Stelco Inc. has elected to pursue the sale of wholly owned subsidiaries AltaSteel Ltd. and Norambar Inc., as well as the company's 40% ownership interest in Camrose Pipe Co. Stelco had previously announced its decision to seek buyers for Stelfil, Stelpipe and Stelwire.

Courtney Pratt, Stelco's President and CEO, said, "As in the case of previously announced asset sales, this decision was driven by the four-point strategy we announced in July. We've indicated in the past that we would sell assets outside the integrated steel business that will be the focus of the new Stelco."

The company announced that it will seek the Court's approval for the sales as part of seeking Court approval for a broader capital raising process on October 19, 2004.

The company is embarking on a capital raising process that will involve a cooperative approach with its stakeholders. The objective is to attract new capital to enable Stelco to proceed with critical capital expenditures. The proposed process would be conducted in two phases: the initial solicitation of preliminary indications of interest, followed by detailed due diligence involving a selected group of participants.

The process, if approved, will be overseen by UBS and its affiliates on behalf of the company. Preliminary expressions of interest are expected by the end of November. Proposals are expected to include equity investments, combined debt and equity investments and acquisition proposals for the businesses for sale.

Courtney Pratt said, "The objective of this process is to raise new capital for the business and its planned capital expenditure program. That capital expenditure program will significantly strengthen the competitive cost base of the Company. It is a critical step in ensuring Stelco's future viability."

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