CSN’s 1Q07 NET INCOME IS A 5-YEAR RECORD AND EXCEEDS R$760 MM;
EBITDA EXCEEDS R$ 1.0 BILLION

São Paulo, April 24, 2007

Companhia Siderúrgica Nacional CSN (BOVESPA: CSNA3) (NYSE: SID) announces today its results for the first quarter of 2007 (1Q07), in accordance with Brazilian accounting principles and denominated in Brazilian Reais (R$). All comments presented herein refer to consolidated results and comparisons refer to the first quarter of 2006 (1Q06), unless otherwise stated. On March 30, 2007, the Real/US Dollar exchange rate was R$ 2.0504.

• CSN recorded Net Income of R$ 763 million in the first quarter of 2007, 124% more than in the 1Q06. This important result was essentially due to the positive combination of the prices obtained throughout this first quarter and higher sales volume, which reached 1.2 million tons. In addition, CSN’s bottom line benefited from the following non-recurring impacts:

• Quarterly Net Revenue totaled R$ 2.485 billion, 27% higher than in the 1Q06;
• EBITDA exceeded the R$1 billion mark, reaching R$ 1.015 billion, 29% above the 1Q06 level, accompanied by an EBITDA margin of more than 40%, further proof that the Company has fully recovered from the accident to the installations adjacent to its the main blast furnace in the Presidente Vargas Steelworks, in Volta Redonda, State of Rio de Janeiro, which occurred in January 2006.
• Net Debt fell from R$6.7 billion, at the end of 2006, to R$ 6.1 billion on March 31, 2007.
• CSN’s per-ton production cost returned to the same levels that placed the Company among the most competitive steelmakers worldwide.

1

The performance of the international steel market in the first quarter of 2007 exceeded the average expectations of the steelmakers. The main events during this period included:

• Measures by US steel producers to reduce their inventories, which began the quarter at higher levels;
• An increase in US scrap prices, which led to the re-composition of steel product prices in that market;
• Heated demand in Europe, reflecting the positive economic scenario in countries such as Spain, Italy and Germany;
• Reduced imports in the US and Europe, due to strong local demand both in exporting countries and other regions of the globe.

USA:

US spot prices for rolled flat steel staged a recovery throughout the first quarter, chiefly due to the following factors:
1) Local producers’ prompt reaction to the reduction in imports that had been in effect since the beginning of 2007, with year-on-year slides of 25% and 10% in January and February, respectively. The downturn was caused by higher import prices and the fact that the local steelmakers rapidly occupied the resulting commercial spaces.
2) A significant quarter-long increase in the price of scrap, a raw material widely used by the US mini-mills. The resulting pass-through process led to higher local steel prices.
3) A decline in distributors’ inventories, although these are still at historically high levels.

We believe distributors’ inventories will continue to fall in the 2Q07, driven by higher consumption in the main steel-consuming sectors. This scenario, if confirmed, may trigger moderate price rises throughout the period.

EUROPE:

The first quarter was marked by strong demand and reduced imports, allowing flat rolled spot prices to recover. The reduction in imports from Russia, Ukraine, Iran and the Middle East was due to the fact that these traditional suppliers were prioritizing their own domestic markets, which were equally heated.

‘The international market performed above the steel producers expectations.’

2

As a result, the price of flat steel imports in Europe was higher than those of their locally produced counterparts. In Italy and Spain, steel demand is in line with their positive economic scenarios, allied to a higher demand for steel products by the local industrial and construction sectors.

European prices are likely to continue moving up in the 2Q07. In fact, leading local players have already hinted at increases of between 5% and 10% for the period in question. The outlook is therefore a positive one, although import pressure will have to remain at current levels if the price pass-through is to be successful.

ASIA:

As in Europe, demand remained strong throughout the first quarter. However, increased regional output has been causing some uncertainties, and the imbalance between supply and demand is evident from the increase in local inventories. This may act as a barrier against price improvements. Prices, in fact, have been falling in recent months.

It is also worth remembering that February (the Chinese New Year) is traditionally a weak sales month. The Asian steel industry has been exporting its surplus output to the Middle East, where demand at the moment is highly favorable.

An important event occurred on April 15 last, when the Chinese government announced a reduction in fiscal export incentives for certain steel products. This may lead local producers to push up their export prices, as a means of protecting their profit margins.

We expect Asian consumption to increase in the 2Q07, led by the west and southeast regions of the continent, a historical trend at this time of the year, which could lead to improved price levels.

