IPSCO Initiates Legal Proceedings

20 May 1999

IPSCO Initiates Legal Proceedings

    REGINA, SASKATCHEWAN--May 19, 1999-- IPSCO(TSE:IPS.) IPSCO Inc. announced today that its United States' subsidiary, IPSCO Steel Inc., has initiated legal proceedings against the contractors for its Montpelier, Iowa steel mill. The complaint has been filed in the United States District Court for the Southern District of Iowa, Central Division. The dispute underlying the litigation arises out of the design and construction of the mill.
    The action alleges that the mill was turned over to IPSCO after the date specified in the turnkey contract and that the contractors failed to perform warranty work and to meet other contractual obligations in respect of the equipment. It also alleges that the contractors were negligent, by their failure to use due care in the design, procurement, and construction of the mill, and that they did not accurately disclose material information to IPSCO relating to the progress of the project and other matters. In the litigation IPSCO seeks to recover its out-of-pocket cots and certain other damages.
    IPSCO stated the lawsuit was commenced only after it became obvious that an amicable settlement of the disputed items could not be achieved at this time.
    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 those discussed in IPSCO's 1998 Annual Report for its fiscal year ended December 31, 1998.