Stelco Inc. announced that two additional prospective bidders made public their expressions of interest in Stelco's core integrated and non-core businesses.

Algoma Steel Inc. announced on Tuesday, Dec. 21 its possible interest in participating in the process. Later the same day, the Island Energy Partnership (IEP), a joint venture between the Ontario Teachers' Pension Plan Board and Sherritt International Corp., announced that it had submitted a $1.8 billion recapitalization and asset purchase proposal. The IEP proposal includes purchase of assets as well as additional capital investment by IEP in the assets after they have acquired them from Stelco.

Courtney Pratt, Stelco President and CEO, said, "We're delighted with the expressions of interest announced today and previously as part of our Court-approved capital raising process. Our goal has been a vigorous and competitive process that benefits all of our stakeholders. The expressions of interest we've received suggest that our goal is being achieved."

Hap Stephen, Stelco Chief Restructuring Officer, said, "We're pleased to note the Algoma and Island Energy Partnership's announcements of this afternoon. Each proposal will be subject to due diligence and negotiation before any binding offers are requested under Phase II of the process approved by the Court on November 29, 2004. The next stage for Algoma will be to provide to us some details of what it has in mind. Island Energy's proposal does include some details including a list of proposed benefits with dollar values associated with each element. At this stage, it is hard to predict how those values will change as due diligence takes place."

Stelco noted that the Island Energy Partnership expression of interest is complex and will require thorough review. This expression of interest encompasses a refinancing including equity rights, the acquisition by IEP of Stelco's selected coke and utility assets, and provision of funds for future capital projects related to those particular assets acquired by Island Energy.

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.