IPSCO Announces Sale and Leaseback Arrangement 

Lisle, Illinois, October 13, 2000 -- IPSCO Inc. (NYSE: IPS) announced today that its U.S. subsidiary IPSCO Steel Inc. had entered into a sale and leaseback arrangement covering $150 million U.S. of melt shop and casting equipment at its Montpelier Steelworks. Proceeds will be used to reduce corporate debt.

The lease, which is structured as an operating lease, has a 15 year term and contains certain early buy-out options available to IPSCO.

IPSCO said that in a separate transaction it had renegotiated its existing bank lines and an amount of up to $200 million US would now be available on a revolving term basis, subject to compliance with certain covenants, until March 2005. A further facility in the amount of $50 million US dollars in operating credit is also in place.

Given its existing capital plans and other financing in place IPSCO said that it did not foresee the need to fully utilize the bank lines for any protracted period and based on its current projections it was unlikely the full amount would ever be drawn down.

IPSCO is a leading edge electric furnace flat rolled steel producer with steelworks in Regina, Saskatchewan and Montpelier, Iowa having a combined annual capacity of 2,250,000 tons and with a third steelworks under construction in Mobile County, Alabama with a planned capacity of 1,250,000 tons per annum.

IPSCO operates modern coil processing facilities in Regina, Saskatchewan; Surrey, British Columbia; St. Paul, Minnesota; Toronto, Ontario and Houston, Texas.

A leader in the development of high strength steel and pipe, IPSCO operates pipe mills at five locations in Canada and the United States producing a wide range of tubular products including oil and gas well casing and tubing, line pipe, standard pipe and hollow structurals.

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 being installed at its facilities, cost of installation, changes to capital plans, potential markets for the materials produced, changes to funding sources, and use of funds for capital and other corporate uses. 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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