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Stelco Files Financial Affidavit with CCAA

Feb, 26, 2004 — Stelco Inc. has served affidavit material responding to the application of the United Steelworkers of America, Locals 8782, 1005 and 5328 in connection with the order under the Companies Creditors Arrangement Act (CCAA) issued by the Ontario Superior Court of Justice on January 29, 2004 imposing a stay, which currently expires on May 28, 2004.

Stelco has filed an affidavit of its Chief Restructuring Officer, Hap Stephen, in response to the application. The affidavit, which can be accessed through the Stelco website, addresses Stelco’s financial situation and its insolvent condition. The affidavit provides additional information, including:

• Stelco, at the parent company level, has consumed approximately $145 million in cash from January 1, 2003 to January 29, 2004.
• The estimated net loss for the two month period from December 1, 2003 to January 31, 2004 is $17.0 million on a consolidated basis prior to the likely write-off of the company's Hamilton-based plate mill assets (estimated at $57.0 after tax) and future tax assets (estimated at $296.0 million) and other one-time adjustments.

Stelco Inc., Canada's largest and most diversified steel producer, is involved in all major segments of the steel industry through its integrated steel business, minimills, and manufactured products businesses. Stelco has a presence in six Canadian provinces and two states of the United States. Consolidated net sales in 2002 were $2.8 billion.

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