IPSCO Announces Cash Dividends 

Lisle, Illinois, November 26, 2001 -- IPSCO Inc. (NYSE/TSE:IPS) announced today a cash dividend on its common shares of $0.05 (Canadian) per share payable 31 December 2001 to shareholders of record as at 10 December 2001. The Company also announced a cash dividend of $0.34375 (Canadian) per Cumulative Redeemable First Preferred Share, Series 1 payable 15 February 2002 to shareholders of record as at 31 January 2002.

IPSCO said the preferred share dividend remained unchanged from previous periods but that the $0.05 Canadian quarterly dividend on its common shares constituted an adjustment downwards from the $0.125 paid out quarterly since March 1998. IPSCO said when it established the dividend in January 1998 it represented a yield of approximately one percent per annum on the then trading price of IPSCO's common shares. The new rate amounts to an annual yield of just slightly more than one percent based on IPSCO's closing price on the Toronto Stock Exchange on Friday, 23 November 2001. IPSCO noted it was one of the very few U.S. and Canadian steel companies paying a common dividend.

IPSCO President and Chief Executive Officer Roger Phillips said that it was the company's policy to review the dividend level routinely and the change was the result of such a review. He said that while the short term prospects for the North American steel industry remained uncertain IPSCO's assessment of its own prospects was essentially unchanged from that made in its third quarter report to shareholders in which the company foresaw a fourth quarter loss with conditions improving somewhat as 2002 progressed. But given the uncertainties cash conservation is a high priority and the common dividend reduction paralleled other steps already taken internally in this regard.
 
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