IPSCO's industry-leading profitability starts with advanced mini-mill technology, which converts scrap to liquid steel to achieve significant savings in labor, raw material and energy costs. Our lean manufacturing and Six Sigma initiatives also continue to bear fruit, as evidenced by a continuous reduction in man-hours per ton of plate and coil produced over the past five years. However, IPSCO's most important competitive advantage may be its unique operating structure. As a fully integrated steel and pipe company, we are invested along a single value chain from raw materials to steel manufacturing and processing. This gives us the opportunity to optimize production, control quality and enhance margins at every stage of our operations.

INDUSTRY-LEADING PROFITABILITY IPSCO's December 2006 acquisition of NS Group resulted in the strategic combination of two of the most profitable players in the steel and energy services industries. *NS Group results reflect unaudited nine-month results for the period from January 1, 2006 to September 30, 2006.