IPSCO Reports 2005 Record Sales And Earnings Enters 2006 with Solid Demand for Plate, Energy Tubular and Large Diameter Tubular Products *Results Are Reported in U.S. Dollars on a U.S. GAAP Basis* Lisle, Illinois, February 6, 2006 - IPSCO Inc. (NYSE/TSX:IPS) announced today record net income in 2005 of $585.8 million, or $11.96 per diluted share, compared to $454.9 million or $8.69 per diluted share in 2004. The increased earnings are primarily attributable to higher average selling prices, increased margins across most product lines, and a stronger product mix due to record sales of energy tubular products. Income before taxes increased 43% to $883.5 million compared to $618.9 million in 2004. This increase was partially offset at the net income line by a higher tax rate of 34% in 2005 versus 29% in 2004. IPSCO's sales increased 20% in 2005 to $3.03 billion compared to $2.53 billion in 2004. Average selling price per ton increased 23% while customer shipments of 3.46 million tons declined 3%. Record energy tubular shipments and strong large diameter pipe shipments totaled 903,000 tons, an increase of 5% over the prior year, and were offset by a 4% decline in steel mill products and an 18% decline in industrial products shipments. About 32%, or 1.1 million tons, of IPSCO's total shipments in 2005 were tubular products.  IPSCO's net income in the fourth quarter of 2005 was $170.2 million ($3.52 per diluted share) compared to $199.1 million ($3.91 per diluted share) for the same period last year and $134.0 million ($2.78 per diluted share) in the third quarter of 2005. Sales for the quarter were $852 million, an increase of 6% or $51 million over the same quarter last year and 17% or $126 million over the prior quarter. As compared to the same quarter last year, gross margins were compressed to 30.3% from 35.5% due to higher costs for alloys, energy and consumables. In addition, Sales, General and Administration expenses for the quarter were $10 million higher than a year ago primarily due to the increased value and number of stock based compensation units, increased expenses related to IPSCO's SOX 404 compliance effort, and increased charitable contributions.  Compared to the prior quarter, increased earnings were driven by a 12% increase in shipments to a new record of 953,000 tons. Average pricing improved 4% to $894 per ton but margins were down slightly due to increased scrap and alloy costs. Late in the fourth quarter IPSCO received a favorable legal settlement related to the construction of the Mobile Steelworks. Approximately $10 million ($0.15 per diluted share) of this settlement was recorded as income to offset legal fees expensed in previous periods.  Changes in the foreign exchange rate resulted in a foreign exchange loss for the quarter of $9.8 million ($0.15 per diluted share) versus a gain in the prior quarter of $18.1 million ($0.24 per diluted share). Early debt retirement expense impacted earnings by $5.5 million or $0.09 per share. The effective tax rate for the quarter was 25% compared to 38% in the prior quarter and the 36% rate assumed in guidance for the fourth quarter. Compared to the prior quarter and the effective tax rate assumed in the guidance, the fourth quarter rate favorably impacted results by $0.62 and $0.52 per diluted share, respectively.  The fourth quarter 2005 effective tax rate of 25%, and subsequent impact on the annual rate of 34%, was the result of changes in the statutory tax rates and allocation factors within Canadian jurisdictions and the utilization of certain foreign tax credits for which benefit was not previously taken. An additional factor in the reduction of the effective tax rate for the quarter was the restructuring of certain subsidiaries within the Company.  Operating income per ton shipped for the year was $259, compared to $186 in 2004.  Operating income per ton in the fourth quarter was $244 compared to $300 per ton in the fourth quarter of 2004 and $238 per ton in the prior quarter.  During the fourth quarter new records were established in numerous areas for the Company. Total fourth quarter shipments were 953,000 tons, an increase of 58,000 tons compared to last year and 106,000 tons higher than the prior quarter. Energy tubular shipments increased 18% and 1% respectively over last year and prior quarter. IPSCO's average fourth quarter product price was $894 per ton, inclusive of surcharge, the same as a year ago and up from $856 in the prior quarter.  "We are pleased to report IPSCO's fourth consecutive year of record sales and production levels. Our challenge in 2005 was to sustain the record financial results achieved in 2004. Our employees and facilities responded with another record setting performance where we were able to increase earnings per share by 38% over our previous record," said David Sutherland, President and Chief Executive Officer. "Our 2005 financial results were another new milestone for the Company as we enter 2006 and begin to celebrate IPSCO's 50th anniversary." Outlook The Company believes that end user demand for steel mill products will remain relatively stable in 2006. We expect high oil and gas prices to continue to drive high rig counts and demand for OCTG products. The current 2006 forecasts suggest that drilling activity will increase 6-8% over 2005 which was itself a very strong year. Large diameter pipe bookings have been very strong and we now expect our spiral pipe facilities to be running at full capacity throughout 2006.  We expect to invest approximately $150 million of capital in our tubular and steel making facilities in 2006 to both maintain our production capabilities and increase our value added product mix. Our Mobile Quench and Temper mill commenced normalizing operations in December of 2005. We are pleased with the quality of product that the normalized facility is producing and are in the process of ramping up production. Completion of the Quench and Temper Line is expected to be slightly delayed into the second quarter due to the effects of Hurricane Katrina and rain.  We anticipate that higher costs of steel making inputs in the first quarter will result in some margin compression in our product lines. Excluding foreign exchange gains or losses and assuming a significantly higher effective tax rate of 39%, we forecast first quarter 2006 earnings to be in the range of $2.70 to $2.90 per diluted share.  IPSCO has scheduled the live webcast of its 2005 year end results conference call at 10:00 AM EDT on Monday, February 6, 2006. During the call IPSCO President and CEO, David Sutherland, Senior Vice President and CFO, Vicki Avril and Executive Vice President - Steel and Chief Commercial Officer, John Tulloch will discuss IPSCO Inc.'s annual and fourth quarter results.  Persons wishing to listen to the webcast may access it in the Investor Information, Presentations section. The conference call, including the question and answer portion, will also be archived on IPSCO's web site for three months. IPSCO, traded as "IPS" on both the New York Stock Exchange and Toronto Stock Exchange, operates steel mills at three locations and pipe mills at six locations in the United States and Canada. As a low cost North American steel producer, IPSCO has a combined annual steel making capacity of 3,500,000 tons. The Company's tubular facilities produce a wide range of tubular products including line pipe, oil and gas well casing and tubing, standard pipe and hollow structurals. Steel can also be further processed at IPSCO's five temper leveling and coil processing facilities.  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, but not limited to: weather conditions affecting the oil patch; drilling rig availability; demand for oil and gas; supply, demand and price for scrap metal and other raw materials; supply, demand and price for electricity and natural gas; demand and prices for products produced by the Company; general economic conditions; and changes in financial markets. These and other factors are outlined in IPSCO's regulatory filings with the Securities and Exchange Commission and Canadian securities regulators, including those in IPSCO's Annual Report for 2004, its MD&A, particularly as discussed under the heading "Business Risks and Uncertainties", its Annual Information Form, and its Form 40-F. Company Contact: Tom Filstrup Director of Investor Relations Tel. 630-810-4772 tfilstrup@ipsco.com  Release 06-03