RECORD HIGHS YEAR-TO-DATE NET INCOME, SALES VOLUME, NET REVENUE AND
EBITDA: R$ 2.4 BILLION, 4 MILLION TONNES, R$ 8.4 BILLION AND R$ 3.6 BILLION

São Paulo, November 13, 2007

Companhia Siderúrgica Nacional - CSN (BOVESPA: CSNA3; NYSE: SID) announces today its results for the third quarter (3Q07), in accordance with Brazilian accounting principles and denominated in Brazilian Reais (R$). All comments presented herein refer to the Company’s consolidated results and comparisons refer to the third quarter (3Q06), unless otherwise stated. This report also contains comparisons between the third quarter of 2007 (3Q07) and the second quarter of 2007 (2Q07). On September 28, 2007, the Real/US Dollar exchange rate was R$ 1.839 for US$ 1.00 .

• CSN posted Net Income of R$ 699 million in the third quarter of 2007, 109% more than in the 3Q06. Net Income in the first nine months totaled R$ 2.4 billion, 123% up year-on-year and a new Company record;
  
  
• Crude steel production increased by 10%, from 1.3 million tonnes, in the 3Q06, to 1.4 million tonnes in the 3Q07;
  
  
• Third-quarter steel product sales volume totaled 1.3 million tonnes, representing growth of 7% over the 3Q06. Year- to-date sales volume came to 4.0 million tonnes, 24% up on the 9M06 and another Company record;
  
  
• Net revenue amounted to R$ 3.0 billion in the 3Q07, 14% up on the 3Q06, and R$ 8.4 billion in the first nine months, also a new period record and a year-on-year improvement of 30%;
  
  
• EBITDA stood at R$ 1.3 billion in the 3Q07, 43% above the 3Q06 figure, and R$ 3.6 billion year-to-date, also a historical record;
  
  
• The consolidated 3Q07 EBITDA margin came to 44%, 9 percentage points up on the same three months in 2006, while the parent company’s margin exceeded 51%, up by 14 percentage points year-on-year;
  
  
• Slab production costs averaged US$ 265/t in 2007 through September, despite the important 15.0% appreciation of the Real in the last 12 months, once again maintaining CSN as one of the most competitive and profitable producers in the global steel industry.

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Brazil

The Brazilian Central Bank’s latest “Focus Report” (September/07) increased the average GDP growth estimate for 2007 from 4.5% to 4.73% . According to Febraban (The Brazilian Banking Federation), agriculture, industry and services should record substantial annual upturns of 4.98%, 4.60% and 5.32%, respectively.

Average projections for inflation have also moved up for 2007 and 2008, comparing Febraban’s September and July surveys. In the latter month, the market was forecasting IPCA consumer inflation of 3.66% in 2007 and 3.94% in 2008, whereas the latest estimates point to respective rates of 3.98% and 4.18% .

On the other hand, the interruption of the Selic Interest Rate (of the Central Depositary for Federal Securities) downward trajectory has not affected credit expansion projections and loan operations look set to increase by 20% this year and 19% in 2008, pushed by loans to individuals, which are expected to climb by 24.6% and 22.8%, respectively. These expectations, if confirmed, should bring direct benefits for the civil construction industry, among other sectors.

The overall economic outlook remains favorable following the positive GDP figures in the first and second quarters. Installed capacity utilization rate in the steel industry averaged 86.1%, the highest level in 30 years (FGV-Getulio Vargas Foundation).

The flat steel* market recorded substantial growth in the third quarter, with sales volume moving up 18% over the same three months in 2006, led by high consumption from the automotive, capital goods, construction, semi-finished and home appliance/OEM sectors. Growth in the first nine months stood at 17% year-on-year.

The civil construction sector increased by 11% in first nine months compared to the same period of the previous year. The outlook is very favorable and the National Institute of Steel Distributors (INDA) is very optimistic over the close-of-second-half figures. Public works and housing segment growth has been considerable and the real estate boom, together with economic stability and earnings growth, bodes well for 2008. The distribution segment also did very well in the 3Q07, underlining the solid performance of Brazil’s economy. This segment is still the main consumer of Brazilian steel, given that it acts as a conduit for all the other steel-using segments (source: INDA).

* Flat Steel = SLABS + Heavy Plates + hot-rolled + cold-rolled + galvanized + tin mill products + special steel.

