Stelco Inc. was granted an Order of the Superior Court of Justice (Ontario) extending the stay period under its Court-supervised restructuring. Scheduled to expire July 18, 2005, the new order extends Stelco’s stay period until September 9, 2005.

The Court also adjourned a USW motion, seeking to remove the company's exclusivity to develop and file a restructuring plan, until August 16, 2005.

Courtney Pratt, Stelco President and CEO said, "The stay extension provides the time in which to discuss with all stakeholders the plan outline we filed three days ago. As we said then, we knew that stakeholder groups would express concern about the plan outline because it did not give them everything they asked for. As we also stated, our goal was to find a middle ground that everyone could support. There is not enough value in the company to give every group everything it wants. As well, the company is the only stakeholder with the legal obligation to take into account and address the interests and competing demands of other stakeholders."

"In our view, the pension funding component of our plan meets the objectives stated by the union and the Government of Ontario," Mr. Pratt noted. "The route we propose may be different than others that have been suggested, but the destination and the outcome are the same.

"We believe our funding plan, like the rest of the plan outline, is achievable, is financially responsible, and is compatible with the long term viability of the company. Our commitment to address the pension funding issue is demonstrated by the fact that about $900 million will be paid into the pension plans before creditors receive repayment on the first of the debt instruments that will be issued to them."

"It's time for stakeholders to consider the plan outline from everybody's perspective, not just their own," Mr. Pratt added. "As the Judge said today, people need to deal with reality, not with wishes. And the reality is that, one way or another, Stelco must emerge from CCAA sooner rather than later. Whether it does so as a successfully restructured Company or as an unsuccessfully restructured one is in the hands of the stakeholders. I urge all parties to make the best use of the time available to us between now and September."

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.