Gerdau S A : Notice to Shareholders - Dividend Payment

GERDAU S.A.

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

NOTICE TO SHAREHOLDERS

PAYMENT OF DIVIDENDS

We would like to inform our Shareholders that the Board of the company GERDAU S.A., in meeting held on February 18, 2020, deliberated about the proposal presented by management with regard to the payment of dividends for the fourth quarter of the fiscal year on 2019. The value of R$ 0.03 will start to be paid on March 11, 2020 to shareholders of record on February 28, 2020. The payment constitute an anticipation of the annual minimum dividends, as stated in the by-laws.

Please note that shares acquired on March 02, 2020, and thereafter, will be traded EX-DIVIDEND.

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, February 19, 2020.

Harley Lorentz Scardoelli

Executive Vice President

Investor Relations Director