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     Certain of the statements contained herein are forward -looking statements based on based on Management’s current estimates regarding future performance that may result in material differences regarding future results, performance and events. In fact, actual results, performances or events may differ materially from those expressed or implied by the forward -looking statements, as a result of several factors, such as the general and economic conditions in Brazil and other countries, interest rate and exchange rate levels, future rescheduling or prepayment of debt denominated in foreign currencies, protectionist measures in the US, Brazil and other countries, changes in laws and regulations and general competitive factors (on a global, regional or national basis).

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BRIEF BACKGROUND		-CSN was founded on April 9, 1941 and privatized in 1993
		-As the first integrated flat steel producer in Brazil, CSN played a historical role in the country’s industrialization process
		-Since its privatization up to now, CSN has invested approximately US$ 3.5 billion raising total production capacity to 5.6 millions tons of crude steel per annum, improved quality and productivity levels and enhanced environmental protection

PRODUCTION FLOW

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Self-sufficiency in practically all relevant raw materials for steel production - in special, “Casa de Pedra” captive iron ore mine and three power plants - along with equity participation or operating concessions of outstanding infra-structure assets, positions CSN not only as a truly low-cost producer but also one of the most independent, reliable and profitable steel producing systems, worldwide

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ONE OF THE LOWEST COST* PRODUCERS IN THE WORLD (Index)

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AREAS AND STAGES - Iron Ore Project

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PHASE		Scheduled		Paid-up (Jul/07)		Balance
CASA DE PEDRA		1.640		408		1,232
MINE		290		140		150
40 Mtpa		140		140		0
45 Mtpa		20		-		20
65 Mtpa		130		-		130
Processing		1,350		268		1,082
40 Mtpa		480		267		213
45 Mtpa		170		1		169
65 Mtpa		700		-		700
PORT OF ITAGUAI		690		180		510
1st Phase (7 Mtpa)		110		110		0
2nd Phase (30 Mtpa)		90		70		20
3rd Phase (45 Mtpa)		140		-		140
4th Phase (70 Mtpa)		350		-		350
SUBTOTAL		2,330		588		1,742
PELLETIZING - 6 Mtpa		440		5		435
TOTAL		2,770		593		2,177

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√ In July, 2007, NAMISA acquired Companhia de Fomento Mineral (CFM), located in the state of Minas Gerais, and has installations close to the Casa de Pedra Mine;

√ The acquisition is worth up to US$440 million and funds to acquire CFM were obtained through financing from third parties;

√ CFM sold approximately 3.6 million tonnes of iron ore in 2006. In 1H07 already sold approximately 2.7 million tonnes;

√ 2007 sales program (exports): approximately 4 / 5 million tonnes;

√ Iron ore already shipped in 2007: about 1.5 million tonnes;

√ Goals: 11.5 million tonnes in 2008 and 14 million tonnes/year as of 2009.

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2nd Quarter 2007 Results

 

 

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√ The Brazilian flat steel market did exceptionally well in the 2Q07, with sales volume moving up 13.9% over the previous quarter and 15.6% year-on-year. Growth in the construction, automotive, capital goods, semi-finished and home appliance/OEM sectors was particularly marked.

√ The main developments in the period for in the international steel market were:

• A reduction in US steel demand, due to the less aggressive performance of the automotive, home appliance/OEM and, especially, construction industries;
  
  
• Thanks to the increase in imports from China, European inventories have moved up and this trajectory is expected to continue;
  
  
• In Asia, the imposition of export taxes on hot-rolled products by the Chinese government, following on from the introduction of the export licensing regime, which led to a slight price decrease in prices.

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√ Net Income of R$ 1.7 billion in the first half of 2007, 129% more than in the 1H06 and a new Company record. Net Income in the 2Q07 totaled R$ 952 million, 25% higher than the 1Q07 and 133% up year-on-year;

√ Net Revenue of R$ 2.97 billion in the 2Q07, also a new quarterly record ;

√ After the resumption of full production capacity in the Presidente Vargas Steelworks , crude steel output moved up from 0.4 million tonnes in the 2Q06 to 1.3 million tonnes in the 2Q07, a massive increase of 240%. Rolled-steel production came to 1.3 million tonnes in the 2Q07, 60% up on the 2Q06 and 11% more than in the previous quarter;

√ CSN’s average slab production cost in 2007, despite the 11% appreciation of the Real in the last 12 months, remained at around US$ 260/t, once again positioning CSN as one of the most competitive and profitable producers in the global steel industry;

√ EBITDA of R$ 1.28 billion in the 2Q07, 26% above the 1Q07 figure, accompanied by an increase in EBITDA margin to 43%. In June 2007, the parent company recorded an EBITDA margin of 52.5% one of the highest in its history.

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Visit our website:
www.csn.com.br/ir

Investor Relations:
(55 11) 3049-7588 / 3049-7592 / 3049-7526
invrel@csn.com.br

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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

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