Paulson & Co Inc holding directly and indirectly 19% of the outstanding shares of Algoma Steel Inc. asserted the right of Algoma shareholders to requisition a special meeting, elect directors and consider company business as provided by Ontario law.

Mr Michael Waldorf, VP of Paulson, said "Shareholders in a Canadian company have the right to a meeting, to replace directors that are not acting to increase shareholder value, and to advise the board on important matters such as the best use of corporate assets. As Algoma has publicly acknowledged, our firm Paulson & Co. Inc has submitted a legal requisition for a special shareholder meeting. Canadian courts have consistently supported shareholders in exercising such rights. We expect the company to comply with its obligations and a shareholder meeting to be held promptly."

"Despite efforts by the union to mischaracterize Paulson's proposal, our previously announced recapitalization plan merely returns Algoma's excess capital to shareholders. Our firm intends to be a substantial Algoma shareholder both before and after any transaction that a new board of directors may approve. We are and will remain very interested in the short-term and long-term financial health of the company, and we look forward to Algoma's continued prosperity. Even after excess capital is returned to shareholders, Algoma will have the ability to fully fund necessary capital expenditures and to meet pension and health care obligations to employees. We recognize Algoma's importance to the Sault Ste. Marie community and will support the company's efforts on behalf of the community."