Gerdau S A : Notice to Shareholders - Interest Payment on Capital Stock

GERDAU S.A.

Corporate Taxpayer ID (CNPJ/MF): 33.611.500/0001-19

NOTICE TO SHAREHOLDERS

PAYMENT INTEREST ON CAPITAL STOCK

We would like to inform our Shareholders that the Board of GERDAU S.A., at a meeting held on December 08, 2020, approved the payment of interest on capital stock for the 2020 fiscal year. The amount of R$ 0.17 will be paid during 2021 to shareholders of record on December 21, 2020. The payment constitutes an anticipation of the annual minimum dividends, as stated in the by-laws.

The interest will be paid net of withholding income tax of 15%, pursuant to Paragraph 2, Article 9 of Law 9,249/95. Beneficiaries resident or domiciled in countries with favored taxation are subject to withholding income tax of 25%, pursuant to Article 8 of Law 9,779/99. Shareholders exempt from income tax withholding must confirm their exemption by mailing the corresponding documents to the address stated at the end of this notice by December 29, 2020. The Company will consider that the shareholder is not tax-exempt if the above mentioned documents are not received by the aforementioned date.

Please note that shares acquired on December 22, 2020, and thereafter, will be traded EX-DIVIDEND (INTEREST ON CAPITAL STOCK).

Additional information can be obtained from our Investor Relations Department, located at

Av. Doutora Ruth Cardoso, 8501 - 8th Floor - São Paulo - SP - 05425-070 - Brazil

Phone: [phone]

E-mail:[e-mail]

São Paulo, December 08, 2020.

Harley Lorentz Scardoelli

Executive Vice President

Investor Relations Director