Algoma Steel withdraws from Stelco process

February 10, 2005

Ontario-based Algoma Steel Inc. has announced that it does not intend to submit a binding offer for Stelco Inc. Algoma had been engaged in due diligence and in discussions with Stelco and its stakeholders since mid-December. Denis Turcotte, President and CEO, stated, "Algoma's due diligence has confirmed that there are significant potential benefits in a combination of Algoma and Stelco, but given the risks and obligations associated with the acquisition, we have concluded that proceeding with the transaction would not be in the best interests of our shareholders."