RIO DE JANEIRO, Brazil, July 23 /PRNewswire-FirstCall/ -- Nacional Minerios S.A (NAMISA), a wholly-owned mining subsidiary of CSN, announces today the July 20, 2007 acquisition of Companhia de Fomento Mineral (CFM), which is located in the state of Minas Gerais and has installations close to the Casa de Pedra Mine, CSN's most important mining asset. The acquisition price may amount up to US$440 million, of which US$100 million was paid upon the execution of the purchase agreement, and US$250 million will be paid on August 1, 2007. The remaining US$90 million may be paid in four installments within two years upon the fulfillment of certain conditions of the purchase agreement. The financial resources for the acquisition of CFM shall be obtained with funds raised in the financial markets. CFM explores various iron ore mines and owns ore processing facilities in the state of Minas Gerais. CFM sold approximately 3.6 million tonnes of iron ore in 2006, and sold approximately 2.7 million tonnes in the first half of 2007. The company is enlarging the production capacity of its facilities, and CFM's sales are expected to reach 8 million tonnes of iron ore in 2008. The company expects production to rise to 12 million tonnes in 2010. With this acquisition, NAMISA has consolidated its position in the national and international iron ore markets, with expected sales of 10 million tonnes in 2008 and up to 15 million tonnes in 2009. Commenting on the successful conclusion of this important investment, CSN's Executive Mining Officer, Juarez Saliba said, "The acquisition is perfectly aligned with CSN's well-publicized strategy and is designed to transform NAMISA into an important player in the global mining sector by 2008." Saliba added that, "The conclusion of the second expansion phase of our Itaguai port installations in February 2008 -- when we expect to be capable of handling and exporting 30 million tonnes of iron ore per year -- combined with the acquisition of CFM's assets and our available iron ore inventories, shall give the CSN Group companies a combined iron ore sales capacity of 30 million tonnes next year, including transfers to our steel plant in Volta Redonda, in turn providing a substantial boost to the Company's consolidated revenue and EBITDA." DATASOURCE: Companhia Siderurgica Nacional CONTACT: David Salama, Companhia Siderurgica Nacional, +011-55-11-3049-7588,

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