CSN - Notice to the Market

RIO DE JANEIRO, Brazil, Jan. 23  /PRNewswire-FirstCall/ -- Companhia Siderurgica Nacional ("CSN"), pursuant to CVM Rule 358 of January 3, 2002, Law 6,404 of December 15, 1976 and other rules applicable to capital markets, hereby informs the Brazilian Securities and Exchange Commission ("CVM"), the Sao Paulo Stock Exchange ("BOVESPA") and the public at large the following:

I. The proposal of the Company's Board of Directors of December 21, 2007 for the forward stock split of its shares approved by the Extraordinary General Meeting held on the date hereof, whereupon every old share of the Company's capital stock shall be represented by 3 (three) shares.

As for the shares traded at BOVESPA, the custodian, Itau Corretora de Valores S.A., shall take all measures to automatically distribute the new shares to the Company's shareholders, according to the following schedule:

    - For shareholders holding ownership interest until January 22, 2008
      inclusive, each of CSN's shares traded at BOVESPA shall be split, on
      January 23, 2008, into 3 (three) shares, so that each shareholder will
      hold 3 (three) shares for each old share previously held;

    - As a result of the forward stock split, on January 29, 2008, Itau
      Corretora de Valores S.A. shall distribute 2 (two) new shares to
      holders of each existing share.



As for the American Depositary Receipts ("ADRs") traded in the New York Stock Exchange ("NYSE"), the depositary institution, JP Morgan Chase Bank, shall issue new ADRs and distribute them to the shareholders, as per Schedule applied in the United States of America ("U.S.A."):

    - As of January 25, 2008 (record date), the holders of CSN's ADRs at the
      NYSE shall be entitled to receive 2 (two) new ADRs, in addition to
      each ADR previously held.

    - As of February 8, 2008, the 2 (two) new ADRs in addition to each ADR
      previously held will be distributed to its holder at the NYSE (payment
      date);

    - As of February 11, 2008, the forward stock split will be effective and
      CSN's ADRs shall begin trading at the NYSE without the rights to
      receive additional ADRs (ex-date);

    - From January 22 through February 13, 2008, JP Morgan Chase Bank's
      books will be closed for deposit and cancellation of ADRs between the
      Brazilian Stock Exchange (BOVESPA) and the New York Stock Exchange
      (NYSE). However, trading of CSN's ADRs on the NYSE and CSN's shares on
      the BOVESPA will occur normally, in each respective market.




The shares and ADRs arising out of the approved forward stock split will be of the same type and will confer their holders the same rights of shares and ADRs previously existing.

II. As of the date hereof, the Extraordinary General Meeting ("AGE") approved the cancellation of 4,000,000 shares currently held in treasury and ratified the resolution taken by the Company's Board of Directors on December 21, 2007, which authorized the acquisition of additional outstanding shares of the Company, to be held in treasury for subsequent disposal or cancellation. Such Board resolution herein ratified was subject to the approval of the cancellation of the 4,000,000 shares herein taken by the Extraordinary General Meeting. In this regard, the acquisition of additional shares by the Company shall observe the following limits and conditions provided for by CVM Rule 10/80:

    1) Company's purpose in the transaction: maximize value for the
       shareholder by means of an efficient capital structure management.
    2) Number of Shares to be acquired: up to 4,000,000 shares.
    3) Deadline to carry out the transactions authorized: from January 23,
       2008 through February 27, 2008.
    4) Number of Shares Outstanding in the Market: 455,343,843.
    5) Place of Acquisitions: Sao Paulo Stock Exchange - BOVESPA.
    6) Maximum Price of Shares: the acquisition price of shares may not
       exceed the respective Stock Exchange price quotation.
    7) Financial Intermediaries: Itau Corretora de Valores S.A., Pactual
       CTVM S.A. and Credit Suisse First Boston CTVM S.A.

  Jose Marcos Treiger
  Investor Relations Officer
  Companhia Siderurgica Nacional

  For further information, please contact CSN IR Department:
  
  55-11-3049-7591


DATASOURCE: Companhia Siderurgica Nacional



CONTACT:  CSN IR Department, +011-55-11-3049-7591, 

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