Lakeside Steel Restructures Salaried Staff

WELLAND ON, Oct. 7 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) (the "Company" or "Lakeside Steel") announced that it has implemented a restructuring of the salaried workforce at its Welland location.

Implemented as a cost saving measure intended to improve the Company's competitive position in the marketplace, this restructuring initiative will reduce the number of salaried employees at the manufacturing facility by 25% and will result in a corresponding 25% reduction in wage costs for salaried personnel.

Ron Bedard, Lakeside's President and CEO commented, "This restructuring is an important and necessary measure in Lakeside's ongoing campaign to rationalize the cost base of its business. This is an example of an initiative we have taken to maintain the Company's continued profitability and reinforce our ability to maintain a competitive position within the industry."

About Lakeside Steel Inc.

Lakeside Steel is a 2010 TSX Venture Exchange 50 company and the parent company of Lakeside Steel Corporation ("Lakeside") and Lakeside Steel Alabama Inc. ("Lakeside Steel Alabama"). 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 and the United States.

Lakeside Steel Alabama will be a diversified steel pipe manufacturer strategically situated in the southern United States on successful completion of the construction of the new facility in Thomasville, Alabama.

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, Annual Information Form and Filing Statement of the Company which are 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Lakeside Steel was recognized as a TSX Venture 50(R) company in 2010. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.

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For further information: Ron Bedard, President & Chief Operating Officer, Lakeside Steel Inc., [phone] ext. 7294, Fax: [phone], e-mail: [email protected]; Ken Hunter, Chief Financial Officer, Lakeside Steel Inc., [phone] ext. 7218, Fax: [phone], e-mail: [email protected]