---

IPSCO Announces Sale and Leaseback Arrangement

16 October 2000

IPSCO Announces Sale and Leaseback Arrangement

    LISLE, Ill.--Oct. 13, 2000--IPSCO Inc. announced today that its U.S. subsidiary IPSCO Steel Inc. had entered into a sale and leaseback arrangement covering $150 million U.S. of melt shop and casting equipment at its Montpelier Steelworks. Proceeds will be used to reduce corporate debt.
    The lease, which is structured as an operating lease, has a 15 year term and contains certain early buy-out options available to IPSCO.
    IPSCO said that in a separate transaction it had renegotiated its existing bank lines and an amount of up to $200 million US would now be available on a revolving term basis, subject to compliance with certain covenants, until March 2005. A further facility in the amount of $50 million US dollars in operating credit is also in place.
    Given its existing capital plans and other financing in place IPSCO said that it did not foresee the need to fully utilize the bank lines for any protracted period and based on its current projections it was unlikely the full amount would ever be drawn down.