CSN Reports Second Quarter 2003 Results: EBITDA In the First Half Reaches R$1.5 Billion.

Business Editors

SAO PAULO, Brazil--(BUSINESS WIRE)--Aug. 13, 2003

Companhia Siderurgica Nacional - CSN (BOVESPA: CSNA3) (NYSE: SID) today announced its second quarter and first half 2003 results in accordance with Brazilian Corporate Law Accounting Principles. All figures are stated in Brazilian Reais. The comments in this press release pertain mostly to the results of the Parent Company and all comparisons, unless otherwise stated, are to the same period in 2002. The June 30, 2003 Real/US dollar exchange rate was R$2.872.

2Q03 Earnings Conference Call

Portuguese: Thursday, August 14, 2003
            8:00 am - ET Time
            Tel: [phone]
            Code: CSN

English:    Thursday, August 14, 2003
            10:00 am - ET Time
            Tel: [phone] or 1-973-582-2737 for participants
            outside the US
            Brazil Participants: [phone] (toll free)
            UK Participants: [phone] (toll free)
            Conference Call ID: CSN or 4094212

The conference calls and webcast presentations will be transmitted live over the Internet. For access, please go to the CSN website - www.csn.com.br, Investors section.

Message from Benjamin Steinbruch, Chairman and CEO

"In the second quarter CSN showed once again that is has the flexibility and competitiveness to effectively face any scenario. EBITDA grew 80% when compared to the second quarter of 2002 and we maintained an EBITDA margin of 49% in the first half, with EBITDA of R$1.5 billion in the year to June, despite a less favorable local market and lower revenues from export sales as a result of the recent strengthen of the Real. Our operating results confirm the solid competitiveness of our Company.

CSN maintained its operating margins and presented a net profit of R$0.5 billion in the first half, an increase of almost R$1 billion when compared to the same period in 2002. In the second half, we believe we will be able to maintain our current levels of operating performance and profitability, and we will seek to reduce our net debt. The equity and debt markets have perceived the solidity of our company. Our shares appreciated by 89% from January to July this year, not including a dividend yield of 15%. We have successfully completed five debt issues since February. Most recently, we issued an export receivables securitization in two tranches, the first with a 7-year term at a coupon of 7.28%, and the second a 3-year term at Libor + 2.75%.

Throughout the first half we have remained consistent in our globalization strategy, having concluded the purchase of a 50% stake in Lusosider on June 18. Lusosider is a Portuguese steel company with a strong presence in the Iberian Peninsula's galvanized and tin plate market. Besides that, as has been anticipated over the last two years, we announced in July that we will acquire CSN LLC, which operates the assets of Heartland Steel in the US, as soon as we satisfy the US regulatory requirements."

Full Earnings Release is available for download directly at the address: http://csna0004.csn.com.br/pls/ebiz/docs/PAGE/IIC_CT/ IIC_INFORMAC_CT_EN/REL022003ENGLISH.PDF (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.)