EX-99.1 2 v123291_ex99-1.htm

Exhibit 99.1

NOTICE TO SHAREHOLDERS

PAYMENT OF DIVIDENDS

We would like to inform our Shareholders that the Boards of the companies listed below, in meetings held on August 6^th, 2008, deliberated about the proposals presented by management with regards to the payment of dividends for the second quarter of the current fiscal year, ended on June 30^th, 2008. The amounts will be calculated and paid based on the position held by shareholders on August 15^th, 2008. The payment date will be August 27^th, 2008, and constitute an anticipation of the annual minimum dividend, as stated in the by-laws, as follows:

Company		Amount per share Common and Preferred Shares
Metalúrgica Gerdau S.A.		R$	0.60
Gerdau S.A.		R$	0.36

Please note that shares acquired on August 18^th, 2008, and thereafter, will be traded ex-dividend.

Additional information can be obtained at our Shareholders Department, located at

Av. Farrapos 1811, 90220-005 Porto Alegre / RS – Brazil

Phone: +55 (51) 3323.2211 – Fax: +55 (51) 3323.2281

E-mail: acionistas@gerdau.com.br

Porto Alegre, August 6^th, 2008.

Osvaldo Burgos Schirmer

Vice President

Investor Relations Director