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Ivaco Substantially Reduces Debt and Interest Costs

17 September 1999

Ivaco Substantially Reduces Debt and Interest Costs

    MONTREAL--Sept. 16, 1999--Ivaco Inc. (TSE:IVA.) (ME:IVA.) announces that it has irrevocably deposited US$135.2 million (Cdn$201.1 million) in trust with Chase Manhattan Trust Company, National Association for the early redemption of Ivaco's 11.5 percent Senior Notes on September 15, 2000. The amount deposited represents the full principal amount of the Senior Notes outstanding on September 16, 1999 as well as the premium associated with early redemption and the interest for the twelve months ended September 15, 2000. As a result of this initiative Ivaco's debt has been reduced by approximately Cdn$180 million and Ivaco will no longer incur approximately Cdn$21 million of annual interest costs.
    Ivaco is a Canadian corporation and is a leading North American producer of steel, fabricated steel products and precision machined components. Ivaco has operations in Canada and the United States. Shares of Ivaco are traded on The Toronto Stock Exchange and The Montreal Exchange (IVA).