Stelco announces filing of 35th monitor's report and confirms resignation of two directors

HAMILTON, ON, Aug. 31 /CNW/ - Stelco Inc. (TSX:STE) today announced that
the Thirty-Fifth Report of the Monitor in the matter of the Company's    
Court-supervised restructuring was filed today. The full text of the Report
can be accessed through a link available on Stelco's Web site.
The Report deals exclusively with the previously-announced agreement for
the sale of substantially all of the assets of Stelpipe Ltd. to Romspen
Investment Corporation. The Report and the previous announcement noted that
Romspen will assign the agreement to a new, wholly-owned subsidiary, Lakeside
Steel Corporation. The Report provides background information concerning the
history of Stelpipe, reviews the sale process that was conducted in this
matter, and outlines a number of the provisions and conditions in the asset
purchase agreement. The Monitor also notes that Stelco will bring a motion on
September 6, 2005 seeking Court approval of the sale.
The Monitor's Report concludes by recommending that the Court approve the
sale on the grounds that, in the Monitor's view, the market was adequately
canvassed for prospective purchasers, the purchase price is fair and
commercially reasonable in the circumstances, the transaction preserves jobs
for almost all Stelpipe employees, and it is uncertain whether Stelpipe will
be able to operate if this transaction does not close.
Stelco also confirmed today that it has received the resignations of two
directors, Roland Keiper and Michael Woollcombe, from the Board.

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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