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Among the best-performing sectors are machinery and equipment, which recorded year-on-year growth of 28% in the first nine months. Agriculture did equally well, with prices and output both on an upward trajectory. The home appliance/OEM sector estimates sales growth of more than 10% in the 4Q07 over the 4Q06, accompanied by a 20% upturn in retail sales. This industry experienced 16% year-on-year growth in the first nine months over the same period of 2006. The automotive sector (including auto parts) has recorded successive increases in domestic sales (measured by the number of licensed vehicles). Between January and September, it recorded year-on-year growth of 27%, with sales of 1.74 million light vehicles, trucks and buses. Anfavea, the manufacturers’ association, expects an annual increase of 25%, reaching record sales of 2.4 million units.

International Market

USA

• The automotive, construction and home appliance/OEM sectors have still not reached their expected demand levels, but reduced inventories point to a recovery as of 2008.
• The price of flat rolled products suffered no significant change in the 3Q07.
• Weaker demand led to production cut-backs in certain steel plants, which suffered additional pressure from higher raw materials and freight costs.
• Imports of coated products were jeopardized by the weaker dollar.

Europe

• Strong imports, especially galvanized items from China, are still hampering the recovery of local steel mill prices; as a result, Europe (and other important markets) may introduce protectionist trade barriers against various products.
• The expected upturn in inventories following the end of the northern hemisphere summer did not occur due to moderate demand, still high stocks and imports from China.

Asia

• Chinese production increased in August and September, keeping the domestic market saturated. However, the government’s June/07 removal of the 5% tax break on overseas hot-rolled shipments and the increase in freight charges will tend to restrict Asian exports.
• With expectations of increased raw material costs (iron ore and coke), Chinese producers’ margins are likely to be squeezed since there is little chance of passing on the hikes to end products.

International Freight

• The big rise in maritime freight charges has triggered an increase in raw material costs and a reduction in net revenue from exports.

International Market Outlook - 2008

• The above-mentioned factors are likely to be seasonal and the expected upturn in demand for steel products should become apparent as of 2008.
• Next year, the expected increase in the main raw material prices and maritime freight charges should induce international steel producers to raise their own prices in order to preserve their operating margins.
• CSN should benefit from this scenario, given its self-sufficiency in relation to the main production inputs, especially iron ore.

CSN’s crude steel production totaled 1.39 million tonnes in the 3Q07, 10% up year-on-year and 4% higher than the previous quarter.

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Output of rolled steel from the Presidente Vargas plant came to 1.18 million tonnes in the third quarter, 10% less than in the 2Q07 and 13% down year-on-year. These reductions were chiefly due to maintenance activities at the rolling mill, which were carried out and concluded in August/07.

The following chart shows output per product in the 3Q07 compared to previous quarters.

In the third quarter, CSN’s total production cost was R$ 1.17 billion, R$ 221 million, or 16%, below the 3Q06 figure, mainly due to the non-use of slabs and coils acquired from third parties in the 3Q07, which reduced costs by R$275 million. This more than offset the R$ 23 million upturn due to the maintenance of CSN’s Presidente Vargas Steel Plant rolling mills in August/07; the R$ 16 million increase in labor costs due to the 5% wage increase and bonus award following the collective bargaining agreement in May/07; and the R$ 15 million rise in depreciation expenses due to the revaluation of the Company’s assets in the 2Q07.

Between January and September, CSN’s total production cost came to R$ 3.51 billion, very close to the R$ 3.48 billion incurred in the 9M06. The main period variations were as follows:

- Raw materials:
A total reduction of R$ 329 million, due to the decline in production costs thanks to the growing non-use of slabs and coils acquired from third parties throughout 2007 (positive contribution of R$ 800 million).

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On the other hand, the return to full production in the Presidente Vargas Steel Mill pushed up raw material consumption and, consequently, total costs, as detailed below:

- Iron ore and pellets: increase of R$ 137 million;
- Imported coal and acquired coke: growth of R$ 129 million;
- Metals (aluminum, zinc and tin): rise of R$ 132 million;
- Other raw materials: upturn of R$ 72 million.

• Equipment Maintenance: increase of approximately R$ 119 million;
• Supplies, Utilities and Third-party Services: growth of R$ 126 million;
• Energy (natural gas, electric power and fuel): upturn of R$ 30 million;
• Labor: rise of R$ 26 million, due to the 5% wage hike and bonus awarded by the collective bargaining agreement in May/07;
• Depreciation: increase of R$ 43 million due to the revaluation of the Company’s assets in the 2Q07;
• Other increases: R$ 19 million.

In the particular case of slabs, production costs remained flat compared to 2Q07, around R$ 520/t.

