IPSCO - A Vital Part of the New Economy

Regina, Saskatchewan, April 27, 2000 -- Roger Phillips, President and Chief Executive Officer of IPSCO Inc., addressed IPSCO's shareholders today with his view on recent moves in the market from "Old Economy" stocks in favor of "New Economy" stocks during IPSCO's Annual Meeting in Regina. Phillips stressed that the drop in IPSCO's share price in 2000 has not gone unnoticed and that shareholder value remains one of the Company's long term major objectives.

Phillips noted that the Company has experienced, in common with most of its peers, a share price deterioration of 25 percent or more since 1 January 2000. In addition so-called value stocks have generally also faired poorly. Phillips noted that the technology sector had become the darling of the stock markets: 

The most enthusiastic of the "new economy" proponents would have us believe that the "old economy" is about to fade away. This begs quite a few questions. Who will buy all the computers if resources and manufacturing industries no longer exist? What will we wear and eat if clothes manufacturers and agriculture disappear?

Of course the answer is that the "New Economy" sector is merely the provider of tools that will make the so-called "Old Economy" more efficient.

Phillips cited a few examples of how IPSCO embraces new economy technology in an old economy industry, including... 

• modern high speed equipment that has built in monitors that adjust process parameters automatically as conditions warrant;
• computers now run the equipment while operators supervise;
• mechanical work has moved to software integration;
• modeling in order to adjust prices and delivery schedules to encourage more profitable business;
• a computer-based "laboratory" which can look back at 18 years of records and use the data to verify or fine tune a computerized result;
• audio-visual conferencing with in-house equipment;
• an intranet system used to keep senior managers aware of production, order intake, safety and accident issues to mention a few;
• a website for shareholder communications

...all of which have a profound impact on the Company's productivity. Comparing statistics from 1982 to 2000 a six-fold increase in productivity was achieved with fewer employees with computer use being a key factor in this feat. Phillips concluded that "the "old economy" is really new too."

Phillips noted that IPSCO's 1999 profitability, measured in dollars operating profit per ton, was second in the industry, just missing the top spot by about one percent. "Our future prospects seem sound as well -- the Montpelier Steelworks has reached a milestone million ton annual production rate, steel prices are generally rising, and the use of steel by oil and gas companies has gone up with oil and gas prices and shows no indication of slackening, indeed natural gas futures continue to be very strong," said Phillips.

This news release contains forward looking information with respect to IPSCO's operations and beliefs. Actual results may differ from these forward looking statements due to numerous factors, including estimated time of completion of equipment installation, cost of installation, potential markets and prices for the materials produced, and oil and gas industry activity. These and other factors are outlined in IPSCO's regulatory filings with the Securities and Exchange Commission, including those on IPSCO's Annual Report for 1999, its MD&A and Form 40-F.

Company Contact:
Anne Parker
Vice President, Trade Policy and Communications
IPSCO Inc.
Tel: 306-924-7390

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