Stelco Inc.’s court-appointed Monitor has filed its thirty-fifth report regarding the company's Court-supervised restructuring. The Report provides updated information regarding the previously-announced agreement for the sale of substantially all of the assets of Stelpipe Ltd. to Romspen Investment Corp.

The Report and the previous announcement noted that Romspen will assign the agreement to a new, wholly-owned subsidiary, Lakeside Steel Corp. The Report provides background information concerning the history of Stelpipe, reviews the sale process that was conducted in this matter, and outlines a number of the provisions and conditions in the asset purchase agreement. The Monitor also notes that Stelco will bring a motion on September 6, 2005 seeking Court approval of the sale.

The Monitor's Report concludes by recommending that the Court approve the sale on the grounds that, in the Monitor's view, the market was adequately canvassed for prospective purchasers, and the purchase price is fair and commercially reasonable in the circumstances. Further, the Monitor notes that the transaction preserves jobs for almost all Stelpipe employees, and that it is uncertain whether Stelpipe will be able to operate if this transaction does not close.

In addition to announcing the 35th Monitor’s Report, Stelco also confirmed that it has received the resignations of two directors, Roland Keiper and Michael Woollcombe, from the Board.

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.