Stelco Inc. has had discussions with Deutsche Bank for the purpose of deleting reference to a management share plan in the Deutsche Bank Commitment Letter.

The change reflects the desire on the part of corporate management and Stelco to put forward a proposal for stakeholder consideration that could result in broad consensus.

Mr. Richard Drouin, Stelco's Chairman of the Board said, "The management team contacted me and recommended the change to ensure a proposed management share plan would not in any way hinder a full review of the Deutsche Bank Commitment Letter by stakeholders."

The Deutsche Bank Commitment had contemplated that 3% of the equity would be reserved for management related to compensation arrangements, to be used at the discretion of the future Board of Directors. Deutsche Bank has agreed to withdraw that provision of the plan.

Courtney Pratt, Stelco's President and CEO said, "While we understand and appreciate Deutsche Bank's consideration of management in its allocation of equity, we do not want management compensation to be a part of this or any other potential transaction."

The Deutsche Bank Commitment Letter will be amended to reflect the changes with respect to the allocation of shares to management, and will be reissued to the Court for their consideration.

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