Stelco Inc. has signed a Letter of Intent concerning the sale of Norambar Inc., Stelfil Ltée and Stelwire Ltd. to Mittal Canada Inc., a subsidiary of Mittal Steel Co. NV.

Stelco had announced its pursuit of the sale of these non-core assets, with updates issues periodically as part of its Court-supervised restructuring process. The initiative reflects Stelco's decision, as outlined in the four-point strategy announced in July 2004, to focus on its core integrated steel business. (http://www.steelnews.com/04/jul110.htm)

Courtney Pratt, Stelco President and Chief Executive Officer, said, "This marks an important step in the process of pursuing a transaction that would be good for all concerned. We're committed to working with Mittal to conclude a definitive agreement as quickly as possible."

The transaction is subject to a number of conditions, including negotiation of a definitive agreement and the obtaining of Court approval. If all conditions are satisfied as planned, it is anticipated that the sale will close early in 2006.

Stelco is a large, diversified steel producer involved in major segments of the steel industry through its integrated steel business, minimills, and manufactured products businesses.