IPSCO Ends 2002 Profitably

Please Note That IPSCO Results are Reported in U.S. Dollars

Lisle, Illinois, February 10, 2003 - IPSCO Inc. (NYSE/TSX:IPS) announced today record sales of $1.08 billion, up 20% over 2001 and 14% higher than the previous record set in 2000. Net income was $20.3 million compared to $38.9 million last year. Net income attributable to common shareholders was $8.9 million, compared to $27.4 million in 2001. Both basic and diluted earnings per share in 2002 were $0.19, compared to $0.67 and $0.66 per share respectively in 2001. The 2002 fourth quarter and annual results included a one-time gain on the sale of assets of $4.1 million, $0.09 per share, while the 2001 results included two non-recurring items totaling $18.6 million or $0.45 per share. Operating profit per ton shipped for the year was $17, compared to $16 per ton in 2001.

Fourth quarter net income was $12.8 million. Net income attributable to common shareholders was $10.0 million, $0.19 per diluted share, a significant improvement over the $15.5 million loss ($0.38 per diluted share) reported last year. Sales for the quarter were $256.1 million, up $33.6 million or 15% over the fourth quarter of 2001.

"While IPSCO had record sales and production levels, and continued to enjoy solid market penetration as a result of our newer facilities in the United States, we were disappointed with our profitability," said David Sutherland, President and Chief Executive Officer. "Demand for our plate products was adversely affected by soft market conditions in the industrial markets we serve, and low drilling rates throughout North America hurt sales and earnings for tubular products, most notably oil country tubular goods in Canada."

Record annual sales volume of 2,896,900 tons exceeded 2001 shipments by 19%. Sales of steel mill products, comprising hot rolled coil, cut plate and discrete plate, totaled 2,115,000 tons. The 35% improvement over 2001 reflected the first full year of operation for the Mobile Steelworks. Sales volume for tubular products, which include standard pipe, hollow structurals, and energy related tubular products, fell by 11%. 

Liquid steel production for the year 2002, which included a full year's output from all three IPSCO steelworks, reached a record 3,007,700 tons, almost 25% higher than in 2001.

Sales volume for the fourth quarter totaled 638,700 tons, up 6% over the fourth quarter of 2001. Quarterly sales of steel mill products were 461,400 tons, 16% higher than in the fourth quarter of 2001. Tubular product sales of 177,300 tons in the fourth quarter were down 15% from the year earlier period. 

The outlook for overall product demand is one filled with considerable uncertainty based on market trends. Extremely soft conditions in the industrial markets we serve continue to depress steel mill product sales volume and pricing. Any change in this outlook for IPSCO's industrial markets would require an improvement in the overall economy. In addition, recent scrap market trends are resulting in cost increases. Consequently, the consensus of analysts' estimates of first quarter 2003 results is significantly higher than current conditions would warrant. While IPSCO expects to be profitable in the first quarter, the level will be heavily dependent on the performance of the energy tubular sector. 

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 weather conditions, drilling rig availability, demand for oil and gas, energy costs, demand for and prices for products produced by the company, and general economic trends. 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 2001, 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
IPSCO 
Tel. 630-810-4769
Release 03-06

Fourth Quarter 2002 Financial Statements
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2001 and 2002 Tons Shipped by Quarter
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