Stelco Inc.’s court-appointed Monitor has filed its twenty-sixth Report regarding the company's Court-supervised restructuring. The Report provides an update on Stelco’s operations and finances, including a first-quarter production and shipping summary by business operation, a review of market and pricing conditions, cash flow results for the period January 29, 2005 to April 15 of this year, and cash flow forecasts for the period April 16, 2005 to July 8, 2005. Additional portions of the Report review previously announced developments.

In the first quarter of 2005, Stelco's integrated steel operations produced 1,020,000 net tons, which compares to 1,133,000 net tons for the same period in 2004. First quarter production for the consolidated business (including minimill operations) stood at 1,256,000 net tons, which compares to 1,366,000 net tons for the first quarter of 2004.

First quarter shipments from the integrated business totaled 973,000 net tons, which compares to 1,052,000 net tons for the same period in 2004. Shipments from the consolidated business stood at 1,200,000 net tons, compared to 1,266,000 net tons for the same period in 2004.

As of April 15, 2005, the facility utilization pursuant to the Existing Stelco Financing Agreement was $114.0 million. During the period January 29, 2005 to April 15, 2005 the total facility utilization of the Existing Stelco Financing Agreement decreased by $92.8 million.

As summarized in the cash flow forecast appended to the Monitor's Report, the Report notes that Stelco is forecasting that the total facility utilization of the Existing Stelco Financing Agreement will decrease by $71.4 million to $42.6 million between April 16, 2005 and July 8, 2005.

The Report also notes that Welland Pipe hopes to seek Court approval of a sale transaction concerning that company's U&O Mill in the near future and that Welland Pipe's land and buildings have been listed for sale with a listing price of $4 million. The Monitor also notes that the purchaser of the company's idled Plate Mill did not close the transaction for the sale of that facility on the scheduled date of April 15, 2005. The Report adds that the company is evaluating its options in this regard.

The Monitor also discusses the company's application to extend the stay period under its Court-supervised restructuring. The stay is currently scheduled to expire at midnight on April 29, 2005. The company is seeking to extend the stay, which is currently scheduled to expire at midnight on April 29, 2005, to July 8, 2005. The Court will hear the application on April 26, 2005.

The Monitor recommends that the Court grant the application on the basis that the extension is in the interests of all stakeholders. The Monitor believes that an extension is necessary to maintain operational and financial stability while the company continues discussions with stakeholders, pursues the capital raising process, completes the claims procedure and develops a restructuring plan.

The full text of the Court Monitor’s Report will be accessible through a link available on Stelco's website once the information as been filed.

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.