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Stelco Provides Restructuring Update

March 2, 2004 — Stelco announced that additional financial information has been posted to its website relating to its financial condition and proceedings before the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (CCAA).

Preliminary financial information for the year ended December 31, 2003 includes:

• A consolidated net loss of $192 million before asset write-offs, revaluations and other adjustments, which are expected to be substantial.
• Consolidated cash usage of $114 million financed by a reduction in cash balances from the beginning of the year of $44 million, and an increase in bank indebtedness of $70 million.

Stelco cautioned that this information is preliminary and subject to audit. With respect to completion of its debtor-in-possession financing, Stelco reported that the commitment from its operating lenders for $75 million debtor-in-possession financing has been extended to March 12, 2004. Stelco expects to complete the necessary documentation and satisfy the conditions for draws under the debtor-in-possession financing in the near future.

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, mini-mills, 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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