Stelco comments on 29th Monitor's report

HAMILTON, ON, May 12 /CNW/ - Stelco Inc. (TSX:STE) today commented on the
proposed process that would govern discussions on the Company's restructuring
plan outline. The Company plans to present the outline to stakeholders
immediately on a confidential basis, and then move to a mediation process.
The Company said that the proposal to hold discussions on a confidential
and mediated basis is designed to engage the skills of an expert to help all
stakeholders move towards a common goal. That common goal is to see Stelco
emerge from court protection as soon as possible as a long-term viable
business enterprise able to satisfy all of its obligations, including its
future pension and benefit obligations. Stelco believes that all stakeholders
will have a better chance of making progress and achieving results by
following the process outlined today.
The mediator would be expected to take charge of the process, assisted by
the Court-appointed Monitor.
Courtney Pratt, Stelco's President and Chief Executive Officer, noted
that the plan delivered to stakeholders today will constitute a basis for full
and candid discussions with stakeholders. Any agreement resulting from the
planned discussion will be made public and will be subject to required
stakeholder approval.
Courtney Pratt, said, "Stelco's restructuring is now entering its
critical stage. The procedures we're proposing will help all parties focus on
results. Stakeholders have clearly stated their positions in public. Now it's
time to conduct the serious and sincere discussions that have to succeed if we
are to achieve a positive outcome. As we've said before, no stakeholder group
can get everything it wants. Our goal is to find a middle ground that all
groups can support with the common objective of seeing Stelco emerge as a
successful competitor - one that is able to compete with the very best steel
producers in North America. We already have some of the critical building
blocks in place, including a dedicated, highly skilled and committed
workforce.
"I hope we can secure swift agreement on the way in which these crucial
discussions will proceed. We want a process that is fair, reasonable, and that
protects the interests of all stakeholders. The plan outline provides a
platform for further discussion. I urge all parties to make good use of what
may be the last, best opportunity to achieve our objective - a timely exit
from the restructuring, and a viable and competitive Stelco going forward."

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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