Dofasco Inc. announced that it expects its consolidated earnings for the second quarter of 2004 to be approximately $1.45 per common share, above the range of $0.83 to $1.20 expected by steel industry analysts.

As a result of excellent performance at Gallatin and other U.S. operations, second quarter results will include an $11.6 million reduction of income tax expense due to a favorable adjustment to future U.S. income tax assets.

"The quarter's results will be better than expected as a result of continued strengthening in the pricing environment and continued very high market demand at both our Hamilton operations and at Gallatin Steel," said Don Pether, President and CEO.

Dofasco is a leading North American steel solutions provider. Product lines include hot rolled, cold rolled, galvanized, Extragal^(TM), Galvalume^(TM) and tinplate flat rolled steels, as well as tubular products, laser welded blanks and Zyplex^(TM), a proprietary laminate. Dofasco's wide range of steel products is sold to customers in the automotive, construction, energy, manufacturing, pipe and tube, appliance, packaging and steel distribution industries.