Several bids have been received for the recapitalization or purchase of Stelco Inc.’s core integrated steel business. Bids, as defined under Stelco’s Court-approved capital raising and asset sale process, had been due by the end of the day on Monday, Feb. 14.

Stelco had announced on January 4, 2005 that a number of interested parties — including Deutsche Bank as the 'stalking horse' bidder — were participating in the process. Several bids have now been received under this capital raising process, although Stelco has declined to identify the bidders or to discuss the terms of the offers. Published reports indicate that not all of the original participants have submitted a bid.

A number of bids were also received for Stelco’s non-core subsidiaries. Here, too, the company declined to identify the bidders or to discuss terms of the offers.

Hap Stephen, Stelco's Chief Restructuring Officer, said, "We're pleased with the outcome of the Court-supervised process and with the number of offers that have been submitted. Our goal from the outset has been a competitive process in the interests of all our stakeholders. We believe that objective has been achieved." Mr. Stephen indicated that the company, its financial advisors and the Court-appointed Monitor will proceed to assess the bids and to seek clarification as may be required from the bidders.

Courtney Pratt, Stelco's President and CEO, said, "The board will be meeting on February 18th to assess the bids. Once the subsequent detailed analysis of the bids has been conducted, the Board will be in a position to make decisions regarding the bids and the next steps to pursue in the process." Any bids accepted by Stelco will be subject to Court approval.

The company advised that it does not anticipate making any further announcement in these matters during the balance of this week. Stelco will continue to disclose any relevant developments as they arise.

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.