Stelco moves forward with restructuring plan

HAMILTON, ON, Sept. 23 /CNW/ - Stelco Inc. (TSX:STE) announced this
evening that it has satisfied the preliminary conditions under the
restructuring agreement entered into between the Company and the Province of
Ontario earlier this week.
Courtney Pratt, Stelco President and Chief Executive Officer, said, "This
marks a truly significant step in our restructuring process. It satisfies the
preliminary conditions under our agreement with the Province of Ontario. And
it maintains the positive momentum towards a successful restructuring."

Memorandum of Agreement: Stelco has entered into a Memorandum of
Agreement with each of USW Locals 8782 (Lake Erie) and 5220 (AltaSteel in
Edmonton).
The Company will refrain from public discussion of the agreements'
details until the Locals have informed their respective members.
Ratification of the agreements will provide the Company with collective
agreements governing the two facilities.
Mr. Pratt said, "The agreements will provide welcome certainty and
stability for the Company, our employees and customers, and the communities in
which we operate. I want to acknowledge the outstanding efforts of all those
involved in achieving these important and responsible agreements."

Financing facilities: Stelco also announced this evening that it has
reached agreement with Tricap Management Limited ("Tricap") for the provision
of two financing facilities, subject to Court approval.
The first financing facility consists of the provision by Tricap to
Stelco of a $350 million bridge facility in the form of a Secured Revolving
Term Loan. The second facility is a Standby Agreement under which Tricap will
backstop a $75 million rights offering of new Secured Convertible Notes to be
issued by Stelco. Tricap will also receive an option to purchase $25 million
of the same Notes that will be exercised by Tricap under certain conditions.

Corporate issues agreement: The original conditions under the
restructuring agreement had also called for the entering into of a corporate
issues agreement between the Company and the USW relating to certain Stelco
governance issues. The parties subsequently agreed not to pursue such an
agreement.

Stay extension: The Company also announced that the Court has extended
the stay period until October 4, 2005.

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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