BRAZIL:

Brazil’s economic indicators favored sustained growth in the 1Q07. The Brazilian Central Bank reduced the basic interest rate (SELIC) by 0.5 p.p. from 13.25%, at the beginning of the year, to 12.75% . The Brazilian Real/US dollar exchange rate also fell throughout the quarter, and the Brazilian currency closed 4% up in comparison with its end-of-2006 level.

The Brazilian flat steel market (hot-rolled, cold-rolled, galvanized, tin mill products, slabs, heavy plates and special steel) did well in the quarter, with sales volume moving up 15.2% year-on-year. The upturn in consumption was led by the construction, distribution, home appliance/OEM and automotive sectors. The market also moved up 4.4% over the previous quarter.

Orders from the construction industry recorded a particularly impressive performance, with billed volumes increasing by 40.7% over the 1Q06. Agriculture and wide-diameter ((Ø>7") welded pipes also did well. In comparison with the 4Q06, billed volumes moved up 5.3%, led by the same segments.

The 2007 outlook for the agriculture segment remains positive, with orders for silos, machinery and implements continuing to grow.

Tin mill product sales volume to the packaging industry increased by 10.8% over the 1Q06, and by 4.8% over the previous quarter.

Orders from the distribution sector moved up 16.2% year-on-year, and 2.5% quarter-over-quarter, fueled by higher consumption from the auto-parts, welded steel profiles and narrow diameter welded pipes (Ø<7") segments.

‘The domestic steel market reported significative results in 1Q07.’

3

The home-appliance parts market absorbed 17.8% more steel products than in the 1Q06. In comparison with the 4Q06, volume moved up 1.9% .

The automotive industry also played an important role in the improvement of the flat steel performance in the 1Q07. Its flat-steel consumption climbed by 8.4% over the 4Q06, pushed by strong demand from the carmakers and the auto-parts industry.

Demand is expected to remain heated throughout the 2Q07, due to the gradual reduction in local interest rates coupled with the stable currency, both of which associated with growth incentives generated by the “public and private investment” program (PAC), and in line with previous forecasts.

First-quarter crude steel production totaled 1.3 million tons, 145% up on the same period in 2006 and in line with the previous quarter. It is also worth noting that inventories of slabs and coils acquired from third parties, whose production costs are higher than those produced internally, were practically exhausted.

* Products delivered for sale, including shipments to CSN Paraná and GalvaSud.

Rolled Steel output totaled 1.17 million tones, 56% up year-on-year - led by hot-rolled (+52%), cold-rolled (+56%) and tin plate (+52%). In comparison with the previous quarter, production remained flat.

‘Rolled steel products output in 1Q07 increased by 56% year-over-year.’

4

The total production cost came to R$ 1.19 billion in the first quarter, R$ 295 million, or 33%, more than in the 1Q06. The increase was essentially due to the return of Blast Furnace #3 to operations, which increased production volume and, consequently, raw-material consumption.

The most significant increases in raw-material costs were as follows:

- Imported coal (R$ 62 million), coke (R$ 21 million), iron ore/pellets (R$ 59 million) and zinc (R$ 57 million). In the particular case of zinc costs, the upturn was not only due to the increase in production volume, but also to higher market prices for this metal;
- Increased expenses with fuel, electric power, supplies, outsourced services and others also contributed R$ 85 million to the overall cost increase.

On the other hand, the reduced consumption of slabs acquired from third parties led to a cost decrease of R$ 55 million in the same period.

It is also worth mentioning that production costs fell by around R$120 million (-10%) over the previous quarter, mainly due to the above-mentioned reduced consumption of slabs and coils acquired from third parties (R$ 71 million) and also to lower coal costs (R$ 16 million).

Steel slabs unit production costs (with depreciation) fell from R$ 778/t in the 1Q06, to R$ 542/t (US$257/t) in the 1Q07, returning to the Company’s usual and highly competitive levels. The decline was primarily due to lower coal and coke acquisition prices, the appreciation of the Real against the US dollar and the greater dilution of fixed costs. The Company produced around 1.3 million tones of slabs in the 1Q07, versus 0.5 million in the 1Q06.

‘Steel slabs unit production cost decreased by 30% compared to 1Q06.’

5

Total Sales Volume

CSN recorded total 1Q07 sales volume of 1.195 million tones, 20% up in comparison with the 1Q06 and in line with the 4Q06.

Domestic Market

Domestic market sales volume stood at 719,000 tones, 19% up year-on-year, due to a combination of heated demand in the 1Q07 and the reduced availability of products for sale in the 1Q06 due to the accident to Blast Furnace #3. In comparison with the 4Q06, sales volume remained stable.

