Tree Island Completes Early Renewal and Five Year Extension of its Banking Facility

Tree Island Steel Ltd. (the "Company" or "Tree Island") (TSX:TSL) announced
today, that it has successfully renewed its senior banking facility, on more
favourable terms, with Wells Fargo Capital Finance Corporation Canada ("Wells
Fargo"). The five year senior secured banking facility (the "Facility") has been
increased from $40.0 million to $60.0 million. 


Under the terms of the Facility, up to $60.0 million may be borrowed in Canadian
and/or US dollars. Interest is charged at variable rates based on the Canadian
and/or US Prime rate and the Canadian B.A. rate and/or the Eurodollar rate. The
amount advanced under the Facility at any time is limited to a defined
percentage of inventories, accounts receivable and real estate, less certain
reserves. The Facility is secured by a first charge over Tree Island's assets
supported by the appropriate guarantees, pledges and assignments, and requires
that certain covenants be met by Tree Island. 


Dale R. MacLean, President and CEO of Tree Island, commented: "With our new five
year Facility and Wells Fargo's continuing support, our Company has the
financing capacity to continue to grow and deliver on our strategic
initiatives." 


"This new five year $60 million credit facility provides Tree Island with a
platform to leverage its improved financial position and take advantage of
improving demand fundamentals occurring in our primary end markets," commented
Amar S. Doman, Chairman of the Board of Tree Island. "We are pleased that Wells
Fargo has reaffirmed its confidence in Tree Island and the Company's ability to
achieve sustained, profitable growth," Mr. Doman added. 


About Tree Island Steel 

Headquartered in Richmond, British Columbia, since 1964, Tree Island Steel,
through its four operating facilities in Canada and the United States, produces
wire products for a diverse range of industrial, residential construction,
commercial construction, agricultural, and specialty applications. Its products
include galvanized and bright wire; a broad array of fasteners, including
packaged, collated and bulk nails; stucco reinforcing products; concrete
reinforcing mesh; fencing and other fabricated wire products. The Company
markets these products under the Tree Island, Halsteel, K-Lath, Industrial
Alloys, TI Wire, and Tough Strand brand names. Tree Island Steel also owns and
operates a China-based company that assists the international sourcing of
products. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Tree Island Steel Ltd.
Ali Mahdavi
Investor Relations
416-962-3300 or [phone]
[e-mail]


Tree Island Steel Ltd.
Nancy Davies
[phone]
[e-mail]
www.treeisland.com