The Supreme Court of Canada has denied several USWA locals leave to appeal the Initial Order providing Stelco Inc. with protection of the Companies' Creditors Arrangement Act in January 2004.

Hap Stephen, Stelco Chief Restructuring Officer, said, "We welcome this decision. Stelco initiated its restructuring on the grounds that the Company was insolvent and that its circumstances met the conditions for the granting of Court protection. This decision of the Supreme Court leaves the Initial Order and the views enunciated by Mr. Justice Farley on various occasions in full force and effect.”

USWA Locals 1005, 5328 and 8782 originally sought to rescind the Initial Order in March 2004. That motion was dismissed by the Superior Court of Justice (Ontario) on March 22, 2004. The Locals then sought leave to appeal that decision to the Court of Appeal for Ontario. That motion was dismissed on May 5, 2004. The Locals then applied to the Supreme Court of Canada for leave to appeal from the judgement of the Court of Appeal.

Mr. Stephen commented that the Supreme Court’s decision will enable the company to focus its full attention on achieving a successful capital raising process and a successful restructuring.

Stelco Inc. is a large, diversified steel producer involved in major segments of the steel industry through its integrated steel business, minimills, and manufactured products businesses.