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Ivaco Restructuring Plan on Track

Jan. 21, 2004 — Ivaco Inc. is proceeding in accordance with the Court-approved timetable towards a potential restructuring of its business under the Companies' Creditors Arrangement Act (CCAA).

In commenting on the company's progress to date, Gordon Silverman, President and CEO of Ivaco Inc., commented, "Under the guidance of the Restructuring Committee, assisted by Chief Restructuring Officer Randall Benson, the company continues to proceed toward its goal of developing a restructuring plan that will see the company emerge from Court protection and return to long-term profitability". Mr. Benson added, "The company has made progress in implementing its initial phase of cost reductions and has, in meetings with its stakeholders, articulated its direction with respect to future reductions essential to providing a sustainable return to profitability."

On November 28, 2003, the Ontario Superior Court of Justice extended the period of Court protection under the CCAA until February 13, 2004. In accordance with the process agreed with its creditors and approved by the Court, the company has already conducted a number of information sessions with its stakeholders. Based on the information presented at these sessions, it is the current view of Ivaco's management and Board of Directors, that Ivaco's shareholders, including holders of its preferred shares, are unlikely to receive any value for their shares under any Restructuring scenario.

Ivaco filed for protection under the CCAA on September 16, 2003, citing difficult market conditions for the entire North American steel industry, which included the high Canadian dollar, U.S. anti-dumping duty deposits and higher input, energy and transportation costs.

Ivaco, a Canadian corporation, is a leading North American producer of steel, fabricated steel products and precision machined components. Ivaco's operations include Canada's largest rod mill, which has a rated production capacity of 900,000 tons of wire rods per annum. In addition, its fabricated steel products operations have a rated production capacity in the area of 350,000 tons per annum of wire, wire products and processed rod, and over 175,000 tons per annum of fastener products.

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