Export Market

Export volume in the first three months of 2007 totaled 476,000 tons, 3% more than in the 4Q06 and a substantial 21% higher than the first quarter of 2006. The increase was due to strong demand in the global steel markets, which exceeded steelmakers’ expectations.

Market Share and Product Mix

In the 1Q07, CSN maintained its market share of 33% of the domestic flat steel market (hot-rolled, cold-rolled, galvanized steel and tin mill products), an improvement over the 30% recorded in the 1Q06.

As for the product mix, the Company once again exceeded a 52% market share of coated products, in line with the 53% registered in the 4Q06.

‘CSN maintained its 33% market share in the Domestic Flat Steel Market.’

6

In the domestic market, the Company’s 1Q07 average prices remained at the same level as in the previous quarter. As of January 2007, the Company successfully implemented a domestic price increase of 6% for galvanized products. When compared to the 1Q06, CSN’s prices increased by 7%, once again led by coated products.

In the export market, prices in US dollars and Euros also remained virtually stable over the 4Q06. When translated into Brazilian Reais, however, prices were lower due to the appreciation of the local currency, coupled with a specific effect of a temporary lower quality mix. When compared with the 1Q06, average export prices in US dollars and Euros moved up.

Prices are likely to increase in the 2Q07, both in Brazil (given still strong local demand and reduced inventories) and the international market, which is also recovering.

Stable prices coupled with equally stable domestic and export sales volume in comparison with the 4Q06 led to total 1Q07 revenue of R$ 2.485 billion. In year-on-year terms, net revenue increased by 27% due to the price and volume trends mentioned previously.

CSN’s 1Q07 operating expenses totaled R$ 161 million, R$ 103 million up year-on-year due to the non-recurring booking of R$177 million in provisions for lost earnings in the 1Q06, registered under “other operating revenue”.

In relation to the 4Q06, the Company recorded a non-recurring positive variation of R$ 328 million, due to the transfer of revenue to cover material damages, totaling R$ 193 million, from “operating revenue” to “non-operating revenue”. Throughout 2006, this amount had been recorded as “operating revenue”, and was reallocated to “non-operating revenue” in the 4Q06.

‘The outlook for steel prices for 2Q07 remains positive’

7

In addition, and also in the 1Q07, due to CSN’s participation in the auction of the Anglo-Dutch steelmaker, Corus, and the resulting Implementation Agreement entered into by both parties on December 10, 2006, the Company recorded the accounting impact of this operation, including: (i) consolidated expenses incurred during the project in the amount of R$ 113 million; and (ii) consolidated revenue from the break-up fee in the amount of R$ 235 million. These amounts are booked under “other operating expenses” and “other operating revenue”, respectively.

Until now, CSN has received R$ 515 million in advances from the insurers, R$ 39 million of which in the 1Q07 and the rest in 2006.

EBITDA totaled R$ 1.015 billion in the 1Q06, 29% up year-on-year, accompanied by an EBITDA margin of above 40%, more than 6 p.p. higher than the 2006 average, proof that the Company had fully recovered from the January 2006 accident to the installations adjacent to its main blast furnace (BF# 3). It is also worth noting that the 1Q07 EBITDA margin still reflected a small portion of the cost associated with the acquisition of steel slabs from third parties

The 1Q07 net financial result was a positive R$54 million, versus a negative R$ 107 million in the 1Q06. In comparison with the 4Q06, when the result was a negative R$ 255 million, the improvement - equivalent to R$ 309 million - was even more significant.

This important result was primarily due to the upturn in financial revenue, reflecting increased gains from treasury operations, and the Company’s higher close-of-quarter cash and cash equivalent position. Financial expenses were in line with the 1Q06, and improved by R$ 35 million over the 4Q06, thanks to the reduction in the weighted average carrying cost of the debt, in turn due to the reduced interest rate on the Brazilian Reais portion of the debt and the impact of the lower average dollar on its foreign-currency portion. The overall debt profile also improved, through the exchange of higher for lower-interest debt instruments.

‘CSN's EBITDA Margin exceeded 40%, approximately 6% higher when compared to the 2006 average.’

8

CSN’s gross debt remained flat over the 4Q06, while net debt recorded a substantial year-on-year reduction of R$ 609 million due to the increase in cash and cash equivalents.

As a result, the net debt/EBITDA ratio fell from 1.74x, in the 4Q06, to 1.56x, without considering the total positive cash effect from the Corus bidding process and the appreciation of Corus’ shares sold by CSN (R$1.1 billion), booked in April, 2007.

