Algoma Steel Inc. has called for the redemption on September 30, 2004 of all of its outstanding 1% convertible secured Notes due 2030 at a redemption price equal to the principal amount of the Notes plus accrued interest. Approximately $12.9 million (U.S.) of the Notes remain outstanding.

Each Note is convertible into Algoma common shares, at the holder's option, at a conversion price of U.S. $6.25 per share, which is equivalent to 160 Algoma common shares for each U.S. $1,000 principal amount of Notes. On August 23, 2004, the last reported sale price of Algoma common shares on the Toronto Stock Exchange was Cdn.$ 13.63 (approximately U.S.$ 10.40) per share.

Holders of Notes may convert their Notes into Algoma common shares before 5:00 p.m. (Eastern Time) on September 29, 2004,. Any Notes not converted on or before 5:00 p.m. (Eastern Time) on September 29, 2004, will be automatically redeemed on September 30, 2004, after which interest will cease to accrue.