Stelco receives letter from Ontario Minister of Finance

HAMILTON, ON, Aug. 8 /CNW/ - Stelco Inc. (TSX:STE) today announced that
it has received a letter from The Honourable Greg Sorbara, Minister of Finance
for the Government of Ontario regarding the funding of the Company's pension
plans, and the Company's Plan Outline.
In the letter, received this morning, Minister Sorbara reiterates the
Province's position on the Section 5.1 (of the Regulations under The Pension
Benefits Act (Ontario)). He states, "As you were previously informed, on
Stelco's emergence from the Companies' Creditors Arrangement Act protection, I
will seek the approval of the Lieutenant-Governor-in-Council to amend the
Regulation under the Pension Benefits Act so that Stelco will no longer have
the benefit of section 5.1 of the Regulation." The letter also restates that
the Company's Plan Outline is not acceptable to the Province. Minister Sorbara
also states, "We remain willing to be flexible and intend to continue a
constructive dialogue with all affected parties to see if an acceptable
restructuring plan can be developed that meets both the Province's objectives
and legitimate concerns of other stakeholders."
Courtney Pratt, Stelco's President and Chief Executive Officer, said,
"Our goal remains to find a middle ground that everyone can support, and that
is compatible with the long-term viability of Stelco. As we stated last week,
to date the plan outline has not yet been endorsed by any stakeholder group.
We intend to continue our discussions with stakeholders with the goal of
finding a satisfactory solution that all stakeholders will support."

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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