Stelco announces filing of Tricap agreement

HAMILTON, ON, Sept. 29 /CNW/ - Stelco Inc. (TSX:STE) announced today that
its restructuring agreement with Tricap Management Limited ("Tricap") was
filed with the Court last evening as part of the Motion Record for a hearing
scheduled for October 3, 2005.
As announced previously, under the agreement Tricap will provide Stelco
with a $350 million secured revolving term loan and a standby commitment to
support a rights offering for Secured Convertible Notes to be issued by Stelco
that will generate $75 million in proceeds. The rights offering may generate
an additional $25 million proceeds if Tricap exercises its option to purchase
additional Secured Convertible Notes.
The agreement filed with the Court contains the provisions, conditions
and schedules surrounding Tricap's funding commitment. The Motion Record also
contains an affidavit of Hap Stephen, Stelco's Chief Restructuring Officer,
concerning the agreement.
Stelco is scheduled to be in Court on October 3, 2005 to seek the Court's
authorization to enter into the Tricap agreement.

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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