Stelco announces definitive agreement in sale of Stelpipe Ltd.

HAMILTON, ON, Aug. 19 /CNW/ - Stelco Inc. (TSX:STE) today announced that
it has entered into a definitive agreement for the sale of the assets of
Stelpipe Ltd. to Romspen Investment Corporation ("Romspen"), an independent
non-bank lender and financier based in Toronto.
The purchase price was not disclosed. As in past asset sale transactions
during its restructuring process, Stelco will ask the Court to seal such
information until the sale has closed. The transaction is subject to certain
conditions, including Court and lender approval. It is anticipated that such
approval will be sought by early September and that the matter will close at
or about the end of October.
Romspen has advised that it will assign the agreement to a new,    
wholly-owned subsidiary, Lakeside Steel Corporation Limited ("Lakeside").
Romspen has also stated that it will continue Stelpipe's current operations in
the current facilities through Lakeside and will retain almost all of
Stelpipe's approximately 470 workers, about 420 of whom are hourly employees
represented by the Canadian Auto Workers.
As part of the transaction, Stelco will be assuming all of the pension
and benefit obligations respecting Stelpipe's retirees. Stelpipe employees and
retirees will be provided with additional information in the near future about
the transaction and how it affects them.
Courtney Pratt, Stelco President and Chief Executive Officer, said, "This
transaction is good news for Stelpipe, for its employees and retirees, and for
Stelco. It provides Stelpipe with ownership that views its business as a
strategic asset. It provides Stelpipe employees and retirees with increased
certainty going forward. And it assists Stelco in focusing on the integrated
steel business at the heart of the strategic plan announced in July 2004. On
behalf of everyone in the Stelco community I want to thank Stelpipe and its
employees for their important and ongoing contribution to the Company."
Stelco had announced on August 3, 2004 that it would pursue the sale of
Stelpipe as part of the Company's asset sale process. Stelco informed Stelpipe
employees on June 3, 2005 that a letter of intent had been signed with
Romspen. The 32nd Monitor's Report also provided information in this matter.
Since then, the parties have addressed outstanding matters and negotiated the
terms of the definitive agreement announced today.

About Stelco
Stelco Inc. is a large, diversified steel producer. Stelco is involved in
major segments of the steel industry through its integrated steel business,
mini-mills, and manufactured products businesses. This news release may
contain forward-looking information with respect to the Corporation's business
operations, financial performance and conditions. Actual results may differ
from expected results for a variety of reasons including factors discussed in
the Corporation's Management's Discussion and Analysis section of the
Corporation's 2004 Annual Report. To learn more about Stelco and its
businesses, please refer to our Web site at www.stelco.ca.

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