Domestic market sales volume totaled 967,000 tonnes in the 3Q07, 6% up on the previous quarter, reflecting the healthy commercial scenario triggered by Brazil’s sound economy. In year-on-year terms, sales moved up by 22%.

Due to the strong demand in Brazil, third-quarter export volume fell by 25% over the 2Q07 to 382,000 tonnes. In comparison with the 3Q06, the reduction came to 18%, due to the strategic decision of keeping the domestic market supplied, and consequently ensuring better margins.

Year-to-date sales moved up 24% over the 9M06.

Looking solely at the 3Q07, CSN’s total sales (domestic + exports)

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stood at 1.35 million tonnes, 5% down on the 2Q07. In year-on-year terms, however, they climbed 7%, chiefly due to strong domestic demand for the Company’s products.

Also in the third quarter, CSN recorded a 36% share of the domestic flat steel market (hot-rolled + cold-rolled + galvanized + tin mill products), 1% up on the 2Q07 and 3Q06 and its highest quarterly share in 2007. The automotive and distribution sectors deserves special highlight, as they grew by 1% and 4% respectively compared to 2Q07. The Company also strengthened its leading position in the civil construction sector, in which CSN’s galvanized products have more than 85% share, supported by sales of Galvalume® and coated products.

The distribution sector led the consumption rankings in the 3Q07, absorbing 44% of the Company’s sales, followed by the automotive, packaging, home appliance/OEM and construction industries, which recorded 16%, 14%, 13% and 13% of total sales, respectively.

This segmentation was practically in line with the 2Q07, except for the distribution segment, whose share increased by 1%.

The series of domestic price increases which began in June/07 was concluded in the third quarter, with rolled products moving up by between 4% and 6%. Due to the sales mix, however, net revenue in a per tonne basis only increased by 1% over the 2Q07, due to thriving demand from sectors making intensive use of non-coated products. In comparison with the 3Q06, hot-rolled and galvanized prices climbed by 12% and 15%, respectively.

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Average export prices in Reais remained flat, even absorbing the Brazilian currency appreciation during this period.

All estimated iron ore sales volume for 2008 and 2009 (CSN and NAMISA) is already commercialized.

- PRODUCTION

The Casa de Pedra mine produced 3.87 million tonnes in the 3Q07, 322,000 tonnes less than in the previous quarter. Year-to-date production totaled 11.71 million tonnes. Sinter feed accounted for 56% of output in the quarter. Lump ore and Pellet feed accounted for 21% and 19%, respectively, and Hematite for 4%.

Nacional Minérios (NAMISA), through its subsidiary CFM, recorded 3Q07 production of 1.27 million tonnes.

The Presidente Vargas Steel Mill absorbed 5.27 million tonnes of Casa de Pedra’s period output.

- SALES

Third-quarter consolidated iron ore sales volume totaled 3.31 million de tonnes, 59% up on the previous three months, basically due to increased sales by CSN and to NAMISA’s increased share of sales, following the acquisition of CFM (Companhia de Fomento Mineral). In the first nine months, sales volume reached 6.54 million tonnes. The domestic market absorbed 51% of this total, or 3.36 million tonnes. Exports accounted for 49%, or 3.18 million tonnes.

- INVENTORIES

At the close of the 3Q07, consolidated iron ore inventories, including those of CFM, stood at 12.36 million tonnes.

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Year-to-date net revenue totaled R$ 8.4 billion, 30% higher compared to the same period of 2006 a new record high.

Net revenue totaled almost R$ 3 billion in the 3Q07, 15% up year-on-year due to the price and volume trends mentioned previously.

Revenue remained virtually flat over the 2Q07, given that the 3Q07 mix, which favored domestic sales, offset the strategic reduction in export volume.

Other operating revenue and expenses totaled R$ 327 million in the 3Q07, an increase of R$ 260 million over the R$ 67 million recorded in the 3Q06, chiefly due to non-recurring revenue of R$ 253 million in the 3Q06 from provisions for lost earnings.

In comparison with the previous quarter, other operating revenues and expenses fell by R$ 51 million, essentially due to the R$ 49 million reduction in SG&A expenses.

Regarding the lost earnings provoked by the accident to installation adjacent to Blast Furnace #3 in January/06, in the 3Q07 CSN received R$ 73 million in advances from insurers. By the close of the quarter, the Company had received R$ 587 million, R$ 112 million of which in 2007 and the remainder in 2006.

