Six parties have demonstrated their interest in participating in Stelco Inc.’s Court-approved capital raising process for its core integrated steel business by submitting detailed proposals by the December 31, 2004 deadline.

All six parties have been selected to advance to Phase Two of the process. The six proposals will be considered together with the previously approved "stalking horse" commitment provided by Deutsche Bank.

Phase Two of the process includes the performance of due diligence and submission of binding offers. Bidders will have access to a secure electronic data room containing relevant business, financial and legal information. They will also have reasonable access to Stelco management and will be provided with tours of the company's facilities. The bidders will be requested to submit binding offers on or by January 31, 2005. The offers will then be evaluated and negotiated by the Stelco Board, its financial adviser UBS, and the Chief Restructuring Officer in consultation with the Monitor. Court approval will be required before any proposed transaction agreement becomes binding.

Hap Stephen, Stelco's Chief Restructuring Officer, said, "We're very pleased with the level of interest and commitment shown by the parties that are advancing to the next phase of our capital raising process. The presence of seven strong bidders makes for a vigorous process and reflects the positive manner in which Stelco and its prospects are viewed. We look forward to an outcome that provides the best possible result for all our stakeholders."

Stelco states that it will refrain from announcing the identity of the bidders, discussing terms of the proposals that have been received, or engaging in speculation as the process is continuing.

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