On March 31, 2007, CSN’s weighted average financial cost in Brazilian Reais remained at around 12% p.a., whilst the average maturity of the total debt was 7.7 years.

The Company recorded a 1Q07 non-operating result of R$ 180 million, versus R$18 million in the 4Q06 and R$ 0.2 million in the 1Q06. It is worth highlighting the R$182 million net gain from the sale of 34,072,613 shares in Corus Group PLC (3.8% of the Company’s outstanding capital). Net of taxes, this amount corresponded to non-recurring revenue of R$ 133 million.

Consolidated first-quarter income and social contribution taxes totaled R$ 291 million, primarily due to increased taxable income, as explained by the variations dealt with above.

‘The Net Debt/EBITDA ratio decreased significantly in 1Q07.’

9

CSN’s Net Income in the 1Q07 totaled R$ 763 million, R$ 422 million higher than in the first quarter of 2006. The main variations contributing to this improved performance were as follows:

• An increase of R$ 272 million in gross profit;
• A R$ 161 million improvement in the financial result;
• A gross gain of R$ 182 million from the sale of CSN’s stake in the Anglo-Dutch steelmaker, Corus, plus the break-up fee of R$ 122 million.

It is also important, in the year-on-year comparison, to consider the non-recurring provisions for lost earnings of R$ 177 million which impacted the bottom line in the 1Q06, plus the increase of R$ 70 million in income and social contribution taxes in the 1Q07.

Net income was R$ 679 million higher than in the 4Q06, due to the following factors:

• Gross profit growth of R$ 42 million;
• A R$ 309 million upturn in the financial result;
• A gross gain of R$ 182 million from the sale of the Company’s interest in Corus and the associated break-up fee of R$ 122 million.

Investments in the 1Q07 totaled R$ 234 million, mostly allocated to the following projects:

The remainder went to smaller, but also relevant, projects geared towards improving the technology of the Company and its subsidiaries.

It is worth pointing out that, following the completion of the first phase of the Iron Ore Terminal in the port of Itaguaí, CSN has already exported around 360,000 tons of iron ore. The facility’s current export capacity is seven million tons per year and is expected to reach 30 million tons on the conclusion of the second stage. After the third and final stage, annual export capacity will reach 40 million tons. Total investments in the port are estimated at US$ 260 million.

‘CSN's 1Q07 Net Income is a 5-year quarterly record.’

10

On March 31, 2007, working capital invested in the business totaled R$ 1.8 billion, 8% less than at the end of 2006. The decrease was primarily due to the reduction in the ‘cash and cash equivalents’ and ‘overseas accounts receivable’ lines, although the impact was almost entirely offset by the reduction in the ‘suppliers’ line.

The average supplier payment period remained at around 90 days, while client payment periods fell from an average of 41 to 33 days. The average inventory period remained in line with the 4Q06 at around 150 days.

CSN’s shares did well in the 1Q07, appreciating by close to 38%, versus just 3% for the Ibovespa index.

The Company’s ADRs, traded on the New York Stock Exchange, did even better, moving up by around 43%, a significant positive performance when set against the 1% fall experienced by the Dow Jones index in the same period.

Traded financial volume did equally well, climbing by 90% on the BOVESPA and 60% on the NYSE.

CSN has been one of the most outstanding companies listed on the BOVESPA, not only in terms of share appreciation, but also due to its substantial dividend payments. In 2006, CSN led the rankings in terms of dividend payout per share.

‘CSN’s shares appreciated by close to 38% in 1Q07.’

11

‘2006 total dividend proposal exceeds R$ 1.4 billion.’

12

Annual Shareholders’ Meeting and Dividends

On March 28, 2007, CSN’s Board of Directors approved the following proposal for the allocation of net income and realized reserves for the fiscal year ended December 31, 2006 in the total amount of R$ 1,473,262 thousand, to be submitted to the Annual Shareholders’ Meeting of April 30, 2007:

Extraordinary Shareholders’ Meeting and Cancellation of Shares

Also on April 30, 2007, an Extraordinary Shareholders’ Meeting will vote on the proposal to cancel 15,578,128 shares currently held in treasury with no reduction in capital.

13

CSN is pleased to invite you to join the ‘STOCK & STEEL 2007’ Webcast Event with simultaneous translation into English, as follows:

14

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

15

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

* EBITDA = Gross income excluding selling, general and adminstrative expenses added to depreciation, amortization and exhaustion.
** Excluding shares held in treasury

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$

21

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.