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Stelco Comments on
Government Notice of Motion

May 25, 2004 — Stelco Inc. commented on a Notice of Motion filed by the Government of Ontario. The Ministry of Labour is seeking the Court's direction on and, if the Court deems it appropriate, an Order regarding the Ministry's ability to appoint a Conciliation Officer within the context of the collective bargaining negotiations at Stelco's Lake Erie plant.

The Notice of Motion is the result of a request by USWA Local 8782 to the Ministry for the appointment of a Conciliation Officer in the matter of its collective bargaining agreement with the company.

Hap Stephen, Stelco's Chief Restructuring Officer, said, "We have just received the Notice of Motion and the extensive Motion Record filed with it. We will review the documents, discuss their significance, and determine what, if any, additional response is required on our part.

"The government's action provides all parties with the opportunity to resolve this matter, in Court, and within the context of the restructuring process.

"Our position has been consistent from the outset. We do not believe that the appointment of a Conciliation Officer is appropriate within the context of a Court-supervised restructuring process. We believe that, in light of the company's current circumstances, it would be more appropriate to discuss the Lake Erie collective bargaining agreement in the context of the broader discussions we will be having with all stakeholders in our restructuring process. This process involves more parties than management and labour alone, and more issues than a collective bargaining agreement with one of our union Locals.

"As the company noted a week ago, if the recruitment of a neutral third party would afford the opportunity to achieve the start of meaningful discussions, then we would certainly be open to it. The success of our restructuring process rests on the participation of all of our stakeholders and their willingness to contribute to a positive outcome."

Stelco Inc. is a large, diversified steel producer. Stelco is involved in all major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses. Consolidated net sales in 2003 were $2.7 billion.

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