The Company expects to receive a total of between US$ 600 million and US$ 650 million from the insurers, including the amount already advanced.

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Year-to-date EBITDA of R$ 3.6 billion is a new historical high for the Company.

EBITDA totaled R$ 1.30 billion in the 3Q07, 43% up year-on-year, and R$ 24 million more than in the 2Q07.

Year-to-date EBITDA came to R$ 3.60 billion, 66% higher than in the 9M06.

The consolidated EBITDA margin stood at 44% in the third quarter, an improvement over the 43% recorded in the 2Q07. Between January and September, the margin moved up nine percentage points year-on-year.

The parent company’s EBITDA margin reached a hefty 54% in July/07.

The 3Q07 net financial result was a positive R$ 56 million, versus a negative R$ 437 million in the 3Q06, representing an improvement of R$ 493 million.

The main factors contributing to this result were:

• Gains from treasury operations and short-term financial investments, totaling R$ 258 million;
• Monetary and exchange gains of R$ 188 million, basically due to the appreciation of the Real against the dollar in the 3Q07;
• Provisions for interest on loans and financing in the amount of R$ 177 million;
• A complement of R$139 million to the provision for presumed IPI tax credits on raw materials acquisitions, as part of the request to the Brazilian IRS for the tax debt to be deferred into installments; • Other provisions for interest on taxes and fiscal debts due totaling approximately R$ 80 million.

In quarter-over-quarter terms, the net financial result fell from a positive R$ 391 million to a positive R$ 56 million, a reduction of R$ 335 million, chiefly due to the non-recurring reversal of R$ 328 million in provisions for PIS/COFINS taxes related to a judicial dispute regarding the legality of the amplification of the taxable base (Law 9.718/99) .

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The net debt increased from R$ 5,472 million, at the end of the 2Q07, to R$ 5,617 million on September 30, 2007, due to the following factors:

• Payment of R$ 685 million to CSN shareholders as the remaining balance of dividends and interest on equity relative to 2006, as approved by the AGM of April 30, 2007;
• The acquisition of CFM in July 2007, involving disbursements of R$ 656 million;
• Investments of R$ 415 million in the 3Q07;
• Payment of income and social contribution taxes totaling R$ 351 million.

However, these effects were partially offset by:

• EBITDA of R$ 1,307 million in the 3Q07;
• The release of R$ 364 million in judicial deposits for the payment of dividends in September/07;
• The reduction in the average cost of the debt, resulting in a decline of around R$ 260 million;
• The reception of a further R$ 73 million as advances from insurers relative to the Blast Furnace #3 claim.

The Net Debt/EBITDA ratio – using the Last Twelve Months EBITDA (LTM) - continued on its downward trajectory since the end of 2006, falling from 1.74x EBITDA in December 2006 to 1.27x EBITDA at the close of September 2007.

The Company’s 3Q07 non-operating result was a negative R$ 8 million, essentially due to divestments and assets write-offs.

Consolidated third-quarter income and social contribution taxes totaled R$ 265 million, R$ 217 million up year-on-year, primarily due to the increase in taxable income, as explained in previous sections.

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CSN posted a 3Q07 net income of R$ 699 million, R$ 365 million more than in the same period last year. The main variations contributing to this improvement were as follows:

• An increase of R$ 358 million in gross profit, due to net revenue growth of R$ 376 million, coupled with the fact that COGS only moved up by R$ 18 million;
  
  
• The R$ 493 million improvement in the net financial result, primarily caused by the appreciation of the Real and gains from treasury operations.

On the other hand, these substantial gains were partially offset by:

• The non-recurring 3Q06 booking of R$ 253 million in provisions for lost earnings under other operating revenue;
  
  
• A R$ 217 million increase in income and social contribution taxes, due to the Company’s improved results.

Compared with the 2Q07 figure of R$ 952 million, net income fell by R$ 253 million due to the following factors:

• The already mentioned 2Q07 non-recurring reversal of R$328 million in provisions for PIS/COFINS taxes;
  
  
• A complement of R$139 million to the provision for presumed IPI tax credits on raw materials acquisitions, as part of the request to the Brazilian IRS for the tax debt to be deferred into installments;
  
  
• Treasury operation gains of approximately R$ 132 million;
  
  
• The R$ 26 million reduction in gross profit ;
  
  
• A R$ 44 million reduction in distribution costs;
  
  
• The positive impact of R$ 64 million in income and social contribution taxes due to the better performance in the 2Q07.

CSN invested R$ 457 million in fixed and deferred assets in the 3Q07, giving a year-to-date total of R$ 999 million.

