Stelco stay period extended till September 23

Hon. Coulter Osborne appointed Special Officer of the Court

HAMILTON, ON, Sept. 7 /CNW/ - Stelco Inc. (TSX:STE) today sought and
obtained an extension to the stay period in the matter of its Court-supervised
restructuring and the appointment of a Special Officer to oversee a review of
complaints made by two former directors. These matters were addressed in a
Court hearing that took place earlier today.
The Court-appointed Monitor had previously indicated that the Company
would seek an extension of the stay period from the current expiry date of
September 9, 2005 to September 23, 2005. The Monitor had recommended that the
extension be granted in order to maintain stability and to provide a focused
environment in which Stelco's meaningful discussions with certain of its major
stakeholders could continue.
The Court today also appointed the Honourable Coulter Osborne as a
Special Officer of the Court. He will oversee and assist the special committee
of Stelco's Board that has been appointed to review complaints made by two
directors who resigned on August 31, 2005. The complaints reflect concerns
about effective Board oversight of recently prepared forecasts that will be
important to the restructuring plan to be filed by the Company.
The Honourable Coulter A. Osborne was appointed to the High Court of
Ontario in 1978 and to the Court of Appeal for Ontario in 1990. He served as
Associate Chief Justice of Ontario between 1999 and 2001. In 2001 he was
appointed the Integrity Commissioner for the Province of Ontario.
Courtney Pratt, Stelco's President and Chief Executive Officer, said,
"The extension of the stay period and the appointment of a special officer
will enable us to continue our productive stakeholder discussions while
addressing the complaints lodged by our former directors."

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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