Stelco Inc. (ticker: STE.to, exchange: Toronto Stock Exchange) News Release - 4/30/2004

Stelco puzzled by Gerstenberger rejection of government role in restructuring

Company again urges him to join in discussion with others, not drive them away Courtney Pratt: "Join us in finding solutions, not scapegoats"

HAMILTON, ON, Apr 30, 2004 (Canada NewsWire via COMTEX) -- Stelco Inc. (TSX:STE) today commented on USWA Local 1005 President Rolf Gerstenberger's statements that appeared in a Canadian Press story yesterday.

Mr. Gerstenberger is reported as saying that governments should not participate in Stelco's restructuring, criticizing any potential government assistance as an "easy way out" of the Company's problems by using "tax money to bail Stelco out". He went on to say those problems should be addressed through the collective bargaining process, not the Court-supervised restructuring initiated on January 29, 2004.

Courtney Pratt, Stelco President and Chief Executive Officer, said, "We appreciate that Mr. Gerstenberger is acknowledging the extent of our problem. But we're puzzled why the representative of so many of our own employees would want to turn away possible sources of help - especially as it may relate to pensions.

"People are beginning to come to the table to participate in our restructuring process. This is not the time to drive them away. Just about every other observer has recognized that governments have a stake in this process and may have a role to play. We would have thought Mr. Gerstenberger would want them at the table when everyone else seems to recognize that they should be. The survival of the Company will require the active participation and contribution of every interested group.

"Governments have already begun to come forward. Just days ago the Premier of Ontario made a terrific gesture by indicating that his government would "be there" for our employees, retirees, and other stakeholders. And just yesterday the Hon. Tony Valeri encouraged all parties to come to the table and indicated the government of Canada's willingness to consider any proposals that emerge through that process.

"I would have thought that Mr. Gerstenberger would welcome these gestures rather than asking governments not to participate in, or contribute to, a positive outcome. I just don't see how that approach protects the interests of our employees and retirees, not to mention the other groups and communities that depend so heavily on Stelco for their jobs, economic activity, and tax revenue for government programs and services."

Mr. Pratt reminded Mr. Gerstenberger that a Court-supervised restructuring can't be conducted like a collective bargaining process. "Stelco can only survive if all parties participate and contribute. The process involves many more parties than just management and labour in the context of a collective agreement.

"Contrary to Mr. Gerstenberger's claim yesterday on CHTV that 'We produce everything. We have the first claim,' a restructuring isn't about 'we' and 'they' - it's about finding a solution that takes into account the interests of other groups like retirees, suppliers to the Company, and more."

Pratt added, "I invite Mr. Gerstenberger once again to join us and other interested groups in finding solutions, not scapegoats, if Stelco is to survive. Stelco will not be saved by taking up valuable time attaching blame to any one group for past events. We all have to focus on the future or Stelco won't have a future."

Stelco Inc. is a large and diversified Canadian steel producer. It 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 in two states of the United States. Consolidated net sales in 2002 were $2.8 billion.

This news release may contain forward-looking information with respect to the Corporation's business operations, financial performance and conditions. Actual results may differ from expected results for a variety of reasons including factors discussed in the Corporation's Management's Discussion and Analysis section of the Corporation's 2002 Annual Report.

To learn more about Stelco and its businesses, please refer to our Web site at www.stelco.ca.

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For further information:

Tim Huxley, Vice President - Corporate Affairs

(905) 528-2511, Extension 4070;