Stelco obtains extension of stay period until September 9, 2005

HAMILTON, ON, July 18 /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 18, 2005 until September 9,
2005.
The Court also adjourned a USW motion, seeking to remove the Company's
exclusivity to develop and file a restructuring plan, until August 16, 2005.
Courtney Pratt, Stelco President and Chief Executive Officer, said, "The
stay extension provides the time in which to discuss with all stakeholders the
plan outline we filed three days ago. As we said then, we knew that
stakeholder groups would express concern about the plan outline because it did
not give them everything they asked for. As we also stated, our goal was to
find a middle ground that everyone could support. There is not enough value in
the Company to give every group everything it wants. As well, the Company is
the only stakeholder with the legal obligation to take into account and
address the interests and competing demands of other stakeholders."
"In our view, the pension funding component of our plan meets the
objectives stated by the union and the Government of Ontario," Mr. Pratt
noted. "The route we propose may be different than others that have been
suggested, but the destination and the outcome are the same.
"We believe our funding plan, like the rest of the plan outline, is
achievable, is financially responsible, and is compatible with the long term
viability of the Company. Our commitment to address the pension funding issue
is demonstrated by the fact that about $900 million will be paid into the
pension plans before creditors receive repayment on the first of the debt
instruments that will be issued to them."
"It's time for stakeholders to consider the plan outline from everybody's
perspective, not just their own," Mr. Pratt added. "As the Judge said today,
people need to deal with reality, not with wishes. And the reality is that,
one way or another, Stelco must emerge from CCAA sooner rather than later.
Whether it does so as a successfully restructured Company or as an
unsuccessfully restructured one is in the hands of the stakeholders. I urge
all parties to make the best use of the time available to us between now and
September."

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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