Stelco obtains extension of stay period until July 18, 2005

HAMILTON, ON, June 27 /CNW/ - Stelco Inc. (TSX:STE) today was granted an
Order of the Superior Court of Justice (Ontario) extending the stay period
under its Court-supervised restructuring from July 8, 2005 until July 18,
2005.
The Court-appointed Monitor had stated that an extension would be in the
interest of all stakeholders and had recommended that the request be granted
by the Court.
In addition to granting the extension, the Court ordered the parties to
take a one week 'cooling off' period until July 4, 2005. During this period
the parties are to reflect on the content of the recent mediation conducted by
the Hon. George Adams and to consider the alternatives for Stelco as a going
concern. While stakeholders may meet during this week should they so wish, no
formal discussions will be conducted. After this week, the parties will
participate in a dialogue to be organized by the Court-appointed Monitor. A
progress report is to be provided to the Court by July 18, 2005, at which time
a further stay may be requested.
Courtney Pratt, Stelco President and Chief Executive Officer, said, "This
extension will enable the Company to continue proceeding in such matters as
conducting discussions with stakeholders, completing the claims procedure, and
proposing a restructuring plan based on discussions with stakeholders.
"We've already indicated the steps that we will follow in the coming
days. First, proceed to continue the dialogue with other parties. Second,
examine the proposals that could form the basis of a restructuring plan.
Third, pursue a solution that is in the interests of all stakeholders, not
just one or more groups. And, fourth, seek to emerge from CCAA as a viable and
competitive steel producer as quickly as possible.
"This process will include continuing our work to resolve the pension
funding issue and pursuing a fair and reasonable collective agreement with
USWA Local 8782 at Lake Erie."
Mr. Pratt noted that all parties must work together and in the same
direction toward the goal of a positive outcome. He stated that the softening
of steel market conditions and the significant drop in steel prices - about
which the Company had warned stakeholders for more than a year - explain the
sense of urgency Stelco has tried to inject into the restructuring process.
"As recently as last week the Court-appointed Monitor wrote that Stelco's
future financial results will be highly dependent on the direction of our
volatile input costs and the strength of North American steel markets," Mr.
Pratt added.
"It's essential that all parties acknowledge our common goals, recognize
the consequences of failure, and work to develop a plan that will help Stelco
leave CCAA protection and be viable through all stages of the market cycle,"
he said.

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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