March 14, 2007 — Algoma Steel Inc. announced that discussions with Salzgitter AG regarding a possible acquisition of Algoma have terminated.

Algoma said that a number of other interested parties had contacted the company while discussions with Salzgitter were underway. Algoma will provide some of these parties with information about the company, and will enter into preliminary discussions with them.

The company notes that there can be no assurance that any agreement will result from these discussions or that any transaction will be completed.

Algoma Steel is an integrated steel producer based in Sault Ste. Marie, Ont. Revenues are derived primarily from the manufacture and sale of rolled steel products including hot and cold rolled sheet and plate.