Bul Kathos's Wedding Band Effect

How does the Bul Kathos's Wedding Band effect, "You drain life from enemies around you", work when you are level 70?

Does it count as Life Steal, and thus is useless or does this get around that limitation?

http://us.battle.net/d3/en/item/bulkathoss-wedding-band

Solution 1:

1. It returns 1% of YOUR MAX LIFE per second as long as 1 mob is around you.
2. If more than 1 mob is around you you still only gain 1% of YOUR MAX LIFE
3. It damages all mobs around you for 0.4% of MOB'S CURRENT LIFE. Thus the damage it does to a mob gets smaller as a mob loses life.
4. You cannot kill mobs with this effect alone, when their life gets low enough it stops doing damage.
5. Range of it is extremely short

Quote from http://us.battle.net/d3/en/item/bulkathoss-wedding-band

Which makes me think it's life regen and not life steal. Others in this thread corroborate these numbers and statements.