Holders of Cleveland-Cliffs Inc.’s 3.25% redeemable cumulative convertible perpetual preferred stock may surrender stock for conversion at any time during the fiscal quarter ending March 31, 2005, thanks to satisfaction of a condition to the conversion right. The condition was satisfied because the closing share price of Cleveland-Cliffs' common shares exceeded 110% of the then-applicable conversion price of the preferred stock for at least 20 of the last 30 trading days of the fiscal quarter ended December 31, 2004.

Satisfaction of this condition allows conversion of the preferred stock only during the fiscal quarter ending March 31, 2005. Conversion could continue after the quarter only if certain conditions set forth in Cleveland-Cliffs' amended articles of incorporation are satisfied.

As a result of the two-for-one stock split of Cleveland-Cliffs' common shares effective on December 31, 2004, and payments of a cash dividend to holders of record of the common shares as of the close of business on November 19, 2004, the conversion ratio on Cliffs’ preferred stock has adjusted accordingly to 32.3354 common shares per share of preferred stock. This equates to an adjusted conversion price of approximately $30.93 per common share, subject to further adjustment in certain circumstances including payment of dividends on the common shares.

Headquartered in Cleveland, Ohio, Cleveland-Cliffs Inc. is the largest producer of iron ore pellets in North America, selling the majority of its pellets to integrated steel companies in the United States and Canada. Cliffs operates six iron ore mines located in Michigan, Minnesota and Eastern Canada.