Inco comments on transaction status

Inco Limited made the following statement on the status of the decision facing Falconbridge shareholders:

"The shareholders of Falconbridge have a clear decision to make by July 27th & it's in their interest to bear a few facts in mind.

First, Inco is making the superior offer. It has the highest value & provides the greatest potential to benefit from very strong nickel & copper markets. Both short & long-term shareholders will benefit from the strong profits & cash flow of the new company. Why turn that over to Xstrata?

Second, Falconbridge shareholders can be sure of what they are getting by tendering to Inco's offer on July 27th. On July 28th, Xstrata will not need to be nearly as 'shareholder friendly' as it appears today. There can be no assurance they will not start accumulating shares at lower prices, once the support of the Inco offer is gone. At that point, Xstrata will have the opportunity to gain effective control without paying full price.

Third, Inco's offer is unconditional & Xstrata's bid remains conditional. Xstrata requires Investment Canada approval & still do not have it. Xstrata also requires a shareholder vote.

On July 27th Falconbridge shareholders will have a choice between 2 distinct options. Their best interests are with the certainty of Inco's offer."