IPSCO Comments on Third Quarter Earnings 

Wet Weather Affects Summer Drilling Season 

Lisle, Illinois, August 16, 2000 -- IPSCO Inc. (NYSE: IPS) said today that its third quarter profit would be close to that of the second quarter as opposed to increasing as many analysts had initially predicted.

"Pent up demand for new sources of natural gas and oil in Canada presaged a very active summer drilling season in western Canada. Instead, unusually wet weather has impeded the movement of drilling rigs and oil country tubular goods. While activity is higher than the third quarter of 1999 and this year's second quarter it is nevertheless disappointing," said Roger Phillips, President and Chief Executive Officer, to analysts in Toronto today.

"A month ago when flat rolled steel prices for the third quarter were continuing to weaken it was expected that very strong oil country tubular goods sales would more than make up for the price erosion. With half the quarter over, and the weekly count of rigs drilling dropping because of continuing bad weather, this assumption now appears unrealistic," Phillips said.

Prospects for the balance of 2000 are not all negative, however, he pointed out.

"Continuing high energy prices and record cash generation reported by energy companies mean that as soon as conditions improve drilling should surge. After freeze-up we should see substantial increases in the demand for energy related steel products," Phillips said.

Another positive is a recent modest perking up in large diameter pipe for the fourth quarter after a more or less blank third quarter.

While hot rolled coil prices remain depressed, especially in the U.S. market, and discrete plate prices have also fallen back, but not to the same extent, the recent closure of bankrupt Gulf States Steel in Alabama means that up to 400,000 tons annually of plate demand is up for grabs. We will take advantage of our recently unified sales force, using product from both our 96 inch wide temper leveling and cut-to-length line in Houston and our Montpelier, Iowa steelworks to serve this market pending next year's startup of IPSCO's new Mobile steelworks," he said.

It is also rumored that another large U.S. plate producer has temporarily taken some plate capacity out of production.

Depressed steel import price levels generally remain a problem in both Canada and the U.S., Phillips pointed out, but recently strengthening plate prices in Asia are a sign that the problem, for at least plate, will be diminishing in the near future.

Phillips said the company's overall order book in tonnage terms remained strong and that it was continuing to buy steel to supplement its own production.

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, 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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