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Slater Steel Announces Financially Superior Offer for Sorel Forge

Feb. 21, 2004 — Slater Steel Inc. has received from a subsidiary of A. Finkl & Sons Co. an executed definitive agreement to acquire on a going concern basis substantially all of the assets of Slater's Sorel Forge subsidiary.

Slater has until March 2, 2004 to accept the offer.

The new offer is financially superior to the company's previously announced sale agreement with the Tricap Restructuring Fund. As a result, subject to obtaining the requisite approval of the Ontario Superior Court of Justice, Slater intends to accept the Finkl offer. Slater will seek approval of the Court on March 1, 2004.

In accordance with its agreement with the Tricap Restructuring Fund, Slater will pay Tricap, on the execution of the agreement with Finkl, a $1.2 million break-up fee as a result of terminating the transaction.

The transaction is expected to close in March 2004.

Located in Sorel-Tracy, Que., Sorel Forge is the largest integrated open-die forging plant in Canada. Sorel produces mold, tool and die steels, custom forgings and forged steel bars and is among the few facilities in the world that is capable of producing large mold blocks of up to 55,000 pounds. Sorel employs approximately 270 hourly and salaried employees.

Finkl & Sons. Co. is a U.S.-based manufacturer of forging die steels, plastic mold steels, die casting tool steels and custom open-die forgings.

Slater Steel is a minimill producer of specialty steel products.

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