GERDAU S.A.

Corporate Taxpayer ID (CNPJ/MF): 33.611.500/0001-19 Company Registry (NIRE): 33300032266

MATERIAL FACT

We announce that in the Board of Directors Meeting of GERDAU S.A. held on August 9th, 2016, in accordance with its bylaws and CVM Instructions 10/80 and 268/97, decided to authorize the Company to acquire shares of its own issue.

Purposes: (i) to meet the needs of the Long-Term Incentive Program of the Company and its subsidiaries, (ii) held in treasury, (iii) cancellation or (iv) subsequent sale on the market.

The acquisitions will be carried out supported from its existing profit reserves, with the Executive Committee responsible for establishing the number of shares and the opportune moment for each transaction.

Number of shares to be acquired: up to 10,000,000 preferred shares (GGBR4) or American Depositary Receipts - ADRs (GGB), representing in aggregate approximately 1.13% of the preferred shares comprising the free-float, which on July 31st, 2016 totaled 888,549,373 shares.

Acquisition period: from August 11th, 2016, for a maximum period of one month, until September 12th, 2016.

The transactions will be carried out on the stock exchanges of São Paulo and New York, at market prices, through the intermediation of the following brokerages:

  • Itaú Corretora de Valores S.A.

    Avenida Faria Lima, 3.500, 3º andar, Itaim Bibi, São Paulo, SP;

  • Bradesco S.A. Corretora de Títulos e Valores Mobiliários Avenida Paulista, 1.450, 7°andar, Bela Vista, São Paulo, SP; and

  • Merrill Lynch, Pierce, Fenner & Smith Inc

Bank of America Tower One, Bryant Park 8th Floor, New York, NY, 10036.

Rio de Janeiro, August 9th, 2016.

Harley Lorentz Scardoelli Executive Vice President Investor Relations Director

Gerdau SA published this content on 09 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 09 August 2016 21:12:02 UTC.

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