and one of the five largest tin-plate producers worldwide.