Feb. 13, 2006 — Stelco Inc.’s Court-appointed Monitor has filed its fiftieth report regarding the company's Court-supervised restructuring. The Report provides updated information regarding the proposed reorganization of Stelco's corporate structure, in which distinct portions of the company's business would be transferred into separate limited partnerships.

In its report, the Monitor recommended that the Court grant an Order approving the proposed corporate reorganization, to be accomplished by way of plan of arrangement under the Canada Business Corporations Act. The Report acknowledged, however, that even with this approval, significant work remains to be done. This work includes settling definitive documentation and resolving outstanding issues with key stakeholders in order to enable Stelco to implement the plan of arrangement and exit from Court protection under the Companies' Creditors Arrangement Act, which is scheduled to occur during the first quarter of 2006.

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Stelco, one of Canada's longest-established steel companies, is currently in the final stages of a Court-supervised restructuring. This process is designed to establish the company as a viable and competitive producer for the long term. The new Stelco will be focused on its Ontario-based integrated steel business located in Hamilton and in Nanticoke. These operations produce high quality value-added hot rolled, cold rolled, coated sheet and bar products.