The parent company absorbed R$ 299 million of the third-quarter total, most of which went to the expansion of the Casa de Pedra mine, the Long Steel Plant on the Presidente Vargas site and scheduled equipment maintenance and repairs.

The Long Steel Plant marks the Company’s debut in a new segment. The facility will have a production capacity of 500,000 tonnes p.a. of reinforcement bars and wire rods, mostly geared towards the domestic market, especially industry and construction.

The remaining investments went to the subsidiaries, particularly MRS Logística, CSN Cimentos, CFN and, for the first time, the incorporation of the assets of Companhia de Fomento Mineral (CFM), which CSN acquired in July 2007 through its wholly-owned subsidiary, Nacional Minérios S.A(NAMISA).

CSN:

• Expansion of the Casa de Pedra mine: R$ 108 million;
  
  
• Maintenance and repairs: R$ 54 million;
  
  
• Long Steel Plant: R$ 21 million;
  
  
• Expansion of the port of Itaguaí: R$ 13 million.

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Subsidiaries:

• MRS (transportation and logistics): R$ 56 million;
  
  
• CSN Cimentos: R$ 30 million;
  
  
• CFN: R$ 12 million;
  
  
• CFM: R$ 47 million.

The remainder went to smaller maintenance and technological projects designed to improve the operational efficiency of the Company and its subsidiaries.

In addition, the Company booked goodwill from the acquisition of CFM in the amount of R$ 793 million in its investments line. The goodwill from CSN’s investments is based on expectations of future profits with amortizations scheduled over 5 years. At the close of September 2007, remaining goodwill totaled R$982 million.

The acquisition of CFM is worth up to US$ 440 million, US$ 100 million of which was paid upon the signature of the purchase agreement and a further US$ 250 million on August 1, 2007. The remaining US$ 90 million may be paid in four installments within two years upon fulfillment of certain conditions in the purchase agreement.

On September 30, 2007, working capital invested in the business totaled R$ 1.9 billion, 11% down on the June 30, 2007. The decrease was due to the R$ 302 million reduction in “cash and cash equivalents” and the R$208 million decline in “accounts receivable – exports” in comparison with the 2Q07. These impacts were partially offset by the R$136 million and R$110 million, respective decreases in “taxes payable” and “advances from clients”.

The average 3Q07 supplier payment and inventory periods remained at around 65 and 140 days, respectively, while the average client payment period fell from 31 to 23 days.

CSN’s shares appreciated by a substantial 106% between January and September 2007, versus 36% for the Ibovespa Index in the same period. In the 3Q07, CSN’s shares moved up by 29%, versus the Ibovespa’s 11%.

The Company’s ADRs (SID), traded on the New York Stock Exchange, put up an even better performance, appreciating by 44% in the 3Q07 and by a solid 149% year-to-date, substantially higher than the 5% and 13%, respectively, recorded by the Dow Jones index in the same periods.

Daily traded volume on the BOVESPA also did well, increasing from R$ 38 million at the end of 2006 to more than R$ 98 million in the 3Q07. Similarly, ADR traded volume on the NYSE increased from US$ 24 million to US$ 75 million per day.

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The Annual Shareholders’ Meeting of April 30, 2007, approved the payment of dividends and interest on equity relative to 2006 in the amount of R$1.4 billion, R$415 million and R$333 million of which having been paid on June 30, 2006 and August 9, 2006, respectively as advances on dividends, pursuant to the resolutions of the Board of Directors.

The remaining balance of R$ 685 million was paid on September 4, 2007.

CSN is pleased to invite you to participate in its 3Q07 Results Webcast:

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INCOME STATEMENT
CONSOLIDATED - Corporate Law - In Thousand of R$

15

INCOME STATEMENT
PARENT COMPANY - Corporate Law - In Thousand of R$

16

BALANCE SHEET
Corporate Law - thousands of R$

17

CASH FLOW STATEMENT
CONSOLIDATED - Corporate Law - thounsands of R$

18

NET FINANCIAL RESULT
Consolidated - Corporate Law - thousands of R$

NET FINANCIAL RESULT
Parent Company - Corporate Law - thousands of R$

19

SALES VOLUME
Consolidated - Thousand t

SALES VOLUME
Parent Company - Thousand t

20

NET REVENUE PER UNIT
Consolidated - In R$/t

NET REVENUE PER UNIT
Parent Company - In R$/t

Dollar Exchange Rate
in R$ / US$

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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.