Ipsco Inc. announced its intention to initiate a share repurchase program, by way of a normal course issuer bid, through the facilities of the Toronto Stock Exchange of up to 10% of the public float of its Common Shares, approximately 4.2 million shares. As of March 3, 2005 the company had 50,161, 875 Common Shares outstanding.

Any purchases under the bid will be made during the period of March 16, 2005 to March 15, 2006, and will be made at the prevailing market price at the time of purchase. Common Shares purchased under this bid will be cancelled.

Ipsco believes that using available cash to repurchase common shares would be an appropriate way to enhance shareholder value, as the company’s earnings prospects do not always fairly reflect the company’s current market valuation. Given Ipsco’s current strong cash position, the repurchase plan may be implemented without adversely inhibiting the company's growth opportunities.

In addition to the share repurchase, Ipsco has given notice to holders of its 7.32% Series B Senior Notes due April 1, 2009, that the remaining $57 million outstanding principal amount will be redeemed effective April 11, 2005. Proceeds for the share repurchase and the debt redemption will come from corporate funds. Upon redemption, debt and debt-like instruments will be approximately 26% of total capital.

For the quarter ended December 31, 2004, Ipsco generated $254 million of operating cash flow and had cash of $355 million. The company anticipates that operating cash flow will remain strong, based on current market conditions in North America for Ipsco's plate and tubular energy products. Ipsco's management and its Board have for some time been evaluating how best to use its accumulating cash to benefit shareholders. The two recent increases in the dividend and elimination of the dilutive instruments were first steps in addressing this objective.

"This strong market, combined with industry consolidation, positions Ipsco to take advantage of the healthier market dynamics," said David Sutherland, Ipsco's President and CEO. "Demand and pricing in North America for Ipsco's products remain robust and this should result in continuing strong operating cash flow. Given our current favorable financial position, we will prioritize cash utilization opportunities including capital investments, dividends, debt redemptions, share buybacks and acquisitions, for the purpose of optimizing sustainable shareholder value," he said.

Ipsco operates steel mills at three locations and pipe mills at six locations in Canada and the United States. As a low-cost North American steel producer, Ipsco has a combined annual steelmaking capacity of 3,500,000 tons. The company's tubular facilities produce a wide range of tubular products including line pipe, oil and gas well casing and tubing, standard pipe and hollow structurals, for a combined annual capacity of 1,775,000 tons.
Steel can also be further processed at Ipsco's five temper leveling and coil processing facilities.