Stelco comments on court decisions

HAMILTON, ON, May 19 /CNW/ - Stelco Inc. (TSX:STE) has commented on
decisions made by the Superior Court of Justice (Ontario) following a hearing
held earlier today in the matter of the Company's Court-supervised
restructuring.
The Company welcomed the Court's establishment of a mediation process and
the appointment of the Hon. George Adams, previously designated a CCAA Officer
of the Court in the matter of Stelco's restructuring, to serve as the
mediator. The mediation process, which reflects the outline contained in a
Report of the Court-appointed Monitor dated May 12, 2005, will govern the
discussions and negotiations regarding a restructuring plan for the Company.
Mr. Adams is a highly-regarded mediator and arbitrator, former Superior
Court Judge, former Chair of the Ontario Labour Relations Board, law professor
and counsel.
The mediator, with the assistance of the Court-appointed Monitor and any
other stakeholder the mediator wishes to consult, will determine the nature,
format and duration of the process itself.
Stelco also welcomed the Court's direction that all participants in the
mediation process shall express no views publicly on the matters being
discussed in that process until the CCAA proceedings have been concluded.
The Court today also dismissed motions brought by other parties that
would have, among other things, reintroduced Island Energy Partnership into
the Company's capital raising process and expanded the role of Tricap as a
financial advisor to the USWA in that process.
Courtney Pratt, Stelco's President and Chief Executive Officer, said, "We
welcome the establishment of a confidential and mediated process and the
appointment of George Adams as mediator. We believe that discussions conducted
in a confidential setting assisted by a mediator will be much more likely to
achieve progress than negotiating in public. We look forward to Mr. Adams'
participation and contribution."
The Company noted that while its plan outline will serve as the starting
point for discussions under the mediation process, other stakeholders will be
free to present other ideas within the procedures to be determined by the
mediator.

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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