<PAGE>
                                                                   EXHIBIT 99.1

                            [GERDAU AMERISTEEL LOGO]

      GERDAU AMERISTEEL TO PURCHASE ASSETS OF GATE CITY STEEL AND RJ REBAR

Toronto, ON, October 28, 2004 - Gerdau Ameristeel (TSX: GNA.TO, NYSE: GNA) today
announced that it has entered into an agreement to purchase substantially all
the assets of Gate City Steel, Inc. and RJ Rebar, Inc., headquartered in
Indianapolis, Ind.

For more than 15 years, Gate City Steel and RJ Rebar have been leading suppliers
in the Midwest and South for plain and epoxy-coated, fabricated concrete
reinforcing steel (rebar). The seven facilities included in the acquisition are
located in Indianapolis and Muncie, Ind.; Sterling and Lemont, Ill.; Birmingham,
Ala (two locations); and Hamilton, Ohio. Combined the facilities have a total
capacity of 160,000 tons, including 30,000 tons of epoxy-coated rebar.

Subject to satisfactory completion of regulatory reviews, the transaction is
expected to close in early December. In combination with Gerdau Ameristeel's 23
reinforcing steel fabricating facilities, Gate City and RJ Rebar will provide
engineering, operational, and sales talent. The locations will also expand
Gerdau Ameristeel's presence in the Midwest.

Phillip E. Casey, Gerdau Ameristeel's president and chief executive officer,
commented: "The solid reputation and professional resources of Gate City and RJ
Rebar will enable Gerdau Ameristeel to better serve our customers across
geographies. Gate City's and RJ Rebar's requirements for supplies of reinforcing
steel will provide synergies with the North Star Steel mills that will become
part of Gerdau Ameristeel through the pending transaction with Cargill,
Incorporated. These acquisitions are very complementary and are important
components of Gerdau Ameristeel's growth strategy."

ABOUT GERDAU AMERISTEEL

Gerdau Ameristeel is the second largest minimill steel producer in North America
with annual manufacturing capacity of over 6.4 million tons of mill finished
steel products. Through its vertically integrated network of 11 minimills
(including one 50%-owned minimill), 13 scrap recycling facilities and 32
downstream operations, Gerdau Ameristeel primarily serves customers in the
eastern half of North America. The company's products are generally sold to
steel service centers, fabricators, or directly to original equipment
manufacturers for use in a variety of industries, including construction,
automotive, mining and equipment manufacturing. Gerdau Ameristeel's common
shares are traded on the New York Stock Exchange under the symbol GNA and on the
Toronto Stock Exchange under the symbol GNA.TO.

<PAGE>

FORWARD-LOOKING INFORMATION

This news release may contain forward-looking information with respect to Gerdau
Ameristeel. Actual results may differ from these forward-looking statements due
to numerous factors, including global competition, steel imports, market supply
and demand for steel, pricing of energy and raw material inputs and other
matters. These and other factors are outlined in Gerdau Ameristeel's regulatory
filings with the Canadian securities regulatory authorities and the United
States Securities and Exchange Commission. Readers are cautioned that the
foregoing list of important factors affecting forward-looking statements is not
exhaustive. Furthermore, the forward-looking statements contained herein are
made as of the date of this document, and Gerdau Ameristeel does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise. The forward-looking statements contained in this document
are expressly qualified by this cautionary statement.

FOR MORE INFORMATION PLEASE CONTACT:
Tom J. Landa
Vice President and Chief Financial Officer
Gerdau Ameristeel
(813) 207-2300
tlanda@gerdauameristeel.com