Stelco Inc. has reached agreement with the USWA on the next steps in the company's capital raising process and restructuring. The agreement was submitted to and approved by the Superior Court of Justice (Ontario) on Thursday, April 21, 2005.

Under terms of the agreement, the USWA has withdrawn its motion that was scheduled to be heard earlier on Thursday. Under the new agreement, the parties agreed that Tricap Management Limited will be treated as a financial advisor to the USWA.

Other terms of the agreement provide assurances, guidelines and timelines regarding the discussions and actions to be conducted by both parties in the coming weeks.

Courtney Pratt, Stelco's President and CEO, said, "We're very pleased to have concluded this agreement with the USWA. It provides a clear framework within which we can work together and with other stakeholders. This will enable us all to focus on achieving our shared goal — the successful outcome of our restructuring process.

"The Court-appointed Monitor and the Government of Ontario made strong contributions in helping us find common ground and conclude this agreement.

"We'll now proceed to, among other things, develop a plan outline that can be brought before the Court and that will provide a focus for further discussion. The nature of that outline, which we will have by May 12, 2005, will be based on the sources of capital that Stelco and its advisors believe are available to the company."

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.