IPSCO Comments On Rating Agency's Actions

Lisle, Illinois, February 24, 2004 - IPSCO Inc. (NYSE/TSX:IPS), reported today that Standard & Poor's lowered their ratings on IPSCO's debt securities, citing past demand weakness for IPSCO's core products.

"While we were surprised by the timing of this rating decision, we understand the change was based on past results from a very challenging period in our markets and during our peak building periods," said Bob Ratliff, Vice President and Chief Financial Officer. "Ratings based on the low point of cyclical businesses are virtually always conservative. However, this change comes at a time when IPSCO's market positions have never been stronger. We turned the corner months ago with all of our new steelworks performing exceptionally well and we are generating positive free cash flow. We are not expecting a down turn anytime soon."

IPSCO agrees with Standard and Poor's assessment that "Strong prices in 2004 should improve the Company's profitability and cash flow protection, which combined with the completion of its capital expenditure program, should result in positive free cash generation." In addition, the agency correctly stated that "Debt maturities in the next few years are moderate and should be retired through positive free cash flow from operations, given that capital expenditure requirements will be low."

The corporate credit and senior unsecured debt ratings were lowered by Standard & Poor's from BB+ to BB. Standard & Poor's states that the outlook is stable. The preferred stock rating was reduced to B from B+. IPSCO has stated it intends to redeem the preferred stock in May, and has more then adequate cash to cover that redemption. IPSCO continues to exceed all of its financial covenants under its current outstanding financing arrangements, and the ratings will not result in additional finance expenses under these 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, including those in IPSCO's Annual Report for 2002, its MD&A, particularly as discussed under the heading "Business Risks and Uncertainties", and its Form 40-F as amended.

Company Contact:
Bob Ratliff
Vice President and Chief Financial Officer
IPSCO 
Tel. 630-810-4769
Release 04-06

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