Stelco Inc. has reached agreement with General Motors for a contract commencing April 1, 2005 and ending December 31, 2006. While recent contracts with General Motors have typically been for one year, the new arrangement covers a longer period.

Conditions to the agreement include written confirmation by November 18, 2004 that Stelco has entered into a memorandum of agreement with USWA Lake Erie Local 8782 for a new collective agreement. The agreement is to be effective for the duration of the General Motors contract. This condition is consistent with the previously announced deadline set by General Motors in October with respect to Stelco's labor situation.

The General Motors agreement is also conditional on court approval of the agreement as well as the two announced Deutsche Bank commitments by November 22, 2004. The Deutsche Bank commitments in turn require a satisfactory General Motors contract be in place.

Stelco will seek approval of the Deutsche Bank commitment letters and the General Motors agreement on November 22, 2004. Stelco filed court materials on Monday with the Ontario Superior Court of Justice for the hearing.

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.