CSN REPORTS 1995 NET INCOME OF R$107.3 MILLION.

RIO DE JANIERO, Brazil--(BUSINESS WIRE)--March 19, 1996--CSN (Companhia Siderurgica Nacional; (OTC- ADR: CSNMY), today announced its revenues and earnings for the year ended December 31, 1995. The Company's unconsolidated results are stated according to Brazilian GAAP, in constant Brazilian Reais (R$) as of December 31, 1995. In December 31, 1995, 1 Real was equal to US$0.9725.

The year of 1995 was associated with an important variation in the Brazilian economy behavior. In the beginning of the year, the Brazilian GDP grew at almost 11% per year. Meanwhile, in the third quarter the industrial sector presented a GDP growth ratio of only 1% per year. Its recovery, of small magnitude, started only as of October 1995 onwards.

Despite this variation and an accident that occurred in April 1995 with one of the Company's three blast furnaces which caused a reduction in sales of finished products and an increase in production costs, CSN's full year end net income reached R$107.3 million, against a net income of R$159.7 million at the end of 1994. The Company's management will propose to the Board of Directors a distribution of R$51,764 thousand in dividends, which is equivalent to R$0.67 per thousand shares during the next General Assembly Meeting, to be held at the end of April 1996. The Company has already distributed anticipated dividends totaling R$13,403 thousand or equivalent to R$0.17 per thousand shares.

It is important to notice that the effects of the above mentioned accident were promptly corrected and that there were no remaining damages of any nature as a result of it. The Company's production lines returned to 100% capacity shortly after the accident

Net operational revenues in 1995 totaled R$2,145 million reflecting a reduction of approximately 6% in comparison to 1994 full year end net revenues. The decline was mainly a result from the decrease in demand in the domestic market, during 1995 second half.

As a result of the Company's cost reductions and on a per metric ton basis, the average cost of sales decreased in US$4.00 when compared to 1994 levels. Cost of sales in 1995 were reduced to R$1,863 million. In 1994, cost of sales were R$1,948 million.

Selling expenses decreased 30% compared to 1994 due to lower export volumes. Meanwhile, general and administrative expenses increased 20% from the previous year, due to wage increases and acquisition of certain labor rights, in accordance with a union agreement, which occurred during the second quarter of the year.

"CSN is a Company with very important competitive advantages," said Momses Pinsky Chief Financial Officer and Chief Investor Relation Officer of the Company. "We have our own raw material mines, which include iron and ore reserves for more than 100 years of continuous operations, with 64% of purity. We have a diversified line of high value- added products and we are the sole producers of tin plate in Brazil. CSN produces and sells more than 1 million tons of tin plates to customers such as the Brazilian food industry. In this segment, prices and volumes present much less volatility. Besides, the growth of the Brazilian automotive industry may grant us a huge market for our galvanized steel products."

Mr. Pinsky continued, "A scenario of economic stability in Brazil and the implementation of the privatization process will enable major investment opportunities for us. Due to our high yearly free-cash generation and EBITDA and to our low levels of indebtedness, we believe we have the means to achieve our objective of becoming a more competitive steel producer. In addition, we believe we are a steel company ready to grow in related businesses such as raw materials, logistics and services. Our goal is to maximize return on investment to our shareholders."

On December 22, the Company signed a contract with BNDES (Brazilian National Bank for Social and Economical Development) for US$379 million in financing lines for its investments, with attractive costs and average amortization period of 66 months. These lines will be released in different stages and will partially fund modernization, cost reduction and environmental projects, amounting US$580 million.

At the end of 1995, CSN has begun to structure together with Chemical Bank-USA, a US$300 million export receivable securitization program. Certificates of seven years final maturity will be offered, with a grace period of 2 years. During the process, a rating agency of international standing will evaluate both the Company's and the securitization program ratings.

In 1995, the Company produced 4,471 thousand tons of molten steel or 3.6% less than 1994 production level. CSN sold 3,921 thousand metric tons of finished products comparing to sales of 4,066 thousand metric tons in 1994. Higher margin coated products (galvanized steel and tin plates) were responsible for 42% of the Company's sale volumes in 1995 and for the 52% of total revenues. Along the year, CSN exported 1,130 thousand tons, or 29% of its total sales.

                                    CSN
            Income Statement for the Year Ended December 31, 1995
                   (in thousands Reais - Price level adjusted)

As of Dec. 31, 1995: R$1 = US$0.972   Dec. 31, 1995 Dec. 31, 1994

Gross Revenues                        2,562,339     2,766,554
   Domestic                           1,974,194     1,926,611
   Export                               588,145       839,943
Sales Deductions                       (417,302)     (477,783)
Net Revenues                          2,145,037     2,288,771
Cost of Goods Sold                   (1,862,676)   (1,948,447)
Gross Profit                            282,361       340,324
Operational Expenses                   (133,422)     (107,321)
  Selling                               (73,396)     (105,528)
  General and Administrative            (99,487)      (83,510)
  Net Financial Expenses                 46,599       109,570
  Other Operational Expenses             (7,138)      (27,853)
Equity in earnings of subsidiary co     (15,594)      (15,828)
Operating Profit                        133,345       217,175
  Non-operating Profit                   15,407        (2,906)
Earnings before Taxes                   148,752       214,269
  Income Taxes                          (41,450)      (54,563)
Earnings (Losses)                       107,302       159,706
  No. of outstanding shares
  (thousand)                         77,614,761    78,793,171
  Earnings per thousand shares             1.38          2.03

CONTACT: CSN-Companhia Siderurgica Nacional SA

Jose Marcos Treiger, Investor Relations Head

Tel. [phone], Fax [phone]

or

Anne McBride Co.

Jane Valdez, Tel. [phone]

Fax [phone]