IPSCO Steel (Alabama) Construction Proceeds on Schedule

World's Largest Mill Stands Set in Place 

Mobile, Alabama, May 8, 2000 -- IPSCO Inc. (NYSE: IPS) announced today that it has successfully set the mill stand housings for its Mobile Steelworks.

The housings are the heart of the facility's rolling mill and are thought to be the largest one piece cast mill housings in the world, weighing approximately 350 tons each. The stands were placed in position by a 1,000 ton mobile crane, one of only two such cranes found in North America, which allowed the placement to be completed in less than two working days, much faster than the usual process. The stands were shipped by Danielli United from Italy to the Port of Mobile and were then barged to the site on the Mobile River.

"The progress at our Mobile construction site is extremely gratifying," said Roger Phillips, IPSCO President and Chief Executive Officer, "we are on time and on budget with startup planned for the first quarter of next year". Phillips said that the US $425 million estimated cost included interest during construction and the first six months of startup, as well as any losses during the six-month startup period. "The final cost is therefore very sensitive to the timeliness of the project and is difficult to predict accurately. But our progress to date leads us to lean towards the optimistic side", he added.

The 1,250,000 ton per annum Mobile Steelworks will produce discrete plate and hot rolled coil in plate and heavier sheet thicknesses. "Coupled with our 300,000 ton per annum Houston coil processing facility, which includes a 96 inch wide temper mill, this puts us in position to be the dominant supplier of flat rolled steel to fabricators in the U.S. southeast and gulf regions."

IPSCO said the products that will be produced at its Mobile Steelworks are used in storage tanks, pipe production, rail car manufacture, barges, ships, bridges, laser cut machine parts, agricultural equipment, and machinery and equipment generally.

"Our 1,250,000 ton per annum Montpelier, Iowa Steelworks, just 180 miles from Chicago, and coil processing facilities in St. Paul, Minnesota and Toronto, Ontario have given us a significant capability to serve the U.S. mid-west and central Canadian manufacturers and steel distributors. Similarly our 1,000,000 ton per annum Regina Steelworks, 150 miles north of the U.S. border in western Canada, and coil processing facilities at Regina and Surrey, British Columbia, 170 miles north of Seattle, mean that we are a dominant supplier in the western Canadian and U.S. north west markets. In effect, Mobile is the last piece in the completion of a three legged stool," Phillips said.

As a user since 1960 of the steel mini-mill concept to produce flat-rolled steel, IPSCO has over 40 years of experience producing a diversified group of steel products and providing value-added materials to its customers. The Company is recognized as a leader in using technology to produce high quality products in the most efficient way and at the lowest possible cost. The Company has processing operations throughout the United States and Canada.

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 by the Company. 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:
Roger Phillips
President and Chief Executive Officer
IPSCO Inc.
Tel: 306-924-7262

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