Cleveland-Cliffs Inc.’s Board of Directors has approved a two-for-one stock split as well as the reinstatement of a quarterly cash dividend payment to holders of its common shares. A scheduled dividend payment on the company's 3.25% Redeemable Cumulative Convertible Perpetual Preferred Stock was also authorized.

The stock split will be achieved by subdividing each authorized common share into two common shares. The record date for the stock split will be December 15, 2004, and the distribution date will be December 31, 2004.

Shareholders of record as of the record date will receive a notification in January 2005 regarding the additional shares issued to each holder in the stock split, which will be issued in book-entry form. Post split, Cliffs will have approximately 21.6 million common shares outstanding.

The stock split is intended to increase the stock's liquidity and enhance marketability, according to the company. As a result of the stock split, the conversion ratio on the company's 3.25% Redeemable Cumulative Convertible Perpetual Preferred Stock will adjust to approximately 32.258 common shares per share of preferred stock, equivalent to a conversion price of $31.00 per common share, subject to further adjustment in certain circumstances including payment of dividends on the common shares.

Cliffs' Board of Directors separately authorized a scheduled dividend payment on the company's 3.25% Redeemable Cumulative Convertible Perpetual Preferred Stock. A cash payment of $8.125 per share will be payable on January 15, 2005 to preferred stock shareholders of record on January 1, 2005.

As permitted by Ohio law, the Directors have also approved an amendment to the company's Amended Articles of Incorporation to double the number of authorized common shares as a result of the stock split and to reduce the par value per share by one-half to reflect the stock split. These changes will become effective upon the filing of the amendment with the Ohio Secretary of State, which will occur prior to the record date.

"At this time," Brinzo continued, "pellet demand for 2005 appears as if it will once again exceed Cliffs' production capacity. Despite planned industry-wide capacity expansions, iron ore production does not appear to be keeping pace with anticipated global demand. Capitalizing on the escalating demand, Cliffs is investing significantly in capacity expansions over the next few years. Two projects slated to be completed in 2005 are expected to expand our pellet production volume by adding approximately 1.0 million tons of capacity at our United Taconite mine and another 800,000 tons of capacity at our Northshore facility. Combined, Cliffs' share of these capital investments is expected to be approximately $50 million.

"Today's announcements clearly reflect the Board's optimism regarding Cliffs' favorable long-term business outlook. We have a multi-pronged strategy for enhancing shareholder value and feel that the reinstatement of the quarterly cash dividend combined with the previously announced one million share repurchase authorization provide an efficient and balanced means of distributing a portion of our profits directly to our shareholders."

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.