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Dec. 29, 2006 — Ipsco Inc. has revised its outlook for the fourth quarter, estimating that earnings per diluted share will be in the range of $3.00 to $3.10.

The estimate excludes any impact of the NS Group acquisition, foreign exchange gains or losses or effects of share price volatility, and assumes an effective tax rate of 36%. It compares to Ipsco’s original estimate for earnings in the range of $3.30 to $3.50 per diluted share.

The company has experienced a larger-than-expected decline in demand for steel plate and tubular shipments in the fourth quarter. The decline, says the company, is a result of aggressive inventory reduction activities in this sector.

Energy tubular demand in Western Canada has also been adversely affected by poor weather conditions and lower levels of natural gas drilling activity. The reduction in demand has resulted in greater-than-anticipated production curtailments at Ipsco. The company has subsequently scheduled accelerated maintenance programs.

Fourth quarter results will also be negatively impacted by factors related to the NS Group acquisition. Issues that will negatively affect results include customary purchase accounting adjustments, such as increased amortization, depreciation and interest expense. This combined with foreign exchange losses and effects of share price volatility is expected to further negatively impact the quarter.

"Inventory de-stocking has created a short-term reduction in steel product demand which is anticipated to end in the early part of 2007, however, we are well positioned with enhanced value added products which we expect to provide strong results for 2007," said David Sutherland, Ipsco’s President and CEO.

Ipsco is a leading producer of energy tubulars and steel plate in North America with an annual steelmaking capacity of four million tons. With the acquisition of NS Group, Ipsco now operates four steel mills, eleven pipe mills, and scrap processing centers and product finishing facilities in 25 geographic locations across the United States and Canada. The company's pipe mills produce a wide range of seamless and welded energy tubular products including oil & gas well casing, tubing, line pipe and large diameter transmission pipe. Ipsco is also a provider of premium connections for oil and gas drilling and production.

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