IPSCO Issues Earnings Guidance

Lisle, Illinois, 17 January 2002 - IPSCO Inc. (NYSE/TSE:IPS) said today that while final 2001 results will not be released until 5 February 2002 it can confirm that, excluding two unusual provisions, fourth quarter results will meet the higher end of current market expectations of losses. IPSCO announced in its Third Quarter Report to Shareholders that it expected to report a loss for the fourth quarter. Current analyst loss estimates are in the range of 10 to 20 cents. 

IPSCO is considering two non-cash charges, not yet taken into account by analysts, totaling $12 million or about 19 cents per share. 

First the company expects to reserve for possible receivables losses associated with the well-publicized Chapter 11 filing of a major service center account. This adjustment is prudent even though IPSCO is confident the customer will make every effort to fulfill its payment obligations.

A second non-cash charge is being considered to reflect a lower book value for certain capital assets which are not employed in production which would take into account their most recent valuation.

"Looking to the future, we think several fundamentals are working in IPSCO's favor," said David Sutherland, President and Chief Executive Officer. "We believe we have operations, which are amongst the most modern in North America, poised to respond to customer requirements. Recently announced price increases are in place for key products and consolidation efforts by major industry players could also lead to capacity rationalization. Finally, we expect a comprehensive and effective tariff based relief program to be implemented by the U.S. Administration. The International Trade Commission, acting on a safeguard action initiated by President Bush, found that the steel industry has been severely injured by steel imports and recommended that remedies be put in place." 

"However, we also want to caution investors about the risks of this soft market continuing. IPSCO is well positioned to provide for increased demand, but expects to report losses until this recessionary economy turns around and pricing improves," said Sutherland.

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 inventory levels for, and demand from, distributors and steel service centers, levels of steel imports to North America, trade actions with respect to unfairly traded steel, dramatic pricing developments or overall economic fluctuation, weather conditions affecting use of the company's products, oil and gas drilling levels and possible deteriorating customer credit. 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 2000, its MD&A, particularly as discussed under the heading "Business Risks and Uncertainties", and Form 40-F.

Company Contact:
Bob Ratliff
Vice President and Chief Financial Officer
Tel. 630-810-4769
Release 02-02

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