Cleveland-Cliffs Inc. announced that its preferred stock may be surrendered for conversion at any time during the fiscal quarter ending June 30, 2005.

This opportunity is available as the result of satisfaction of a condition to the conversion right of the holders of its 3.25% redeemable cumulative convertible perpetual preferred stock. The condition was satisfied because the closing share price of Cleveland-Cliffs' common shares for at least 20 of the last 30 trading days of the fiscal quarter ended March 31, 2005, exceeded 110% of the then-applicable conversion price of the preferred stock. Satisfaction of this condition allows conversion of the preferred stock during the fiscal quarter ending June 30, 2005, only.

Conversion may continue after such quarter if certain conditions set forth in Cleveland-Cliffs' amended articles of incorporation are satisfied. The preferred stock was also convertible during the fiscal quarter ended March 31, 2005, due to the satisfaction of this condition during the applicable period of the fiscal quarter ended December 31, 2004.

The conversion rate is currently 32.3354 common shares per share of preferred stock. This equates to a conversion price of approximately $30.93 per common share, subject to 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. The company operates six iron ore mines located in Michigan, Minnesota and Eastern Canada.