IPSCO Announces Second Quarter Results

Montpelier Steelworks Contribution Strengthens

Please Note That IPSCO Financial Results are Being Reported in US$

Lisle, Illinois, July 17, 2000 -- IPSCO Inc. (NYSE: IPS) announced today that its second quarter net income was $15.3 million, down five percent from the second quarter of 1999. After deducting preferred share dividends and interest on subordinated notes, net income available to common shareholders was $12.3 million. After provision for preferred share dividends and subordinated note interest, the earnings per common share were $0.31 as compared to $0.36 in the second quarter of 1999.

Shipments at 559,000 tons exceeded those of a year earlier by 33 percent due to greater throughput at the Montpelier Steelworks. Both unit selling prices and volume shipped were ahead of the second quarter of 1999 for all product categories with the exception of large diameter line pipe. The difference between the two years' quarters can be attributed to product mix.

Sales revenue at $236.6 million was up 28 percent from the second quarter of 1999. Six month sales were $494.3 million, an increase of 35 percent over the first half of 1999.

Steel mill products shipments at 244,400 tons and further fabricated products at 314,600 tons were both ahead of the second quarter of 1999, surpassing it by 65 and 15 percent respectively.

The Montpelier Steelworks has reached a production capability of about one million tons per annum of steel mill products. Conversion costs at Montpelier, exclusive of scrap and alloy materials, were ten percent below the second quarter of 1999, reflecting ongoing improvements in the overall operation achieved despite a large increase in natural gas prices.

Capital spending of $141.7 million during the quarter was again chiefly targeted on the Mobile Steelworks, which remains scheduled for a first quarter 2001 startup.

For the last six months of the year continuing high energy prices, especially those for natural gas, promise increasing sales of small diameter line pipe and oil and gas well casing and tubing, items typically more profitable on a per unit basis than flat rolled products. On the negative side price increases for both hot rolled coil and discrete plate, announced earlier for the third quarter, have been rescinded for the majority of grades, and coil prices may well reach levels below the second quarter. The weakness in coil was brought on by increasing imports - once again offshore producers have over -estimated their domestic needs and are dumping their over-production in North America, actions which are bound to provoke a new round of trade cases. Despite some decrease in demand by steel distributors due to inventory reductions the good news is that there seems to be little or no slowdown at the steel end-use level in America while the Asian and European economies continue to strengthen. Many experts believe that there is not much capability worldwide for increased steel production in the short term and that the current slight over-production will be overtaken in a matter of months by the continuing natural increase in demand.

Given this scenario IPSCO foresees a profitable second half with its magnitude depending on the degree of energy activity on one hand and the level and duration of price weakness due to dumped steel mill products on the other.

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, inventory levels, dramatic pricing developments or overall economic fluctuation, weather conditions affecting use of the company's products, and potential markets for the materials produced. 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:
Bob Stefaniuk
Vice President of IPSCO Enterprises Inc.
Tel: 630-810-4787

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