Stelco Inc. commented on the Court hearing held Friday. Feb. 25, in the matter of the company's Court-supervised restructuring.

The Court declared the appointment of Roland Keiper and Michael Woollcombe to Stelco's Board of Directors to be of no force and effect and that they were removed from the Board. The Court also denied the request made by representatives of the company's salaried retirees for the establishment of a Bid Review Committee.

The Court expressed its continued confidence in the company's capital raising process and in its continuing Board of Directors to identify an appropriate preferred partner with the assistance of its advisors, counsel and the Court-appointed Monitor.

Richard Drouin, Stelco's Chairman of the Board, said, "We respect today's decision and we thank Messrs. Keiper and Woollcombe for having been willing to accept the responsibilities associated with membership on the Board of Directors."

Messrs. Keiper and Woollcombe have provided an undertaking to the Court that they will maintain the confidentiality of all material and information on Stelco and its restructuring that has come into their possession since their appointment to the Board on February 18, 2005. They have also undertaken not to trade or advise on trading in the company's shares on an interim basis until otherwise dealt with by the Court.

Mr. Drouin added that, "We will continue to focus on the successful completion of our capital raising and restructuring process. The company and its advisors have not identified a preferred outcome of the capital raising process. That will emerge from the Court-approved and supervised process in which we're still engaged. Our goal remains a positive outcome that is in the best interests of the company and all its stakeholders."

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.