Stelco Inc. has commented on decisions made by the Superior Court of Justice (Ontario) following a hearing held earlier this week in the matter of the Company's Court-supervised restructuring.

The company welcomed the Court's establishment of a mediation process. The mediation process, which reflects the outline contained in a Court-appointed Monitor’s Report dated May 12, 2005, will govern the discussions and negotiations regarding a restructuring plan for the company.

Stelco also welcomed the Court's appointment of the Hon. George Adams, previously designated a CCAA Officer of the Court in the matter of Stelco's restructuring, to serve as the mediator. Mr. Adams is a highly regarded mediator and arbitrator, former Superior Court Judge, former Chair of the Ontario Labor Relations Board, law professor and counsel. The mediator, with the assistance of the Court-appointed Monitor and any other stakeholder the mediator wishes to consult, will determine the nature, format and duration of the process itself.

In addition to establishing the mediation process and mediator, the Court further directed that all participants in the mediation process shall express no views publicly on the matters being discussed in that process until the CCAA proceedings have been concluded. The Court also dismissed motions brought by other parties that would have, among other things, reintroduced Island Energy Partnership into the Company's capital raising process and expanded the role of Tricap as a financial advisor to the USWA in that process.

Courtney Pratt, Stelco's President and CEO, said, "We welcome the establishment of a confidential and mediated process and the appointment of George Adams as mediator. We believe that discussions conducted in a confidential setting assisted by a mediator will be much more likely to achieve progress than negotiating in public. We look forward to Mr. Adams' participation and contribution."

The company noted that while its plan outline will serve as the starting point for discussions under the mediation process, other stakeholders will be free to present other ideas within the procedures to be determined by the mediator.

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.