Lakeside Steel announces temporary layoff and cost containment measures



    WELLAND, ON, Feb. 2 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside
Steel") today announced the temporary layoff of up to an additional 84 hourly
employees at Lakeside Steel Corporation ("Lakeside") its wholly owned
subsidiary.
    In order to contain costs in declining markets, Lakeside today announced
the temporary layoff of up to an additional 84 hourly employees, representing
approximately 33% of its unionized workforce, at the Company's manufacturing
facility in Welland, Ontario. Lakeside previously reported the temporary
layoff of 61 hourly employees in January 2009. An additional 25 hourly
employees have elected to retire. Lakeside has also made a workshare program
application to Human Resources and Skills Development Canada for its salaried
employees.
    In order to contain costs in declining markets, Lakeside will temporarily
halt production at its facilities in Welland during the period beginning today
and ending on February 9, 2009. Certain shipping and administrative functions
will be undertaken during this temporary production halt.
    Management remains confident that its earlier projections of EBITDA are
still achievable.

    About Lakeside Steel Inc.

    Lakeside Steel is the parent company of Lakeside. Lakeside, located in
Welland, Ontario, is a diversified steel pipe and tubing manufacturer.
Lakeside's list of customers includes large oil and gas, mining, automotive
and commercial and industrial supply companies. In addition to supplying its
products in these industries, Lakeside manufactures pipe and mechanical tubing
for the resale market, which is sold to distributors in Eastern Canada and the
Northeastern United States. Lakeside manufactures a variety of products for
these industries including oil well tubing and casing, mechanical tubing,
pressure tubing, automotive tubing, hollows for redraw, line pipe, heating and
plumbing pipe, drill rod and specialty tubing. Lakeside serves customers
worldwide, either directly or indirectly, in Canada, Australia and the United
States.

    This press release may contain forward-looking statements with respect to
the Company, its operations, strategy, financial performance and condition.
These statements generally can be identified by use of forward looking words
such as "may", "will", "expect", "estimate", "anticipate", intends", "believe"
or "continue" or the negative thereof or similar variations. The actual
results and performance of the Company discussed herein could differ
materially from those expressed or implied by such statements. Such statements
are qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Important factors that could cause actual
results to differ materially from expectations include, among other things,
general economic and market factors, competition, changes in government
regulations and the factors described under "Risk Factors" in the Management's
Discussion and Analysis and Filing Statement of the Company which is available
at www.sedar.com. The cautionary statements qualify all forward-looking
statements attributable to the Company and persons acting on their behalf.
Unless otherwise stated, all forward-looking statements speak only as of the
date of this press release and the Company has no obligation to update such
statements.




For further information:

For further information: Vic Alboini, Chairman & Chief Executive
Officer, Lakeside Steel Inc., (416) 644-8110, Fax: (416) 644-0271, e-mail:
valboini@northernsi.com; Ken Hunter, Chief Financial Officer, Lakeside Steel
Inc., (905) 735-7473 ext 7218, Fax: (905) 735-9069, e-mail:
ken.hunter@lakesidesteelcorp.ca

Organization Profile

LAKESIDE STEEL INC.

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