CSN - Material Fact - Equity Swap

RIO DE JANEIRO, Aug. 13  /PRNewswire-FirstCall/ -- Companhia Siderurgica Nacional - CSN [Bovespa: CSNA3, NYSE: SID], company that combines steel, mining, infrastructure and cement businesses, hereby informs its shareholders and the public that its subsidiary CSN Madeira Lda. (CSN Madeira) entered into an agreement with Goldman Sachs International (Goldman Sachs) to close out of the equity swap agreement related to 29,684,400 American Depositary Receipts issued by CSN (ADRs).  The equity swap was disclosed to the market on July 11, 2008.

Close out of the equity swap agreement will take place today, August 13, 2009, and the settlement price will be calculated based upon the weighted average price of CSN's shares on the BM&FBovespa on each trading day during a 30 consecutive trading day period ending on and including August 12, 2009 (Settlement Price), as authorized by the Brazilian Securities and Exchange Commission (Comissao de Valores Mobiliarios or CVM).

In addition, CSN will acquire the 29,684,400 ADRs currently held by GSI through a private transaction and pay the Settlement Price to GSI, as per the CVM authorization.  The ADRs acquired by CSN will be subsequently converted into shares of CSN to be held in treasury.

In accordance with the CVM authorization, CSN's management will call a general shareholders' meeting to vote for the cancellation of such treasury shares within 3 months of their acquisition, in order to keep the amount of treasury shares within the limit of 10% of the outstanding shares of CSN.

  Investors Relations
  David Salama
  IR Manager
  Phone: [phone]
  http://www.csn.com.br/ir

DATASOURCE: Companhia Siderurgica Nacional - CSN



CONTACT: Investors, David Salama, IR Manager, CSN, +011-5511-3049-7588,





Web site: http://www.csn.com.br/ir 

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