IPSCO Commits To A $60,800,000 Investment In Saskatchewan

***Dollar figures in this Release are in Canadian dollars***

Regina, Saskatchewan, January 25, 2007 - IPSCO Inc. (NYSE/TSX:IPS) announced today that it is proceeding with a further $60,800,000 expansion of its existing Regina large diameter pipe making facility. This expansion will include an additional pipe forming mill and related finishing equipment to increase both the capacity and flexibility of the existing facility and create approximately 50 new pipe mill jobs. Together with its previously announced capacity increase currently under construction, IPSCO’s large diameter spiral pipe capacity will be increased by two thirds to 500,000 tons by early 2008. 

"IPSCO will continue to invest in the pipe and steel technology and appropriate capacity to keep the Company at the forefront of large diameter line pipe industry on a globally competitive basis" said David Sutherland, President and CEO. "Our footprint in Saskatchewan, backed by extensive production experience and technology developed at its Frontier Pipe Research Unit, give IPSCO an unparalleled opportunity to continue to be the leader in this business." 

"I do want to acknowledge the key role of Premier Lorne Calvert and the Saskatchewan Government in working to help create the economic climate needed to make this kind of investment possible," Mr. Sutherland said.

"We appreciate SaskPower's efforts to ensure that IPSCO has stability in its power contract for the Regina Works," Mr. Sutherland continued. "With the support of the Province, IPSCO and SaskPower have successfully negotiated a power agreement that facilitates the expansion of our Regina facilities and this substantial investment."

IPSCO is a leading low cost producer of energy tubulars and steel plate in North America with an annual liquid steel making capacity of 4.3 million tons. The Company operates four steel mills, eleven pipe mills, nine product finishing facilities and nine scrap processing centers in 25 geographic locations across the United States and Canada. IPSCO’s pipe mills produce a wide range of seamless and welded energy tubular products including oil & gas well casing and tubing, line pipe, drill pipe, large diameter transmission pipe, standard pipe and hollow structurals. The Company also manufactures premium connections for oil and natural gas drilling and production under its ULTRA™ brand name. IPSCO trades as “IPS” on both the New York and Toronto Stock Exchanges. 

This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believes”, “expect”, “will”, “can” and other expressions that are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking statements. Although IPSCO Inc. believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include: 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 2005 Form 10-K, particularly as discussed under the heading "Statement Regarding Forward Looking Information” and “Risk Factors Related To Our Industry”. The Company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

Company Contact:
Tom Filstrup
Director, Investor Relations
Tel. 630-810-4772
tfilstrup@ipsco.com

Release 07-03 Local Version